LOS ANGELES, Aug. 15, 2022 (GLOBE NEWSWIRE) -- HyreCar Inc. (NASDAQ:HYRE), the carsharing marketplace for ridesharing and food and package delivery services, today reported financial results and provided a corporate update for the second quarter ended June 30, 2022.

Second Quarter 2022 Financial Highlights

Revenue was $10.5 million, compared to $9.1 million during the same period of 2021, an increase of approximately 16% from the same quarter last year, achieving the strongest revenue quarter in the company's history
Gross margin hit a twelve month high of 35% in Q2 of 2022, improving by over 11 points compared to Q2 of 2021 normalized gross margin of 24%
Net loss was ($4.4) million and earnings per share of ($0.20), compared to ($9.3) million and ($0.45) per share in the same period last year
Adjusted EBITDA of ($3.4) million down from ($4.1) million in Q1 of 2022, and ($7.1) million in Q2 of 2021
Cash, Cash Equivalents and Restricted Cash were approximately $6.7 million as of June 30, 2022

Additional Second Quarter 2022 Highlights and Recent Developments

Driver demand continued to increase compared to the first quarter, with new driver signups increasing 10% and a 28% increase in first driver rentals
Cars rented for the first time increased 2% while total transacting cars increased by 5% quarter-over-quarter on a sequential basis
The Company welcomed Greg Tatem as its new Chief Technology Officer to lead HyreCar's Product Management and Engineering teams

"HyreCar generated record revenue in the second quarter of 2022, with the highest gross margin in the trailing twelve months despite a challenging macroeconomic environment," said Joe Furnari, CEO. "We continued to invest in strategic initiatives to significantly increase car supply. We also continued to see positive indicators in the broader economy that point to sustained and growing driver demand."

Adjusted EBITDA 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.

Second Quarter 2022 Financial Discussion

Total revenue increased approximately 10% quarter-over-quarter to $10.5 million, compared to $9.6 million in the first quarter of 2022 and increased 16% year-over-year versus $9.1 million in the second quarter of 2021.

Gross margin hit a 12-month high in the second quarter, reaching 35% versus 31% in the first quarter, reflecting an improvement of 11 points over normalized Q2 of 2021 gross margin of 24%. Margin improvements were driven by cost control, better processes, and appropriate risk pricing.

Total operating expenses, consisting of general and administrative, sales and marketing, and research and development expenses, totaled $8.1 million for the three months ended June 30, 2022, a decrease of $0.2 million over the prior quarter. On a cash basis, we achieved our medium-term operating expense target of $7 million a quarter, down from over $8 million three quarters ago.

Adjusted EBITDA (a non-GAAP financial measure as described above) totaled ($3.4) million for the three months ended June 30, 2022, an improvement from ($4.1) million in Q1 of 2022, and ($7.1) million in Q2 of 2021.

Cash, Cash Equivalents and Restricted Cash totaled $6.7 million as of June 30, 2022.

Conference Call

Management will host an investor conference call at 1:30 p.m. PDT (4:30 p.m. EDT) on Monday, August 15, 2022, to discuss HyreCar's second quarter 2022 financial results, provide a corporate update, and conclude with Q&A from participants. To listen to the conference call, interested parties within the U.S. should dial 1-866-777-2509 (domestic) or 1-412-317-5413 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the HyreCar Inc. conference call.

The conference call will also be available through a live webcast that can be accessed at https://event.choruscall.com/mediaframe/webcast.html?webcastid=w1p26nww. The webcast replay will be available for three months and can be accessed through the above links.

About HyreCar

HyreCar Inc. (NASDAQ:HYRE) is a national carsharing marketplace for ridesharing, food, and package delivery via its proprietary technology platform. The Company has established a leading presence in Mobility as a Service (MaaS) through individual vehicle owners, dealers, rental agencies, and OEMs that wish to participate in new mobility trends. By providing a unique opportunity through our safe, secure, and reliable marketplace, HyreCar is transforming the industry by empowering all to profit from Mobility as a Service. For more information, please visit hyrecar.com.

Forward-Looking Statements

Statements in this release concerning HyreCar Inc.'s ("HyreCar" or the "Company") future expectations and plans, including, without limitation, HyreCar's future earnings, partnerships and technology solutions, its ability to add and maintain additional car listings on its platform from car dealers, and consumer demand for cars to be used for ridesharing, may constitute forward-looking statements for the purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks, uncertainties and assumptions. You should not place reliance on these forward-looking statements, which include words such as "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" or similar terms, variations of such terms or the negative of those terms. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee such outcomes. HyreCar may not realize its expectations, and its beliefs may not prove correct. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including, without limitation, market conditions and the factors described in the section entitled "Risk Factors" in HyreCar's most recent Annual Report on Form 10-K and HyreCar's other filings made with the U. S. Securities and Exchange Commission. All such statements speak only as of the date made. Consequently, forward-looking statements should be regarded solely as HyreCar's current plans, estimates, and beliefs. Investors should not place undue reliance on forward-looking statements. HyreCar cannot guarantee future results, events, levels of activity, performance, or achievements. HyreCar does not undertake and specifically declines any obligation to update, republish, or revise any forward-looking statements to reflect new information, future events, or circumstances or to reflect the occurrences of unanticipated events, except as may be required by applicable law.

