New Ventures Amidst Continued Cash Burn For NASDAQ HYRE

New Ventures Amidst Continued Cash Burn For NASDAQ HYRE


HyreCar Inc. the company with the objective of a carpooling marketplace for delivery and ride-sharing trades its stock as NASDAQ: HYRE at Last month before the second quarter came to an end the company gave an update on its execution of an auto-insurance program in partnership with Lloyd’s Apollo syndicate of 1969.

Key statements made in the update

Some of the key statements that the company made in its update are as follows:

  • It was made clear that the company is back on the track of growth it was seeing before COVID. The weekly rentals have spurted higher than 19,500. The month of May saw an all-time high for the company with more than 79,000 rentals.
  • The CEO of the company believes that this growth is owing to the business model of the company and that it allowed them to tap into new ventures during the pandemic and usher into a greater market.
  • Both the CFO of HyreCar and Head of Apollo expressed their excitement over this partnership and belief in becoming more capable of offering suitable insurance options to emerging companies.

Viewpoint on the current situation

The company is currently having its free cash flows going negative. Thus, it is likely for the shareholders holding NASDAQ: HYRE to think if they should be concerned or not. 

The company is having a short cash runway. By the end of the first quarter this year, it had the US $7.8m as cash being debt-free. In the previous year, its negative cash flows amounted to the US $9.6m. This implies that the company had a short cash runway of about 10 months until March. In this situation, the company should either adopt the approach of minimizing its yearly negative cash flows or refill its cash.

Though the negative cash flows have increased by 50% each year, it is boosting to know that the revenue has improved by 57%. Thus, the growth narrative of the company, after all, does have some roots. To not lose the faith of those holding stocks of NASDAQ: HYRE, the company needs to keep enhancing this growth.  

What should the shareholders do?

Though the problem of free cash flows being negative is not serious, the shareholders should still decide watchfully on the costs of generating further money in the future. Give proper thought before looking for other companies with better stock fundamentals than those of NASDAQ: HYRE. On the contrary, if you’re having thoughts of trading, make sure you open our account with a platform that incurs you the lowest costs.  You can choose the best stock trading platform for stock trading. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

Timothy Scott