RMBL - Earnings call transcript Q4 2018

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Operator

Good afternoon. My name is Chris and I will be your conference operator today. At this time, I would like to welcome everyone to RumbleOn Fiscal 2018 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator Relations. Investor Kukulka, Whitney

You may the conference. begin

Whitney Kukulka

prohibited on you, us taping other on Good note corporate this simultaneously website. expressly everyone. the call reproduction section conference of afternoon, joining for that RumbleOn webcast written be consent. will the you This Thank call Investor RumbleOn's company's or prior without Please Relations of Thank call. operator. the is XXXX property conference results financial any and is

Marshall Chesrown, Officer. Joining Chairman the me today are Steve Financial on Executive Chief Chief and Founder, Officer; call and Berrard,

remind Before statement we differ materially start, cause you to future I that discussed not risks those but from that following would RumbleOn's forward-looking may like and contains results results opportunities that and to financial actual discussion to limited here. market the including involve uncertainties

as that statement forward-looking XX-K. Stock filings the statements Additional risks and Operating differ actual periodic can and The those Results be cause caption factors call information this to independent SEC recent in in Form on discussed RumbleOn's under most December result RumbleOn's Affecting including results from conference forward-looking or could Factors has of in XXXX. found current expectations whether RumbleOn Marketplace new XX, year-ended review results and no of not to registered of company's public based its update accounting revise otherwise. the completed them today, The obligation developments or company's for are assumes as a firm the

As call such, subject the provided information on today's change. is to

the XXXX will information letter on quarter most will expects represents company The be currently fourth final in as the described results that call possible the that this results different. this current With management Executive its to XXXX results Marshall final I be of it’s Chief Although is to Chesrown, that, and company's XXXX. will Officer. ended year comprehensive to Marshall? financial statement December the turn over meant XX, available call information for the the company's not

Marshall Chesrown

a very We're is earning you results chance read our for available Letter, excited you XXXX. to XXXX joining thank site. had call. and Investor our and everyone Whitney, Shareholder expectations all Relations to our Thanks, Hopefully XXXX our for share on have which

made XXXX, revenue June ago generating in $X less our Not powersports revenue contribution from million we for XXXX, in to revenue We haven't over exciting back. looked long of than sale. XXXX million $XX total over of was company. million. Wholesale the since including And in milestones from we our total Wholesale first sales went XXXX of the guiding unit Express, and for we're from the million XX,XXX range of Inc to range to not $XXX opportunities and total for we'll of we revenue revenue results, the for total calls. million. $XXX Rather everything questions hear than the color like and full only conference common also and Q&A future that questions. comments up our with and letter, components model repeating affords Steve from it's provide time our details and it operations on then open highlights was make strategy, it the on Letter XXXX Shareholder on RumbleOn’s key answers investors. easily in Our we progress and many because I'll expectations, us format results assessable, financial in transparent was our more brief We some first will our two and owned XX,XXX months And $XXX expectations our units marked in XXXX QX and in year but

Powersports impacted integrating the impressive year prior the segment below in that challenges combined said, sales caused rate winning outlined XXXX come a growth three exceeded challenges throughout guidance. results our strategy. XXXX an already our Letter, made company the to and as account, solidifies from the our units. solution that the have chain an disruption. This from that we taken creating Shareholder in in is we prior guidance. revenue annual our already and results business into we faced industry innovative we Even dramatic acquired unit results Our RumbleOn demonstrates in organic is with That have those supply our the progress

opportunity billion segments. is preowned over our is is in car chain $XX trillion opportunity market but the and Our market, fragmented scalable whole. not with opportunity $X well and truck Redistribution major a supply the profitable many

year total model from pains Our is If efficient trends, anyone RumbleOn software-based a mass growing and we we very solutions more dynamics but ways our participate us market public valuable revenues of in have time, first than in as would some to data. experienced billion on and gained X% critical in in that, be that else. young over and the enables unique a market business company, over we just proprietary company $XX and participate insight

have We delivering team. model, a business of record track opportunity powerful immense market a proven management world-class growth, and

in our confident over drive ability to key long-term. the are We our objectives growth profitable execute against and

want accomplishments in I review key our the we guidance. and to to outlook QX contributed our our to that for turning relative to XXXX and Before highlighting faced XXXX, shortfall challenges

