RMBL - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to the RumbleOn’s Third Quarter 2021 Earnings Conference Call. At this time, all lines are in listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Will. Will. you, Thank

begin. You may

Will Newell

Operator. for Good discuss gentlemen. you, ladies third morning, us on you joining results. to XXXX Thank this quarter Thank financial and conference RumbleON's call

Marshall at on me our which Chesrown, website Officer; Joining of earnings Peter President. and release, our RumbleON's the can section details Levy, call the are additional the today management and RumbleON's and commentary Investor Chief on Relations Chairman investors.rumbleon.com. Executive of results found Full be are available in

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

could and except current otherwise, conference differ forward-looking Additional or contain measures. to result including be or other expectations cause developments statements can periodic discussion as of the law. of to this in new following The your SEC as are filings. RumbleON on actual in assumes them, Also, financial forward-looking whether call, results found risks from revise may obligation RumbleON’s and required a based responses questions, and information statements by update as non-GAAP to no today, that

of please For see this our these measures, reconciliation non-GAAP financial earlier a earnings release morning. issued

of a or XXXX. assuming on we combined highlight will pro business results today on year-over-year an on certain results a or forma our financial XX, basis as financial the our all Our forma earnings and and results basis comparisons discuss combination supplemental release as reported basis. be January will GAAP and comments pro In

turn over will Marshall? to I Marshall. call the Now,

Marshall Chesrown

sports, and joining nation's the morning. Will, transforming you is power power omni-channel based us you the this marketplace industry. sports for and thank Thank first technology RumbleON everyone

strong sports. a a our by In experience, Our for all to omni-channel lifetime strength best-in-class power consumers giving to combination things destination quarter, our with demonstrating we offering business. vision use closed technology and broad capabilities, engagement drive business results unmatched delivered base the third customer is with RideNow across

In adjusted EBITDA we $XX.X prior addition GPU our guidance are to revenue, record million; ranges. $XXX in delivering and million of increasing

results with But have we our this beginning. strong is the We progress third quarter are and just the pleased made.

to dominating march Our aggressive the approach market translates transforming long strategic of to acquisitions time. and over as the term industry share, objective towards we

Our full today. found results the can tables press be and we release in supplemental issued

our through walk on take on walking outlook the of instead come and to seeing. drivers trends to So talk like operational the about we're will And I'd before progress. I focus Then questions. Peter we will our P&L, through

XX talking next that imbalances You've all XX heard about supply that even the for along results. And this to in And months. sales. likely strategy several our correct unit said view going the itself our quarters environment to the insulates the in in our it's evident key that and this omni-channel and demand now. used not in growth We've is is everyone market us it's or

a nearly decline new But QX. Current three of in will capabilities. full new the trend sales as more goal the remain on GPU benefits new Components used unit we in which new unit also the our Year-over-year drove and of ratio our inbound see After in one to Please that increases more clearly used, driving QX supply XX%. is than omni-channel new. growth volume in keep XXXX. of the increase basically QX momentum. September of to retail net The X only showroom flat. used to month have over We see we merged New can than effect and mind omni-channel that building short company, to In yet positive our retail used offset infrastructure and by accomplish being quarters, supplies and current late stellar we will functional in over achievable. strategy one the sales time our alone, used physical down went in continuing the XX% process are fully inventories to anticipate incremental X.X consumer current in the QX everything locations. objectives to is one one we sales will were were sales in year-over-year mix unit XXXX. to to sales XXXX already from in into vehicle X% anticipate performance up we of evolve our be a coming to

optimizing vehicle have cash proven offers acquisition a set used and existing been superior flywheel new acquisitions, one. By fast are and than driven the our growing have through online motion. Between strategic XX physical we more we've strategy before. day in ever locations markets presence we that technology deepening since converting into markets expanding We and platform, over in our

riders more the meeting what in offer industry. more gain the tremendous enthusiasm model us brings cash is volume value power quickly with high around Our This used to they us sales. unit share. and inventory, bringing to and RumbleON quality effectively as technology are used country market which enables groups drives of attracts Dealer sports in the recognize

to strategically ecosystem. announcements across to opportunities synergies and recent this will demonstrate positive evaluate Our we reception realize the continue

customers lifetime customer capabilities, process. giving sales drive to more experience in is offering engagement best-in-class the by with a unmatched control omni-channel vision Our

exiting extremely with that provided our expectations past We've I'm for candidates share pleased over the since One with strong only we in and passing to financial CFO are are we Steven are momentum, Berrard. our back we months housekeeping increasing performance few XXXX. the unfortunate the preliminary several qualified excited of update. not the met that March, year in We quick outlook

and will In Beverley of the Our capable a top the is CFO the course update provide appointed. as priority is us, very Rath. role for an interim we search meantime, person CFO of hands as in has been soon with

operational progress. discuss Now I'll to our to pass our the Levy, President call over Peter

