Posted on March 31, 2021 by Brad Steveson
HyreCar (HYRE) released Q4 results and held a conference call to discuss today. In spite of California shutting down during Q4 it was a decent showing for HYRE with highlights as follows:
YTD results were pretty solid when you consider the headwinds that Covid put on the ridesharing business. One only needs to follow Uber and Lyft to understand the impact, but HYRE performed much better in 2020 than I would have expected had you asked me back in March:
Ultimately what I mostly care about is how they are doing with adding cars to the platform via their new strategic partnership and I want to see that they are managing expenses appropriately, getting some revenue “bang” for their buck. In my view, they checked the boxes confirming that they will hit their first 1,000 cars in April and then ramping up from there. The goal is to add 6,000 cars from this partnership and if they do, then they look poised to have a solid 2021 with potential for more upside if they are able to secure additional commercial partnerships.
Below you can see that the company has produced solid revenue growth each year and I took a shot at updating my 2021 forecast based on what I heard discussed in the earnings call this evening. If they fall short of their car supply goals, then the revenues will likely be lower, but they could also surprise with some additional partnerships along the way.
HYRE seems to be set up for that blockbuster year that I thought we might get in 2020 before the pandemic overshadowed their progress. However, management adjusted and achieved a nice year in spite of those headwinds. I believe HYRE can go cash flow positive in Q2 or Q3 of this year for the first time. I will continue to follow this company’s progress with great interest.
Disclosure: I am long and may buy or sell shares within the next 72 hours.