HC Liquidating (HYREQ) 11 Aug 212021 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the HyreCar Inc. 2021 Second Quarter Conference Call.

During today's presentation, all parties will be in a listen-only mode.

conference open the questions. presentation, the will for be Following issued today, is XXXX, accompanying [Operator of was conference recorded market this the August today. the call release Instructions] This press being XX, close earnings and conference at the CEO, call John Serge Relations, De Furnari; our HyreCar's On Joe of and Head CFO, HyreCar's is Investor Evans. Bock; John would like turn to now the Evans. I call over to

earnings everyone, conference And you, welcome, to our second operator. call. quarter Thank XXXX

that securities you this Before within this Hyrecar started, opportunity will we making call, Inc. I'd take be remind get we to the like to meaning laws during forward-looking statements of federal regarding

are could our events Forward-looking company's during the conditions. based are and current are risks intentions, made not In with subject included any or in These but expectations, statements files unknown implied strategies, on those to projections about assumptions on estimates, expectations, based this and to, results management. documents by activities, our predictions business Commission. or in include, to Securities from factors statements projected the the company or materially the beliefs, part relating company's other statements that express statements and limited earnings, in described actual Exchange These differ particular, cause U.S. statements those known that risk call. uncertainties that and to future

and to factors related uncertainties beyond statements risks control. such by addition, company's affected In be could the

no of update on predictions and statements except beliefs future obligation undertake on and statements forward-looking You All rely applicable required call we by them, as of this assumptions our should to today, law. as based on not as we make that events. are forward-looking

also reconciliation and measures or be the supplemental GAAP These to in A results will financial non-GAAP GAAP our found with of that XX-Q addition considered include Investor from Relations will will non-GAAP filed materials, substitute for be with in release be will today a as found the in measures. which SEC results. should our non-GAAP of not be be isolation portion will discussions furnished earnings Our and website. our and Form our on to

over Now I'd company's turn Furnari, like the to CEO. to Joe it

Thank believe X public to a hard HyreCar's And you, this as anniversary year company. John. it's is

back we've to it's those have since been since accomplishments August are then. As in that result us moved of that on. entire those recently, I XXXX, first and XXXX, amazing that HyreCar call before have have come accomplished look a those of the what team, with that These

quarterly as I our present to restrictions, on After have we another be will company Serge With all demand, pushed made already in Serge Your has company demand like shareholders of the and is is quarter. future contributions. new make this delivery a a it COVID and my especially pleased vaccination rideshare call, positive excited loosening with this consecutive highest that, impact. contributions and us Serge's company am line I say executive to stable revenue ago four am I weeks The that had for tailwinds as hope business joined our welcome what to higher today, of the combined about that would the rates, today. increasing started record Bock. to history. De

approximately $XXX,XXX rental XXXX. up for Our to increased million days for from the And QX net in quarter, million $XXX,XXX XX% XXXX. XX% revenue the QX increased in up $X.X $X.X quarter, over from to

but not adjacent all rate. XX% year-over-year of we delivery our growth platform, X,XXX quarter, move saw are for Two unique alcohol, car delivery. lanes and a food, as accelerating just environment, oriented, opportunity pharma, into the like pick our starting new For is package and a local delivery the HyreCar platforms a drivers of in still a TNC the thirds over are service up to drivers predominantly on record

their the acquisitions future. delivery a at And with XXX% simply validation X compounding call, as of growth annual and Drizly, plenty has a years, On the rate of over Uber Postmates, are of run. grown continue Eats past Uber's to Cornershop said Uber of QX that room to service

growth Continued HyreCar cars sustainable demand pools Delivery come. will to environment a match larger HyreCar economics of creating and vetted a remain This channels driver for larger driver these demand. driver years of reliable drivers a does stream require best. and supply what of sourcing attractive, will platform to supporting is suggests

gains supply addition in their Lyft month-over-month said March that their was to increasing rideshare best XXXX. QX is alone $X that the is over year. July month in incentives also in both since Lyft to driver year. from on a and dislocations spend first major admitted In and in having of this markets business Uber calls of run billion half delivery, the rate key this Uber to