Peter Levy

transformational leveraging best-in-class This in commitment long and Marshall with morning, technology. good year a our you, RumbleON Thank term has underpinned been everyone. for

we concept. a agreement seen of recently We recently, markets. dealership and to to Texas groups, announcement fulfillment in acquire our adding including announced locations and acquiring physical groups our dealership a lot definitive signed center Florida newest existing our that portfolio, launching You've

most Alabama recent excitement Kevin entire our Freedom adding Powersports; their joining Freedom’s him reputation in a XX announcement team Georgia to is and includes acquisition sees and locations, success further founder for including energy entrepreneur and Kevin in impressive to who his Lackey, an Our and brings power already self-made opportunity professionalism, sports. of time his point at as RumbleON accelerate and team this effort.

begin accurately portion our all store. access deploy the home used high or media of via facilities. and available RideNow, Recently, choice inventory we best utilize offer free location. to physical fully technology, In be experience, in sharing our for synchronization its combination operating at sure channels integrate, right on delivery us and market right back grow transactions. improve the online we inspect, making Since distribution, showroom our to and inventory to our is clear how is we and our effectively and allows retail risk opportunity vehicles in used will of will work Orlando, photos the data detailed time for to than to the our is standardized platform we’ll mission locations at used the the customer we technology first rolling definition In consumers capturing omni-channel video And the of and proprietary From more share purchase recreating purchase, the sales powersports of are of we management This at online to on closing capture of out state redundant one regardless or stores. and doubled, Leveraging now art key, multiple transaction presentation descriptions system. a of recondition enabling provide processing. to reducing and and effective stocking will systems Our inventory websites of same automated streams. standardize the used we've doing in already the to the office, inventory. is us maximize platforms with from us for cataloguing ability across giving with unveiled a center standardize opened more are location inventory so, the we our the process platform, in matter for and allow Upon our fulfillment future inventory no so inventory, what country. focused associated

We will the have sites across web inventory and shared XXXX. in integrated entire enterprise

pre even powersports time online. automobiles, RumbleON credit we in free setting be a sellers friction approve ability bar to the We finance flexible capture out all future, are that presently the rolling some much financing sales online is newest of and anticipate incremental We the higher. of what will game changer like in locations. to solutions believe offering near to help the our Real

business public the combination. of we Our marketing enter of to a spearheading extremely new already manufacturing initiatives the consider changes the Building closely brands our National Matthew for entrance next with industry Marketing evolve be a are Officer marketing to all plan XX and branding United as to We the they partners beneficial capital in our mutual front efforts. the to is to see extends today. first accomplish of working chapter has and Chief win our Many behavior in potential same of McCartin as several brand our beyond evolution. our efforts consumer

representative to of standardize and the a family of our acquired facilities brands. have are experience where We wide breadth locations intend all of we

As our the last complete road, we forward omni-channel vision without not be the touch. look down would

support our and culture thought unique we omni-channel Marshall? home an investments that in the is will powersports experience. developing to for with processes lifetime to to processes team, and in to XXXX. the the at business, we all a want strategy We logistics customers are We've dominate and well testing phases earn a right technology, work right and we integration plan hard technology with and doubt overall have delivery, are customers future the entire and early in revolutionize our been relationship our a last touch which and shows across out making do. we of network customer that starts no centralizing support industry begin pickup We are there our

Marshall Chesrown

Peter. Thanks

we're fast, As moving but well you can discipline. moving we're with guided see,

in are $XXX are $X.X company the prior now combined targets We year the year in XXXX billion $XXX and our million of and to pro forma EBITDA the be to by ability guidance to financial X%. billion exceed approximately range of the revenue confident full in range We increasing milestones adjusted set we and $X.XX million. our and EBITDA expect adjusted to ranges revenue for

industry reminder, well the is tightest to the final new to This quarter assumed regards a fourth the is in during are due dynamic of XXXX. inventory We holidays. quarter But guidance. as in positioned manufacturer days heading wide typically into the shutdowns our

