RumbleOn, the online used-motorcycle retailer, estimates that it will have revenue that exceeds $100 million by yearend 2018, the company announced in fourth-quarter earnings yesterday.
The company earned a revenue total of $3.4 million in the three-month period ended Dec. 31, 2017. However, RumbleOn went public last October and didn’t really “get started” until November, Marshall Chesrown, president and chief executive officer, told Powersports Finance. “This was really a transitional quarter — it didn’t have a lot of meaning.”
RumbleOn plans to exceed $100 million in revenue in 2018 and is “confident” that it can reach that goal. “We anticipate about 12,000 appraisals through our online channel by the end of the first quarter, and that’s grown from about less than 4,000 in the whole fourth quarter,” Chesrown said. “It’s grown exponentially.”
The online retailer expects to sell as many vehicles in the first two months of 2018 as it did in the entirety of 2017, Chesrown said in an earnings call. RumbleOn expects the revenue for the first quarter to be in the range of $7.2 million to $7.5 million.
Also of note, 41% of RumbleOn’s vehicle sales were non-Harley-Davidson vehicles, as compared to 35% in the third quarter, he said on the call. “Other sales and revenue in the fourth quarter was $42,000 and was driven by vehicle finance and service contracts sold in connection with consumer vehicle sales,” he added.
Recently, RumbleOn announced that it will receive a $25 million floorplan line of credit from Ally Bank. The company plans to utilize the credit to purchase pre-owned motorcycles for resale to consumers and to facilitate growth. RumbleOn also has partnerships with MotoLease, a used-motorcycle lessor, and car dealer group Sonic Automotive.
Separately, RumbleOn aims to facilitate more private-party purchases by moving beyond motorcycle sales into categories such as side-by-sides, off-road vehicles, and watercraft, Chesrown told Powersports Finance last month.