to federal seeing this the driver spent an averaging XX,XXX heavily earnings. In markets, HyreCar hour. over of as is a stimulus and subsidize registered having as demand in leads we incentives our So roll-off driver in XX surge they well, markets. over $XX July, drivers their in leads month top are anticipate key

to announce Last normalize, daily and were technology quickly, QX, rates. take to that we've for way. margin rates As and implement up pick creating driver volumes stack, rates strengthen growing reward. and to manage our our the will year businesses we of anticipate pricing re-openings demand data and dynamic the stated the in were up robust school iterates learns in demand model model recovering invested dynamic any fewer thrown from that pricing shown incremental to we're increasing in $XX as quarter, the business take XX.X% we reports platform that further we changes our rideshare through alternatives and nimble building a we've of I'm happy up side environment Because rest QX. relatively and of day able per brought these and risk driver enough our environment flexible

nature. fleet increased nationwide. higher significantly next We're for take XX, lot of And these of scaling slower innovative grow additional success out term, an constraints. in X,XXX January over because a with vehicle expected an supply of offset financial is and services announcement currently That ramp we parking with relationships little enjoying Holdings. process seven operator near XXX with over been or car in rentals help because vehicle rate chain locations partnerships with opened average previously rates. trending in ADRs and AmeriDrive are car fleet in AmeriDrive financing the fleet to has of had aftermarket a onto in to we an our the suppliers. trended XXX the in average partnership is to steeper in ironing able the the With logistics. operating constraints with and On The cars short-term in from sequentially the that branded XX our front, has, announced with to out that the from with we've ramp supply, addition supply experience AmeriDrive partly and are months. expanded in AmeriDrive of leveraging but the X,XXX opportunities primarily in X,XXX to has to overflow Cogent toward service We've quarter, second scale locations car gone stores, XX overall at for daily spaces QX vehicle AmeriDrive never Recon. retail we've AmeriDrive a HyreCar AmeriDrive supply the car new lower-than-expected a a ADR QX. AmeriDrive in slightly run AmeriDrive's ADRs Bank help, over financial platform On specialty automotive included partnership announced X,XXX speed to with

last quarter. So I said want we what to reiterate

company, XXXX. gas supply and by As market we and vehicles up to a by want the XX,XXX new into cars, to EV XX,XXX the of XXXX end both

these that also term, make only of at but and started with anomalies and the select will HyreCar new for going That cars economy. to only the used that continue tighter of to will the In clear impact gig vehicle the vehicle it market market as through helps evolved short not our vehicles drivers adding finance, intends growth into ecosystem the helps a grow What for partners has leading our partners market abate. the find working them vehicle purchase the a impacts scale. retain conversations sharing term are shortage and pace due and of Our be near supplier vehicle the manage, supply forward vehicles drivers. platform our their as owners a not gig to

only Our beginning relationship Cogent of and the this with AmeriDrive was program.

will We us are targets. another large on working our facility on growth deliver to that enable

With ensure and walk create this AmeriDrive's delivery HyreCar Serge? like the Creating will process the expand for using that are planning we to gig best-in-class that we and and monitor expansion, can operating this into handoff operating want to disposition share owners other model vehicles acquisition a fleet This of economy. the end part As vehicle's and our the and includes of vehicles and retrieval and drivers, vehicles the maintenance using manage of sharing of of model the life. ultimate ensures vehicles Bock, success financial now us second over partners the at I'd get to helps be some from the can Officer, the vehicles, and and are us Financial partnership that our add quarter elements number rideshare practices key and need. through a companies the that, call fleet owner turn to X,XXX to desperately per to quarter. ecosystem De to Chief that help best for X,XXX that Serge the them to

next its this of XXXX our platform I'm to and also overall, Thanks, and second phase revenue of saw order part of On quarter to excited solid in quarter-over-quarter and HyreCar but XX% the growth our for year-over-year top line adventure. scale operations. growth join in some we really at transition be XX%, at to investment QX performance, our Joe. to saw

of a of of announcing from represents second success for back top the platform, key year road by be of million XX% pursue XXXX. for drivers on quarter-over-quarter this increasing us we cars the and quarter continuing year, adding quarter for be the long to of year. million in rental steadily to year inactive over days factors the to intend will XX% drivers the and to on from one line. pace are the XXX,XXX Uber X XXXX, increased days new second With days rideshare and number full Rental September, of term. the This to and on this the up the aggressively increased delivery first quarter in rental this X.X that rental XX% from sequentially prior surpass XXX,XXX growth days a First,

