RumbleOn Inc. (NASDAQ: RMBL) reported Q3 EPS of $0.67, $2.92 better than the analyst estimate of ($2.25). Revenue for the quarter came in at $117.3 million versus the consensus estimate of $108.25 million.

Unless otherwise noted, all comparisons are on a year-over-year basis for the three months ended September 30, 2020.

• Total vehicle unit sales of 4,263, down from 10,894
• Total revenue was $117.3 million, down from $220.3 million
  • Powersports revenue was $7.3 million
  • Automotive revenue was $99.3 million
  • Transportation and Vehicle Logistics revenue was $10.4 million
  • Other revenue was $0.3 million
• Gross profit was $16.8 million or 14.3% of revenue, as compared to $12.0 million or 5.5% of revenue
  • Gross margin on vehicles sold was 13.6%, the highest in the Company’s history, and up from 4.8%. Gross profit per vehicle was $3,411 per vehicle, up 260.7% compared to 2019.
  • Powersports gross profit per powersport vehicle sold was $2,271
  • Automotive gross profit per automotive vehicle sold was $3,652
  • Transportation and Vehicle Logistics gross profit per vehicle delivered was $97
• Sales, general and administrative expenses were $13.3 million, or 11.3% of revenue, a decrease of 30.1% from $19.0 million
• Operating income was $3.0 million, or 2.5% of total revenue, up from operating loss of $(7.5) million or (3.4)% of revenue
• Net Income was $1.5 million, or $0.67 per basic and fully diluted share, as compared to net loss of $8.9 million or a loss of $(7.66) per share. Weighted average basic and fully diluted shares outstanding in Q3 were 2,234,838 shares of common stock outstanding and 1,158,915 shares in Q3 2019
• Adjusted EBITDA was $4.7 million in Q3, compared to a loss of $(4.8) million

“Q3 was another record-breaking quarter for RumbleOn,” said Marshall Chesrown, RumbleOn’s CEO. “We generated positive adjusted EBITDA for the first time in the Company’s history and grew total gross profit per vehicle more than 260% year-over-year.”

“In Q3, we reported $117.3 million in revenue, a 39% increase from Q2, on 4,263 units. Additionally, we grew overall gross margin to 14.3% and gross margin on vehicles sold to 13.6%, both of which are records for RumbleOn, demonstrating continued progress towards long term sustainable profitability. RumbleOn has had an incredible year thus far operationally and financially, and I’m very pleased to report that despite the unique challenges presented to the company and the economy during 2020, our strategy is working,” continued Chesrown.

Fourth Quarter 2020 Commentary and Outlook

“In 2019 we demonstrated our ability to scale revenue, in 2020 we are demonstrating we can achieve profitability, and we look forward to demonstrating our ability to scale with sustainable profitability in 2021 and beyond,” said Marshall Chesrown. “Another objective we outlined in 2019 was to reach EBITDA profitability on a full year basis in 2021, and we believe we have the right strategy in place to reach that goal.”

Chesrown continued, “During the three-months ended September 30, 2020, average selling prices increased as market prices remained high industry-wide. The effect of these higher market prices resulted in lower levels of inventory available to purchase for resale, causing a decline in unit sales beginning in September as compared to July and August. We believe this supply and demand imbalance will continue to impact seasonally adjusted fourth quarter volume, particularly given the worldwide rise in COVID-19 cases.”

Given the uncertainty of the ongoing impact and unprecedented conditions surrounding the COVID-19 pandemic, we cannot predict the overall effect to RumbleOn, our customers, regional business partners, and others that we work with. As a result, we believe it is prudent to continue to withhold guidance until we can better gauge market conditions and have a clearer understanding of the lasting impact from the COVID-19 pandemic.

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