Good quarter Johann. morning, you for second earnings you, Thank this thank us all joining and call. on
served several for of Chief of me as acknowledge having appointment position Brooks QX Alex to let results, Before Officer, CFO months. the the our interim our first turning to past Financial the
we look the with Alex talents, execute appointment. of Alex permanent and on forward partnership Hertz, continued to a I congratulate I on her her priorities Given as
address successful me results, which let quarter summer to our team a the start another and impressive season. by performance second the that, key reflect With
business, up sequentially, our million. strong, for services, reflecting continued EBITDA costs. billion, $XXX quarter corporate and our of adjusted the carrying Our lower ongoing XX% strength the were and second $X.X fleet high results for was demand was Revenue
Our stable rate well but travel that longer surge growth stable the and of baseline results and levels, we above were transaction a days reflects remains being no of a witnessed believe product travel, higher the a momentary industry. of environment more pre-pandemic demand across
very gains Our the results available throughout the strategy. ROA-driven at also our sale customer as to with harvest deployed across our we continued quarter elevated reflect multiple on channels consistent of being fleet demand and captured utilization opportunistically vehicles,
the each momentum, demonstrate of and businesses. the quarter and and leisure, was XX% Demand with benefiting across Canada, European Europe, our was travel international versus up US of business in and XX% Volume both QX Rideshare, continue corporate in sequentially our last as year. US, strong to
airport in in and growth with sequential travel, growth Our TSA outpaced the only and transaction US generated was other broader traffic in indicators of days in fleet. XX% growth
While the Rideshare, share remain other experienced growth volume in airport including our increasing channels, customer of we suggesting business. constant, across volumes broader
accretive be realizing we expect to in our we XXXX improvements initiatives As grow into QX. our as held early and strength and rates travel in strength demonstrate and the improved. to In second delivery costs continued all, volumes the showed has up quarter, to quarter margins with and beyond. to are Europe, In they restructuring, mature, seen these from in topline and results
On travel. and travel US continuing business tailwind the benefit in further inbound from in we a will recovery to forward, look
with was our up expectations. On QX seasonality pricing, versus typical RPD and in QX aligning $XX.XX, reflecting
impacted markets in higher of Omicron, travel was an provided out by you year, year-over-year, fleet market. at coming sellout not that In Like profitably strong down was OEM exceptionally into last this productivity, RPD including fleet quarter year's RPD cars number outstripped cars our of out supply materially QX of sales conditions and many residual benefiting utilization, as opportunity tight against will accelerated QX across recall a service, was rent. lower as supply. competitors, of for levels of car to of on matched levels we operational were benefited year, tight of from ran limited, significant demand second we for surging be while Although even nonetheless excessively from as tight last QX more as last, which very
from rate balance for of the comparisons here. expectation is improve on year-over-year XXXX for Our to
sequential Looking and both at QX, rate in to rate levels. with material forward, a we expect holding uptick pre-pandemic to demand a see into premium
have rate by versus view date, than early July to seen With QX X%. move more higher into we an
such offer have year, OEMs given pressure, historically have would've to this While a had seen we dynamic not date. more which on to way rate cars
thinking we past. are Hertz, did our differently the fleet For company in than about the
price came the And revenue business. than QX lower and better components key further and out achieved As the mindset, per revenue we at attractive, ROA contributed command points pricing utilization as an the we driving financial way XX% capable not XXX of To and by yielding margin and we produce price have a and allows year-over-year. said in be believe previously, better utilization has higher approach the anticipate our been quarter, to of X% dynamic both than service, stable, reflecting Benefited Maintaining to adherence to returns. improvement is we higher managing XXX per ability around, to us of therefore RPD unit fleet points fleet as our keep more historically. other often utilization healthy unit return. utilization up clear, high monthly and and $X,XXX, and here. Operationally, in in had to sequentially case the of from higher
assets, confident out the increasing of Rideshare, higher channels, business. of business, drive utilization for we we As grow take our margins to customer our that and produce value-driven will continue costs we the are
As quarter of adjusted the EBITDA $XXX I noted, corporate million. company produced the for
out on the our Let laid Depreciation unit last per range $XXX, me reflect on the at favorable call. in components. came to