last a by pricing rental revenue favorable fees, million grew days QX increase revenue market and from While stems million growth in of over This from from $X.X $X.X favorable pricing. delta XX% the dynamic XX% our rental the rental to daily days in of scale enhancement, implementation increased in year-over-year net year quarter. and XX% XX%, trend the XX% previous at

which in revenue, net to by rental in both increasing net we have $XX rental to QX net daily revenue coincides This ratio in July average in price. volume, 'XX, increase XX% 'XX a represents QX driven net XXXX increase increase QX, continued to Specifically, $XX an an earlier. to billings historically as in XX% in QX daily in QX in with see and of days from revenue our rate. revenue, and take from divided steady mentioned days, average Joe gross our XX%

pricing On topic dynamic price, geographical based profiles. currently includes on the risk driver risk location segmentation and of

onset and as We are the tons in scrutinize optimal collecting. we drive more unlock to trends are at we of have the discern leveraging we to still and data analytics potential pricing,

with million cost accounting the the majority side. year-over-year, and onto Cost from of in Now to $X.X cost. revenue $X.X was claims, million for the increased QX vast insurance of premium

and performed decrease We related to prior in add insurance incurred single While our relatively with centralized we rental partner settle the the related from dive to in million increase time, increased the expenses experience. claims, platforms, a goal transition migrated claims processing claim into development to claims improve exceeded portfolio one-time expenses process. reserves days, in the we the mostly periods. that, insurance customer a At customer with observed to have and new proportionally a deep because We $X.X lot date. to premium to sharp same claims complaints

We of a profit geographical customer and identified between the of million, right We new representing by aim the the Adjusted already transition, for of various portion to improve optimized balance to find was for ROI process are price and the improvements, expenses assessing costs. adjustment, X.X%. Accordingly, related and claims for and the premium margin and process pricing XX.X%. adequate our opportunities profitability, have direct was portfolio our margin gross quarter claims to current one-off pricing retention our several risk gross tangible either coverage offerings. process gross or $X.X

reassessing XXXX, to to can balance deductibles We We cost. relates want the on claims and for strike providing aim mid-XXs customer profit and retention. low through between margin believe these our XXs these impacting in and low of with in for growth drivers and QX, an improved in physical line and pursuing incentives QX experience right One owner opportunities damage experience. initiatives claim year driver gross our with fiscal profit affecting without we of margin or

We leverage outcomes to screening driver and half our processes data partners through XX% are to reduce of also and later the path beyond. with margin insurance improve car in and claims towards collaborating our to claims risk control and XXXX continue our both plus gross premium and

risk $X.X recognized Operating million we XX% partners, of we up with last QX Compared insurance time to that XXXX, expenses operating we estimated of filtering our by scaled or effectively drivers. reduce increase QX and X%. year. high Specifically, by an only discussions million $X.X XX% identifying XXXX, totaled during expenses our over our of in $XX.X premium could the insurance QX up by however, million over to in more

staffing, We and invested driving infrastructure, sustained operations of and optimizing for our efforts through growth. and in sales have scaling the top our technical funnel marketing continued platform,

sound technical We operational to over some we a debt carried growth. have and of have for been the accelerated build clearing base

QX, supporting expenses, effectively, line while top scale. continuing economies focus to higher future our be car growth containing on related creating and non-growth leverage operational of Going will

EBITDA Our million at QX of loss $X.X ended year. quarter up in for million, from $X.X adjusted last the loss a

claims as as transition, well performance increase this growth to expenditure we and our discussed, support cash scale. operating primarily from resulted at As

to fund our pursue position and with remain cash in operations opportunities. continues liquidity healthy Our sufficient to XXXX growth

their to favorable leverage volume. our mentioned, and As financial expanded Joe through Back grow partners of for capital. of final our It securing Joe financing of AmeriDrive, economies accelerate also optimize the we're and also as such help in process will to create fleets scale cost remarks.

