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10,000 car and van expansion; $200 million revenue at scale with 25% EBITDA margin
Company to host conference call to discuss Q1 results today at 4:30 p.m. ET
LOS ANGELES, May 18, 2021 (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 first quarter ended March 31, 2021.
First Quarter 2021 Highlights:
Record revenue of $2.3M, up 31.3% over Q1 2020 revenue of $1.7M
Gross profit was 57% higher than Q1 2020
Introduced a company operated maintenance facility which is expected to yield lower costs and quicker return to service times
Took delivery of electric vehicles (EVs) from Tesla and Hyundai
Managed fleet is now 14% EVs and is expected to grow similarly throughout 2021
Moved HQ to larger facility to accommodate accelerated growth
Entered the last-mile logistics space, deploying high-roof cargo vans
Increased credit facilities by $2M to $5M
"We believe that our strong growth and record revenue for the first quarter is a result of the foundation we built in 2020, which included operational efficiency measures, increasing the size of our fleet, committing to an EV strategy, increasing our credit-lines, and entering the last mile logistics space. Our capital formation strategy, which includes debt and equity capital, is expected to translate into continued revenue and EBITDA growth," commented Stephen Sanchez, CEO.
"We continue to maintain strong gross margins. Gross profits grew at a rate of 57% over Q1 2020, making the Company's core rental operations profitable before taking into account corporate overhead and one-time costs. We expect our gross margins will expand significantly in 2021 as we substantially increase our fleet and transition to an EV model,” continued Sanchez.
EVmo rents vehicles to customers who are participating in the gig economy. This includes ridesharing and e-commerce platforms. The Company's technology and expertise allow for a frictionless rental experience, from intake to vehicle return. Focused on executing an environmentally friendly growth strategy, EVmo is adding EVs in current and future North American markets, and 14% of its managed fleet was comprised of EVs at the end of the first quarter. The type of vehicles on the Company's platform ranges from electric passenger vehicles to well-equipped cargo vans that are used by e-commerce delivery providers.
Business Model Highlights:
As 2021 progresses, the Company plans to deploy capital to facilitate the purchase of new EVs and cargo vans and anticipates strong revenue contribution. At the margin, every $10 million in debt and or equity capital raised should enable the Company to purchase approximately 4,000 vehicles with an 85%/15% car to van mix. This should translate to approximately $80 million in annual revenue for every $10 million of capital raised at the margin. To this end, the Company is endeavoring to raise $25 million of mostly debt capital to expand our fleet to 10,000 vehicles. This is just the beginning of our capital formation strategy. The Company anticipates scaling to a 25% EBITDA margin.
EVmo currently has more than 34,000 registered drivers on its platform and is currently in discussions with multiple new and existing lending partners to meet anticipated growth in vehicles. Approximately 60% of EVmo drivers currently have more than 80 continuous rental days.
EVmo has leveraged its partnership with best-in-class OEMs in the EV category to build a fleet of EVs at attractive lease terms, receiving favorable pricing and delivery commitments from multiple OEMs. These EV growth plans are fully aligned with the two largest ride-hailing platforms in the US. EVmo has attractive buy back agreements and the option to purchase vehicles at the end of the financing term and has consistently been able to sell vehicles at a gain given their strong residual value relative to attractive initial acquisition price (discount to MSRP).
"We are on a mission to rent every car, every day and provide excellent service in the process, and we are committed to an environmentally friendly user platform," continued Sanchez. "We buy right, maintain high utilization through our maintenance excellence program, and forge key strategic relationships to drive our environmental and economic initiatives. Our plans are bold and aggressive, and we believe that 2021 should be a breakout year for EVmo."
According to Global Market Insights, the ridesharing market in North America was $4.5 billion in 2019 and expected to grow at a CAGR of 6.5% through 2026.
Webcast and Conference Call
The Company will host a conference call and webcast to discuss its first quarter financial results today, May 18, 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 June 1, 2021 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: 13719918.
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.
Investor Relations Contact:
RedChip Companies Inc.
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Source: EVmo, Inc.