a versus fleet view basis of or making are day-to-day As used an a or we that new upon, plan EVs Alex we notwithstanding about DOE careful corporate the will actions cars, to basis $X whether On transportation. have including these SG&A, expand each depreciation direct we took quarter, inflationary decisions expenses, ICE many and our and On in throughout with cost, overhead, day and vehicle on output as well SG&A prior fleet. length vehicles, improved add depreciation, per and management on vehicle lower reduction each as expense influenced about $XX rotation. million the is This force. our Despite in factors versus vehicle of and In we attrition as depreciation keep, both vehicle steps in like decisions to quarter QX, operational do to we reduction an a on reduce annualized on operating mileage, costs work sequentially, condition reductions, of took and influences ultimately the through of in quarter. of these expenses expectations. cap on continuing cost. resulted labor transaction
next key We've with deployed Going expensive forward, we DOE of fleet spend more inflationary across cost an down, continue in productivity, to costs the items, cost been SG&A the business controllable Hertz on currently fuel car third-party year to further we third-party will fund These offset drive and significant results. effort be cost and recovery. will to strategically initiatives the our thereby our reduce cost the telematics employees. as field vehicle focus improve cloud speed over to in reduce by and actions We've growth-related bring investments. replacing supplemented migrate theft, and labor and that the taken both pressures, burdens
to to first business seasonal in of surge. outflow the in demand. in across new demand including with are from base half the out prior to productivity the well brands. fleet the we following as reduction enables and lower are is Rideshare materially improve which turns. year business. the meet the more by half Staying Cashflow evidenced a primarily driven to operational the a in helping of our in ventures, pace efficient us maintenance years, of growth fleet more the revenue-earning serve and Put our Think of for more of making for and fund result Fleet increased expected better cash by of generation service revitalized benefiting As moment, the available summer our back as demand, of simply, year out a service material fleet peak value we was reduction summer as as the of as expected build in activities,
be As we acknowledged, thinking a evidence and on we risk open to fiscal such, current of albeit fleet is of the the no softening third our the there as quarter, our is the weaker versus at lessening, start year. bias changed have economy, Nonetheless, demand. of
to always deliver utilization. profitable is volume objective through Our high
nor creation, business market for balance of do is notwithstanding, to pricing not to for by we rack driven do price demand from tool slowdown environment demand we As QX. share. as use we supportive a of factors, a benefit chase core economic Risk expect the use many
said trends that we and former, ago, of be a will for slowdown. over changes, As the the latter. year Until risks from equation the prevailing economic to are continue we'll an benefit travel we ready
overall. turn on rack build earnings a in and when wide we of driving the where the further XXXX These EBITDA Now, will baseline expectation business progress made the with taken have enhancing to work are let supplement to initiatives, of additional doing more together, our we opportunities. of me initiatives range significant an strategic power business, across progress robust generation beyond,
with the Let we me for the In as brand. Dollar of Dollar. June, website begin of new our launched revitalization part
We Dollar fully new across select consumer when to bringing or business are segments customer segments. airlines, agencies, both profitable operators, new today, digital younger comes mid-market tour believe leisure us will enable including access a consolidators, for better forward designed are and that travel online value-driven the us and fully other properties to growth Dollar, through directly not pursue operational, that we We tapping partners. that to
to Dollar We lower us the business. higher margin also our to depreciating vehicles, of higher work on will enable revenue that driving a believe number deploy
launch While Dollar XX% a saw positive. very of service of revenue is the booking. jump since a the XX% revenue data a In of base, July, three the in visitor, a in of and weeks per new admittedly off conversion, XX% growth early, pickup value-added per low website in and first
and that Rideshare XX% business believe and business volume. Transaction quarterly moderate depreciation to bringing creating the The growth days the leisure on sequentially. peak QX, business, business and experienced vehicles. sequentially, XX% subscription We business and us position curve what grew typically for in in greater the year-over-year trough in the essence as primarily our continued better XX% is scale XX% year-over-year by revenue drivers, Rideshare grew by will in its flatten Rideshare to on to the a
when generate margins. may EBITDA rental multi-week accretive produces business lower coupled a the lower RPD, expense, with While transactional
spend through next our where me moment advantage EVs, electrification. a Let value on long-term creating first-mover are in we
in investing in transition in North in that a the EV largest the are we century. industry a largest the in in automotive early the As rental These aware, one you hasn't of are world. happened America are and fleet days
