As Dealernews staff oracle Dr. Paul Leinberger has been calling for the past couple years, the “ominchannel” is here! "With our pending business combination with RideNow, we are creating the only omnichannel solution in the powersports industry — offering an unparalleled customer experience for outdoor enthusiasts across the country,” explained RumbleOn CEO Marshall Chesrown in the company’s Q1 earnings call.
RumbleOn claims to be eliminating direct-to-consumer powersports sales in favor of a dealer-driven sales structure. “Our 'buy direct from consumers' strategy and our new B2B redistribution capabilities through DealerDirect means supply imbalances that would be headwinds for other business models, are tailwinds for RumbleOn,” Chesrown added. “RideNow's significant physical retail platform provides another piece of a 'bricks and clicks' strategy for RumbleOn, enabling us to reach consumers wherever and most important however they want to shop, whether online, offline, or both."
Q1 Report Highlights
• Total vehicle unit sales were 3,500, a 32.2% increase from 2,647 in Q4 2020 (Note 2/3 of the total units were in the automotive space). Powersports unit sales was 1,006, up 17.0% from 860 units
• Total revenue was $104.3 million, a 48.1% increase from $70.4 million in Q4 2020 (again the bulk of which was in the car sector). Powersports revenue was $10.9 million, up 27.7% from $8.5 million
• Powersports gross profit per powersport vehicle sold was $2,961
• Operating loss was $(2.8) million, an improvement from $(4.0) million in Q4 2020
• Net loss was $(4.5) million, an improvement from $(5.5) million in Q4 2020
• Positive Adjusted EBITDA of $0.02 million, an improvement from an Adjusted EBITDA loss of $(2.8) million in Q4 2020
While still a work in progress as RumbleOn pivots to DealerDirect, the bottom line is that the Omnichannel is here. "RumbleOn is making powersport ownership accessible to everyone - from the first time rider to the life-long enthusiast - and we are thrilled to give consumers the easiest and most transparent process to Buy, Sell, Trade or Finance available in Powersports today. We have high ambitions and are excited about the next chapter for RumbleOn," concluded Chesrown.