EVmo 1Q revenue surges 31% to record $2.3M as its electric vehicle fleet rollout accelerates

EVmo Inc (OTCMKTS:YAYO) reported record first-quarter 2021 revenue of $2.3 million, up 31.3% year-over-year, as the percentage of electric vehicles (EVs) in its managed fleet grew to 14% during the period. EVmo also generated a gross profit that was 57% higher than 1Q 2020 and expects its gross margins will expand significantly in 2021 as the company substantially increases its fleet and transitions to an EV model. “We believe that our strong growth and record revenue for the first quarter is a result of the foundation we built in 2020, which included operational efficiency measures, increasing the size of our fleet, committing to an EV strategy, increasing our credit-lines, and entering the last mile logistics space,” EVmo CEO Stephen Sanchez said in a statement. READ: EVmo provides drivers with the vehicles they need to earn money in the gig economy “Our capital formation strategy, which includes debt and equity capital, is expected to translate into continued revenue and EBITDA growth,” Sanchez added. For the remainder of 2021, EVmo said it plans to deploy capital to facilitate the purchase of new EVs and cargo vans and anticipates strong revenue contribution. It noted that, at the margin, every $10 million in debt and or equity capital raised should enable the company to purchase around 4,000 vehicles with an 85%/15% car-to-van mix, which it said should translate to about $80 million in annual revenue for every $10 million of capital raised at the margin. “Our plans are bold and aggressive, and we believe that 2021 should be a breakout year for EVmo,” Sanchez continued. EVmo added it is attempting to raise $25 million, of mostly debt capital, to expand its fleet to 10,000 vehicles, with the anticipation of scaling to a 25% EBITDA margin. EVmo bridges the gap between rideshare drivers in need of a suitable vehicle and rideshare companies that depend on attracting and keeping drivers. Its Rideshare Rental subsidiary, which provides rental vehicles to drivers in the ever-expanding gig economy, uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs. Contact Sean at sean@proactiveinvestors.com