HyreCar Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the Higher SCAR, Inc. 2022 First Quarter Conference Call. During today's presentation, all parties will be in a listen-only mode. Please note this conference is being recorded. 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 star followed by two. If you're using speaker equipment, please lift the headset before making your selection. The Earnings Press release accompanying this conference call was issued at the close of the market today, May 16, 2022. On our call today, its highest card CEO Joe Funati, President Brian Allen, and CFO Serge Debak. I will now turn the call over to Scott Arnold of Core IR, the company's investor relations firm. Please go ahead.

Thank you, operator, and welcome everyone to HireCar's first quarter 2022 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 HireCar Incorporated. Forward-looking statements include but are not limited to statements that express the company's intentions, lease 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 base, in part on assumptions made by management. These statements are subject to known and unknown risks and uncertainty 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 we substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results will be found in the earnings release and supplemental materials that were filed with the SEC and can also be found on the investor relations portion of the company's website. Now I would like to turn it over to Joe Frenari, CEO.

Great. Thank you, Scott, and welcome, everybody. I am pleased to report that HireCar had a strong start to 2022, building off the momentum from a record year in 2021. We saw strong car share demand to support gig-based services, and despite persistently elevated prices in the used car market, we also maintained available supply on the platform with a substantial increase in new owner accounts. We are now the only platform crowdsourcing vehicles for gig drivers in the United States. and as a dedicated provider of drivers for ride-sharing delivery platforms, HireCar is uniquely positioned to help these platforms cover anticipated driver shortages as demand returns to pre-pandemic levels. March of this past quarter was our strongest revenue month in company history, and that momentum has continued through April and May. We anticipate macro tailwinds to continue to drive revenue and ADRs higher as used car prices level off, car supplies anticipated to flow From our warehouse initiative, demand continues to grow for gig services, and we continue to build the HireCar ecosystem. HireCar's revenue grew 28% year-over-year to $9.6 million for the quarter. Driver demand for cars remains strong, with total driver sign-ups increasing 10% quarter-over-quarter, in line with the increasing consumer demand for rideshare and delivery services observed by platforms such as Uber and Lyft. Reflecting the higher year-over-year growth in mobility versus delivery bookings observed by Uber, HireCar also saw a shift in driver-by-service type, with a 5% decrease in percentage of rental days attributed to delivery and a 5% increase in rental days attributed to rideshare. Driver demand continues to be HireCar's strongest tailwind as we move into Q2. Our supply-related operations improved significantly. with median time to verification decreasing by 75% year-over-year, driven by initiatives to make it faster and easier for owners to complete the listing process. We also improved the quality of selection, reducing the percentage of new cars failing verification by 18% over the same period in 2021. We see our performance in March as a pivotal trend reversal for our supply of vehicles on platform for a number of reasons. Number one, we have maintained organic momentum into Q2 with strong utilization rates and high rental days in April and the first half of May. Number two, used car prices seem to be stabilizing, making it slightly easier for our owners to source vehicles. And number three, we've set the hire car platform up for success by building capacity into the technology processes and In the coming months, the anticipated warehousing line of credit will be leveraged for our larger partners to operate in additional markets. With a steady and growing supply of cars from all of our fleet partners, we will be able to fully take advantage of system-wide demand increases from drivers. Because of these tailwinds, we anticipate a record quarter in Q2 as we continue our organic growth trends. We've committed to building an ecosystem to make it even more profitable to do business on our platform. To that end, we are excited to announce several technology powered features that continue to make HireCar the most owner and driver friendly platform for car sharing. Some examples of these initiatives include the beta launch of citation visibility and management provides an automated solution to one of the biggest pain points for owners, the management of parking citations and camera violations. Number two, in order to increase trust and transparency on the market, we are implementing new ride share and delivery specific verification measures that will further enhance owner confidence in applicants. And number three, to increase scalability of our customer support and success teams, we are implementing automated chat that will allow us to absorb the operational impact of the increased supply. These initiatives in flight are expected to enhance HireCar's core business for what should be a record setting Q2. And finally, as we get close to HireCar's most significant initiative for 2022, securing the warehousing line, I look forward to sharing details in an upcoming call. With that, let me bring in Brian Allen to expand on our vehicle initiatives for 2022.