![]() ![]() In addition, overall autos sales are contracting as one can see here in July auto sales that show all the major manufacturing seeing significant demand challenges. Year over year sales comparisons are also going to get harder in coming quarters as the company focuses on more profitable sales. Growth is noticeably slowing in recent quarters. CarLotz had just over 2,400 vehicle sales in the second quarter. The company also disclosed it will acquire CarLotz ( LOTZ) in an all-stock deal. Shift Technologies posted a non-GAAP loss of 64 cents a share as revenue growth slowed to some 44% on a year-over-year basis to $223.7 million. ![]() Once again the company missed expectations both on the top and bottom lines. The company reported second quarter results yesterday. The company sold 6,741 ecommerce vehicles during the quarter, up over 50% from the levels of 1Q2021. Even that robust growth was nearly $15 million below the consensus. Revenues rose more than 105% on a year-over-year basis to nearly $220 million. The company had a GAAP loss of 70 cents a share, more than a dime a share less than expectations. On May 11th, the company posted first quarter numbers. The stock currently trades around $1.30 a share and has an approximate market capitalization of $110 million. ![]() The purchase provided customers greater access to a larger selection of owned and third-party vehicles for a test drive or direct purchase. Fair Technologies ran an online auto marketplace and the deal expanded the company's inventory, capabilities and added engineering and design team talent. Part of the purchase was financed via notes at 6% interest due in 2025. In March of this year, Shift agreed to acquire certain assets of Fair Technologies for a combination of cash and shares of Shift's Class A common stock. The company came public via a merger with sponsored blank-check company, INSU Acquisition late in 2020. It also offers add on services such as vehicle service contracts wheel and tire coverage, and prepaid maintenance plans. Shift's platform enables mobile digital transaction, such as at-home car searching, scheduling an on-demand test drive, and purchasing at home or at the preferred site of a test drive, as well as provides financing and services. The company provides an ecommerce platform for buying and selling used cars and is in both the Retail and Wholesale parts of the market. Shift Technologies is based in San Francisco. Can the shares rebound? An analysis follows below. The company just announced a major acquisition. Despite solid revenue growth the stock finds itself deep in Busted IPO territory. The company is in what has become a fast-growing part of auto retailing market, but one that has attracted myriad competitors. Today, we put the spotlight on Shift Technologies ( NASDAQ: SFT) for the first time in this column. Sooner or later in life, we will all take our own turn being in the position we once had someone else in. ![]()
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