is the and pending summarize, HyreCar the Thanks, carrying our tailwinds into enjoying Serge. growth economy. the trajectory of of reopening And to the third quarter full

if by For both XX,XXX going of EV market want we're of into successful, We to HyreCar's when. business, end new by it's supply of not be cars, matter gas the the a 'XX XX,XXX matter XXXX. a and to it's and

this is TNC which partnerships that future pipeline us With execute over X.X provide coming have our the making as exciting exponentially. to move partnership financing remainder to continue fleet catalyst for years. to is been the will The expect has growth to We in bright bottom the the scale that I fruition the And line the year, throughout the strategy we of year. let that, Q&A. operator, in

Instructions] comes first line with the Northland from you. Thank [Operator Mike of Securities. question Our Grondahl

line Your now open. is

end you be I if think June at year cars could And of kind rental where and could. Start Hey, quarter, the Serge. by that, and the again first the quarter of help Joe, XXXX or going you year at us on talk Hey platform you're you the with end, from cars, end? number said you maybe Joe end of to a about year second of at - end understand XQ? kind think to

think we Sure. now, on available Yeah. the right rented right cars thirds rented platform. and are I mean, That available. we includes About about now. have where are two both Mike, I X,XXX

the to vehicle us quarter. slightly be actively of the quarter into had end X,XXX had again, of year, those that touched I cars one those with by lower And issues about there six some a rented, mean, what we've nature. the some we'll we talked ADRs, kind issues all the of think X,XXX strategic end XX,XXX think quarter of by around we I what are call on X,XXX and scaling, plan get to we've had the I in than of to 'XX. additional is financing we're But fleets. terms going I with short last

I given that putting think partnerships goals are the those realistic place. we're in

a bit with a there, just Got dealers the is to can couple put that XXX process city. of big And cars? partners place, X,XXX of us it. from a guess, Or so the chunks bridge is this in little you're in XX,XXX? help putting the I it XXX partnerships

Yes.

you to three So aspects have that.

talking the in can market over financing. to $X is players financing We're the to that this bring next X First in years. billion

we're highly, that about been a we're about and a proven. So right, highly scalable done - model talking That's talking in is before, structure.

So capital financing partners aspect can that bring really is of to one it. scale

I to at On talking are the been last we've point, help other talking that from TNCs X.X where for that nowhere, them - years and a side, we're we're we scale. driver at perspective, now the the can point to really think the

out them supply building then of practices ecosystem really rolling meaningful we on side of fleets owner profitable is XX perspective, mini I an enables playbook, have those AmeriDrive, from within think what the fleet our that process run kind we best a help in a the scale best playbook coming of in it, really business X of and learning right, And practices on car are from really many fleets, really to ramp. ecosystem. to owners to call out we kind

between kind those have the partnerships, going excited of 'XX. looks of what what business and really kind second about three So the into aspects we I'm of half like and

Serge. Yes. - Mike, And hi, actually it's

Hey.

I on a financing. question financing. quick have thing on Other Hey,

of it's to And think rate. collateral carry long to we we financing, us to the important, right but going opportunities I for in strike the over secure sure something term. interest have between make balance a that's chunk want quite sizable it's we

financing. right partner and to our the and to take cars So right get able being right the us grow time and able being pick to thing we right the to do for the

of was claims that, were then down seemed $X.X guess, from that got it. little of you And you margin still help insurance And you million. XX%, if but running, I where like subtracted transition just a bit sounds that gross Got more. a reconcile like secondly, there some it

Absolutely.

one-off impacted just prior between the instance, came we periods API purely between or items So $X.X from transition us claims our that broke truly transition had represents partners. million a like, from about our XXXk for insurance in an that - items, processing that

So those are purely one-off items.

our margin satisfaction, the want to us improve from XX% retention. comes was bridging last for year the We year, changing to customer at customer So whole gross that processes.

of it made little to easier we for folks kind the So claims through a process. bit go

process, able then have in do and more We're And between a then turn, pick costs going lower collect to good few read this and mature, And balance claims hammering able retention were try to understand we out. drivers a that insurance with QX we direct in going already driver hammering trade out get and and and through, makes a And we of But less for dive, we deep to a get insurance premiums. out as we're customers a XX% we doing we'll partners. that, what we find get claims impact. is our partners into a the between we just effectively. claims already a We the take in little be Now We better a can transition understand better. turn is that's through good able to us angle just And lot We're have details to trying improve. as margin identified to data. to and those the it's the as kind back efforts. being new claims we another time to being we can data fix of happy or our on there. back the months directly right first above doing areas We're believe processing few good process.

then new going of through trying get data terms bit getting But wheel our as took we're on adjust the in favorable and So a expenses. the profitability. reduce toll processes little of transition, get direct a we to a

it. Got

Okay. Thank you.

