RumbleOn, Inc (NASDAQ: RMBL), an e-commerce company using technology to gather and distribute used vehicles to and from both consumers and dealers, today announced financial results for the three months ended June 30, 2020. RumbleOn During Q2 had a Gross profit of $8.5 million or 10.0% of revenue compared to $15.6 million or 5.8% of revenue year-over-year. (See AutoInformed.com on RumbleOn Posts Q1 Net Loss of -$22 Million, RumbleOn Posts 2019 Loss. Cancels Guidance)
- Total vehicle unit sales of 3,694, down from 13,928
- Total revenue was $84.3 million, down from $270.2 million
- Powersports revenue was $8.2 million
- Automotive revenue was $68.3 million
- Transportation revenue was $7.7 million
- Other revenue was $0.2 million
- Net Income was $1.0 million, or $0.47 per basic and fully diluted share, including the effect of $5.6 million of insurance proceeds as compared to net loss of $13.0 million or a loss of $(11.69) per share.
- Basic and fully diluted shares in Q2 were 2,214,241 shares of common stock outstanding and 1,111,809 shares in Q2 2019.
“The COVID-19 pandemic has brought headwinds and tailwinds to this industry,” said Marshall Chesrown, Chief Executive Officer. “Thus far in the third quarter we are experiencing the highest online activity, strongest demand and highest valuations we have seen in our history.”
- RumbleOn announced a dealer-centric pilot program with CarGurus. CarGurus is leveraging RumbleOn’s technology, logistics transportation and distribution services to facilitate the testing of inventory acquisition for dealers to source inventory directly from consumers, 100% online.
- RumbleOn announced the upcoming launch of RumbleOn.com 3.0. RumbleOn.com 3.0 will allow dealers to list both new and used powersports on our site, as well as giving them access to our unparalleled technology for cash offers, RumbleOn Finance and an enhanced Dealer Direct platform offering B2B wholesale transactions along with virtual inventory.
- RumbleOn announced that more than 100 dealers across 29 states will participate in RumbleOn.com 3.0 at launch. These franchises and independent powersport dealers maintain thousands of new and used powersports listings which will be available on RumbleOn.com.
- RumbleOn appointed Michael Marchlik and Adam Alexander to its Board of Directors.
- RumbleOn hired Rocco Falabella as Strategic Relationship Director and Marc Holstein as Director of Business to Business Technology.
Last fall, RumbleOn took steps to accelerate profitability by taking what it claimed was “a disciplined approach to sales volume.” During Q2 of last year, RumbleOn reported record unit sales of 13,928 and record revenue of $270.2 million, making top line year-over-year comparisons challenging.
However, the RumbleOn now maintains that despite the adverse impact of the COVID-19 pandemic, which resulted in significantly reduced commercial activity, including a decrease in unit purchases and sales of vehicles, the Company’s second quarter results demonstrate the operational improvements it has made across the organization.
“The velocity of the rebound we experienced beginning in May was beyond our expectations. Though we are still below the monthly unit volumes experienced in January and February, gross margin on units sold in June and July were the highest in RumbleOn’s history. We don’t believe the margin levels we saw during the past two months will continue over the long term, but will stabilize as demand levels,” said Chesrown.