HyreCar Inc. (NASDAQ: HYRE), the carsharing marketplace for ridesharing and food/package delivery services, today reported financial results and provided a corporate update for the fourth quarter and year ended December 31, 2019.
Full Year 2019 Financial Highlights
- Revenue was $15.9 million, compared to $9.8 million in 2018, an increase of 62%.
- Net Loss of ($12.4) million and earnings per share of ($0.89), compared to ($11.2) million and ($1.31) in 2018.
- Adjusted Loss of ($10.4) million and adjusted earnings per share of ($0.75), also referred to as adjusted net income per share, compared to ($0.83) in 2018.
Fourth Quarter 2019 Financial Highlights
- Revenue was $4.8 million, compared to $3.2 million in 2018, an increase of 50%.
- Net Loss of ($4.9) million and earnings per share of ($0.40), compared to ($2.6) million and ($0.31) in 2018.
- Adjusted Loss of ($4.4) million or and adjusted earnings per share of ($0.36), also referred to as adjusted net income per share.
Additional Fourth Quarter 2019 Highlights
- New drivers to the platform in Q4 2019 were up 69% year over year
- Number rental days on our platform increased 35% from approximately 145,738 in Q3 2019 to 197,243 in Q4 2019, and commercial bookings represented 76% of all cars rented on the platform.
- Customer Satisfaction Rates continue to improve to industry-leading answer rates of 90% or greater and Customer Experience ratings increase across major consumer rating websites
- Technological improvements to security architecture, backend systems to ensure scalability of the Hyrecar platform and reduction of technology costs through code optimizations.
- Commercial inventory starts have begun to accelerate with the onboarding of two large regional rental fleet partners with over vehicles in Q4
“HyreCar’s fourth-quarter revenues grew to $4.8 million, even as we continued to improve and expand every aspect of our partnerships and platform,” said Joe Furnari, Chief Executive Officer of HyreCar. “Despite uncertain times, we see opportunities to maintain our current business now and expand our business as the country goes back to work.”
“We will continue to work hard in the coming months to keep our employees safe and productive as we continue to build our ecosystem to help our clients and customers benefit from the changes in the transportation, mobility and package delivery industries by moving people to look for subscription and rental opportunities for cars versus car ownership.”
Adjusted net income per share is a non-GAAP financial measure. See the reconciliations of these measures to their respective most directly comparable GAAP measure below in this press release.
Fourth Quarter 2019 Financial Discussion
Total revenue, in the fourth quarter of 2019, increased 50%, to a record $4.8 million, compared to $3.2 million, in the fourth quarter of 2018. Revenue growth in the fourth quarter was primarily driven by rental days increasing 35% from approximately 145,738 in the third quarter to approximately 197,243 in the fourth quarter. Revenues were also impacted by a reduction in new driver incentives, seasonality and timing of commercial car supply onto the platform versus the same quarter in 2018.
Total operating expenses, consisting of sales and marketing, general and administrative, and research and development expenses, were $4.3 million in the fourth quarter of 2019, compared to $3.6 million in the same year-ago quarter. Operating expenses declined 28% from $6.0 million in the prior quarter. The increase in operating expenses for the year does include $0.4 million in non-cash stock-based compensation costs.
Net loss in the fourth quarter of 2019 totaled $4.9 million, or ($0.31) per share, compared to a net loss of $2.6 million, or $(0.30) per share, in the prior year’s quarter. Adjusted net loss for the fourth quarter, after excluding certain non-cash stock-based compensation for employee compensation and legal expenses was $4.4 million, or $(0.36) per share. A reconciliation of net income to adjusted net income per share is included within this press release.
Cash on December 31, 2019, totaled $10.6 million. This was primarily the result of the completion of a secondary offering in July 2019 so we believe that we have sufficient cash resources to continue operations indefinitely.
Full Year Quarter 2019 Financial Discussion
Total revenue in the full year of 2019 increased 62%, to a record $15.9 million, compared to $9.8 million, in the full year of 2018. Revenue growth in the full year was primarily driven by increased rental days that rose 61.4% during the year as net rental days increased from approximately 384,835 in 2018 to approximately 621,201 in the 2019. Revenues were also impacted by a reduction in new driver incentives, seasonality and timing of commercial car supply onto the platform.
Total operating expenses, consisting of sales and marketing, general and administrative, and research and development expenses, were $18.3 million in the full year of 2019, compared to $13.8 million in the same period a year ago. The increase in operating expenses was primarily due to increased sales and marketing expenses to support business expansion and does include $1.9 million in non-cash stock-based compensation costs.
Net loss in the full year of 2019 totaled $12.4 million, or ($0.89) per share, compared to a net loss of $11.2 million, or $(1.31) per share, in the prior year. Adjusted net loss for the full year, after excluding certain non-cash stock-based compensation for employee compensation and legal expenses was $10.5 million, or $(0.75) per share. A reconciliation of net income to adjusted net income per share is included within this press release.
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