RumbleON Inc (RMBL)RMBL

RumbleON Inc. Stock Overview:

Company Profile:

History and Background:

RumbleON, Inc. (NASDAQ: RMBL) is a leading online platform for buying and selling used motorcycles. Founded in 2012 by Marshall Chesrown, the company began as Swapit, a peer-to-peer platform for swapping used items. It pivoted to used motorcycles in 2015 and has since grown into a significant player in the market.

Core Business Areas:

RumbleON operates primarily through two segments:

• Retail: Online and physical retail stores for buying and selling used motorcycles.
• Wholesale: Wholesale auction platform for used motorcycles.

Leadership and Corporate Structure:

The company is led by CEO Marshall Chesrown, who has extensive experience in the automotive industry. The leadership team includes seasoned executives with expertise in technology, finance, and operations. The company operates in a decentralized structure with various departments responsible for specific functions.

Top Products and Market Share:

Products and Offerings:

RumbleON's primary product is its online platform for buying and selling used motorcycles. The platform offers a wide range of features, including:

• Extensive inventory: Over 30,000 used motorcycles from various brands and models.
• Financing options: Financing options available through partnerships with major lenders.
• Delivery and shipping: Nationwide delivery and pick-up options available.
• Inspection and warranty: All motorcycles are inspected and come with a limited warranty.

Market Share:

RumbleON holds a significant market share in the online used motorcycle market. The company claims to be the largest online platform for used motorcycles in the United States, with over 1 million unique visitors per month. While precise market share figures are not available, RumbleON is considered a leader in the industry.

Product Performance and Comparison:

RumbleON's platform has received positive reviews for its user-friendly interface, comprehensive listings, and smooth transaction process. The company's focus on quality and transparency has helped it gain a reputation for reliability and trust among buyers and sellers.

Total Addressable Market:

The total addressable market (TAM) for used motorcycles is estimated to be around $20 billion in the United States. This market is expected to grow steadily in the coming years, driven by factors such as rising disposable income, increased demand for affordable transportation, and a growing interest in adventure and leisure activities.

Financial Performance:

Recent Financial Statements:

RumbleON's recent financial performance has been mixed. The company has reported revenue growth but has also faced profitability challenges.

Here's a summary of some key financial metrics:

• Revenue: 2022 revenue was $508 million, up from $433 million in 2021.
• