HyreCar Inc (NASDAQ: HYRE) is flying early on in the market today, and for good reason. The company released preliminary second quarter results, exciting investors. Today, we’ll talk about:
- The results;
- what we’re seeing from HYRE stock as a result; and
- what we’ll be watching for ahead.
HYRE Heads Up On Preliminary Results
As mentioned above, HyreCar is having an incredibly strong start to the trading session this morning after the company provided preliminary results for the second quarter of 2018, ending on June 30, 2018. Here’s what we saw from the release:
- Revenue – HYRE estimates that revenue for the quarter is approximately $2.1 million, representing an increase of 233% year over year. In the release, the company said that the increase was primarilly the result of an improved customer retention rate, expansion, and new unique users on the company’s website.
- Gross Profit Margin – The company also said that gross profit margin is expected to come in around 40%. This is a massive increase from the 11.4% gross profit margin reported in the same quarter one year ago. The comapny said that the increase here was largely attributed to the renewal of the company’s insurance contract with AIG, decreasing insurance expenses in the second quarter.
- Rental Days – During the quarter, HYRE clocked 90,559 rental days on its platform, representing an increase of 155% year over year.
- Guidance – Finally, HyreCar said that it anticipates generating full year revenue in the amount of $10 million. If this goal is met, it will represent an increase in the amount of 213% from $3.2 million in revenue generated in 2017.
In a statement, Joe Furnari, CEO at HYRE, had the following to offer:
Our record preliminary revenues of approximately $2.1 million in the second quarter of 2018 was a direct result of an increased demand for carsharing services. As we reach critical mass, we are also starting to see some operating leverage in the business, as evidenced by our gross profit margin of 40% in the second quarter of 2018… On the heels of our IPO in June—which provided us with gross proceeds of $12.6 million—we believe we now have the growth capital to aggressively invest in our platform and scale our business meaningfully to capture the market opportunity.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of HYRE, the news proved to be overwhelmingly positive. After all, the company generated compelling growth in the second quarter and is guiding for more growth to come. So, it’s no surprise to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:32), HYRE is trading at $3.67 per share after a gain of $0.35 per share or 10.49% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HYRE. In particular, we’re interested in following the company’s continued growth, especially following the recent news of the DriveItAway partnership. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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