Cazoo Q1 FY2021: British automotive site posts low gross margin

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UK auto vertical Cazoo shared its financial results for the first quarter of 2021. The company made gross profit of £ 3.7million (US $ 5.2million) on revenue of $ 113. £ 9 million (US $ 160.7 million). Net income figures were not disclosed.

As a private company, Cazoo is not required to publish results and has not published any for 2020. These results provide a comparison with the corresponding quarter of the previous year, but do not provide detailed figures on the costs. In its first round of financial results for 2019, which only covered its first month of trading, Cazoo reported a loss of $ 24 million, including its start-up and launch costs.

In the first quarter of 2021, Cazoo sold 9,762 cars, an increase of 373% from the first quarter of 2020 when the company sold 2,062 cars, and total revenue stood at £ 19.6 million. sterling. The latest figure represents a 481% increase in revenue from Q120. Cazoo attributed its gross profit margin of 3.3% to operational efficiency.

Cazoo’s revenue comes in part from recent acquisitions of Drover, Cazoo’s new subscription service, SFS vehicle refurbishment company, and Cluno car subscription service. Retail gross profit per unit for the quarter was £ 143, which Cazoo attributed to a better mix of buying, inventory turnover and higher financial commitment. The company had £ 117.6million in cash at the end of March 2021 and sold its 25,000th retail vehicle this month.

Cazoo said he is on track to make £ 700million in revenue for fiscal 2021 and launch in Germany and France by the end of the year.

On March 29, Cazoo announced its intention to be listed on the New York Stock Exchange as part of a Special Purpose Acquisition Company (SPAC), after agreeing to a merger transaction valuing the company at $ 7 billion. dollars and will be finalized in the third quarter.

“In the first quarter, we continued our rapid growth trajectory, delivering record revenue growth of nearly 500% year-on-year, demonstrating the strength of our market leading brand and fully integrated platform. in the UK, which we intend to replicate across Europe. said Alex Chesterman, Founder and CEO of Cazoo.

“Our recent acquisitions will allow us to bring our vehicle reconditioning to the UK entirely in-house by the end of the first quarter and launch the full Cazoo offering in France and Germany by the end of the year. year. We are extremely excited about the growth opportunities that lie ahead. “

This week, Cazoo announced the purchase of a new 18,000 square foot car rebate customer center network in Doncaster, which will serve as a click-through recovery facility.

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