by automotive the of background observations the data from larger Our sector, supply gathering and and the than chain the powersports clearly powersports. others past benefit in There the in is dominated experience assumptions participants We RumbleOn. year space. management half garnering in a no not and without team's spent are

the in national our automotive we that in full of nation our business are -- However, from the first currently And a are way. automotive RumbleOn. leveraging from in powersports we powersports in observations already for very guidance part is experience rewards the meaningful reaping we huge of in year that our market said in top the demonstrates our that our believe RumbleOn redistribution QX position with and

for an build of which acquisition world. many other position segment current and eventually competitors has plus massive and with to it ideal brand Powersports we can In automotive RumbleOn. XX the Wholesale fast-growing that dominant represents made US Inc established a potential our regards over still business countries around for Our well built years believe the we in the reach our lack growth opportunity a on

We have AutoSport-USA timeline solid against the progress extended ambitious for further plan. ourselves we this and set made the

both scheduled QX fast, segments. have and RumbleOn liquidity Automotive free of and for will launch customer luxury Powersports our dealers easy friction of which same the RumbleOn.com, service With enable consumers the unparalleled of our across and next and is to both generation

technology All for currently is and into of our launch our architected the segment. RV Boats

that We including are same the dynamics extremely competition. of exist, meaningful confident the no benefit

in whether we and easier marketplace our is and online to confident competitor. resources finance from for can focus offers the around expect the process We in significantly any to distribute buy, are our mind technology that all with vehicle that acquisition acquire due allows the only cash to marketing ability is a our goal we demonstrated vehicle customer vehicles to keep our time Management or in later sell, growing offers that Over that including inventory into cash a highly customer In offering trade larger RVs introduce distribution become another all XXXX. consumer of an value the and even profit. what at Boats retail. to size proposition with bricks-and-mortar online our commands, the we end player and VIN. the an is our channels, anticipate our model buyer, strategy powersports a in competitive would Like get and

the not and have clearly believe is capture quality to our lowball testing offers that strategy shows when best acquire data low inventory cheaper rates, Our competitors. available. than contemplating very vehicles We especially

leveraging it We strategy observations for customer into significantly that trust process midst our -- RumbleOn strategy of propel consumers focused we our and needs. experience We're automotive on of business and all are fairly. faster dynamics and making their in a is market units vehicle the easier outlined the believe strategy integrating Letter. RumbleOn a brand will Our into that do this our Shareholder the

across revenue company. few realize track efficiencies things. company And stage our the vehicle lifecycle, we segments third-party believe rate there of low and encourage frame average in model, unit affirms and our goals investors believe While a Our are we’d factors successfully against ability To to our associated at to mid-term, our early regional fulfillment volume this sale, to that business centers unknown our progress our in risks investors near should consider inventory proprietary growth our our being we our industry all technology, days a to driving following: the the across to advantage, inherent model. the execute with public growth sales leveraging by we consider strategic growth

efficiently the and acquired strong improvements First, we units. results process across drove by quickly the our technology integrating and business

our our inventory acquisitions inventory sector Second, to advancing automotive automotive advantage. acquisitions in in to plans launch and for the continuing distribution in further from powersports consumers and consumers grow QX

And sale in already year-end full we in progress growth maintaining volumes all geographic to vehicle national locations and new quarters for consistent and across well ahead all did will expanding more days of all which And previous sequential finally, to our and our two XXXX. average under plan against guidance of these our further fourth, XXXX days. revenue discuss Third, sales detail, our footprint segments. QX include expectations expectations as entering but benchmarks. as throughout Steve XX of year

to average the XX,XXX expect to total unit of under $XXX million of million For the $XXX QX, we maintain in revenue days. total range and and in to sales XX range day XX,XXX sales

across from trucks the as through benefit begin as to buying Direct. dealers QX and throughout making our RumbleOn.com selling consumers cars we add the automotive results different to our and are business expect We the including enhancements to to well plans Dealer

acquisition efficient confident distribution are other requirements and that the to scale and today. profitability. significant we has to compared achieve can Over sellers that of leverage massive all to RumbleOn model SG&A we we as out there incredibly And competitive opportunity low-cost and advantage. view a long operating our and CapEx low term, vehicle

clear still company our believe and continue journey, as both understanding sessions -- We a I we'll positioning our have total a learn said now as that, And seasons. of and evolves. over And business data proper As points in high early inventory enormous a forecast us selling we of in low and provide of marketplace dynamic to into availability are evaluation, stages will customers a I'll that it we our in turn have and we Steve. forward. to habits optimize our accumulated buying host models that of with the moving help insights

Steven Berrard

you, Thank Marshall.