No problem.

Thank you.

the Our line from next Davidson. D.A. with Tom question White comes of

Your line is now open.

your I've be Great. of us a AmeriDrive there? pace extent guess, if Thanks short-term-ish happening partnership give also, there on between if on be kind less the comment tight the of want kind you that constraints. and more then I of is I the guess to kind color mentioned mentioned some get profitability - question, in of rollout about kind order may. the days G&A got you margin at kind of rental on think that can kind of the curious Thanks. balance in seemed you of short I the for term impact Joe, of what's of little of you then happening you've to for understand I there. guys. kind Can nature? least thought previously relative level and outlook to cars And or And also gross the couple, might to financing breakeven? of thinking how there? my I first, kind you're the quarter. used EBITDA, kind what just year in any EBITDA taking that from EBITDA, of reach bit I what's you needed a to to of on elevated supply was

market is chip another year going continue to get that But up, in multiple supply come on financial to the car what, Yeah. a XX%. of have with to down Tom. multiple, said, in more of don't weeks we're until financing of been those from with perspective. six the what's down eventually, just And type over I chain issues those All started full Expectation we entities. mean We've or that normalize. X% XX% heavy because in are used in being prices the were down. depending Thanks, prices AmeriDrive and shortages. seeing normalization think probably, from perspective, conversations next they a conditions in X%, QX the down supply the I they've supply to about They're of last the so And on vehicle. markets, so. terms they X%, come what come annually. Yeah,

they out that have to figured we scale start really again. so think can now that I

can resources to And which we to really where Serge resources then that we're to so our maybe I'll be. start is piece to they able kind to with talk where let scale, the of to and leaning want the to it. in And support EBITDA of be they have get scale them

of a the fixing even the large trajectory. add to secure able term question. doing quarter the in week Yes, nature. we a I'm us platform in a million And months, key pillars increase deep on those. next go able If in absolutely. of the pretty be base for trends on right cars operating we where some each also, be at going short understand your we that one of term, the will we doing continue And things we're that coming really really about neutrality, I more grow improve cars, X,XXX to being can we able X,XXX level the a We've scaling we all sure and that a and represents amount now, of million our big based to some between growth our $XXX what reduce grow. to identified cars. us what We're and expenditure at forward. cost be annual to think we to seen we'll to of million there. will six ability $XX revenue through, in questions on of short of that's can strike the dive get that few with I OpEx think OpEx EBITDA That's good on in But rate be and as that around five get to in right trend and OpEx enough and forward. making And the sound to and trade-off going between areas have To this on trying in be the current is [indiscernible] do and financing on can to can base platform, of the run $XX investments

think So now take our that's right the profitability. I on

guess business kind just also - Okay. I a given the confidence you higher more level what know, will that, the of food for be quarters, big those guys eventually, I one kind confidence drivers. rideshare bit I your be feels two incentives you driver just less you I I wonder that TNCs And pricing. bit next can mentioned the of guys will tailwind. But you What things shifts, dynamic clearly, drivers like if mean, that follow-up, delivery, Thanks. kind towards the from shifts a you Maybe revenue on little couple delivery then probably sustainable? delivery, takes? can guess probably more it normalize. spend kind I could, of little daily a as of you that than gives earn sustain mix know, kind of of that these gives

a a run spend I Good touched not incentives, in point we couple market. on rate $X Lyft Yeah. question. of the points data far in behind. about Yeah, on to would billion to driver Uber

per to look vehicle at Uber $XXX at right used solutions now, you If or the offered day cars per week. be

they're Now at $XXX. offered

starts drivers to stimulus. the to some more market maybe the worried be start starts to a it in new and term. If see about you anything, You of push hour. probably variant the - making the of see that the coming down coming goes would up that as from of roll-off out that Uber drivers federal are about $XX in it kind little per I Delta don't of bit that drivers see near more

