RumbleON Posts 100% Revenue Growth, Expands Margins, Reiterates FY21 Outlook Above Consensus

RumbleON Inc RMBL reported second-quarter FY21 revenue growth of 100% year-on-year to $168.3 million, beating the analyst consensus of $143.4 million.
Revenues from Powersports rose 233% Y/Y to $28 million as Powersports unit sales expanded 181% Y/Y to 2,411 units.
Automotive revenue increased 86% Y/Y to $127.3 million, with Automotive unit sales growing 16% Y/Y to 3,300 units.
Transportation and vehicle logistics revenue expanded 71% Y/Y to $13.1 million.
The gross margin expanded 160 bps to 11.6%. The vehicle distribution business posted an 11% gross margin.
EPS loss of $(1.05) missed the analyst consensus of $0.06.
RumbleON used $17.5 million in operating cash flow during the six months ended Jun. 30, and held $28 million in cash and equivalents.
On July 30, RumbleON announced stockholder approval for the proposed business combination with RideNow.
The company continued to add new dealers to RumbleOn.com and have over 60,000 new, used and private party listings on its site.
Outlook: RumbleON reiterated FY21 revenue guidance of $1.45 billion - $1.55 billion above the analyst consensus of $766.55 million.
Price action: RMBL shares traded lower by 1.23% at $40 on the last check Monday.

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