RumbleOn Inc. (RMBL) Tops Q2 EPS by $5.03, Revenues Miss

RumbleOn Inc. (NASDAQ: RMBL) reported Q2 EPS of $0.47, $5.03 better than the analyst estimate of ($4.56). Revenue for the quarter came in at $84.34 million versus the consensus estimate of $107.35 million.

“We have demonstrated solid progress on our march to profitability the past several quarters and I am pleased to report that we generated double digit gross margin as a percent of sales and $1.0 million in net income in the quarter, despite the challenging macroeconomic backdrop. In 2019, we demonstrated our ability to rapidly scale RumbleOn and exited the year with our eye on achieving profitability. We have taken prescriptive measures to drive gross margin expansion, gross profit per unit improvements and reduce operating expenses and our second quarter results are evidence of our ability to rationalize our expense profile and take advantage of market trends cost effectively,” commented Marshall Chesrown, Chief Executive Officer.

“The COVID-19 pandemic has brought headwinds and tailwinds to this industry. Thus far in the third quarter we are experiencing the highest online activity, strongest demand and highest valuations we have seen in our history.”

“A rapid digital transformation is underway in all industries around the world. Now more than ever, consumers are looking for online solutions, and organizations must be prepared to conduct their business and engage their customers online. All retailers need new ways to reach customers, and dealers need access to tools and technology to stay competitive in the ‘new normal’ of online transactions. RumbleOn’s technology was purpose-built to enable a 100% online experience and with the launch of RumbleOn 3.0, our technology platform, tools, and ancillary products and services will be available to all powersport dealers. Our platform will be a vital solution for dealers as the need to bring more and more elements of vehicle transactions online reverberates around the world. Not only will RumbleOn’s dealer-centric offering improve participating powersport dealers’ ability to compete in online-only transactions, it will expand the monetization opportunities of our technology platform.”

“We continue to see fluctuations in market trends, but our nimble business model has enabled us to make operational changes that we believe will enable us to emerge stronger than ever. We have been methodical in our approach to vehicle acquisition, and as a result we are beginning to experience meaningful progress towards our goal of achieving sustainable profitability,” continued Chesrown.

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

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