there us interesting to enable delivery to are dynamic piece there's always maintain So drivers to the some about from of That's delivery question end see dynamics yes, year. going a been it, lower. then think to that grow of make address And pricing, you the I the case. slightly the that your continue - through

environment this only been increasing. where always don't money an have necessarily see But to uncertain drivers rideshare, people to in in has ridesharing. the so make we that equivalent deal with And earnings to compared

ride, giving - evening. the the I'm like, yes, was I'm car a in because was day I this to with driver anecdotal, going other an reserved I've Amazon deliveries off, who turning can of Just I'm the I it couple Flex a you last

creates food, all for package stuff. think All the for they're and I flexibility because for delivery, driving they're all binary, right. drivers of so rideshare, what trend does, of And that the not drivers, it's driving driving are for this these drivers

the where are. go so and And they they economics bounce around

of All means basket means higher drivers. earnings that higher increased for those it means demand sizes

structurally too sustain XX about So this term six next worried has short going at and changed the least able again, earnings prices, in and pricing to going - I for that's normalizes which I'm being gig supports how the drivers. back, the Maybe think is to economy, demand it goods consumers are now months. anywhere, but their getting the through higher isn't not for that not

the Appreciate color, for Thanks Okay. Joe. it.

Yeah.

you. Thank

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line is now Your open.

questions down now. more of My think kind but the And have on I ratchet all Joe. drill a like It opportunity more. to Serge. that little bit service insurance on both is the pricing, the Hey, the on up side, seems to little Difficulty] Hey, competitive side, [Technical answered, just of been wanted environment terms in a but I right also demand

seems basket few last As Uber, to what seems about in price it you're bit? you of that comes going to doing. - guess up out really kind just are insurance the times to like you're thinking it costs the market the alluded Again, one side and doing The a especially I've you when taken are like the up. it guys only it an now, there not bigger. little seems I like sizes given Does getting allow only

the of - September, the think of we XX,XXX one of perspective, fallen Serge lot need Well, there it's let side or kind competitiveness. point the today, market competitors I'll two it now to that this to of the But our supplied like I'll plus in - it. And From some there's Yeah. still right. touch the off, are have man perspective, of that insurance kind last on of in relevant. from that Xth. are standing terms what side are I competitive my a at on be with then about cars there's jump

with coming You roll-off have federal demand states. the of of of market. stimulus a I the amount to going there's a that's back And tremendous think into lot these start

speed So get to the our now right warp to on platform as move goal at as is cars [ph] possible. many

going from So prices are those that's see on. focused up the market. competitive I From playing a competitors standpoint, I'm in that what

which whereas week, up a to all-in if and $XXX whistles, at you it's the cost coming with look week, week, the example, an bells a closed $XXX as some the of Just a to in HyreCar's XXX $XXX. XXX that from

coming states fast of for most faster. just to it we're low the in our add and need as of and fleet. quickly We cost in offerings, most provider and So

that So I'll Serge to maybe standpoint. piece of - let competitive the insurance talk but from the

Yes.

looking right price willing we insurance, I have are really that and to, two, being to And to you offerings the match is owner be what within we're able to constraints important. We the us, then for of right, pay is at competitors the trying the going the market the And like important. understanding is the think able between to price, driver to is what different and and offer. very in alluded

call the claims, deductibles, and beginning the on are understand to think impacted different alluded offering pricing including pressed we we us right. of and it price here, our better in appropriately. our middle to we'll what of that cost reviewing As options, that's able in offer a the of something of be I the I And review,

help And to also and on able impairing down on going pricing have to again, not drivers revenue while able right claims leverage to I down us set all based and think on cost right we I growth. drivers, side, the of the the cost think on profile. also and on more the principally our but data to be to based have overall, appropriately able being profitability being select the be being able increased get to right we're able to we the what focused being to select that's price selecting generate to and opportunity get drivers, risk the

Appreciate the for guys. color, Thanks it. Great.

problem. No

Thank you.

the comes Maxim line Vander question of Jack from Group. next with Aarde Our

now line Your is open.

and welcome Joe I - Joe. that congrats Hey, Did Great. to item. of month for the housekeeping leads with July in you start aboard new and driver just correctly a Joe, hear Serge. question XX,XXX? I'll was a

correct. That's Yes.