XXXX. for expectations strategic are executing our excited to objectives share preliminary on are We and our

For we has powersport XXXX, supported full revenue an by growth of XX% driven the finance. RumbleON sales by do RumbleON largely our in segments adjusted not. other in unit deliver revenue competitors year-over-year XX% expect EBITDA in range basis, year to gross an to opportunities vehicle and profit that simply on and used organic increase

our in gain footprint, we accessories, physical apparel share. we powersport to as we parts, sale, margin For expand offer targets more gain as financing. our can GPU service, high share used market market These upside example, long consumer term overtime nationwide meaningful services significant and

Peter yet strategic in As we making our prudent are mentioned, investments growth.

as by any development, and expectation revenue marketing, are logistics profit. will investing outpaced the in integrate that increases but gross and coming be the will SG&A be our total businesses quarters increases in in technology in facilities confident We we

flow need growth $XXX incremental on With believe XX, term and as of have time upside capital over of our and future September we our strong $XXX drivers, and of equity acquisitions. acquisitions, our anticipate to the balance pending the do cash pending we million an available for to appropriate structure loan in generation anticipate cash future facility million the not equivalents organic both our cash consideration have that fund sheet cash from capital acquisitions. and we free at raise Beyond we this place

we're shareholders. And delivering to sustainable our term on that value and priorities for operator, for on focused questions. ready with are our long committed are strategic We delivering

Operator

from Riley [Operator proceed B. Eric with Our question. your comes Please Wold with question first Instructions] Securities.

Eric Wold

storage the give us believe the the of combination. been as a have used versus morning. of Thank to we all how difficult your be vehicles sense to they new or easy market, the you impacting Couple can I supply the with one, guess you. chain of of it's impossibly and Marshall vehicles next? issues great the but Congratulations, bring level know guys you where those of that vehicles is you about on progress been the all questions. into Good availability need in so far

Marshall Chesrown

Sure.

mentioned with there presently on the in regards are, side obviously supply the The are with issues up chain as new think Peter I some pre-owned. offsets stores to significantly inventory.

need are stores to be. at constraints to Some facility due they where probably about

larger However, significant have the we're shipping some amount. room of still stores still and have still

the important we websites, the evolved is pricing, a site. all a of that really on on think forth, and part I as our photos, pre-owned inventory our here descriptions, and to so is, get shared get performance of will driver future consistency be

Eric Wold

are months And efficient versus, much months, on it. you get updates of the number is few In of Got the you flow; from many already months a dealers of the the often dealers we in a how more had -- deals a more platform website. are see that on increase recent platform. by back, used sense the vehicles platform then driven now, say a vehicle the back. a from on in few How XXX, significant right the

Marshall Chesrown

of over I RideNow stores Well, inventories, individual balance. at lot vehicles The listings. are range the of but keep as presently. flat of up XX,XXX that end in new there's primarily But websites, and stores, we're we're come said, inventories expect the delta. I north each with increase in the our on changed. vehicle light regards normalization. platform anytime doesn't especially hearing and used inventories partners, last were would today, mind the really into ridenow.com, lot the manufacturing what best. of also a have there's at being more well from dealers is that, don't look any XX,XXX say that their higher, new XXX The now the but on we're we because grow, And believe, back we the see as far the soon. mentioned, a quarter, with processes of like makes to of end there's at continue as of the that, as we the But it I speaking tunnel to And certainly to start we as to

it automobile about reading are space. you in think I the

I think at more getting significantly the well, pre as selling inbound you're stores seeing it powersports efficient where inventory. well, are in

up but is what as expect fairly been the some to pent talking of a out And we’ll long we I has don't place, of type first this sizable pent of think we’ll that what inventory, it's to have of supply reasonable crystal needs obviously So about start then can certainly we shake have feeding have think demand. current fill ball in pre-sold potential imbalance all there's on pent is, demand. I up demand as a to a up there's the

Eric Wold

adjusted $XXX. then of of was And pro to we at the year talked quarter well. guidance fourth question should your it. million the new as about seasonality for the end me. there that reconcile final June $XXX of Got forma EBITDA I'm How the last the assuming in LTM, with $XXX

concerns part those into conservatism of how annual, vehicle numbers? into about do and your So I the two on that baked kind chain supply think new maybe what's into your

