RumbleOn Reports Sequential Revenue Growth of 48% and Gross Profit Growth of 46% for the First Quarter 2021
RumbleOn, Inc (NASDAQ: RMBL), an e-commerce company using innovative technology to aggregate and distribute pre-owned vehicles
“During the past year we have continued to enhance our strategy and technology stack, paving the road for RumbleOn to participate in a tremendous share of powersport transactions, with improved unit economics. Our ‘buy direct from consumers’ strategy and our new B2B redistribution capabilities through DealerDirect means supply imbalances that would be headwinds for other business models, are tailwinds for RumbleOn,” said Marshall Chesrown, Chief Executive Offer. “With our pending business combination with RideNow, we are creating the only omnichannel solution in the powersports industry - offering an unparalleled customer experience for outdoor enthusiasts across the country. RideNow's significant physical retail platform provides another piece of a 'bricks and clicks' strategy for RumbleOn, enabling us to reach consumers wherever and most important however they want to shop, whether online, offline, or both.”
“RumbleOn is making powersport ownership accessible to everyone - from the first time rider to the life-long enthusiast - and we are thrilled to give consumers the easiest and most transparent process to Buy, Sell, Trade or Finance available in Powersports today. We have high ambitions and are excited about the next chapter for RumbleOn,” concluded Chesrown.
First Quarter 2021 Financial Highlights
Unless otherwise noted, all comparisons are on a quarter-over-quarter basis for the three months ended March 31, 2021 as compared to the three-months ended December 31, 2020:
-
Total vehicle unit sales was 3,500, a
32.2% increase from 2,647 in Q4 2020-
Powersports unit sales was 1,006, up
17.0% from 860 units -
Automotive unit sales was 2,494, up
39.6% from 1,787 units
-
Powersports unit sales was 1,006, up
-
Total revenue was
$104.3 million , a48.1% increase from$70.4 million in Q4 2020-
Powersports revenue was
$10.9 million , up27.7% from$8.5 million -
Automotive revenue was
$84.1 million , up52.1% from$55.3 million -
Transportation and vehicle logistics revenue was
$9.3 million , up41.0% from$6.6 million
-
Powersports revenue was
-
Total gross profit was
$11.2 million , for a total gross margin of10.7% , down 20 basis points from10.9% in Q4 2020-
Gross profit and gross margin for our vehicle distribution business was
$9.2 million or9.7% versus9.3% in Q4 2020. Gross profit per vehicle was$2,626 , up from$2,241 -
Powersports gross profit per powersport vehicle sold was
$2,961 -
Automotive gross profit per automotive vehicle sold was
$2,490
-
Gross profit and gross margin for our vehicle distribution business was
-
Sales, General and Administrative Expenses was
$13.4 million , or12.9% of revenue, down from15.8% of revenue in Q4 2020-
Advertising and Marketing expense was
$1.6 million as compared to$1.0 million -
Technology development expense was
$0.4 million as compared to$0.4 million -
General and Administrative expense was
$3.8 million as compared to$3.9 million
-
Advertising and Marketing expense was
-
Operating loss was
$(2.8) million , an improvement from$(4.0) million in Q4 2020 -
Net loss was
$(4.5) million , an improvement from$(5.5) million in Q4 2020 -
Positive Adjusted EBITDA of
$0.02 million , an improvement from an Adjusted EBITDA loss of$(2.8) million in Q4 2020
A description of our results of operations for the first quarter of 2021 compared to the first quarter of 2020 will be included in the Quarterly Report on Form 10-Q to be filed later today, May 17, 2021.
Adjusted EBITDA is a non-GAAP financial measure. Reconciliations of non-GAAP financial measures used in this release are provided in the attached financial tables.
Second Quarter 2021 Outlook
-
Total revenue range of
$140.0 t o$150.0 million , representing66% -78% growth year-over-year -
Gross profit of
$18.0 t o$19.0 million , representing113% -125% growth year-over-year -
Positive Adjusted EBITDA in the range of
$1.2 million to$3.0 million
We expect our business combination with RideNow to close in late June or July of this year. We are reiterating our prior guidance on the combined company. Assuming a combination as of January 1, 2021, we expect revenue in a range of
Conference Call Details
RumbleOn’s management will host a conference call to discuss its financial results today, May 17, 2021 at 8:30 a.m. Eastern Time. A live and archived webcast can be accessed from RumbleOn's Investor Relations website at https://investors.rumbleon.com. To access the conference call telephonically, callers may dial 1-877-407-9716 or 1-201-493-6779 for callers outside of the United States and entering conference ID 13719715.
About RumbleOn
Founded in 2017, RumbleOn (NASDAQ: RMBL) is an e-commerce company using innovative technology to aggregate and distribute pre-owned vehicles,
Non-GAAP Financial Measures
As required by the rules of the Securities and Exchange Commission ("SEC"), we provide reconciliations of the non-GAAP financial measures contained in this press release to the most directly comparable measure under GAAP, which are set forth in the financial tables attached to this release. Non-GAAP financial measures for the three months ended March 31, 2021 and December 31, 2020 used in this release include: adjusted EBITDA.
Adjusted EBITDA is a non-GAAP financial measure and should not be considered as an alternative to operating income or net income as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.