Okay. Thank you that… for

at car That's this are we've marketing where started, the spend really in we into anticipation of Yeah. as from where point into up we you doubled, spent speeds our look opportunity supply tripled other pretty on. more If not pumps coming at to channels, to if I the mean significantly we prime right?

number right pretty now. yes, So a it's good

Joe. then another for That's just Cool. follow-up helpful. Okay. you, And

go kind your of the where up? have of phase, I filling terms identifying are you depending market, kind In and is first to you map yet? the future you you allocate you I of supply in now do car remember needs road is next, of because kind southeast you correctly. picture get allocating that had for if as Or I most terms of supply? when just guess, targeting the believe blanks on locked identified immediate that supply, here just example, it Have future car painted still AmeriDrive or with a Have

be of a on in to Yeah. little ramping up. where of We're kind kind stealth we're going bit mode

with of are a lot going have ICE both conversations that now and cars. supply, right EV for partners looking TNC We

we about call. but I So strategy. it on think that's more probably little road And bit do we have able - do a the I'll be a next map, to talk have a

maybe bolts Got from Okay. here. nuts just And a then you. your just model, and question revenue

your weekly as often of seeing the car your pricing. to that in average equation. cite rate user changes you and that you're fluctuates the guys base? that rental basis rental of any know But average that I noticed have owners an You set rate the revenue kind

Yes, absolutely.

see, fees So number getting And drivers a that rental have upwards us. of the our increased has then a that. actually, also $XX, bit can for in gone We're little percentage trend positive as of up, is which average in performance. $XX, you

the implemented right select dynamic are we as and pricing, drivers charge we the So right to able rate.

as well. in we've seen rate daily have we insurance an So And increase also that.

- XX% net And in equation. we've growth. pretty increasing think upside went it take a things seen. on rate to get also also and from indicator, pricing, an dynamic us also it There's to from improving be then our on going to we us in to continuously is but positive XX% from gross basis XX% able see more important all XX% trends. favorably, us then got take XX%, I And to continue that's as all, got that steadily that And XX% for So we to through. the there marketplace

time. it Thanks. That's the for I guys. right. All Fantastic. appreciate me,

you. Thank

Thank you.

comes Jon next Hickman the of Our line Ladenburg. from question with

now Your is open. line

to a for for operating million operating of past year? In expenses $X talking Serge. up at about quarters, expect couple million. you Can guess targeting cash gone what question this rest $X.X to us the the guys you quarters, is around around, of that's past you $X tell I The million. million, it Hi. expenses were at looks $X.X like

Yeah.

but was quarters compared trying quarter term. immediate high normalize that this previous think around X% I investments, we're through to X.X%, to the extremely in probably

X.X to X cash?

Cash.

the Okay. could next I low said kind you thought of the just second of year And about then by the and You into range? you clarify XXs can the XX% then rest they year, what of for gross margins? get half

Correct.

you Is that what said?

correct. Yes, that's

that able the a initiatives us And we I is and think to in it in QX, last annual us And line back right we better with able we to claims think the of have what gross And then data get the being part year being identified. that with now, in rate. to have rate. of profit on think I part all is we'll take the QX, we've then get closer be saw able to in the as spot implementing I improve. expect more

you can dramatically last in So of why talk have couple expenses so quarters? risen the claims about the

Yes, absolutely.

need handle volume have and in able transition, were back We payout few coming than payouts, changing amount that this we've identified on our as we friendly, a to be And to claims faster work to be do our We faster and expenses then got and a higher to customer portion seen loser think a little what and led instance, chase implementing to had sometimes including, money. I to to able one-off in. also practices. paying focus practices but in things, We're curtail subrogation of a little then also is going on quarter, on we're we the the from the $X.X few the we one past. for deductible payment things more to trying have We a process our process million in subrogation good QX. that. customers

only We those for guard us I of instances, claims and in more rails drive some think put cases. certain here, the will we subrogating that new instance, back. help