Non-GAAP Financial Information

To supplement HYRE's financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, HYRE presents certain financial measures that are not prepared in accordance with GAAP, specifically adjusted EPS. These non-GAAP financial measures, which are defined below, should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.

HYRE is presenting these non-GAAP financial measures to assist investors in seeing HYRE's operating results through the eyes of management and because HYRE believes that these measures provide a useful tool for investors to use in assessing HYRE's operating performance against prior period operating results and against business objectives. HYRE uses the non-GAAP financial measures in evaluating its operating results and for financial and operational decision-making purposes.

The accompanying tables provide more detail on the GAAP financial measures that are most directly comparable to the non-GAAP financial measures described above and the related reconciliations between these financial measures. HYRE has not reconciled adjusted EPS guidance to GAAP net income or GAAP net income per diluted share, respectively, because HYRE does not provide guidance for the reconciling items between these measures and GAAP net income or GAAP net income per diluted share, respectively. As certain of the items that impact GAAP net income and/or GAAP net income per diluted share cannot be reasonably predicted at this time, HYRE is unable to provide such guidance. Accordingly, a reconciliation to GAAP net income or GAAP net income per diluted share is not available without unreasonable effort.

The following table provides a reconciliation of net loss to Adjusted EBITDA for the years ended June 30, 2022 and 2021:

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021
Net loss	$	(4,379,007	)	$	(9,335,160	)	$	(9,706,490	)	$	(16,541,695	)
Adjusted to exclude the following:
Other expense (income), net		(6,671	)		(169	)		(9,833	)		254
Provision for income taxes		800			800			800			800
Depreciation and amortization		46,236			19,269			53,003			38,539
Stock-based compensation expense		942,600			2,193,869			2,121,888			5,961,543
Adjusted EBITDA	$	(3,396,042	)	$	(7,121,391	)	$	(7,540,632	)	$	(10,540,559	)

HYRECAR INC.

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
	2022			2021
Assets
Current assets:
Cash and cash equivalents	$	3,573,595		$	11,499,136
Restricted cash		3,111,107			3,248,271
Accounts receivable		418,771			162,586
Insurance and security deposits		47,897			95,000
Other current assets		532,014			1,061,520
Total current assets		7,683,384			16,066,513

Property and equipment, net		4,044			5,265
Intangible assets, net		546,152			372,592
Right of use assets		864,413			—
Total assets	$	9,097,993		$	16,444,370

Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable	$	4,350,234		$	5,567,233
Accrued liabilities		3,536,145			2,877,438
Insurance reserve		2,270,553			2,330,190
Right of use liabilities (current)		245,736			—
Deferred revenue		52,305			52,192
Total current liabilities		10,454,973			10,827,053

Right of use liabilities		635,305			—
Total liabilities		11,090,278			10,827,053

Commitments and contingencies		—			—

Stockholders' equity (deficit):
Preferred stock, 15,000,000 shares authorized, par value $0.00001, 0 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		—			—
Common stock, 50,000,000 shares authorized, par value $0.00001, 21,843,648 and 21,609,409 issued and outstanding as of June 30, 2022 and December 31, 2021, respectively		218			216
Additional paid-in capital		77,903,739			75,806,853
Accumulated deficit		(79,896,242	)		(70,189,752	)
Total stockholders' equity (deficit)		(1,992,285	)		5,617,317
Total liabilities and stockholders' equity (deficit)	$	9,097,993		$	16,444,370

HYRECAR INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended			Three Months Ended			Six Months Ended			Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2022			2021			2022			2021

Net Revenue	$	10,508,180		$	9,057,866		$	20,058,772		$	16,506,266

Cost of revenue		6,795,721			8,253,164			13,399,342			12,969,314

Gross profit		3,712,459			804,702			6,659,430			3,536,952

Operating Expenses:
General and administrative		4,885,825			6,090,899			9,432,175			11,795,352
Sales and marketing		1,843,751			2,875,084			4,071,207			5,582,275
Research and development		1,367,761			1,173,248			2,871,571			2,699,966
Total operating expenses		8,097,337			10,139,231			16,374,953			20,077,593

Operating loss		(4,384,878	)		(9,334,529	)		(9,715,523	)		(16,540,641	)

Other (income) expense
Interest expense		—			3,893			288			5,799
Other income		(6,671	)		(4,062	)		(10,121	)		(5,545	)
Total other (income) expense		(6,671	)		(169	)		(9,833	)		254

Loss before provision for income taxes		(4,378,207	)		(9,334,360	)		(9,705,690	)		(16,540,895	)

Provision for income taxes		800			800			800			800

Net loss	$	(4,379,007	)	$	(9,335,160	)	$	(9,706,490	)	$	(16,541,695	)

Weighted average shares outstanding - basic and diluted		21,792,707			20,521,674			21,770,156			19,881,584
Weighted average net loss per share - basic and diluted	$	(0.20	)	$	(0.45	)	$	(0.45	)	$	(0.83	)

Investors:

Scott Arnolds

CORE IR

scotta@coreir.com

Media:

Allie Potter

Skyya PR for HyreCar

allie@skyya.com