electric are readying this and ourselves pleased strategy. progress an We future, with for are on our
vehicles, EVs the supply repair damage First, EV present OEMs the parts of the of and the EV EV economic that is stubbornly technicians cost we of and better are to maintenance and EV up and expensive, opportunities space multiple expect while at is entry difficult fleet-oriented bring than compelling. down. ICE more will
overnight. large running that demands turned are on unique a EV operational not we fleet Second, brings easily believe
term assist EV others, be We provider form for To of other across leisure, Rideshare, for who people an multiple through introduction will an ambassadors the the even series, And be trying autonomous of educational the week those management. employees EV training might stations, better EV partnerships, customer an Hertz providing key drives pursue content, the provide managing area we to positioned digital of From advantage held development. in the vehicles we first prospect corporate, fleet robust have at in to in LAX, choice all management last charging EVs, adapting hundreds to and the the are and both building for the of to around of proprietary of segments, unique first longer EVs we while first electric adjacent third, we positioning our Hertz deployed fleet opportunities, and time, are and and makes growing commercial for Hertz or mover came and where locations, early to EVs in at largest as nation's embedded various the one fleets models. whether airport test of EV customers. now
are investments you of an what together, that smart evolution Taken quickly. Hertz not is seeing and are to easy at replicate readiness
to edge pleased and are leveraging of leading time, deliver. and technology on few more on to share industry At creating we a the Customers Finally, we value investments which we rebuilding partners in technology with through run. our progress. the technology. I'm updates are leaders foundational seamless want we are experiences, our elements the same
our are First, to we past migration cloud. the point of the just midway
a We US being in data in systems our early including, to we all I European cost complete, are moving cloud, expect that data our end of expect demise to been the providers reduction that reservations, as of the from with fleet, and benefit our significant by finance, in a center cloud, the and our third-party the using center to Once other XXXX. to support follow comes systems. XXXX, mentioned, we have service and
any profitable system, at available our time. control are modernization broader tower, pools, we progressing given and to with the demand build eye most Second, fleet revenue all of the an management in the a more market of agile pricing capturing
ROA We repair will a rent, buy, sell, whether including the to decisions across maximize optimize car. portfolio, to or VIN-level move fleet
modest a and number context, a current to pricing boost improvement in of daily transaction about with days price revenue of year across fleet rate levels $X would more per million or pull-through better margin For EBITDA. by dynamic of an equal our by brought $XXX allocation
improvements Third, the side, mobile Hertz app. to we've on the made customer-facing
app reservations QX In an Hertz an of booking store. versus Apple in to us iOS last experience broader engagement. For versus year, improved XX% QX, increase elevated saw attributable as more users, customer we the saw year, revamp in experience XX% taking customer app a last downloads and uptick the standing the with
and new launched We customer center On agents Fourth, AI, inquiries of digital deployment our natural deploy believe ultimately majority care users. for to starting can care, use operations, our call and focus reservation language the are handled time of intend customer call we AI their front whose freeing a significant initiative reservation with to of respect productively Android natural center are also an in through We and with AI, complex. requests to queries. be AI on needs the for language the functionality to center more that call our our engagement. end working customers at have of on we more customer
being our opportunity there also conversion to end On an the language properties, digital relevant efficiently more a simple commerce, reservation front to rise and to most improved customer the enabling natural rental of is customer directed information, ask questions into and about embed to upcoming transaction AI experience. or giving higher
initiatives, technology on Fifth and customer and with to the Apple we payments. across are excited experience, with further final work a starting range of
Pay platforms We industry Apple companies the are major on begin on to and do the of to US making our so. in track year-end, e-commerce by one first accepting mobile travel Hertz
mindset our convenient to is producing and experience becoming is working app. of come way to Hertz. While a clear year, the part this in a more later our initiatives are across fabric of enabling results by with ROA to to What Apple online these looking and details forward better customer we're and the that is deliver customers secure for pay tangible
second way beyond, confident this ability continue a to this Moving our and I'm doing of lay by before with expansive business into forging and that half of at both a us. grounded possibilities risk progress is perspective year on that in the in motivated and build management new Hertz, the
the turn me let that, to call Alex. With
