Sustained 44% gross margins before vehicle depreciation
Strengthened balance sheet drives improved leasing terms
Company to host conference call to discuss results on August 17 at 4:30 p.m. ET
LOS ANGELES, Aug. 17, 2022 (GLOBE NEWSWIRE) -- EVmo, Inc. (OTC: YAYO), a leading provider of vehicles to the rideshare and delivery gig economy industry, today announced financial results for its second quarter ended June 30, 2022.
Q2 2022 record revenue of $2.9 million, up 8.5% compared to Q2 2021 revenue of $2.7 million, driven primarily by new vehicles beginning to come online in the latter part of the quarter
Rapid expansion well underway, supported by the non-dilutive financing announced in Q1 2022 that is expected to allow the ocmany to add 400 vehicles quarterly.
Reported positive shareholders’ equity of $7.0 million, up from negative equity of $4.4 million at year-end 2021; strengthened balance sheet driving improved leasing terms (the terms are already improving so it will be continued to drive)
Record driver retention with average rental days per driver up 8% over Q2 2021
EVs and hybrids are now 34% of the Company’s total vehicle fleet;
“Our long-planned rapid fleet expansion is now well underway, which we believe will drive meaningful top-line growth in the quarters ahead,” commented Stephen Sanchez, CEO of EVmo. Looking further ahead, we anticipate fleet growth will accelerate in 2023 and are targeting a minimum 25% growth in the number of new vehicles we add to our fleet quarterly, with longer term targets well in excess of that growth.”
“As we have previously said, our model calls for 45% gross margins and 25% EBITDA margin at scale of approximately 2,000 cars, excluding vehicle depreciation. Based on this model, achieving our 2023 quarterly targets for fleet expansion would generate revenue of $50 million for the year with $12.5 million EBITDA,” continued Sanchez. “We believe our model and margins, combined with our management capability, can establish us as the clear industry leader in 2022. And importantly, we expect to be able to fund exponential growth from operating cash flow at scale, which we are on track to reach by year-end 2022, opening new access to non-dilutive debt capital to further accelerate our model.”
Second Quarter 2022 Financial Results:
Revenue for the three months ended June 30, 2022 was $2.9 million, up 8.5% from revenue of $2.7 million in the second quarter of 2021. Revenue growth in Q1 was primarily driven by an increase in the Company’s rental fleet and increase in daily rental rate.
Cost of revenues in the three months ended June 30, 2022 was $2.1 million, up from $1.9 million in the second quarter of 2021. The increase was due to higher depreciation expense, insurance expense and vehicle repairs due to an increase in fleet size.
Selling and marketing expenses were $0.1 million for the three months ended June 30, 2022, a 15.2% increase compared to the second quarter of 2021. Low selling and marketing expenses continue to be driven by an effective focused advertising campaign and high vehicle demand that reduces the cost of client acquisition.
Net loss totaled $1.2 million for the three months ended June 30, 2022, an improvement of $0.6 million from the net loss of $1.8 million in the second quarter of 2021. The improvement is primarily due to lower interest expense and financing costs.
At June 30, 2022, the Company’s current assets totaled $6.9 million, current liabilities totaled $3.7 million, and working capital was $7.5 million. At December 31, 2021, the Company’s current assets totaled $4.0 million, current liabilities totaled $7.1 million, and working capital was a deficit of $3.0 million.
Cash and cash equivalents totaled $6.1 million as of June 30, 2022, up from $1.9 million as of December 31, 2021.
Webcast and Conference Call
The Company will host a conference call and audio-only webcast to discuss its second quarter 2022 results on Wednesday, August 17, at 4:30 p.m. ET. Shareholders and other interested parties may participate in the conference call by dialing 1-877-407-0784 (U.S. Toll-Free) or 1-201-689-8560 (International) a few minutes before the 4:30 p.m. ET start time. An audio-only webcast is also available by visiting:
For interested individuals unable to join the conference call, a dial-in replay of the call will be available until August 31, 2022 and can be accessed by dialing +1-844-512-2921 (U.S. Toll Free) or +1-412-317-6671 (International) and entering replay pin number: 13732319.
About EVmo, Inc.
EVmo, Inc. bridges the gap between rideshare and "last mile" delivery drivers in need of suitable vehicles and the companies in the rideshare, delivery and logistics businesses that depend on attracting and keeping drivers. EVmo, Inc. is a leading provider of rental vehicles to drivers and delivery companies in this ever-expanding gig economy. The Company uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs.
The Company provides an online rideshare vehicle booking platform to service the ridesharing and delivery gig economy which includes both our owned and maintained passenger and cargo delivery fleet and third-party fleets. We also provide fleet management services with our industry leading technology platform to fleet providers. EVmo provides cargo storage vans to the last-mile delivery and logistics industry.
The company provides SEC filings, investor events, press and earnings releases about our financial performance on the investor relations section of our website (www.evmo.com).
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," " intend," "plan," "believe," "potential, " "continue," "is/are likely to" or other similar expressions. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results.
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Source: EVmo, Inc.