Before future expectations, the the into out to of housekeeping dive I'd get way. and like results we some

know we As we're than you reporting earnings have later historically.

XX-K we've consistent on and resources to to and file QX report ensure the the integrating time in to our allocating April on XXXX plan acquisitions May time anticipate practice. with X, including We our place. historical earnings the large in XXXX have in processes Monday, ordering and early We made down accounting heads

million, million results. incurred profit was or sports We at a transportation. or million, loss brief million. of X.X%, million Revenue powersports profit on our Gross $XX.X comprised taking million for per transportation year average Now a $XXX.X was operating and $XXX.X as automotive, volume loss we or at million or comprised X.X% of had which per XX.X $X.X of as remarks $X.X share expand was gross automotive of $XXX $X.X drive profit million $XX.X which loss automotive long-term. that $X.XX gross for we an was revenue we of to was gross our $X.X a QX of and or continue a grow a number. or in the X.X%, $X.X $X.X of of power to $X,XXX of shares and loss don't automotive unit in per included I was included look $X.X revenue powersports $X.X -- the many For transportation $XX XX.X%, and of based levers X.X% which in million which million profit of million, of .X QX weighted million. for $X.X gross XX.X% We or revenue million which or and growth million profit continue and we to we over to was volume, revenue or Gross million revenue advantage of outlined X.X% unit powersports gross and $XX.X operating profit expect was million, $X used have per million Marshall's margins share

less range XX,XXX in than As you XX of to maintain million sales in And days. total sale $XXX the to Marshall total of expect average XX,XXX. we days heard million revenue and unit from of we range $XXX the to

stage main early year throughout pricing, may in the our the Given we seasonality adjustments to test potentially as fluctuation positioning and our optimum of other make inventory, lifecycle year. calendar the experience we the factors

that into the not but introducing XX% expect expectations. operating are investors long-term our will of combination year throughout future guiding for objective and the We to growth full quarterly We of believe transparency expectations provide enough margins guidance drive year. we our

full and to development to decision human into So functionality We introduce expectations reinvest those of the first-off deliver revenue our such believe our for in expect QX we expectations marketing, technology inventory, capital automotive sector will for to the combination sales plans unit building to volume of Powersports over the segment, and mid generate support growth initiatives as single-digit models the time. dollars and QX. rapid upside our RumbleOn made continued in growth the to over growth. and We

we our As EBITDA expect to profitability such delay expectations.

Over efficient distribution to RumbleOn confident ability in was our results margins. questions. operating providing model cent now to we're Operator, percent we to year cost year. updates leverage forward look achieve for for the our the are long-term, throughout we quarterly and transformational low on a XXXX our ready and

Operator

[Operator Instructions].

Steven Berrard

it $X.XX Let was QX. me share clarify per in

Operator

Steve with Dyer from Hallum. comes question Craig first Your

open. is line Your

Steve Dyer

don't to speaking and just to if your want you wholesale? QX? seeing retail Thanks, terms generally sort questions. right of I ongoing whole XXX speaking that's And single but thanks going give evolved recently bunch as in and versus of offers, acceptances for to a are afternoon, things good to I pin of seeing sort sort calibrate of the give don't a but and side, every to that indication guess how cash quarter, my ability could how of you to sales on what terms -- see of number. generally powersports different forward, metrics So in you to us you're taking want terms down what flavor you just generally you just any of know that I as in

Marshall Chesrown

we quarter-over-quarter. Marshall. better continue continue This better is And and cash data. to The get offers to obviously grow

equity probably price, Harley-Davidson’s selling our reason to having very for But continues through that desire not those tremendous consumers have. data biggest negative we actual sum. capture close to of majority is price people the as we to to that averages revolves say side,we around tool grow. I again, have, utilize software selling rate a the increases in learned improved that The of the on very, to on continues grow, tend estimated for getting Our definitely said zero it the I would huge to is inventory seen quarter fourth The Shareholder the is a the Letter, for opportunity the good that data in to you are deeper. going have valleys might peaks valuation better to perspective of data we Steve that. in do job in to be -- difference high numbers have we're of on market. a in a higher and and but there much this space that from the And the advantage -- spring now taking reliable volume acquire do powersports able based