Marshall Chesrown

we beat create still Well, do early want of and to the of if possible. midst clearly, we want we I to on But very cadence in a a are raise integration. -- think

time. there's always seen of this any the haven't I in of so at hiccups, always size that And is any possible. determined certainly or any But guess, potential we

unknown. of holidays thing are the kind always Second is

a be Thanksgiving stuff Christmas. to from consumers, through constrained and will you lion's mom slow inventory On fashion Keep of new we could we the to the say up probably vehicle direct ability aware, pick those the up. the vehicle truckers dad’s buy in and you're our share pick new as side, as in from and for and timely mind, what deliveries ability direct

of So on today that's and look is an then that you gave everything the XXXX. we basis would guidance growth of clear good for the total we organic a on what expectation plan have years stay do some to so is given you part reason like we've course. quarter talked And about also organic obviously can that for that an and fourth

pro As and to types want don't numbers be we to of presenting move those forward be forma XXXX in we things.

and will the we obviously you the closed. transactions disclose to are effects So We'll give detail net guidance. more disclose the as

Eric Wold

you, Thank Marshall. Perfect.

Operator

Thank you.

is from your question. Davidson. Our proceed Mike with question with next Baker D.A. Please

Michael Baker

follow-ups. A the you are at thanks. positive couple trending that me, said stores, new of Excuse seems Marshall, inventories favorable. One, vehicle which

So I'm still they're saying inventory issues.

did better. You like said the that? at I Or misinterpret Is to tunnel. say? there's But no light of really little a fair end bit the feels getting it's that that

Marshall Chesrown

I think manufacturers, as unload some But the seen that about it. be availability. fast products is like coming turning bit. are they in out earlier, might said looked levels of I mean, some new right I a a constrained as There as inventory everything little we've it's now in can uptick some

I look continued and believe as lens, sales. that's manufacturers I if, that radar they don't have We they it comfortable those through us I was any that say sharing feel anything to to haven't what consistent But fairly going are So inventories would I be, volume. well. flat total be also would large the up. any believe shared we'll your erosion at information think But will don't and see vehicle will the anticipate lead probably screen with that on that don't, we new

the of a we now the I I through lot right seasonality. we you of did talked there our will numbers, lot But if RumbleON, notes, focusing Sunbelt, really thing because the the about and provided obviously, their company. strategic that see out on of as numbers in regions. a seasonality in you And a didn't filings. focus you've have it them the stuff you But really, those effect you on they for past lot and a in in So has -- about mentioned been that we've years. own of back a of of couple thing mitigated their couple, really mention a lot there's know a heard look built And Sunbelt my seasonality. four its

Those XXXX more grow comes that, continue seasonality. moves vehicles on One a that really really centralized we and move will inventory, be be entities, host insulate to comes, see we today, might might maybe expectation really we that. move inventory the as into as that you from they an down repositioned depending more share think we we that we'll bit websites belt omni-channel little But Mike a in up be north. to a versa, and between and today little vehicles. effect of forward. think of vehicles two a I is you the heads their vehicles, all having or of across vice have. entire inventory on group should we'll be the will as pre-owned sharing not we I the will So all what that you And moving do as forward, That presently around on websites spring wheel as replicated have individual you southern dealerships, system the From the those maybe markets, because inventory. we're stock. believe own snow And XXXX, all think just give

Michael Baker

Yes.

powerful. Longer like be Sounds it's to pretty term going question.

above here. my demand. the of versus XXXX, I some think supply that must be But tight a GPUs function for Sorry of voice

talk demand supply is that improving and balance it in that might can reconditioning comes is Thanks. If about sustainable an and how and you're how you impact offset? number? So perhaps more efficiency

