Earnings call transcript Q1 2023

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Operator

Good afternoon and welcome to the Shift First Quarter of 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]

I'd now like to turn the conference call over to Susan Lewis, Vice President of Investor Relations. Ma'am please go ahead.

Susan Lewis

to Technologies welcome earnings quarter and call. afternoon the first Shift XXXX Good

the CEO, today CFO, me call Joining on is Oded Jeff Shein. and Clementz;

which statements on certain uncertainties. During our believe hold. and these remarks, we involve reasonable, make assumptions, guarantees we forward-looking our these of are forward-looking performance will And while and current not the what statements, judgment judgments future are may risks, some represent future

in any outcomes for is implied Actual the results expressed our affect to materially may a may forward-looking any of SEC statement. what from forward-looking filings and differ discussion factors the refer that statement. Please or with full

this obligation as publicly new events, of conference undertake any forward-looking after future to call. a no result statement whether information, We otherwise update or

of be During as earnings the non-GAAP measures in will and materials. call, to we defined referring reconciled our the course

said, With I turn to over now Jeff. that the will call

Jeff Clementz

afternoon in XXXX you Susan Thank for and you, us call. good earnings joining Thank quarter everyone. first our

During key our few comprehensive operations. a six have we fourth Today, we strategy ago, just on our update quarter to and provide. call updates gave a weeks

our came quarterly the near end the First, guidance provided. we in of ranges top results

still when transaction, they quarter technology-forward want to our and a as first the model, period which CarLotz sales omnichannel was The and evolved integrated to customers executed how choose we regarding decisions our strategic transition footprint, to allows our shop.

as our well made and optimized strategy organization have reconditioning our improve as sales processes performance efficiency. We increase changes to and marketing to

quarter the sequential in our to and operations begun by we refine QX to-date. normalize are GPU model to encouraged in the as continue and second We improvement have

forward, F&I SG&A we to are us, positioned into quarters. usage expand we going GPU translate and especially With should cash future lower these in changes behind leverage which believe

to future to is to this a continue teams We year. e-commerce op and which same selection XX of where customers seamless expect see and we Shift with optimize marketplace delivering shop for build and new that years. and purchase together work over in tech our QX past greatest experience relaunch our been used dealer the platform to platform, Second, and of the cars we've satisfaction the customer the

dealers partner customers no of and build with customer fees upfront reach to lifetime digital able millions new will Our be relationships.

marketplace to introduces inventory high-margin but the leverage the only Shift, more a our drive revenue G&A and will traffic on providing stream, while For and not asset-light site expand organically assortment marketing also further costs.

and Directors stated doing to company employees, of press Board wide our strategic and customers, for committed our a best all shareholder maximize business Finally, partners, are shareholders. what's debt-holders of our that evaluating team release, In range alternatives spirit, of to stakeholders, is including the as our value. management in

hand the quarter review call to our over results. now will first Oded I Oded? financial to

Oded Shein

revenue additional interest first difficult effort higher everyone. offer subprime associates units. adjusted was attachment our Adjusted have in-store experience financing good In F&I we continuing other a and and impacted added unit drive and Jeff, million We primarily to environment customers. was train and $XXX rates, high X,XXX retail recently best financing units in quarter. Total by for to partners continue rates. the GPU GPU, afternoon, per $X,XXX. and sold, the you, Thank sold $XX.X was XXX wholesale F&I our to

cash uses associated costs, Other hub EBITDA loss quarter of with costs Adjusted EBITDA with and We was equivalents. total cash of $XX.X $XX the cash accounts transaction not during included $XX.X million quarter adjusted the and were timing with of SG&A was closures approximately flat in million, payable. million. while quarter previous adjusted ended

comments. closing turn to now back will Jeff? the call I for Jeff

Jeff Clementz

Thank you, Oded.

Q&A your and strategic will forward this alternatives interest be joining work look significant improvement in process, and like good to review us their would to operational for a evening. focused thank Have Due for again who following today team, there across Shift. We not the have hard our on you them incredible I speaking to is driving business. continued you for session financial to soon. call. and focus. Thank We a an

Operator

you presentation Ladies and and has gentlemen, now conference concluded. the We joining. for thank

You may now disconnect lines. your

Susan Lewis	Vice President, Investor Relations
Jeff Clementz	Chief Executive Officer
Oded Shein	Chief Financial Officer

Shift (SFTGQ) 11 May 232023 Q1 Earnings call transcript