HyreCar Inc.

Good afternoon, ladies and gentlemen. Thank you for standing by. Welcome to the HireCAR, Inc. 2022 second quarter conference call. During today's presentation, all parties will be in listen-only mode. Following the presentation, the conference will be open for questions. If you have a question, please press star followed by one on your touch-tone phone. If you would like to withdraw your question, please press star then two. If you're using a speaker equipment, Please lift the handset before making your selections. The earnings press release accompanying the conference call was issued at the close of market today, August 15th, 2022. On our call today is HireCar's CEO, Joe Funari, and CFO, Serge Dybak. I will now turn the call over to Scott Arnold of CoreIR, the company's investor relations firm. Please go ahead.

Thank you, Operator, and welcome everyone to HireCAR's second 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, beliefs, 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 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 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 FCC 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. During today's call, we'll share the company's exceptionally strong second quarter results, along with several corporate updates. I am pleased to report that HireCar had a record quarter, building off the momentum from the first quarter of 2022. We generated the highest revenue in HireCar's history with the highest gross margin in the trailing 12 months despite a challenging macroeconomic environment. We continue to invest in strategic initiatives to sustain growing demand while increasing car supply and reducing operating expenses. We also welcome Greg Tatum as HireCar's Chief Technology Officer, who brings years of experience building customer-first products and features at companies including Wine.com and Williams-Sonoma. Revenue for the second quarter of 2022 was $10.5 million, the highest in hired cars history and building off the momentum from strong demand in March. This represents a 10% sequential increase in net revenue from the first quarter of 2022. Demand continued to increase with 10% growth in driver signups versus the first quarter, driven by optimization and improved targeting, indicating sustained demand for cars and gig work. Ongoing automations to verification processes and onboarding helped drive a 39% increase in verified drivers over the first quarter, while the bottom of our driver acquisition funnel grew as well, with a 28% increase in first driver rentals versus the first quarter. We continue to observe an ongoing shift in rental use intent as the economy continues to rebound from the pandemic, with an 18% decrease in delivery and a 7% increase in rideshare sign-ups. This mirrors second quarter 2022 results from Uber, with the gig platform's growth in mobility revenue and take rate outpacing those for delivery. We expect rideshare and tent rentals to continue increasing through the busy summer months. Organic vehicle supply grew moderately versus the first quarter, with cars listed increasing by 2% and first-time cars rented increasing by 2% as well. The numbers of owners transacting and cars successfully utilized or rented increased across all three owner segments, peer-to-peer, midsize, and fleet, with total transacting cars increasing 5% versus the first quarter. Our owners also earned more versus the first quarter across all three segments, with owner earnings increasing 4% for our midsize fleets and 16% for our larger fleet operators. At the same time, To meet increasing demand for electric vehicles on our platform, we have continued to provide access to EVs through our partnership with Springfield EV, which has seen significant growth. EV orders placed through the program grew nearly 300% versus the first quarter. We continue to explore partnerships with EV providers and infrastructure developers to build the most robust, flexible ecosystem for EV rentals. As we increase car capacity, it will be critical for HireCar to continue leveraging technology to ensure that we continue to mitigate risk, improve the quality of our driver pool, and strive to increase both driver and vehicle retention. With the addition of Greg Tatum leading product management and engineering, our technology teams will be focused on scalable infrastructure and continue to roll out and iterate on features that strengthen marketplace integrity and increase liquidity. Under Greg's leadership, there will be a renewed focus on building products that maximize owner and driver earnings while ensuring that the higher car marketplace has the highest quality drivers and vehicles to support our trust and safety initiatives. I'll now turn it over to Serge Dubac, CFO.