EVmo (OTC:YAYO) Inc, the company which rents out vehicles to rideshare drivers and delivery fleet operators, said it posted another quarter of record revenue and expects this year and next to be 'breakouts' for the company.
For the second quarter ended June 30, 2021, the company saw revenue grow 67.8% to $2.7 million, from $1.6 million in the same period a year earlier.
READ: EVmo closes $15M debt financing to drive fleet and market expansion
"Second quarter revenue exceeded pre-COVID-19 levels, demonstrating the strength of our business model and the rapidly growing demand for our services as the re-opening of the economy continues," said Stephen Sanchez, EVmo (OTC:YAYO)'s CEO.
"Importantly, the quarter’s revenue doesn’t reflect the effect of the debt financing capital deployed, and future capital deployed," he added.
Post quarter end, EVmo (OTC:YAYO) completed a $15 million debt financing and commitment, the balance of of which is not reflected in the June 30 balance sheet, the firm noted, adding that gross profit was up 158.1% in the latest quarter verus 2Q, 2020 and up 43.4% compared to the first quarter this year.
Sanchez added: "We continue to maintain strong gross margins of approximately 28%, improving 52% over the second quarter of 2020, making the company's core rental operations profitable before taking into account corporate overhead and one-time costs.
"We expect our gross margins will continue to expand throughout 2021 as we substantially increase our fleet and transition to an EV model.
"We are on a mission to rent every car, every day and provide excellent service in the process, and we are committed to an environmentally friendly user platform."
He concluded: "Our plans are bold and aggressive, and we believe that 2021, and particularly 2022 should be breakout years for EVmo (OTC:YAYO)."
The company's cash and equivalents totaled $0.2 million as of June 30, 2021.
According to Global Market Insights, the ridesharing market in North America was $4.5 billion in 2019 and expected to grow at a CAGR of 6.5% through 2026, it highlighted.
Contact the author at giles@proactiveinvestors.com