HyreCar, the carsharing marketplace for ridesharing, reported its financial results and provided a corporate update for the third quarter ended Sept. 30.
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 Sept. 30 totaled $8.7 million, compared to $11.9 million at June 30.
Full Year 2018 Revenue Guidance
For the full year ending Dec. 31, HyreCar expects revenues to range between $9.75 to $10.25 million. The company expects gross profit for the full year ending Dec. 31 to range between $4.5 to $5 million.
The day before it reported its Q3 results, HyreCar also announced that it has expanded access to its proprietary platform for drivers and vehicle owners in all 50 U.S. states.
The Company has added Delaware, Oklahoma, Nebraska, Arkansas, Rhode Island, New Hampshire, New Mexico, Maine, Idaho, South Dakota, Alaska, North Dakota, Vermont, Montana, West Virginia and Wyoming to its carsharing marketplace platform.
"We expect this expansion to add at least 25% in incremental 2019 revenue," said Joe Furnari, CEO of HyreCar. "Our technology driven marketplace allows us to expand into these states overnight. By leveraging the current staff and technology already in place, each new state becomes directly accretive to our bottom line."
In addition to its peer-to-peer services, these new states will showcase the company's ability to ramp inventory through HyreCar's commercial division, DriveItAway, focused on dealer based shared mobility. HyreCar has a backlog of over 200 multi-location dealerships interested in adding cars to the marketplace. With this announcement, HyreCar is positioned to continue building the ridesharing industry, which is estimated to grow eightfold to $285 billion by 2030.
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