RumbleON Inc (NASDAQ:RMBL), the online marketplace for pre-owned vehicles, reported a sharp rise in revenue last year as it moved into auto sales.
RumbleON is an e-commerce company that uses technology to simplify how dealers and customers buy, sell, trade or finance pre-owned vehicles through a single online location.
Its site, RumbleON, allows users to buy or sell anything with a vehicle identification number, including but not limited to off-road vehicles, boats, personal watercraft, scooters, mopeds, trikes, motorcycles, cars and trucks.
In 2018, the Dallas, Texas-based company sold 12,529 vehicles and saw its revenue climb to $156.4 million from $7.3 million in 2017. Its gross profit came to $12.64 million in 2018, up from $278,000 in the previous year.
For the fourth quarter, sales of vehicles also beat Wall Street’s estimates and came in at $115.1 million, up from $3.4 million in the year-ago quarter. The company sold 6,763 units in its latest quarter, climbing from 355 in the corresponding period in 2017.
In response, RumbleON shares added 2.3% to hit $6.20 in pre-market trade Thursday.
The company is advancing into the car and truck market on the back of its recent acquisitions of Wholesale Inc and Wholesale Express in October 2018, as well as AutoSport USA in February of 2019.
“In Q4, we made the landmark acquisitions of Wholesale Inc and Wholesale Express, accelerating our entrance to the massive automobile market,” said Marshall Chesrown, RumbleOn CEO.
“We began our journey in 2017, laid the groundwork in 2018 and entered 2019 with incredible momentum,” he added.
RumbleOn sold 4,005 auto units in 2018, which generated $90 million in revenue. Sales of powersport vehicles were more than double that at 8,524 units, which threw up $61 million dollars in revenue, up from $7.17 million in 2017.
The company runs a tight ship operationally: no dealerships, no salespeople, no showrooms, no reconditioning centers, no fulfillment centers and value pricing. It accomplishes this by having third-party partnerships provide photos, reconditioning, condition reports and fulfillments.
Looking ahead to the first quarter, the company expects total unit sales to fall in the range of 11,500 to 11,800 and revenue of $210 million to $215 million.
RumbleON shares slipped US$0.60 to hit US$5.46 in afternoon trade Thursday.
Contact Ellen Kelleher at [email protected]
-- This story is updated to reflect latest share price movement --