DriveItAway Holdings, Inc., ticker DWAY, reported a 432% increase in revenue in the six months ending March 31, 2023, compared to the same period in 2022. The increase is primarily attributable to the easing of vehicle supply chain issues, allowing for improved vehicle availability and serving as a growth driver for the company.
DriveItAway Holdings is the first national dealer-focused mobility platform enabling car dealers to sell vehicles seamlessly through eCommerce, using a proprietary “Pay as You Go” app-based subscription program. The company offers a turnkey solution with mobile technology, an exclusive driver app, insurance coverage, and training to ensure a smooth operational and profitable experience for dealerships participating in emerging online sales opportunities.
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Revenues and costs impacted by vehicle availability
For the six months ending March 31, 2023, revenues increased from $21,646 to $115,083 due to the improved availability of vehicles on the company’s platform. This was a result of the ongoing resolution of nationwide car shortages caused by supply chain disruptions tied to the COVID-19 pandemic, as well as the gradual increase in the supply of semiconductor chips, which are essential components in vehicle electronics.
Cost of revenue for the same period increased from $11,095 to $86,550, mainly due to one-time fees incurred in preparing sublease cars for rental. Despite the rise in costs, the company’s gross profit increased by 170%, from $10,551 to $28,533, and its operating expenses decreased by 29%.
Fundraising and the future
During June and November 2022, DriveItAway Holdings sold units to accredited investors, raising proceeds of $410,000. This resulted in the issuance of secured promissory notes totaling $450,000 and the issuance of 225,000 warrants.
Looking ahead, DriveItAway Holdings anticipates that automotive supply and demand will return to historically normal levels in 2023, leading to greater vehicle availability on its platform and increased revenue growth. The company also plans to expand its consumer app-based ‘subscription to ownership’ platform, enabling entry-level consumers to drive and acquire new electric vehicles.
In conclusion, DriveItAway Holdings experienced significant revenue growth in the first half of 2023, driven by the easing of vehicle supply chain constraints and the resolution of nationwide car shortages. The company is well-positioned to leverage its unique mobility platform and capitalize on the expected return to normalcy in the automotive industry, focusing on expanding its app-based subscription services and enabling greater access to electric vehicles for consumers.
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