Executive Summary

Q2 2020 revenue was $1.58M, down 6.9% year over year as COVID-19 reduced average weekly rental income; sequentially, revenue declined from Q1’s $1.75M, while cost of revenue rose to 81.9% of sales, compressing gross profit to $0.29M and driving a net loss of $(0.72)M and $(0.02) EPS .
Management highlighted strong intra-quarter rebound: April revenue $0.45M rose to $0.51M in May and $0.62M in June (June = highest monthly revenue in company history) with end-of-June fleet utilization at 99% .
Strategy pivot to delivery gig economy and rising demand from rideshare drivers underpinned the rebound; management aims to achieve operational profitability by year-end 2020 and cited competitor exits as a tailwind .
No Q2 2020 earnings call transcript and no S&P Global consensus estimates were available for YAYO; comparisons to estimates could not be assessed (consensus unavailable).

What Went Well and What Went Wrong

What Went Well

Strong intra-quarter recovery: “Revenue increased yet again in June 2020 by $117,845, or 23%, to $624,734… the highest monthly revenue in our Company’s history,” with utilization “at 99% at the end of June” .
Strategic pivot executed: “Immediate pivot in marketing to the delivery gig industry” maintained activity through shutdowns and “revenue growth continued in July,” indicating early momentum beyond Q2 .
Industry backdrop improved: “Most of our major competitors have exited the market or shut down operations,” potentially improving pricing power and asset utilization .

What Went Wrong

Margin compression: Cost of revenue as a % of sales increased to 81.9% (vs. 56.7% YoY) as depreciation and repairs rose with fleet size/age, severely reducing gross profit ($0.29M vs. $0.73M YoY) .
Elevated operating costs: Total OpEx rose to $0.94M (up 33% YoY), with G&A rising 28% due to higher payroll/occupancy and selling/marketing up 279% amid growth initiatives .
Liquidity constraints: Cash fell to $0.10M; working capital deficit widened and the company required SBA/PPP borrowing to fund operations (notes payable $0.65M net discount), underscoring funding risk .

Financial Results

Metric	Q2 2019	Q1 2020	Q2 2020
Revenue ($USD)	$1,696,917	$1,747,642	$1,580,555
Gross Profit ($USD)	$734,846	$346,351	$285,496
Cost of Revenue (% of Revenue)	56.7%	80.2%	81.9%
Total Operating Expenses ($USD)	$709,396	$2,027,715	$940,543
Operating Income (Loss) ($USD)	$25,450	$(1,681,364)	$(655,047)
Net Income (Loss) ($USD)	$(417,452)	$(1,761,220)	$(722,842)
Diluted EPS ($USD)	$(0.02)	$(0.06)	$(0.02)

Segment breakdown not disclosed; operations are reported on a consolidated basis across two business divisions (Rideshare platform and Fleet Management) .

KPIs

KPI	Q2 2019	Q1 2020	Q2 2020
Avg weekly rental income per vehicle ($USD)	$331	$249	$292
Month Revenue – April ($USD)	—	$448,932	$448,932
Month Revenue – May ($USD)	—	$506,889	$506,889
Month Revenue – June ($USD)	—	$624,734	$624,734
Utilization (end of June)	—	—	99%
Cash ($USD)	—	$37,579	$103,240
Net rental vehicles (net book value) ($USD)	—	$6,832,929	$6,362,989

Notes: Month revenue figures are management disclosures; “—” denotes not disclosed for those prior periods in filings .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability from operations	FY 2020	None disclosed	Aim to achieve profitability from operations by year-end 2020	Initiated
Revenue, margins, OpEx, tax, dividends	FY/Q2 2020	None disclosed	No numeric guidance provided	Maintained as “no formal guidance”

Earnings Call Themes & Trends

No Q2 2020 earnings call transcript was available. The below themes reflect MD&A and press release commentary.

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2020)	Trend
COVID-19 impact on demand	Q1 2020: steep demand decline; avg weekly rental fell; liquidity pressure	YoY revenue down 6.9% but clear intra-quarter rebound; June back to pre-COVID levels	Improving intra-quarter; uncertain forward due to case trends
Supply/demand & utilization	Q1: reduced ridership; lower utilization implied	Utilization reached 99% end of June; demand from both rideshare and delivery	Strong recovery
Competitive landscape	—	Competitors exiting market cited as growth tailwind	Favorable
Liquidity & financing	Q1: working capital deficit; need capital; lease obligations rising	Cash $0.10M; PPP/SBA loans added; working capital deficit widened	Still constrained; reliant on financing
Legal/regulatory	IPO in Nov 2019; voluntary delisting in Feb 2020	Multiple lawsuits (Social Reality; class actions) ongoing; attachment denied; mediation pursued	Active litigation backdrop

Management Commentary

“We are pleased with our performance in Q2 2020... quarterly revenue decreased by 6.9% YoY, but we are seeing a positive upward movement in revenue… June 2020… the highest monthly revenue in our Company’s history” — Ramy El‑Batrawi, CEO .
“This significant increase in monthly revenue is a result of our immediate pivot in marketing to the delivery gig industry… With new drivers renting cars for both rideshare and delivery gig economy, demand is higher than ever.”
“We believe the Company is well-positioned for further growth and is taking steps to achieve profitability from operations by the end of the year… most of our major competitors have exited the market or shut down operations.”

Q&A Highlights

No Q2 2020 earnings call transcript was available; therefore, no Q&A themes, guidance clarifications, or tone shifts can be assessed for this period.

Estimates Context

S&P Global consensus estimates for YAYO were unavailable; attempts to retrieve “Revenue Consensus Mean” and “Primary EPS Consensus Mean” for Q2 2020 failed due to missing CIQ mapping. As a result, we cannot assess beats/misses versus Wall Street consensus for this quarter.

Key Takeaways for Investors

Intra-quarter momentum is clear: June’s record revenue and 99% utilization show demand recovery when mobility and delivery activity normalize; watch for sustainability into Q3/Q4 amid COVID trends .
Margins are the swing factor: elevated cost of revenue (depreciation/repairs/insurance) at 81.9% of sales materially compressed gross profit; investors should monitor fleet mix/age, insurance costs, and pricing to restore margins .
Liquidity remains the primary risk: minimal cash, working capital deficit, and reliance on PPP/SBA financing signal ongoing funding needs; equity or debt raises would be key catalysts and potential overhangs .
Strategic execution: the pivot to delivery gig and competitor exits could improve utilization and pricing; execution on fleet efficiency and cost discipline will determine path to stated FY20 operational profitability .
Litigation overhang: multiple active cases (including class actions) add headline and potential financial risk; monitor case consolidation and resolutions for impact on operating focus and costs .
Near-term trading: narrative likely reacts to monthly revenue/utilization updates and financing events; medium-term thesis hinges on margin normalization, liquidity solutions, and sustained demand recovery across rideshare and delivery segments .

EVmo, Inc. (YAYO)·Q2 2020 Earnings Summary