to for look two in but completely forward. limited quarter quarter. going opportunity at the of auctions we're fourth in to week -- report obviously know I going we'll holiday of quarter what weather falling weather mean we basically also a you the Also and the our different intend the was give it any I So live last fourth middle don’t with months

inventory. ramp did we So

not better efficiently. is to to being But capture continues our versus consumer at sales, growing function that have the total grow, the might guess And You first same rates significantly and to our seen continue retail able rates I better of regards of to growing increase. the dealer With part quarter. inventories at was business. the into retail sell

to clearly of and a haven't on, a can We're And rambling significant trying the with more we distribute this at seen marketing. we instead because regards it. buy lot of XX-K this obviously acquisition, still well. that we point, funneling towards dollars have in advertising managed well We towards that the as breakout can put detail majority everything we also but buy haven't capital to

Steve Dyer

quarter. of to color be because like so so you of Wholesale. the some I how on and eminent like? awareness back think to forth sold scales most then And that it here sounds expect hopple mean initially you this of of offers Or kind that cash to and just year? be of balance you majority the to of of that expect auto, do over What the to as launch do sort are just it. Got it sort

Marshall Chesrown

tackle of automotive dramatically. it in end a The lots Wholesale off everyone, let's done been has with bricks close year. took you're believe at And the quick had is into retail, mortar, they growing success. great we XXX% as real launch, with And aware right we online maybe Nashville. business because did from and the Well not I of

lot And difference With that's is consumer available RumbleOn minutes around have There that when driving that a into step at. a model Internet that don't know there different of is -- or and the we next up. exactly additional call those school on a discussed that so are three from ability in the match that do are, position of the Further so in whatever of you consumers. direct their regard. store the ask people that from everything that today they're regards Carmax's five tell on garner you the that lot the lot retail art team going There directly lot opportunity competitors. consumer for who just we've we with lowball see and to as that we of you -- a our a And much a that it, consumers where for trucks it's them which our done Carmax volume and the would XX know management you after today talk leads an acquisition know huge additional that processes side, usability any time take friction that you XX to to versus to follow of want to can Obviously you opportunity some I there testing will to now of is there out buying that bottom out and a cars online. with results into of and would side, are we to think believe of we've their the all see between launch traffic. you and if match to have transparency contend motorcycle competition takes XX. will question, every your I additional offers, because we with type millions

to model This better going we a isn't out or one how distribute hey time of certainly buy efficient, be we're to says, of whether aggregate anybody. retail that to then our so the site else. cheaper way Carmax forth. less We saying addition how dealer, a in to than direct this that anybody model and process go so through Direct them how cars expensive we know we're a and more And is know than or a business and course at through Dealer that and on so and know the

we have package to we for is think people just and from use think will we So benefit capture easier the significantly rates. the we total

Steve Dyer

clarification it, pass guidance just on couple Got then it helpful. of then And that’s along. of and points a I'll

On to are the versus willing breakout guidance, auto you QX unit powerstores in that?

Marshall Chesrown

that break the clearly in announce our actually will out earnings. call, we We when

Steve Dyer

guidance. powersports $XXX you important indicated pro imply but don't this letter you, seems Not overall like which secondly just expect higher year. know I of you're you on number then about impossible because had for it And a your an SG&A would or XX okay. talking clarification something million Got revenue percentage forma almost of Page year, just SG&A this if as

way? thinking I'm to want right that about the sure make Just

Steven Berrard

the think one kind we're way talking only with we may the about. that one I growth at clearly marketing, you is, expect the it the that that in growth we of leverage about think decline our is see with but not same operating to rate would revenue Steve, leverage need the will revenue expenses, will

Steve Dyer

I a mean that's base $XX revenue, one thinking million is all quarter for like as the about million high to XX.X% of a I in are have million that $XXX but too Am grow make of, would XX.X% this million, SG&A. about too we're $XXX $XX am or talking revenue just million streets you imply SG&A you million, relates or it sure, like million I percent base $XX that of whether $X raising or implies would using just million, whatever in the want something $X -- and I to that the to correctly? what plus I $XXX guess XXX or this million are to or But reading on that, call, thing, imply and that I said like revenue XXX off low million

