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HyreCar Reports Third Quarter 2018 Financial Results; Revenue Increases 224% to $2.7 Million; Gross Profit Margin Expands Significantly to 54.0%HyreCar Inc. (NASDAQ: HYRE), the car sharing marketplace for ride sharing, today reported financial results and provided a corporate update for the third quarter ended September 30, 2018. Financial Summary:
Recent Operational Highlights:
Management Commentary: "I am pleased to announce record growth in the third quarter of 2018, which stemmed directly from increased platform adoption by both automotive dealerships and rideshare drivers," said Joe Furnari, Chief Executive Officer of HyreCar. "As automotive dealers are faced with more change and uncertainty than at any point in their existence, the incentive to list vehicles on the HyreCar platform and participate in the exciting Mobility as a Service industry is greater than ever before. This represents a significant opportunity in our goal to gain critical mass in the marketplace. "Participation in the HyreCar platform truly presents a win-win situation for all participants, providing aspiring rideshare drivers with a reliable, low-cost source for insured vehicles, while automotive dealers gain a new pool of prospective buyers and simultaneously diversify their businesses into the Mobility as a Service industry. HyreCar currently generates more than 30,000 new driver leads per month, representing an immense growth opportunity as we continue to scale and bring institutional vehicle supply online." "We are continuing our steady pace of operational execution throughout all areas of our business. We are increasingly well known at all levels of the industry and are now universally recognized as a thought leader within the shared mobility arena. Our recent strategic partnerships, such as those with TIKD, PassTime and Shift, further bolster our value proposition to institutional vehicle supply sources - from which we fully expect to drive strong sequential growth. In addition, our revenue and gross profit growth has positioned us well to reach our stated goal of becoming cash flow positive by the second quarter of 2019," concluded Furnari. Third Quarter 2018 Financial Results Total revenue in the third quarter of 2018 increased 224% to a record $2.7 million, compared to $0.8 million in the third quarter of 2017. Sequentially, this represents an increase of 18% when compared to revenue of $2.3 million in the second quarter of 2018. The revenue increases were primarily due to the growth of the Company's business, which resulted from the expansion of the sales team and increased digital marketing spend and brand awareness. Gross profit in the third quarter of 2018 increased to $1.5 million, compared to $0.1 million in the same year-ago quarter. Gross profit margin in the third quarter of 2018 increased significantly to 54%, compared to 14% in the same year-ago quarter. Margin expansion was driven by increases in driver revenue and referral income. Total operating expenses, consisting of research and development, sales and marketing and general and administrative expenses, were $3.2 million in the third quarter of 2018, compared to $1.4 million in the same quarter of 2017. The increase in operating expenses was primarily due to expanding selling, general and administrative expenses to support revenue growth. Net loss in the third quarter of 2018 totaled $1.8 million, or $(0.15) per share, compared to a net loss of $1.3 million, or $(0.28) per share, in the same quarter of 2017. The increase in net loss is primarily due to expanding operating expenses to support revenue growth. Cash at September 30, 2018 totaled $8.7 million, compared to $11.9 million at June 30, 2018. Full Year 2018 Revenue Guidance For the full year ending December 31, 2018, HyreCar expects revenues to range between $9.75 to $10.25 Million. The Company expects gross profit for the full year ending December 31, 2018 to range between $4.5 to $5.0 Million. Conference Call Management will host an investor conference call at 2:00 p.m. Pacific Standard Time on November 8, 2018, to discuss HyreCar's third quarter 2018 financial results, provide a corporate update, and conclude with a Q&A from participants. To participate, please use the following information:
Date: Thursday, November 8, 2018 Please dial in at least 10 minutes before the start of the call to ensure timely participation. A playback of the call will be available through November 15, 2018. To listen to the replay, call 1-844-512-2921 within the United States or 1-412-317-6671 when calling internationally. Please use the replay pin number 8958715. A webcast will also be available for 90 days on the IR section of the HyreCar website or by clicking here. About HyreCar HyreCar Inc. (NASDAQ: HYRE) actively operates in 50 states plus the District of Columbia. The Company's carsharing marketplace for ridesharing was created to leverage technology and establish a presence in automotive asset sharing. Drivers and vehicle owners alike can utilize the platform to create an opportunity for themselves where one did not previously exist. By providing a safe, secure, and reliable marketplace, HyreCar helps both parties come together- one driver, one vehicle, one road at a time. For more information, please visit www.hyrecar.com. HyreCar prepares and publicly release quarterly unaudited financial statements prepared in accordance with GAAP. Forward Looking Statements Statements in this release concerning HyreCar Inc.'s ("HyreCar" or the "Company") future expectations and plans, including, without limitation, HyreCar's partnerships and technology solutions, its ability to add and maintain additional car listings 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 Prospectus, dated June 26, 2018, 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.
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