HyreCar Inc.

Ladies and gentlemen, thank you for standing by, and welcome to the first quarter 2021 earnings call. At this time, all participant lines are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star 1 in a telephone keypad. Please be advised that this conference is being recorded. If you require any further assistance, please press star 0. I would now like to hand the conference over to your speaker today, John Evans, Investor Relations and Corporate Development. Thank you, sir. Please go ahead.

Thank you, Operator, and welcome everyone to our 2021 First Quarter Earnings Conference Call. Before we get started, I'd like to take this opportunity to remind you that during this call, we will be making forward-looking statements within the meaning of federal securities laws regarding Hire a Car, Inc., Forward-looking statements include but are not limited to statements that express the company's intentions, belief, expectations, strategies, predictions, or any other statements relating to its future earnings, activities, events, or conditions. These statements are based on current expectations, estimates, and projections about the company's business based in part on assumptions made by management. These statements are subject to known and unknown risk and uncertainties that could cause actual results to differ materially from those projected or implied during this call. In particular, those described in our risk factors included in our documents that the company files with the U.S. Securities and Exchange Commission. In addition, such statements can be affected by risks and uncertainties related to factors beyond the company's control. You should not rely on our forward-looking statements as predictions of future events. All forward-looking statements that we make on this call are based on assumptions and beliefs as of today, and we undertake no obligation to update them, expect as required by applicable law. Our discussions today will include non-GAAP financial measures. These non-GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results will be found in our earnings release and supplemental materials, which will be furnished with our Form 10-Q that will be filed with the SEC and will also be found on the investor relations portion of our website. Now I'd like to turn the call over to our CEO, Joe Frenari. Thank you.

Great. Thank you, John. And welcome, everybody. I am pleased to say that HireCar had a record quarter. The combined tailwinds of loosening COVID restrictions, increasing vaccination rates, higher ride share demand, and stable delivery demand pushed our business to the highest quarterly revenue in company history. We are now a stronger, more efficient company, and this is reflected in our results. Our net revenue increased 29% to $7.45 million for the quarter, up from $5.8 million in 2020. And rental days increased 31% to approximately $300,000 for the quarter, up from $229,000 in Q1 of 2020. We continue to see robust driver demand. For the quarter, we saw a record 5,400 new unique drivers pick up a car on our platform, a 14% year-over-year growth rate. Our expansion to include food, grocery, and delivery, plus our focus on increasing customer retention, drove revenue, and rental day growth rates, and should be additive to the continuing recovery and ride share to our delivery drivers as we look to a post-COVID world. Two-thirds of hire car drivers are still predominantly delivery-oriented, and we see COVID as having accelerated the opportunity in local delivery as a service environments. not just for food, where micro-logistics and lower basket sizes now have a flywheel effect moving forward, but everyone is now starting to move into adjacent lanes, like alcohol, pharma, and package delivery. Sourcing a vetted supply of drivers in local environments is a key factor in our sustained growth. Strong delivery platform demands suggest higher car driver economics will remain attractive, creating a sustainable environment supporting larger and larger driver pools. In addition to gains from delivery, both Uber and Lyft have recently said their rideshare business is increasing week over week, and they are having their best week since the pandemic. Uber alone said they expect to increase driver incentives to the tune of over $250 million to help drivers return to rideshare. Our drivers are expressing higher hourly earnings as ridership demand increases as well. So as reports of a full reopening are being announced, recovering rideshare volumes will further strengthen the demand side of our platform. And as a result of increasing driver demand and fewer driver alternatives, we are experiencing incremental margin pickup in our daily rates. It has been heavily covered in the media that rental car prices have shot up and franchise dealers are experiencing vehicle shortages due to the lack of new car supply and record used car prices. Combined with surging driver demand, this has created an opportunity for us to implement a dynamic pricing model that should take us from a daily take rate of $24 to $25 historically to $27 to $28 per day starting in Q2 and growing through the rest of the year. In our preliminary revenue test, we've been able to implement these changes without affecting our rate of growth. Dynamic pricing combined with increasing gross profit from normalized claims and increased affiliate revenue puts us on a chart to reach EBITDA neutral in the second half of 2021. On the car supply front, we're enjoying increased vehicle supply onto the platform from our previously announced partnerships and specialty fleet suppliers. On January 28th, we announced an expanded partnership with Ameridrive Holdings, That announcement included new relationships with Cogent Bank for innovative financial services, a national fleet supplier, and an automotive aftermarket retail and service chain with over 900 locations nationwide. AmeriDrive is leveraging these locations for hire car, branded parking spaces, and vehicle logistics. AmeriDrive is currently operating out of seven stores, up from five, in addition to a 200-car overflow lot to help with in-fleet recon. This rollout with AmeriDrive is a clear template we are planning to replicate in additional markets with the next market slated to open in two weeks. We've gone from a little over 3,000 average daily rentals in Q4 to sequentially trending toward an ADR average of 3,500 in the month of March with a run rate of over 4,500 ADRs expected in May. I believe that we're on a strong and steady run rate that will continue through the second quarter and will further ramp into the back half of the year as dealer supply and state reopenings accelerate tailwinds. The success of our AmeriDrive partnership has opened additional opportunities to significantly grow vehicle supply over the next 12 to 18 months. We are actively working on initiatives to enable the onboarding of cars for our partners who manage cars at scale. As a company, we want to supply up to 16,000 cars, both gas and alternative fuel or EV vehicles, into the market by the end of 2022. Our conversations with our partners make it clear that the market will continue to grow, and HireCar intends to be the leading vehicle supplier for the gig economy. In addition to our core business, incremental revenue opportunities continue to expand. As previously announced, we have started initiatives to monetize our extensive customer base with additional income opportunities that complement our core business model. Our formal partnership with a leading automotive research and consumer buying website, Trucar, is our first major non-rental revenue initiative. Thousands of our customers are now engaging with Trucar on a monthly basis. We are in the very early stages of introducing the hire car auto buying program message to our customers, but we are now profiting from what was a lost income opportunity previously. In addition to the incremental revenue from this initiative, we're gathering valuable data from our customer behavior and discovering opportunities from other revenue streams. Bottom line, I believe that HireCar is still in the infancy of unlocking the value from our customers that ultimately buy finance and insure vehicles. Also consistent with the theme of unlocking customer value, the Earn to Own initiative we launched last quarter with our financial partner ACC Consumer Finance is starting to gain traction. Our expectation that drivers will stay in the car longer if they have a milestone to reach is proving accurate. Drivers in the program are averaging over five times more rental days than our typical driver customer. So we look forward to reporting more on this later in the year. Another exciting growth strategy is our opportunity with electric vehicles. And we continue to incorporate more EV driver demand onto HireCar's platform by educating drivers interested in maximizing earnings through EV while reducing their carbon footprint. As previously mentioned, it is our goal to join Uber and Lyft in their objectives to be carbon neutral by 2030. In addition to the driver benefits of this EV initiative, there are significant government incentives for fleet operators and OEMs to include zero-emission vehicles in their fleets. These incentives increase the margins for operators on the higher car platform and encourage EV car supply growth. As the acceleration of EV cars roll off the assembly lines from major OEMs we see an opportunity to be at the forefront as a primary supplier of EV cars to rideshare drivers. So with that, I'd now like to turn the call over to Scott Brogy, our Chief Financial Officer, to walk us through some key financial elements from the first quarter. Scott? Thanks, Joe.