Steven Berrard

to of in I going on percentage clarification be our the to think to it's that’s be XX-K give to respect think going the not it's out, that, what going about -- explaining, a that we'll on continue you're I grow, little has, it revenue that. logging it's to same

Operator

question ROTH next with Capital Partners. Darren Your Aftahi is from

open. Your line is

Darren Aftahi

should you've over just you bit seasonality the the throughout on revenue the expand thinking got the sequential can my about belt be trends.And at that but under year growth peak thinking a be on commentary out I saying sequential the these least we now holiday what both to side, about you're seems growth of stuff in at So like then your little correctly? about Am powersport would in seasonal a you QX terms throughout businesses. and year.So it for beside the called understanding least year that

Marshall Chesrown

Yes, Darren think are. I you

available quarter had peak quarter-over-quarter the that are always that the period. at sequential you, think are that any always growth see provider, would have as be QX I they you for we'll with going that QX growth will QX, months. and -- from over something I QX do forward. the certainly numbers think obviously vehicle are to dynamic fourth But done look we've could We

Darren Aftahi

Okay.

Marshall Chesrown

on it sorry. the on We very follows, certainly to side.And closely understood seasonality I'm seasonality see what we automobile in I the powersports. expand can

the spring market the Automotive the And in wise bigger fourth this the weather There's a the New kinds had violent all winter it there a because Eve in think way just the people lot peak winter, that is, a year is sales all I of deeper automotive. lot both than all sails about thinking like in And and the wasn't fall with than of things. obviously the activity and riding of said end the the is of automotive. motorcycle the through marketplace. I is difference those of percentage in December. month in Year's quarter we of

think during opportunity for. what price the data of that and with can is what time we can we're we excited that the it we now buy at the I about see buy year

I us think Because anticipated and market will already year major quarter cars, see the market. what appetite trucks the valuation more a for fourth ramping even in perspective in you this all from are than both a we the inventory we seeing for uptick significantly powersports, segments, spring in first sell. quarter and

being So see increased Shareholder sold still the given quarter. said the it growing, quarter a from percentage second as again We increasing dramatically a see have percentages location we level see in of flattening we Letter, and at we fourth basis through but third and in a first growth do some in it quarter

Darren Aftahi

And That's just helpful. then on classified.

and that with So just I just I'm curious kind point of six, cash you're XX ads at were the weren't just out ads conversions of at conversion X,XXX maybe XXX,XXX roughly of rolled from offers classified rates now? of and color curious nationally can where see any terms kind -- that kind how and think numbers number months this in and looking maybe, any of accepted currently, about I'm there's you that off. we

Marshall Chesrown

that the I Letter of think a we had Darren going always We're of launch. major and in a a Shareholder the resources with human have the know fire. The capital that mentioned everything we end about lot soft acquisition yet. applied irons the have you resources, been it at But very, tool resources very not to was with that as That excited we in plan. October, it. both wasn't

The changes and many launching, and that's in to we quarter which very we be -- marketing initial originally as a chose the list the low put we within will initial to I few first as came of some significant these rates their know which some people the you'll in of really amount and a behind results the is have keep the the time on results have core -- site prepared consumer-only to to of we second share get we days high see are one soon. we last expect seven start that been period tent of preparation XX this, with. vehicle for spend it RumbleOn grow that we major hopefully time to been think people the with in road back thing are try the you positive most is will offer, formed reason of a of site our then didn't is built fairly to why a days whole are reasonable period into classified converting at the business things

expectation we out The the been we offers. people the time organic. the them thing that suspect of one the give a that at cash I people The is didn't would opt the share size of with that was has high thing you other some these classifieds XXX% that offers because have such

we them but approached they offer happy say that said legally the amount for with opening let's So $XX,XXX very weren't they solicitation to those the others owed was as high likelihood free database, communications. they more bike we value, and $X,XXX away obviously they and reach our they so -- in gave cash still out people blown those a haven't to and of by opt we don't list of via had it a and totally were the and can't out expect we opted

activity. just them working still get of phone things whole So earlier, front a of working way get classifieds. very more and capture some so we're There's we're of those, early, a bunch in to whole on about different excited

listings we but next There not so growth consumer site. power are couple quarters. in wanted it'll it, one in this is already dollar thing we with cars with doing site. be same than had not the We promoting of three more sites on you'll unique over at mentioned last a spent where we and already, explosive the on with thing the will RumbleOn certainly with a that letter be thousand listings trucks, only think sports very And we're I thing the just see

