EVmo, Inc.

Third-quarter revenue was $3.5 million, up 30% year over year and 24% from Q2 2022. Gross margin excluding vehicle depreciation was 50.4%, compared with 36% in Q3 2021 and 44% in Q2 2022. Net loss was $1.5 million, improving from a $4.7 million net loss in Q3 2021. EBITDA was positive at $117,000; adjusted EBITDA was $424,000 after excluding a $300,000 nonrecurring litigation charge. Total operating expenses were $1.76 million, up 3.6% sequentially. Cash and cash equivalents were $4.3 million as of September 30, 2022. For 2022, management now expects revenue of $13 million to $15 million, and said Q4 revenue would likely be about $4 million to $5 million, with an implied $18 million to $20 million annualized run rate based on the current fleet.

Stephen Sanchez framed the quarter as proof that EVmo’s fleet model is working, emphasizing positive EBITDA, record gross margin, and strong utilization in the high-90s. He said the company will keep growing, but in a measured way, because paying too much for vehicles or chasing growth could hurt profitability for years. He also highlighted the Trek World partnership and said the company is building toward profitability and eventually funding growth from operating cash flow.

Ryan Saathoff walked through the improvement in revenue, margin, and losses, pointing to $3.5 million of revenue, 50.4% gross margin excluding depreciation, and a $1.5 million net loss versus $4.7 million a year ago. He said operating expenses were $1.76 million and described them as disciplined relative to revenue growth, and noted cash and cash equivalents of $4.3 million at quarter-end. On the balance sheet, he said EVmo added $9 million in leased vehicles in Q3, had $28 million in vehicles on the balance sheet, and about 300 vehicles owned outright; he also said the company does not plan to raise additional capital right now, though vehicle financing terms and down payments remain the key driver of cash usage.

Analysts focused on the Trek World agreement, cash burn, and whether EVmo would need new financing. Management said Trek World started in Illinois with a couple of dozen vehicles and could grow to over 2,000 vehicles across Illinois and Houston, with nonemergency transportation as the demand driver. On cash, Ryan Saathoff said the company believes it has enough cash for now and that any need for financing depends mainly on vehicle financing terms and how quickly the fleet expands. They also addressed stock pressure and the recent ticker/name change process, saying a large shareholder sale drove much of the stock movement and that FINRA approval is still pending for the corporate actions.