The following is a summary of the RumbleOn, Inc. (RMBL) Q3 2024 Earnings Call Transcript:
Financial Performance:
RumbleOn reported a revenue of $295 million in Q3, down 12.7% year-over-year.
Adjusted EBITDA was $6.8 million, down 26.1% compared to the same quarter last year.
Adjusted SG&A expenses were 21.7% lower than the same quarter last year.
Business Progress:
RumbleOn's strategic focus includes effective inventory management, with a 53.8% reduction in total inventory.
They have achieved $30 million of annualized cost savings and are set on achieving a long-term target of 75% for SG&A as a percent of gross profit.
Expansion through acquisition with a new Harley-Davidson dealership in Massachusetts.
Focused on generating positive free cash flow through cost optimization and efficiency improvements.
Opportunities:
The Federal Reserve interest rate reductions should save approximately $3 million in cash interest expense in 2025, aiding financial improvements.
Risks:
Gross profit declines of 19% from Q3 2023 to Q3 2024 indicate ongoing pressure on profitability.
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