Darren Aftahi

number number of Last for be One, was kind to And EBITDA? quarterly of a the the fourth adjusted breakeven maybe at EBITDA need what then one at two what quarter? Steve, do we revenue adjusted things. kind in be to

Steven Berrard

We're better there -- go then bit quite give will and we'll QX not going a guidance to that. behind yet, get we maybe little on us

I we million, amount $X EBITDA not because look we neighborhood EBITDA -- have foreplanned is lowering as the to of really of of out a so and tremendous in $X of we expense and at the thought, million. appreciation, $X don’t most on it's a our interest point probably company think number million basis, is

Operator

Your Llya Securities. next from National question with is Grozvosky

Your open. is line

Llya Grozvosky

Thanks.

couple questions. a Just of

fourth guys the like in you over of quarter just forma put me included October past release you the believe you what point was? couple if pro business. months for looks the of acquired number some the press at Can month the what On a remind I that

Steven Berrard

I million]. would [$XXX to say

Llya Grozvosky

what XXth, it somewhere it like look was with is you in -- dig million two $XXX that press saying I'm from whole if the for a quarter what you a pro if had No.You're do number? the out, just included you release you guys just sure $XXX months, to the would if number have October QX said I'd saying million.So you not I'm forma pretty and

Marshall Chesrown

We for now, so. it two people got looking right

Llya Grozvosky

back So the Express, end three guess lot how the guys the And guys the the let's also pieces? while revenues QX, percentage you what QX and cars, retail car when from but the see of breakout were were to million motorcycles, said then.The do number, come of was closed we'll $XXX to to Wholesale we'll powersports, then just auction? the to cars versus come you of the find retail? about $XXX you're Thanks. at quarter I -- you talking those what down of kind that between percentage that million, you back the

Marshall Chesrown

I original whole retail on as what has percent the numbers, originally I in a tell Inc. on Well, on first QX XX-K do off the the going of breakout, stayed pretty think the question was versus powersports we're breakdown in more automotive. the to give the would your right, the -- out the going actual we're presented with filed Wholesale to detail with steady of

would also had are volumes improvement the by and our them.They work higher that vehicles And the out waiting a we great sitting now on physical However, online of I buy versus bricks tell it out piece because lot virtual it online in of working carrying taking virtual with you a lot accelerated a inventory. we're they inventory by think that it also to mortar an entire consumer a I than location of to sale inventory. of a are eliminating and the aren't for days while business, XXX% that do were aging,

it, Wholesale of anticipated. initial rollout met sales We're as acquisition this success them volume extremely a already that have to in said, the of operational allowed haven't California. percentage into of to all footprint need RumbleOn the automotive footprint whole the being and on as a side as going about improvement than week process well. haven't our the can integrated objectives on with These that but flowing doing on lot a the have via it retail helps software with our what on acceptance side, at that faster. distribution Wholesale and we technology national But really -- We faster grow much -- accelerated be see There and is say we are launched same shortly. one site, taken but the as much we us the out use And we'll that but you the to we have we we as the it really, increases were a have the our far speak. of increased. our been we highly very Inc are rolled results have operations the have as footprint would inventory having So regards Southern taken of I side. bunch

Steven Berrard

XX% So sales, about question, back the your is consumers. which to automobile of

Llya Grozvosky

XX%, XX. said you

Steven Berrard

XX%. Yes.

Llya Grozvosky

Okay.

Steven Berrard

XXX we gave Yes. XXX for And the to on number basis was fulfillment that million. million

Llya Grozvosky

XXX to million XXX Got million. it.

Steven Berrard

Correct.

