Cazoo (CZOO) Announces First Half 2021 Financial Results

Cazoo Group Ltd. (NYSE: CZOO) (“Cazoo” or “the Company”), Europe’s leading online car retailer, which makes buying and selling a car as simple as ordering any other product online, has announced its financial results for the six months ended June 30, 2021.

1 ‘Retail revenue’ excludes £7 million of income where Cazoo sold vehicles as an agent for third parties and only the net commission received from those sales is recorded within ‘Retail revenue’. ‘Other revenue’ includes ancillary products, subscription, remarketing and servicing income.
2 Retail GPU (Gross Profit per Unit) is derived from retail and ancillary product revenues, divided by retail units sold (net of returns).
3 Adjusted EBITDA is defined as loss for the period adjusted for tax credits, finance income/expense, depreciation and amortization, share based payment expense and exceptional costs.

H1 2021 Financial highlights

• Revenue increased 521% to £248 million in H1, driven by strong retail sales growth
• Vehicles sold up 401% to 20,454 in H1 as strong demand for proposition continues
• Retail GPU at £315 in H1, up by £670 YoY due to continued operational efficiencies
• Gross profit at £11 million and gross margin up 9%pts YoY due to increased scale

H1 2021 Strategic highlights

• Successfully completed 3 acquisitions during H1 to accelerate growth strategy
• Brought UK reconditioning in-house giving full control of refurbishment operations
• Scaled buying and operations in Germany & France ahead of launch later this year
• Launched car subscription service in UK offering all-inclusive single monthly payment

Since the end of the period

• Completed business combination with Ajax I and listing on New York Stock Exchange
• Successfully launched ‘car buying’ service, purchasing vehicles directly from consumers
• Acquired leading automotive data insights platform, Cazana, enhancing data capabilities
• Acquired SMH, one of the UK’s leading vehicle preparation, logistics & storage businesses

Alex Chesterman OBE, Founder & CEO of Cazoo, commented, “We achieved record results in H1 with continued strong growth in revenue and gross profit per unit. Consumers continue to embrace the selection, transparency and convenience of buying cars entirely online, generating record revenue of £248 million during the half, up 521% year on year. Our gross profit per unit grew substantially during the first half, up £670 year on year, as a result of continued operational improvements. We expect operational efficiencies to continue to drive further gross margin improvement and we remain on track to achieve revenue approaching $1 billion in 2021.

“Following our acquisition of SFS in Q1 we brought vehicle reconditioning fully in-house in the UK in Q2 and recently expanded our capabilities with the acquisition of SMH earlier this month. The biggest constraint we face is being able to recondition vehicles in the volumes required to meet consumer demand and this latest strategic acquisition will de-risk our future growth by doubling our capacity and significantly enhancing our team of vehicle preparation and logistics staff, giving us the ability to meet our growth aspirations over the next two years.”

“Since the end of the period we completed our listing on the NYSE, raising proceeds of approximately $836 million, net of fees to further accelerate our growth. In July, we launched our ‘car buying’ service, now offering consumers a better digital experience when selling their car as well as buying a car. We expect this to change our buying mix significantly over time, helping to further improve future margins. This month we also acquired Cazana, a leading automotive data insights platform, enhancing our data team and capabilities which will enable us to further optimise our purchasing and pricing of vehicles across the UK and Europe.”

About Cazoo - www.cazoo.co.uk

Our mission is to transform the car buying and selling experience across the UK & Europe by providing better selection, value, transparency, convenience and peace of mind. Our aim is to make buying or selling a car no different to ordering any other product online, where consumers can simply and seamlessly buy, sell, finance or subscribe to a car entirely online for delivery or collection in as little as 72 hours. Cazoo was founded in 2018 by serial entrepreneur Alex Chesterman OBE, is backed some of the leading technology investors globally and is publicly traded (NYSE: CZOO).

1 Revenue excludes £7 million of income where Cazoo sold vehicles as an agent for third parties and only the net commission received from those sales is recorded within revenue.

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