EVmo Reports First Quarter 2023 Financial Results
LOS ANGELES, May 22, 2023 (GLOBE NEWSWIRE) — EVmo, Inc. (OTC: YAYO), a leading provider of vehicles to the rideshare and delivery gig economy industry, today announced financial results for its first quarter ended March 31, 2023.
Key Highlights:
- Record 1Q 2023 revenue of $3.8 million, up 57% compared to 1Q 2022 revenue of $2.4 million due to more cars on the platform and higher rental rates
- Generated positive adjusted EBITDA of $263 thousand in 1Q 2023, or 7%, compared to negative EBITDA of $248 thousand in 1Q 2022
- 60% of customers are renting for more than 80 consecutive days
- EVs and hybrids are now 35% of the Company’s vehicle fleet
“We are pleased to deliver another quarter of record revenues and our second quarter of positive adjusted EBITDA as it highlights the viability and strength of our business model. Demand for our offerings remains high and we continue to focus on fleet management and delivering for our customers,” commented Stephen Sanchez, CEO of EVmo.
“The executive team is continuing to work with our lender, EICF Agent LLC, and we are also exploring multiple options to address their notice. However, the Company is unable to provide any additional information or make comments at this time given that this is an ongoing discussion and negotiation.”
First Quarter 2023 Financial Results:
- Revenue for the three months ended March 31, 2023 was $3.8 million, up 56% from $2.4 million in the first quarter of 2022. The year-over-year revenue growth was driven primarily by an increase in the Company’s fleet and higher daily rental rates on newer and high-demand cars.
- Gross profit, excluding vehicle depreciation, for the three months ended March 31, 2023 was $1.6 million or 42%, up from $612 thousand or 42% in 2022 due to expense controls and operating efficiencies with the larger fleet of vehicles
- General and Administrative expenses were $3.2 million for the three months ended March 31, 2023, up from $1.5 million in the first quarter of 2022 primarily due to $1.2 million of non-recurring legal and settlement expenses related to the Bellridge Capital lawsuit.
- Net loss totaled $3.1 million for the three months ended March 31, 2023, compared to the net loss of $1.5 million in the first quarter of 2022. The larger loss was attributable to the legal and settlement costs and also higher interest expenses.
EBITDA and Adjusted EBITDA are non-GAAP financial measures. See the reconciliations of these measures to their respective most directly comparable GAAP measure below in this press release.
Non-GAAP Financial Measures
To supplement the Company’s unaudited condensed consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the Company presents certain financial measures that are not prepared in accordance with GAAP, specifically EBITDA and Adjusted EBITDA because the Company believes these non-GAAP financial measures assist investors in seeing the Company’s operating results through the eyes of management and because the Company believes that these measures provide a useful tool for investors to use in assessing the Company’s operating performance against prior period operating results and against business objectives. The Company uses the non-GAAP financial measures in evaluating its operating results and for financial and operational decision-making purposes.
These non-GAAP financial measures, which are defined below, should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. These non-GAAP financial measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similarly-titled measures presented by other companies.
The following table provides a reconciliation of net loss to EBITDA and Adjusted EBITDA for the quarter ended March 31, 2023 and 2022:
| Adjusted EBITDA Reconciliation | Q1 2023 | Q1 2022 | |||||
| Net Income | $ | (3,139,712 | ) | $ | (1,510,052 | ) | |
| Adjusted EBITDA addbacks | |||||||
| Depreciation Expense | $ | 1,070,931 | $ | 520,403 | |||
| Loan Amortization Expense | $ | 95,163 | $ | – | |||
| Interest Expense | $ | 998,772 | $ | 452,038 | |||
| Total EBITDA addbacks | $ | 2,164,866 | $ | 972,441 | |||
| EBITDA | $ | (974,847 | ) | $ | (537,611 | ) | |
| Non-Recurring Legal | $ | 1,237,501 | $ | 289,702 | |||
| Adjusted EBITDA | $ | 262,655 | $ | (247,909 | ) | ||
| EVmo, Inc. | |||||||
| Condensed Consolidated Statements of Operations | |||||||
| For the Three Months Ended, 2023 and 2022 | |||||||
| 2023 | 2022 | ||||||
| Revenue | $ | 3,844,136 | $ | 2,459,709 | |||
| Cost of revenue* | 3,288,738 | 1,972,063 | |||||
| *includes vehicle depreciation | 85.55 | % | 80.17 | % | |||
| Gross profit | 555,398 | 487,646 | |||||
| 14.45 | % | 19.83 | % | ||||
| Operating expenses: | |||||||
| Selling and marketing expenses | 94,123 | 64,336 | |||||
| Product development | 44,502 | 19,000 | |||||
| General and administrative expenses | 3,231,409 | 1,462,325 | |||||
| Total operating expenses | 3,370,034 | 1,545,661 | |||||
| Loss from operations | (2,814,636 | ) | (1,058,015 | ) | |||
| Other income (expense): | |||||||
| Interest and financing costs | (998,773 | ) | (452,037 | ) | |||
| Other income | 673,697 | – | |||||
| Gain on forgiveness of debt | – | – | |||||
| Total other income (expense) | (325,076 | ) | (452,037 | ) | |||
| Net loss | $ | (3,139,712 | ) | $ | (1,510,052 | ) | |
| Weighted average shares outstanding: | |||||||
| Basic | 71,302,649 | 69,469,399 | |||||
| Diluted | 71,302,649 | 69,469,399 | |||||
| Loss per share | |||||||
| Basic | $ | (0.04 | ) | $ | (0.02 | ) | |
| Diluted | $ | (0.04 | ) | $ | (0.02 | ) | |
| The accompanying footnotes are an integral part of these condensed consolidated financial statements. | |||||||
About EVmo, Inc.
EVmo, Inc. bridges the gap between rideshare and “last mile” delivery drivers in need of suitable vehicles and the companies in the rideshare, delivery and logistics businesses that depend on attracting and keeping drivers. EVmo, Inc. is a leading provider of rental vehicles to drivers and delivery companies in this ever-expanding gig economy. The Company uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs.
The Company provides an online rideshare vehicle booking platform to service the ridesharing and delivery gig economy which includes both our owned and maintained passenger and cargo delivery fleet and third-party fleets. We also provide fleet management services with our industry leading technology platform to fleet providers. EVmo provides cargo storage vans to the last-mile delivery and logistics industry.
The company provides SEC filings, investor events, press and earnings releases about our financial performance on the investor relations section of our website (www.evmo.com).
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” ” intend,” “plan,” “believe,” “potential, ” “continue,” “is/are likely to” or other similar expressions. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results.
Company Contact
Email: investors@evmo.com
For more investor information go to
www.Evmo.com