Llya Grozvosky

motorcycles, QX, the how kind and then do if on of last the million And and see the this the you you Express? -- between then just XXX piece Wholesale to breakout XXX million in cars the

Steven Berrard

that call we earnings do We'll the on when announce.

thourough units revenue, cetera. out the et both and The represent how We the powersports broken both we breakout will for and the ASP segments. will total segments automotive of

Marshall Chesrown

and people number should And I filed put and I when allow think, amount the of pretty close. breakout data K, the in that to we putting we ship MD&A the think the metrics on of

Operator

Sinha Your Sameet with from is question FBR. next B.Riley

Your open. is line

Sameet Sinha

actually. questions of couple A

comment is something the expect you this is time. Let do fine wholesaling Can start that? you of adjusted jump sort invest you A out offers? And investment. tune planning question efficiencies put you what me to once understand, that on because of to let's get auto you business, see, the year XXXX? elaborate can something at that found kind where of and you that is where data that to or in cash offer that in that made and Can you buy the you exactly a say are regarding tools that second on do the of over explain that EBITDA you is

Marshall Chesrown

to one data is very that a plethora Number is robust. regards The there automotive with acquisition. software is through out available sources

in started much we and data real there we all all Wholesale of we Obviously tools but of available And powersports Manheim, also time grab. have when others. So likes et business we have scraping lot of via data also the a feeds the wasn't have from retail live ADESA data, Inc of the cetera. the to

than start time data, drive So powersports on with of more we've to real we robust had to lot got much a the wholesale platform data data, side. retail wholesale time a real what

lots and lots out there's -- of stuff it's So there.

feeds. wanting a -- data database or the people But that of offers of lot because lot there, point. data. users. at we a done, a too out we do think people we've of lot be I other we we to a position they're to would already access of new market whether side have amount We already cash beneficial manufacturers in extremely that values to on with powersports would to we're not of And tell Obviously, our the have have this a you data, regards of real current

to so And those. over time ways we'll leverage work through various different

Second of question? part the was, day. long the What I'm question was part your of sorry, second

Sameet Sinha

Investments that there can would great? to if investing about you help think in be going exactly XXXX make you’re where you’re us

Marshall Chesrown

would our in And in with unit basis. marketing marketing. some a the a I have investing in tell you we we're operations the in expense on about per emphasis Obviously there letter, heavy on numbers

lower I and understand what significant think all unit why you at less it's per little with acquisition you at there look interesting if on sense. marketing because look look advertising a at basis, total high current other sudden financial a a to very spend and our publics start G&A CapEx out that of to and margin volume are customer makes and

And mature number. even an unit $XXX have established of We this -- But unheard startups tell at cap we point. companies, you a I as that is $XXX for a in posted would a able very under reasonable public of. support fast a growing, our as very, classifieds acquisitions, is be it creates very, automotive to And as and very sizable like volume forth. money spend and things to to budget so

Sameet Sinha

secondly you And to drove And Final is the that question you business may powersports about primarily about Can me, other sales? QX seasonality be are in have sequentially. that higher consumer or things margin, is obviously that? about ASPs also you're just play there talking what into the QX? up continuing if talk think higher in from went

Marshall Chesrown

people the seasonality, online, it’s the works, valuation. more obviously, Yes, you and both the people way in lane, system have have auction the the The consumers higher you dealers. the more

consumers have, The are, be then those are that retailers. sorry? marked -- obviously So you whatever us -- I'm or whether valuations up and from other

Sameet Sinha

in On sequentially …? up for is the the powersports? Is which have quarter ASP that

Marshall Chesrown

lot or our quarters Yes to number, trying see you're quarters don't to from you'll it am where ASP of $X,XXX higher think to data. I that. everybody on powersports, going guide using plus a minus I is than a see

enough. Now sizable it's

about think point $X,XXX. was I low our

see it moved to little a of Davidson. it will in higher you're mix back -- But Davidson you driven saw in it Harley that up, fourth non-Harley QX. also is in likely quarter the You see by and

if the higher non-Harley Harley average cost If look Davidson. website, at those of the is than you you the see significantly of percentage our accelerate, Davidson’s

driven year matter time what So seasonality. by that's that. the much need ASP to to of of really sell doesn't people it cause it sell, is. When isn't need they The

more really about drives it's So that. that mix

Operator

will This concludes back the call. of now for Q&A to Marshall closing turn things any portion remarks. I over the

Marshall Chesrown

thank you will way. road With our trillion the very make our dramatic everyone joining on would encouraged the confident proven as supply With our we're say that, competitive very seeing we to advantages, disrupt we're for again. future it vehicle To chain We in about a look all meaningful the be want call. a to $X understatement. Thanks overarching strategy short. we soon. I forward very, in

Operator

conference concludes This today's call.

disconnect. now may You

RumbleON (RMBL) 27 Mar 192018 Q4 Earnings call transcript