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Revenue up 67.8% over Q2 2020
Not even at scale, the company posts best public comparable company gross margins
Company to host conference call to discuss Q2 results today at 4:30 p.m. ET
LOS ANGELES, Aug. 17, 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 second quarter ended June 30, 2021.
Second Quarter 2021 Highlights:
Record revenue of $2.7M, up 67.8% over Q2 2020 revenue of $1.6M
These results are pre-recent debt financing capital deployed
Q2 Revenue up 15.6% over Q1 2021 revenue of $2.3 million
Gross profit up 158.1% over Q2 2020 and 43.4% over Q1 2021
Gross margin 27.8% for Q2 2021; significantly better than any domestic public company comparables and not reflecting scale
Completed $15 million debt offering subsequent to quarter end in July 2021
“We are excited to report yet another quarter of record revenue,” commented Stephen Sanchez, CEO of EVmo. “Second quarter revenue exceeded pre-COVID-19 levels, demonstrating the strength of our business model and the rapidly growing demand for our services as the re-opening of the economy continues. Importantly, the quarter’s revenue doesn’t reflect the effect of the debt financing capital deployed, and future capital deployed. Capital and the associated internal rates of return are the fuel to our potential exponential growth and profitability. Even before scale our gross margins are better than public company comparables that are at greater scale.
"We continue to maintain strong gross margins of approximately 28%, improving 52% over the second quarter of 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 continue to expand throughout 2021 as we substantially increase our fleet and transition to an EV model,” continued Sanchez. "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. We buy right, maintain high utilization through our maintenance excellence program, and are forging key strategic relationships to drive our environmental and economic initiatives. Our plans are bold and aggressive, and we believe that 2021, and particularly 2022 should be breakout years 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.
Second Quarter Financial Results:
Total revenue in the second quarter of 2021 increased 67.8% to a record $2.7 million, up from $1.6 million in the second quarter of 2020. Revenue growth in the second quarter was primarily driven by an increase in rentals of the Company’s vehicle fleet.
Cost of revenues in the second quarter of 2021 was $1.9 million, up from $1.3 million in the second quarter of 2020. The increase was due to higher depreciation expense and insurance expense related to an increase in the Company’s fleet size. As a percentage of revenue, cost of revenue decreased to 72.2% in the second quarter of 2021, down from 81.9% in the second quarter of 2020, driven by higher fleet utilization.
Selling and marketing expenses were $64,816 in the second quarter of 2021, an 18.1% decrease compared to the second quarter of 2020. The decrease is due to a reduction in advertising as the Company has maintained a high utilization rate for its vehicles.
Net loss in the second quarter of 2021 totaled $1.8 million, compared to a net loss of $722,842 in the second quarter of 2020. The increase is due to higher total operating expenses.
Cash and cash equivalents totaled $0.2 million as of June 30, 2021. Subsequent to the quarter end, the Company completed a $15 million debt financing and commitment in July 2021. The balance of this offering is not reflected in the Company’s June 30, 2021, balance sheet.
Webcast and Conference Call
The Company will host a conference call and webcast to discuss its second quarter financial results today, 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, 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: 13722535.
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:
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Source: EVmo, Inc.