Adjusted EBITDA is defined as net income or loss adjusted to add back interest expense including debt extinguishment and depreciation and amortization, and certain charges and expenses, such as non-cash compensation costs, acquisition related costs, derivative income, financing activities, litigation expenses, severance, new business development costs, technology implementation costs and expenses, and facility closure and lease termination costs, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.
Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure and capital investments.
With respect to our second quarter 2021 financial target for adjusted EBITDA, a reconciliation of this non-GAAP measure to the corresponding GAAP measure is not available without unreasonable effort due to the variability and complexity of the reconciling items described above that we exclude this non-GAAP target measure. The variability of these items may have a significant impact on our future GAAP financial results and, as a result, we are unable to prepare the forward-looking statement of income prepared in accordance with GAAP that would be required to produce such a reconciliation.
Additional Information about the Transaction and Where to Find It
In connection with the proposed business combination with RideNow (the “Transaction”), RumbleOn intends to file relevant materials with the SEC, including a preliminary proxy statement, and when available, a definitive proxy statement. Promptly after filing its definitive proxy statement with the SEC, RumbleOn will mail the definitive proxy statement and a proxy card to each RumbleOn stockholder entitled to vote at the meeting of stockholders relating to the Transaction. INVESTORS AND STOCKHOLDERS OF RUMBLEON ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT RUMBLEON WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT RUMBLEON, RIDENOW, AND THE TRANSACTION. The definitive proxy statement, the preliminary proxy statement, and other relevant materials in connection with the Transaction (when they become available), and any other documents filed by RumbleOn with the SEC, may be obtained free of charge at the SEC’s website (www.sec.gov) or by visiting RumbleOn's investor relations section at www.rumbleon.com. The information contained on, or that may be accessed through, the websites referenced in this press release is not incorporated by reference into, and is not a part of, this press release.
Participants in the Solicitation
RumbleOn and its directors and executive officers may be deemed participants in the solicitation of proxies from RumbleOn’s stockholders with respect to the Transaction. A list of the names of those directors and executive officers and a description of their interests in RumbleOn will be included in the proxy statement relating to the Transaction and will be available at www.sec.gov. Additional information regarding the interests of such participants will be contained in the proxy statement relating to the Transaction when available. Information about RumbleOn’s directors and executive officers and their ownership of RumbleOn’s common stock is set forth in RumbleOn’s Annual Report on Form 10-K filed with the SEC on March 31, 2021. Other information regarding the interests of the participants in the proxy solicitation will be included in the proxy statement relating to the Transaction when it becomes available. These documents can be obtained free of charge from the sources indicated above.
RideNow and its directors and executive officers may also be deemed to be participants in the solicitation of proxies from the stockholders of RumbleOn in connection with the Transaction. A list of the names of such directors and executive officers and information regarding their interests in the Transaction will be included in the proxy statement relating to the Transaction.
No Offer or Solicitation
This report does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, by RumbleOn, nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful before the registration or qualification under the securities laws of such state. Any offering of the securities will only be by means of a statutory prospectus meeting the requirements of the rules and regulations of the SEC and applicable law.
Forward-Looking Statements
This press release may contain "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995 (PSLRA), which statements may be identified by words such as "expects," "projects," "will," "may," "anticipates," "believes," "should," "intends," "estimates," and other words of similar meaning. Readers are cautioned not to place undue reliance on these forward-looking statements, which are based on our expectations as of the date of this press release and speak only as of the date of this press release and are advised to consider the factors listed under the heading "Forward-Looking Statements" and "Risk Factors" in the Company's SEC filings, as may be updated and amended from time to time. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
RumbleOn, Inc. |
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Condensed Consolidated Balance Sheets |
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(Unaudited) |
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As of March 31, 2021 |
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As of December 31, 2020 |
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ASSETS |
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|
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Current assets: |
|
|
|
|
|
|
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Cash |
|
$ |
80,049 |
|
|
$ |
1,466,831 |
|
Restricted cash |
|
|
2,049,056 |
|
|
|
2,049,056 |
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Accounts receivable, net |
|
|
21,342,681 |
|
|
|
9,407,960 |
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Inventory |
|
|
24,034,754 |
|
|
|
21,360,441 |
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Prepaid expense and other current assets |
|
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4,050,991 |
|
|
|
3,446,225 |
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Total current assets |
|
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51,557,531 |
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37,730,513 |
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Property and equipment, net |
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6,317,167 |
|
|
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6,521,446 |
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Right-of-use assets |
|
|
5,418,220 |
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|
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5,689,637 |
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Goodwill |
|
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26,886,563 |
|
|
|
26,886,563 |
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Deferred finance charge |
|
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10,950,000 |
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- |
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Other assets |
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159,409 |
|
|
|
151,076 |
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Total assets |
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$ |
101,288,890 |
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$ |
76,979,235 |
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RumbleOn, Inc. Class B
NASDAQ:RMBLRMBL RankingsRMBL Latest NewsRMBL Stock Data
224.24M
9.63M
38.96%
45.63%
2.65%
Custom Computer Programming Services
Professional, Scientific, and Technical Services
United States of America
IRVING
About RMBLrumbleon is a disruptive e-commerce platform that facilitates the ability for both consumers and dealers to buy-sell-trade-finance all pre-owned recreation vehicles. our goal is to have the platform recognized as the most trusted and effective solution for the sale, acquisition, and distribution of recreation vehicles and provide users an efficient, fast, transparent and engaging experience.
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