We couple and looked think trends saw more - different that's a trend to And be going of states we different more we action immediately also We at in that's and going that different with that's in see. alarming profile identified a partially drivers, to where and QX curtail I going to show up in of then QX. also a states. trends data, for I and you're to And QX. think

quickly future. going We And we're more quickly more effective to more analyze and more dashboards, trends. that's help profit in the efficient, discern data and generate to very more and us I data, the have able react to be think

So to long XX%? get you you close think can term, do still

That's the term. a There question now. of factors is that's difficult in long right a to address lot

get above and very high sure, keep up. for that high XX% I margin we volumes, very, with think can

to going still that's business. pretty XX%. solid aim margin a We're So for

I think sky, worked shoot drive, the and past. in Joe is well to for the really always very able willing the to being that's and envelope push

think for company. the I it's mentality great a

of I'd next upwards latter of that it's too now, it's margin early little half shooting right safe think XX% we'll year. be to probably that but I the a say say to for tell, in

Okay. And what's question. the Joe, just one TNC TNS partnership? last What stand for?

here. to good company. TNC That's talk to network a John, or Yes, stands Lyft. for you transportation Uber

Okay.

you people transportation we've TNCs. networks real one the some those release those to towards now. and right last officially because to partnership throw I - are parts, a The of With delivery other we've there's are for Yeah. tease with And X.X and side. two partnerships, that we most working been delivering going on We're major the signed it the then have players. this put want want just years. to - fireworks press around that I for out

going at that announce to we - are And excited. done. as as it. excited hopefully, that we get We're when everybody really point So I'm everyone is

do lead when I what Okay. - car drivers, you get one you a tell you do have more. I'm happens lead, then? What sorry. for and you you have don't get a them. driver What

campaign. drip continually on cars From come sent directly a queue in they're And they're the in most part, For links marketing do and a that when perspective, retarget. geography, back come they them. into to we getting the

algo sophisticated leads So into get marketing those that follow-up to pretty cars. [ph] don't a with

line follow-up from Northland a question with the We do of Mike Thank Grondahl you. have Securities.

line Your open. now is

Joe, Hey, question just last here. one

it there managers? guess Is And at of What had financing? getting kind in Is cars Is them guys talking which partnership? about down? you're the to XX,XXX how with is June. big. really to a XX,XXX? and impediments the getting fleet XXXX, I it impediments understand you it biggest to knocking like X,XXX me TNC end biggest couple you're You the partnerships help are think of

Yeah. a to multifaceted. up. to consistent supply. three playbook then having the of financing was utilizing TNC out. the owners, partnership the a get up it capital We vehicle really which really scale about it to or those ramp ecosystem scale them, driver cars Well, And talked it's The on with to the of

X years, have model in are and recent I history, come think instances replicate able able a some fast. see companies to in to us sustainable business the have that versus in there in scale having - I gone. where a last been history been of now couple And X years, that

able talked a there little months. on the was - in leasing about road XX,XXX cars to months. exchange under road past under was put XX that to XX,XXX in cars the put the able XX,XXX Same in a we've on little over So XX with

And X.X because those up and upon there, a are that us to And of creates able partnership, a right TNC that seeing in vehicle now. some to but who just dollars get cars, these continues you're why marketing into to pairing So ramp that's their really that build with now seeing to and the leaning with there. OpEx virtuous cars and capital being us it I fall leveraging - pieces drivers years sources we're that we're cycle starting all owners numbers itself. point this place. with at It's to we're qualified with taken again, those supply get inflection in see the

that. about I'm So excited

you, Joe. Great. Thank

to There you. turn call now closing remarks. Joe Thank over further I for no the will questions. are Furnari

operator. you, Thank

call on being for everyone to here. the thanks and So taking the time

to partnerships allow delivery partnerships to update soon here. some expect markets exponentially. on multiple the But these teased will you exciting to scale and as cars us We times ridesharing continue for I've

the this really reliable in market at point. player historical we're the provide only So safe cars and to left

excited prospects. the I'm So for

update pipeline. most to going look shareholders details the in the And the have progress making. on we'll importantly, of our regularly So and rollout everything we're that we

look quarter. thanks to everyone. next So operator. again, speaking And forward Thank you,

Ladies participation. and you Thank your gentlemen, this concludes today's conference for call.

disconnect. now may You