RumbleOn Inc. (RMBL) Misses Q1 EPS by 77c, Revenues Beat; Offers 2Q Revenues Guidance Above Consensus

RumbleOn Inc. (NASDAQ: RMBL) reported Q1 EPS of ($1.93), $0.77 worse than the analyst estimate of ($1.16). Revenue for the quarter came in at $104.3 million versus the consensus estimate of $86.8 million.

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
• Total revenue was $104.3 million, a 48.1% increase from $70.4 million in Q4 2020
  • Powersports revenue was $10.9 million, up 27.7% from $8.5 million
  • Automotive revenue was $84.1 million, up 52.1% from $55.3 million
  • Transportation and vehicle logistics revenue was $9.3 million, up 41.0% from $6.6 million
• Total gross profit was $11.2 million, for a total gross margin of 10.7%, down 20 basis points from 10.9% in Q4 2020
  • Gross profit and gross margin for our vehicle distribution business was $9.2 million or 9.7% versus 9.3% 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
• Sales, General and Administrative Expenses was $13.4 million, or 12.9% of revenue, down from 15.8% 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
• 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

“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.

GUIDANCE:

RumbleOn Inc. sees Q2 2021 revenue of $140-150 million, versus the consensus of $103 million.

• Total revenue range of $140.0 to $150.0 million, representing 66%-78% growth year-over-year
• Gross profit of $18.0 to $19.0 million, representing 113%-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 $1.45 billion to $1.55 billion and adjusted EBITDA in a range of $110.0 million to $115.0 million.

For earnings history and earnings-related data on RumbleOn Inc. (RMBL) click here.

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