HyreCar Inc., a company that allows consumers to rent cars for ride-sharing, saw their stock increase recently shortly after the company announced their preliminary revenue spiked to around $10 million during 2018. That's up from only $3.2 million during 2017.
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.
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