HyreCar Inc (NASDAQ:HYRE) stock revved up Thursday after the company, which lets drivers rent cars to work for ridesharing companies, reported preliminary revenue more than tripled to $10 million in the fiscal year ended December 31, 2018, up from $3.2 million in the previous financial year.
The Los Angeles-based company saw a gross profit of $4.9 Million for the full year 2018. The company attributed the revenue surge to “continued expansion of the company’s scalable network business model” which now spans 50 states in America.
Shares in HyreCar surged 33.5% to $5.26 in the premarket.
For the fourth quarter ended December 2018, the company expects profit to be around $1.9 million, an increase of 2,100% when compared to profit of $86,000 in the same quarter a year ago.
The profit margin for fiscal 2018 is approximately 49%, compared to 10% in the previous fiscal year. This increase was primarily due to greater operating efficiencies as the company expands its platform.
“HyreCar had almost 400,000 rental days on its platform in 2018 as the expansion of dealer inventory drove record preliminary revenues of $3.3 million in the fourth quarter and $10 million for the full year 2018,” said HyreCar CFO Scott Brogi. “We are also realizing increased operating efficiencies as we scale.”
The CFO said “cash burn was dramatically lower” in the fourth quarter leaving the company with $6.8 million in cash and short-term investments.
“Now, with almost a year’s worth of growth capital currently in the bank, we are well positioned to reach our stated goal of positive operating cash flow by mid-2019,” said Brogi.
HyreCar operates a web-based car-sharing marketplace in the United States. Its marketplace allows car owners to rent their idle cars to ride-sharing service drivers, such as Uber and Lyft drivers. The company was founded in 2014.
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