HyreCar Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the HireCAR, Inc. 2021 second quarter conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press the star followed by the one on your touch-tone phone. If you would like to withdraw your question, please press the pound key. If you're using speaker equipment, please lift the handset before making your selections. This conference is being recorded today, August the 10th, 2021, and the earnings press release accompanying this conference call was issued at the close of the market today. On our call is HiCars CEO Joe Farnari, CFO Serge DeBak, and HiCars Head of Investor Relations John Evans. I would now like to turn the call over to John Evans.

Thank you, Operator. Welcome, everyone, to our 2021 Second 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 meeting of federal securities laws regarding HireCar, Inc. Forward-looking statements include but are not limited to statements that express the company's intentions, beliefs, expectations, strategies, predictions, or any other statement relating to 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 risks 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 could 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 except 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 10Q, 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 it over to Joe Farnari, the company's CEO.

Thank you, John. And it's hard to believe this is HireCar's three-year anniversary as a public company. As I look back to that first call in August of 2018, it's amazing what we've accomplished since then. These accomplishments are a result of the entire HireCar team, those that have been with us since before 2018, those that have come recently, and those that have moved on. Your contributions have made this company what it is today. I would especially like to welcome a new executive on the line with us today, Serge DeBak. Serge joined the company about four weeks ago and has already started to make a positive impact. After this call, My hope is that all of our shareholders will be as excited as I am for Surge's present and future contributions. With that, I am pleased to say that we had another consecutive record quarter. The combined tailwinds of loosening COVID restrictions, increasing vaccination rates, higher rideshare demand, and stable delivery demand pushed our business to the highest quarterly revenue in company history. Our net revenue increased 62% to $9.1 million for the quarter. up from 5.6 million in Q2 2020. And rental days increased 44% to over 330,000 for the quarter, up from approximately 230,000 in Q2 2020. For the quarter, we saw a record of over 6,800 new unique drivers pick up a car on our platform, a 49% year-over-year growth rate. Two-thirds of our hire car drivers are still predominantly delivery-oriented, and the opportunity is accelerating in the local delivery-as-a-service environment. Not just for food, but all TNC platforms are starting to move into adjacent lanes like alcohol, pharma, and package delivery. On their Q2 call, Uber said that Uber Eats has grown at a compounding annual growth rate of 100% over the past four years, with plenty of room to continue to run. and Uber's acquisitions of Postmates, Drizzly, and Corner Shop are simply validation of the delivery-as-a-service future. Continued growth of these channels will require sourcing a vetted supply of drivers and a reliable stream of cars to match driver demand. This is what HireCar does best. Delivery platform demands suggest HireCar driver economics will remain attractive creating a sustainable environment supporting larger and larger driver pools for years to come. In addition to gains from delivery, both Uber and Lyft said in their Q2 calls that their rideshare business is increasing month over month, and that July was their best month since March of 2020. Lyft alone is on a run rate to spend over $1 billion in driver incentives this year. Uber also admitted to having major supply dislocations in key markets the first half of this year, so they spent heavily to subsidize driver earnings. In their top 20 markets, drivers are averaging over $40 an hour. HireCar is seeing this driver demand as well, having registered over 37,000 leads in the month of July, and we anticipate a surge in leads as federal stimulus incentives roll off in our key markets. As reports of school reopenings and businesses normalize, recovering rideshare volumes will further strengthen the demand side of our platform, and we've shown that we're nimble enough to manage any business environment thrown our way. Last quarter, we stated that increasing driver demand and fewer driver alternatives were creating incremental margin pickup in our daily rates. I'm happy to announce that our dynamic pricing model brought take rates up to $27 per day in Q2, up 12.5% from Q1. Because we've invested in building a robust data environment and flexible technology stack, we were able to implement these changes relatively quickly, and we anticipate take rates growing through the rest of the year as the dynamic pricing model learns and iterates for risk and reward. On the car supply front, we are 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 and an automotive aftermarket retail and service chain with over 900 locations nationwide. AmeriDrive is leveraging those locations for higher car AmeriDrive branded parking spaces and vehicle logistics. AmeriDrive is currently operating out of seven stores in addition to a 200-car overflow lot to help with in-fleet recon. With AmeriDrive's help, we've gone from a little over 3,000 average daily rentals, or ADRs, in Q4 to sequentially trending toward an ADR average of 3,700 in the second quarter. with a run rate of 4,500 to 5,080 yards expected in Q4. We've trended slightly lower than expected with AmeriDrive supply, partly because HireCar has never had a fleet operator scale at the speed that AmeriDrive has, but primarily because AmeriDrive experienced some car financing constraints that are short-term in nature. We're in the process of ironing out these scaling and financial constraints, And in the near term, we've been able to offset the slow ramp in cars with a steeper ramp in take rates. The overall success of our AmeriDrive partnership has opened additional opportunities to significantly grow vehicle supply over the next 12 to 18 months. So I want to reiterate what we said last quarter. As a company, we want to supply up to 16,000 new cars, both gas and EV vehicles, into the market by the end of 2022. and 50,000 by 2025. Our conversations with our partners make it clear that the market will continue to grow and Higher Car intends to be the leading vehicle supplier for the gig economy. In the near term, our partners are working through a tighter vehicle purchase market due to the shortage of new and used cars at scale. That only impacts the short-term pace of adding vehicles and will not impact the growth of our supply going forward as these market anomalies abate. What started as a gig sharing platform has evolved into a vehicle ecosystem that helps vehicle owners not only find the drivers for their vehicles, but also helps them finance, manage, select, and retain drivers. Our relationship with AmeriDrive and Cogent was only the beginning of this program. We are working on another large facility that will enable us to deliver on our growth targets. As part of this expansion, we're using Ameridrive's process and planning to create a best-in-class operating model that we can share and monitor for other fleet owners that want to expand into the gig economy. This operating model includes using our partners to manage the acquisition and maintenance of vehicles, ensuring the vehicles and drivers, handoff and retrieval of vehicles, and the ultimate disposition of the vehicles at the end of the vehicle's life. Creating this partnership ecosystem helps ensure best practices for the fleet owner to help them be a success and ensures that HireCar can add 1,000 to 2,000 vehicles per quarter that will get us to the number that our ride-sharing delivery companies desperately need. With that, I'd now like to turn the call over to Serge Zabok, our Chief Financial Officer, to walk us through some key financial elements from the second quarter. Serge?