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Dec 31, 2023
RumbleON Q4 2023 Earnings Report
Announced results for the quarter and full year ended December 31, 2023, and presented Vision 2026 strategic plan.
Key Takeaways
RumbleOn reported a decrease in revenue for both the fourth quarter and the full year 2023, alongside a decrease in gross profit and adjusted EBITDA. Despite these declines, the company successfully completed a $100 million rights offering and paid down $50 million of debt in the quarter, positioning them favorably for 2024.
Total revenue was $311.1 million for the fourth quarter, a 6.2% decrease year-over-year.
Total Powersport Vehicle Retail Sales decreased by 5.8% compared to the prior year fourth quarter, totaling 15,596 units.
Gross profit for the fourth quarter was $71.2 million, down $21.2 million from the prior year, including a $12.6 million pre-owned inventory adjustment.
Adjusted EBITDA was $3.1 million for the fourth quarter, compared to $19.7 million in the fourth quarter of 2022.
Forward Guidance
RumbleOn introduced its 3-year operating plan called Vision 2026, expecting to achieve annual revenue in excess of $1.7 billion, annual Adjusted EBITDA of greater than $150 million, and annual Adjusted Free Cash Flow of $90 million or more by calendar year 2026.
Positive Outlook
- Annual revenue in excess of $1.7 billion by 2026.
- Annual Adjusted EBITDA of greater than $150 million by 2026.
- Annual Adjusted Free Cash Flow of $90 million or more by 2026.
- Maintaining a healthy balance sheet within the target ratio of 1.5x to 2.5x net debt/Adjusted EBITDA.
- Successfully completing a $100 million rights offering during the quarter.
Challenges Ahead
- The company has decided to stop the practice of giving annual guidance.
- Prior Adjusted EBITDA guidance of $80 million to $90 million for 2024 is within sight, but the company is withdrawing prior guidance for 2024.
- Total revenue declined 6.2% in Q4 2023 compared to Q4 2022.
Historical Earnings Impact
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