Loading...
•
Mar 31, 2022
RumbleON Q1 2022 Earnings Report
Reported record financial results and increased used retail powersports unit sales.
Key Takeaways
RumbleOn reported a record first quarter with revenue of $460 million and a gross profit of $105 million. The company also saw robust cash generation with cash flow from operations over $31 million.
Used retail powersports unit sales increased 31% sequentially.
Total unit sales grew 13.8% to 19,380 units.
Gross profit grew 16.8% to $105.2 million and gross profit margin was 22.9%, up from 20.9% in the prior quarter.
Cash flow from operating activities was $31.3 million, compared to $(2.4) million in the prior quarter.
RumbleON
RumbleON
Forward Guidance
RumbleOn anticipates that used unit purchasing levels and sales will continue to grow. The Company continues to expect in excess of 50% year-over-year growth in Used Retail Powersports Unit Sales on a full year basis. RumbleOn now expects full year 2022 levels will be flat to slightly down on a comparable basis with the prior year, due to ongoing manufacturer supply chain constraints. RumbleOn is reiterating its outlook for the full year 2022:
Positive Outlook
- Total revenue within the range of $1.9 to $2.0 billion.
- Adjusted EBITDA of at least $145 million which includes up to $20 million of incremental operating and capital investments in key strategic areas.
- Used unit purchasing levels and sales will continue to grow
- Acquiring more powersports units directly from consumers
- Directing inventory to its retail locations
Challenges Ahead
- New Retail Powersports Unit Sales to moderate due to ongoing manufacturer supply chain constraints.
- Full year 2022 levels will be flat to slightly down on a comparable basis with the prior year.
- Ongoing manufacturer supply chain constraints.
- Challenging quarter-over-quarter comparison due to outsized strength in the fourth quarter in Automotive segment.
- Higher gasoline prices and operational costs in the quarter impacting Vehicle Logistics segment.