Executive Summary

Q3 2020 revenue reached a record $2.071M, up 21.5% year over year and up 31.0% sequentially; gross margin improved to 42.3% versus 37.9% in Q3 2019, reflecting demand recovery and mix shift toward delivery gig drivers .
The company reported a net loss of $(0.391)M and loss per share of $(0.01), while noting that “core rental operations [were] profitable before corporate overhead and one-time costs” .
Utilization ran ~95% in Q3, and management expects demand tailwinds following California’s Proposition 22 passage, with the majority of the fleet in California .
No earnings call transcript or Wall Street S&P Global consensus estimates were available for the quarter; comparisons to estimates are therefore unavailable (S&P Global consensus not available for YAYO).

What Went Well and What Went Wrong

What Went Well

Record quarterly revenue and margin expansion: “Q3 2020 revenue was up 21% year over year and was up 31% over Q2 2020, hitting the highest quarterly revenue in the Company’s history. Gross margins grew to 42% up from 38% from Q3 2019” .
Strategic pivot drove demand: “This significant increase in revenue is a result of our immediate pivot in marketing to the delivery gig industry” .
Strong utilization and regulatory tailwind: “We are running at a 95% utilization rate… With Proposition 22 passing… this will create more demand as drivers make more money. This is important because the majority of our fleet are in California” .

What Went Wrong

Continued GAAP losses: Q3 net loss $(0.391)M and EPS $(0.01), with operating loss $(0.326)M driven by G&A $1.088M .
Elevated leverage and liabilities: Current liabilities of $4.124M vs current assets of $0.570M at 9/30/20; finance lease obligations totaled $3.668M (current and non-current) .
Liquidity tightness: Cash declined to $84,732 at quarter-end, underscoring financing and working capital constraints despite demand recovery .

Financial Results

Income Statement and Margins

Metric	Q3 2019	Q1 2020	Q2 2020	Q3 2020
Revenue ($USD)	$1,718,439	$1,747,642	$1,580,555	$2,070,821
Cost of Revenue ($USD)	$1,067,373	$1,401,291	$1,295,059	$1,194,957
Gross Profit ($USD)	$651,066	$346,351	$285,496	$875,864
Gross Margin (%)	37.9%	19.8% (calc from )	18.1% (calc from )	42.3%
Selling & Marketing ($USD)	$80,039	$131,509	$79,133	$113,904
G&A ($USD)	$761,151	$1,896,206	$861,410	$1,088,152
Operating Income ($USD)	$(190,124)	$(1,681,364)	$25,450	$(326,192)
Interest & Financing ($USD)	$(180,531)	$(79,856)	$(67,795)	$(65,292)
Net Income (Loss) ($USD)	$(370,655)	$(1,761,220)	$(722,842)	$(391,484)
Diluted EPS ($USD)	$(0.01)	$(0.06)	$(0.02)	$(0.01)

Notes: Gross margin for Q1 and Q2 2020 shown as computed from disclosed revenue and gross profit amounts; Q3 margin and Q3 2019 margin explicitly disclosed by management .

Balance Sheet Highlights (quarter-end)

Metric	Dec 31, 2019	Jun 30, 2020	Sep 30, 2020
Cash ($USD)	$1,256,429	$103,240	$84,732
Accounts Receivable ($USD)	$59,331	$43,562	$53,338
Prepaid Expenses ($USD)	$782,900	$549,404	$431,973
Total Current Assets ($USD)	$2,098,660	$696,206	$570,043
Rental Vehicles, net ($USD)	$4,737,047	$6,362,989	$7,140,289
Total Assets ($USD)	$7,203,182	$7,261,846	$7,912,612
Total Current Liabilities ($USD)	$2,655,055	$3,841,272	$4,123,526
Finance Lease Obligations (current) ($USD)	$1,416,446	$1,640,899	$1,689,534
Finance Lease Obligations (non-current) ($USD)	$984,119	$1,458,486	$1,978,238
Total Liabilities ($USD)	$3,639,174	$5,449,658	$6,251,664
Stockholders’ Deficit ($USD)	$3,564,008	$1,812,188	$1,660,948

KPIs

KPI	Q2 2020	Q3 2020
Utilization Rate	99% utilization at end of June (highest in company history)	~95% utilization on available cars across areas
Monthly Revenue Progression (Q2)	Apr: $448,932; May: $506,889; Jun: $624,734	Not disclosed
Demand Commentary	Increased demand from drivers for rideshare and delivery; competitors exiting aided growth	Proposition 22 expected to increase demand; majority of fleet in California

Actual vs. Consensus (Q3 2020)

Metric	Actual	Consensus	Beat/Miss
Revenue ($USD)	$2,070,821	N/A	N/A
Diluted EPS ($USD)	$(0.01)	N/A	N/A

Note: S&P Global consensus estimates were unavailable for YAYO; we attempted retrieval but no CIQ mapping exists (Values retrieved from S&P Global were unavailable for this ticker).

