HyreCar today reported financial results and provided a corporate update for the second quarter of 2019.
Second Quarter 2019 Financial Discussion
Total revenue in the second quarter of 2019 increased 67%, to a record $3.8 million, compared to $2.3 million, in the second quarter of 2018. The revenue increase was driven primarily by a higher net revenue margin associated with two new subscription tiers launched in the second quarter, while rental days were flatter and grew to approximately 140,000 during the second quarter and are now at an annualized run rate of over 550,000 rental days.
Gross profit in the second quarter of 2019 increased to a record $2.3 million, or 60.8% of revenues, compared to $1.08 million, or 47.3% of revenues, in the second quarter of 2018. Margin expansion was driven by a higher average net revenue margin and a reduced cost of insurance in the second quarter.
Second Quarter 2019 Financial Highlights
- Record revenue was $3.8 million, compared to $2.3 million in 2018, an increase of 67%.
- Record gross profit was $2.3 million, compared to $1.1 million in 2018, an increase of 114%.
- Net loss of ($2.0) million, compared to ($5.0) million in 2018, an improvement of 59%.
- Record GAAP earnings per share was ($0.17), compared to ($0.92) in 2018, an increase of 82%.
- Record adjusted earnings per share, also referred to as adjusted net income per share, or adjusted EPS was ($0.11), compared to ($0.12) in 2018, an increase of 8%.
Total operating expenses, consisting of research and development, sales and marketing and general and administrative expenses, were $4.4 million in the second quarter of 2019, compared to $4.2 million in the same year-ago quarter. The increase in operating expenses was primarily due to increased staffing expenses and advertising to support higher revenue and includes $0.6 million in non-cash stock-based compensation costs.
Net loss in the second quarter of 2019 totaled $2 million, compared to a net loss of $5 million in the prior year’s quarter.