HYRE - Here's why HyreCar stock crashed 45% Wednesday morning
HyreCar Inc ( NASDAQ: HYRE ) said late on Tuesday its revenue in the fiscal second quarter topped Wall Street estimates. Shares of the company, however, crashed roughly 45% this morning as investors focused on its wider-than-expected loss.
Financial performance
HyreCar generated $9.1 million of revenue in the second quarter that represents an annualised growth of 62%. On an adjusted basis, it lost $7.12 million or 36 cents a share versus the year-ago figure of $1.69 million only or 10 cents a share.
In comparison, analysts had forecast the carsharing marketplace for ridesharing and food/package delivery services to post a lower $8.94 million of revenue and a narrower 12 cents of adjusted per-share loss.
HyreCar is participating in Canaccord Genuity’s 41st Annual Growth Conference today.
CEO Joe Furnari’s remarks
Commenting on the financial update, CEO Joe Furnari said:
“HyreCar’s Q2 revenues grew to $9.1 million, showing the resilience of our platform, and the growing demand for our services as the country opens up. In addition, we recently secured millions of dollars of financing for our fleet partners, solidifies our ecosystem to help drivers and fleets participate in the transportation as a service industry through partnerships with some of the largest players in the gig ecosystem and are laying the groundwork for adding vehicles and drivers at scale over the next 18 month.”
What else was interesting?
HyreCar’s revenue saw a boost from a 44% increase in rental days, but gross margin tanked sharply by 3,660 basis points to 8.9% in the recent quarter.
On a year over year basis, HyreCar noted a 49% growth in new drivers that joined its platform. Commercial bookings, it added, made up over 75% of all cars rented. The California-headquartered company valued its cash and equivalents as of June 30 th at $24.9 million.
Total operating expenses jumped close to 175% versus last year due to “investments in marketing and sales to drive higher top of the funnel volume as well as technology and operations to continue scaling HyreCar for accelerated growth in 2021 and beyond,” HyreCar said in its press release.
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