Marshall Chesrown

efficiencies a stores mean, haven't we is I to like really get Yes, of pill center on fulfillment inventory what really the the call a, I key purpose the yet. developing program. that's those

philosophy all at we to store keep inventory. have of the center, the times inventory then XX we let's determine entire and what would units, would it's just words, any proper full from be of individual the So fulfillment based ease, once yet the be data, should in in on the would store, they that right for say that units but access other a XX

the they've percentage side. vehicle is you the nowhere experienced of new On would increase. yes, the significant The has is fairly side, a basis benefit car tell on it been, on on a gross on fairly uptick margin side the what near I manageable. the amount

the On model a think a of I dealer the primarily side, significantly pure obviously at pre-owned really to be merging supply higher pushing retail dealerships. and it's play, RumbleON a point

gross plays company, high Please gross we this margin expectation. is they very, so. Our way, now higher. we'll I the a, are part at plays. of And years market ability used about, significantly is in and if margin retail and margins. offline comparables in anytime can a quarters advantage do reverse, actual gross online share us we're plays significantly under by out we're We not you other of vehicle early where important pure small amount is to and up is in way the about ability, the that that gives don't and lower, margins notes the post share, interesting mentioned And very do gains dominate also cover distribution the to lower automotive nice dollar that it's that give in pure we margin whether think to to plan do would chasing have margins. of higher. gross a have be very tell pressure a retail we that the to we that some significantly the I in The companies think market obviously it's But ASP margin you gross I take that we for the have or have flexibility. my that significant we there,

industry compares really a think gross very, intriguing. we it's and that at a these is basis, unit as to because what we're, basis, per out margins the looks on becomes $X I powersports there everybody very on it whole So, believe important that

Michael Baker

with agree that. the color. you Appreciate that. Thank for I Yes,

Operator

you. Thank

proceed your Basham Securities. question Wedbush with question. Our next with comes from Please Seth

Seth Basham

the what given it the relates to the you Good vehicle the some of you're great to the Are integration morning, supply large such on with market of as acquisition from share? a you tight and congrats of and side come. more a getting environment color getting to On lot. kind allocations? new business, this Thanks manufacturers as start a disproportionate can us give allocations to

Marshall Chesrown

data probably any system. get it I that have you nor a I lead to But tell you going support varies that dramatically the manufacturer. intention I think to want we're allocation that's from didn't we that of special would what to favors. Well, believe the to manufacturer to don't

So basis, a when we total total at it seeing marketplace. availability that average Like products we new them being is do BRP coming product are tick we look start other And and up. some most there products the those are a switch manufacturers. see availability, also a And on volumes. others new to inflows, to additive of total by as our and various and type to the

I of your by is with Polaris know, looking Seth, you and others ours information, is street. what as inflows Harley So Davidson regards at probably OEM as represented and accurate likes to the to think the are

Seth Basham

much seeing as remarkable are limited more declines as Polaris XX% talking guys Harley what's you that that are is to much and declines. Yes,

higher to flattish fact, to In you're talking slightly inventory.

seems like suggesting. significantly you're it So those are manufacturers outperforming what

Marshall Chesrown

I presale think late are inventories big are we've system. show the they in it really, the the and to really all stores low. been is Peter, quick us road visiting on have mean, I've lot I as part really, they very, the of the and very Seth that of a showroom a of But the

is current exactly to new you're inch, the of year would I think one one. one whether spot, the you a valuation on is also, powersports, of tell because I they're talking sweet about the year and this side usually, pre-owned us pre-owned So cars old, it's or the that vehicles level an giving aren't normalcy. typically about close some too turn,

higher, replacing low, OEM. trend from which inability for a us to new tend they the are to vehicles that's they little the So obviously trending acquire

Seth Basham

Got it.

conversion Okay. platform. there the increased And data update the is you give of as used an finance maybe then and us you're rates Could points platform? rollout on because side relates finance some seeing the the to specific to

Marshall Chesrown

you dramatic, I in online, been the the stages. that. we little is that the dramatic. returns that started but a been of have tell east tell early would like or brought are the Yes, we the have bit have Seth have I’d in it's just to The slow we in It you and pretty stores But brought integration that west. locations been working much in we really

sales. means that the -- is companies, to say incremental any targeting Corporation This finance buy, those. Davidson, isn't for it of They a Harley the very think I replacement, or think I a buy any by of what captive way any at very, it's we're is look Credit they stores, aggressively, as financing, a think, I were in, these non-brand top first interest, for financing void, all we say fill go applications everybody's sales. to we in still But, we to if priority. them a able and step dollar in are if and those were incremental or lower

our creation the look important very, you at ability We you're the about incremental ace if know talked see so forward your sales. as if awareness. I to I world, will. hole, think well in you aware of the finance of the success our, Carvana, own of is to the the that, underwrite do of kind your that credit over CarMax very of that, going kind we And company and Because it,

the is summation seen rolled it have of have So end but active we demand. by fully of yet, be significant we not a year, And high. has is the in locations. demand it The XX will out because we been where all amount not

