EVmo Inc hits record yearly revenue in 2020 results; plans to make 2021 the year of the electric vehicle

EVmo Inc (OTCMKTS:YAYO), a provider of vehicles to the rideshare and delivery gig economy sector, announced its fourth quarter and full-year 2020 financial results on Tuesday, including revenue that grew year-over-year despite coronavirus (COVID-19) impairments.

The company posted revenue of $2.2 million for the quarter ended December 31 and $7.6 million for 2020 as a whole, the latter being a company record. The figures represented gains of 29% and 10% year-over-year, respectively. 

EvMo said it rented the highest number of vehicles in its history and recently deployed 40 electric vehicles (EVs) in its fleet. The Los Angeles-based firm also jumped into the last-mile logistics space, adding high-roof cargo vans for delivery.

READ: EVmo receives first fleet of Tesla vehicles under partnership agreement

“Our record revenue for 2020 is a result of deploying the first phase of our strategic plan, which included cost-cutting measures, increasing the size of our fleet, committing to an all EV strategy, increasing our credit lines and entering the last mile logistics space,” EVmo CEO Stephen Sanchez said in a statement. “Our capital formation strategy, which includes debt and equity capital, is expected to translate into exponential revenue and EBITDA growth.” 

EVmo’s process involves renting vehicles to customers who are participating in the gig economy, including by driving for Uber Inc (NYSE:UBER), delivering for DoorDash Inc (NYSE:DASH) and more. 

The company has some 32,000 registered drivers on its platform and is currently in discussions with multiple new and existing lending partners to meet anticipated growth in vehicles, EVmo said. 

“Although the COVID-19 shutdowns caused our quarterly revenue to decrease in the beginning of the second quarter of 2020 compared to the same period in 2019, we saw positive upward movement in revenue at the end of the second quarter,” Sanchez said. “While I am pleased that revenue for 2020 was up 10.2% year-over-year, I am particularly pleased with our Q4 revenue of $2.2 million, which was the highest in the company’s history.”

Moving forward, the priority is EVs. Even its name, EVmo, was recently changed from Rideshare Rental. The company said it has leveraged its partnership with best-in-class OEMs (original equipment manufacturers) to build a fleet of EVs at attractive lease terms.

As 2021 progresses, EVmo anticipates revenue of $1,700 per month per additional EV and $1,400 per month per additional cargo van deployed. At the margin, every $10 million in debt and or equity capital raised should enable the company to purchase approximately 4,041 vehicles with an 85%/15% Tesla EV to van mix. That should translate to approximately $80 million in annual revenue for every $10 million capital raised at the margin, the company said.

“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,” Sanchez added. “We buy right, maintain high utilization through our maintenance excellence program and forge key strategic relationships to drive our environmental and economic initiatives. Our plans are bold and aggressive, and 2021 should be a banner year for EVmo.”

EVmo has scheduled a conference call and webcast to discuss the results on Wednesday, April 7, 2021, at 4:30pm ET. Those interested can dial 1-877-407-0784 in the US or 1-201-689-8560 internationally. An audio-only webcast will be available here.

Contact Andrew Kessel at [email protected]

Follow him on Twitter @andrew_kessel

Story by ProactiveInvestors