RumbleON Q3 2022 Earnings Report
Key Takeaways
RumbleOn reported Q3 2022 financial results with a total company revenue of $470.3 million and a gross profit of $116.3 million. The Powersports segment was a significant contributor, with revenue of $385.4 million. The company's net income was $3.0 million, with diluted earnings per share of $0.19. They also announced exploring strategic alternatives for the Automotive business.
Total Company Revenue of $470.3 million and Gross Profit of $116.3 million were delivered.
Total Unit Sales reached 19,908 across Powersports and Automotive Segments.
Powersports Segment Revenue was $385.4 million, comprising 82% of Total Company Revenue.
Net Income amounted to $3.0 million with Diluted Earnings per Share of $0.19.
RumbleON
RumbleON
Forward Guidance
RumbleOn revised its full year 2022 outlook with Total Company Revenue within the range of $1.85 to $1.90 billion and Adjusted EBITDA of at least $125 million.
Positive Outlook
- Anticipate both sequential and year-over-year growth in Powersports and Vehicle Logistics Segments in the fourth quarter.
- Powersports Segment revenue of at least $1.50 billion.
- Growth in Used Retail Powersports Units to be in excess of 50% year-over-year.
- Low single-digit decline in New Powersports Units year-over-year.
- RumbleOn has a durable business model with unique advantages enabling us to continue to deliver revenue growth and profitability, with strong unit economics, and robust cash generation
Challenges Ahead
- Activity around Automotive will be muted for the remainder of the year.
- Expect sequential declines in unit volumes and revenue in the Automotive segment.
- Non-Powersports Segments (Automotive & Vehicle Logistics) revenue within the range of $350 to $400 million driven by anticipated volume declines in the Automotive Segment.
- Due to expected lower realized gross margin in the Automotive Segment and anticipated modest gross margin compression in the Powersports Segment.
- Continued expectation of ongoing organic investments and integration costs resulting in no SG&A leverage for the remainder of this year.