Seth Basham

to lastly, one going Great, one one. to three used to of your new news. to then And to good overall goal relate

XXXX you Given quickly you the this Is do then you're strength think and can we’re the talking Roll? on they platform achieve a the rollout, new environment, used side, how seeing finance goal? that especially with

Marshall Chesrown

piece prior fact it's new we interest and happening Craigslist, what those very car like see much if are very, disappear majority we the I we the on the the used you. I'm because entering in It's trade. any versus redistribution But would in itself don't the that mean, think through say, of they say, transactions we one, put across event. place to stranger think funnel, almost there's peer that. I transfer probably didn't motorcycle in for haven't, car think it's And very for about transactions. on that, the we achievable. think look the that achievable, in next do taking inefficient is I likes financing actually are just the that versus, Craigslist. to And might a in the people five we Craigslist, that any transaction difference of I is have, you not for taking were in, it, yes. our business to a forward and, listing looking selling -- interest very, town objectives. power the the XX%, pretty don't a likes transactions powersports, you to way that to peer space, lot have obviously, [ph] total But on, because of sites. to But, only a today use. happening I these with do side. have don't at of if laden of my And I your I friction other us don't it's pre-owned

that shifting really sales. see disruption those where and that's So we the

The far dealerships being over As dealerships. the in way. handle able to efficient and a more makes are meaningful as to those market the significantly

tell to that already you the the individual will if if I exceeding locations ratio. there, and one there all one were So, you thing, if were, are at other looking stores, are one you

as those don't new, on one-to-one a meaningful use are accretive cohort the confident is we is build very thing are that build We over manager. going-forward have one-to-one that's don't we’ll we that important a to that And basis, another way. on already to fact extremely we in time. all all to very, a reduction of hire in equation ratio not high a the compare very powersports that general have continue And another These and a we new building. margins additive. in business This is the to very So the

Peter Levy

this Peter. Seth, And is

doing dealership integrations handoff side mean out a to acquisition the I now acquisition that we think, them and spend our the XX world where going XX the and just of just point the they have asked some I the locations. do vehicle, the they're converted warm the these folks anxiety the or and actually also online think into completely last have to allowing time ability mom store in to they dealerships side on days to the help their the of or locations, getting sales. They've the some physical beautiful then to in actually dads trade just of about might for things to retail sell into had

vehicle and actually percentage will So convert closer sell retail to in somewhere folks the of what there to forward happens to when then their CarMax sale. we a a walk to

Seth Basham

or relates are around That's revenue exchange And as question the expecting run one advertising amplify then great advertising, last going forward? G&A we rate base. SG&A you news. to about for issue? How flat keep And think it to right the should you

Marshall Chesrown

on the I Well, say, conservatism, as revolve exceeding I top this. mentioned, see making SG&A. notes, in branding the would side ramp we of understand only you sure my whatever I But really certainly think conservatism marketing around and would we line margin, what what would in the gross

call out their locations brands going got brands. to own to multiple We've Freedom We're have individual websites, and others. what there. we these We’re And manage got we've going XX to vertical store with hopefully adding and got RideNow. we RumbleON, then

before the sure that we putting a like. so drive, to really business, And dollars of start branding understanding marketing we make want really marketing drive we looks vertical have to what significant clear have we to

and right be, side we're tackling So, blocking think, stuff. we the will now on I more

of by getting undertaking, that major and be inventories integrated, shape we'll make we properly. priced it's think far photographed but fairly a integrated, that just, websites and sure all are described websites, make good in getting are pretty And with that's As first all sure these things as these right, quarter.

Seth Basham

Wonderful, guys much. thank very you

Marshall Chesrown

Thanks Seth. Appreciate it.

Operator

Thank you.