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Profitability from operations	FY 2020	“Taking steps to achieve profitability from operations by the end of the year” (directional, no range)	“Core rental operations profitable before corporate overhead and one-time costs” in Q3 2020 (result, not formal guidance)	Clarified/partial achievement
Revenue/Margins ranges	FY 2020	Not provided	Not provided	Maintained (no quantitative guidance)
Utilization/Capacity	Near-term	Demand higher than ever; 99% utilization at end of June	Running at ~95% utilization; anticipate continued growth as more cars added	Maintained strong utilization; slight normalization

No formal quantitative ranges (revenue, margins, OpEx, tax) were issued in Q3 materials .

Earnings Call Themes & Trends

No Q3 2020 earnings call transcript was available for YAYO during the period; themes below synthesize press releases and the Q1 10-Q.

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
COVID-19 impact and recovery	Q1: Significant demand decline; revenue down 1.7% YoY; margins compressed due to lower weekly rental income . Q2: Sequential recovery with monthly revenue up 39% from Apr to Jun; highest monthly revenue in history .	Continued recovery; record quarterly revenue; margin expansion to 42.3%	Improving
Strategic pivot to delivery gig	Initiated emphasis on ridesharing rentals; noted ongoing operations and need to raise capital . Q2: Immediate pivot to delivery gig drove demand .	Pivot sustained; delivery gig focus cited as key driver of revenue strength	Sustained
Regulatory tailwinds (Prop 22)	N/A	Proposition 22 passage expected to increase driver earnings and demand; majority of fleet in CA	Positive catalyst
Competition landscape	Q2: “Most of our major competitors have exited the market or shut down operations,” aiding future growth .	Not repeated, but demand remains strong across serviced cities	Supportive
Utilization	Q2: 99% end-of-June, highest in history .	~95% utilization across areas	Strong, slightly normalized
Liquidity and capital needs	Q1: Cash $37,579; need to raise capital; working capital deficit . Q2: Cash $103,240 at quarter-end .	Cash $84,732; liabilities increasing; need careful working capital management	Constraint persists

Management Commentary

“Q3 was up 21% year over year and was up 31% over Q2 2020, hitting the highest quarterly revenue in the Company’s history. Gross margins grew to 42% up from 38% from Q3 2019, making the Company’s core rental operations profitable before taking into account corporate overhead and one-time costs.” — CEO Ramy El-Batrawi .
“This significant increase in revenue is a result of our immediate pivot in marketing to the delivery gig industry… With Proposition 22 passing… this will create more demand as drivers make more money… We anticipate seeing continued growth in revenue as we add more cars… We are running at a 95% utilization rate” — CEO Ramy El-Batrawi .

Q&A Highlights

No earnings call transcript was available for Q3 2020; no Q&A content to report.

Estimates Context

S&P Global/Capital IQ consensus estimates for revenue and EPS were unavailable for YAYO due to missing CIQ mapping; as a result, we cannot assess beats/misses versus Wall Street consensus for Q3 2020 (Values retrieved from S&P Global were unavailable for this ticker).
Given the company’s OTC status and limited analyst coverage, we expect minimal to no formal consensus; investors should focus on sequential trends and margin trajectory evidenced in company filings and press releases .

Key Takeaways for Investors

Demand recovery is tangible: record Q3 revenue and 42.3% gross margin reflect successful pivot to delivery gig drivers and normalization of rideshare activity; utilization remains high (~95%) .
Profitability path: core rental operations achieved profitability before overhead; scaling the fleet and cost discipline in G&A are the keys to breakeven at the consolidated level .
Liquidity constraints: cash fell to $85k with rising lease obligations and current liabilities; execution likely requires additional capital or improved operating cash flow to support fleet growth .
Regulatory tailwind: California’s Prop 22 should boost driver economics and demand, particularly relevant given the fleet’s CA concentration .
Competitive dynamics: management cited competitor exits in Q2, potentially supporting pricing and utilization; monitor if this persists into 2021 .
No Street consensus: lack of estimates increases volatility around prints; focus on sequential revenue growth and gross margin performance as the primary trading catalysts (S&P Global consensus not available).
Short-term implication: near-term stock reactions should hinge on utilization, fleet scale additions, and any updates on overhead reductions; medium-term thesis depends on sustaining margin improvements while de-levering lease obligations .

EVmo, Inc. (YAYO)·Q3 2020 Earnings Summary