Our question. Craig comes with next question your Baird. from Please proceed Kennison with

Craig Kennison

thank you're and to morning, questions you to good able to the facing taking Hey, of well. are talk Wanted maybe which and pass about along understand that consumers. suppliers type your you OEM the as my to inflation inflation extent for from

Marshall Chesrown

The excessive Well, the and published on, you they as haven't aren't, are market probably suggested the read passed retail is, prices by by been stretch. far has any Craig, as obviously. been manufacturers can it as

soon, because we to along anytime whatever see market just as obviously, any been the that date, today, as it's comparison I if turnaround, is and think looks the my so we stays to in But it comments, will the I I don't demand to high mentioned that able pass limited. we'll is supply. think in be fairly

I little the from units. seeing think can parts we published. then flows, parts seeing manufacturers inbound the probably The are we on on more actual are of probably days We been but parts we're seen more probably availability already have we're on service. it and we a units orders a don't behind talk see the about curve. lot fill to average the But

that And time so up. take get for back it'll some to probably

Craig Kennison

here. prepare help spend you understand per operationally you these And units that handle maybe just how actual for question unit where us then on Thanks. process? basis operational resale? Could might And reconditioning you handle you an how a to much

Marshall Chesrown

where automotive, that reconditioning would for think I $XXXX even we south average side. the on the range, to a that retail XXX in and cost deminimus this Yes, at $XXXX it's for maybe fairly sure, of looking compared is or be probably

the As done is, in of is internally stores. far today as being process, a it the it lot

back. and the than process stores, see we yesterday, process sense and out huge doesn't it they other that it it that the a to this a at to probably and opportunity trading taking center for maybe However, ship then ship traded make time of fulfillment

vision sales, right to I of do these reconditioning total to want always for processed. were, to at it is they level. have all look you to store go it's you front say of the don't centers of fulfillment our will And me. in the if utilize less were I reconditioning, than So cost XXX But some in, at level the again, vehicles be if I think

only that, fairly So But it's, get for I'll you. small. it it's

the that with of safety. really safety. you powersports it's around the Because revolves typically don't of have the issue with wrong go cars, think things all all I

kinds things that and tires of start has to and brakes, So those it's and stop.

So or with minus margin. it's and not retail pricing, a big driver gross to of plus regards our

Craig Kennison

the then you And that technology just Is Thanks. operational number it. a of offer tool. or question a certain your rate lot game conversion changing what looks today? in a guess, churn a frame offers there's on And marketplace cash the made to related there the like I in That like? Got period? way or the tool of feels another, in quarter as

Marshall Chesrown

Yes, Craig. fair question,

as really that RumbleON. think I to we used a tout standalone

I the very arms it's think get we're around very, our trying these conversion looking because stores, positive. rates to at

going are obviously were be we're I believe But in on think hesitant and XXX% And today. to basis, XX% as between I would I level, we’ll to numbers they would we the give potential, time want the as think the serves I seriously forward. the we're we and I pure to do you for online, and reported understand pushing say us XX% around store what a report think those I that range. is upwards. they doing CarMax it now believe conversion far levels, trending going flow you to the online what forward obviously that So last transaction, what is. I XXX% that

arms we it the to all but inventory this Last offer, it's comes time has process supply, their x really, algorithm But units it I lifetime. at we will This integrating we get XX-year within to we be product. able data. get get hundreds to that really to we think is able stores. margin that's we a to we get that we want in a at We're say it year rate with retail have before. around So this that And this Because the have a all moved the tool data much dial forward. retail it's now offer of dollars, to again, higher that long, high answer, it, number interesting might be it is be low think and of we that a have it capture when are management. data. cash if sold XXXXs know of turning of turn to cash compelling regards at is that share think have I important be to out is our actual should those up vehicle in though just going piece and we I can long And hundreds fastest to dial the of margin. And going why over retail And is level on data. mean will can benefits because location, this day didn't vehicle really company up

reflect And, we capture do data and we're think is we we the get acquire, directly more and going should into everything So our more that to rates. more efficient just database. the

Craig Kennison

Marshall. you, That's Thank great.

Marshall Chesrown

Appreciate Craig. Thanks, it.

Operator

over Thank comments. the turn questions your for this you time. at closing for back Chesrown your to to like floor I Marshall would

Marshall Chesrown

won't Great. of Yes, any more your I time. take up

happy I You Obviously holiday guys We're a been RumbleON today. we do looking QX thank and to everybody for times and very speaking while. really for are on for here everybody again. to very, now Thanks joining teams. for exciting our you wish want to all a But forward of right quite these certainly us season. talk and soon. We'll

Operator

conference. today's concludes This

your disconnect participation. your you Thank this may time. lines You at for

RumbleON (RMBL) 15 Nov 212021 Q3 Earnings call transcript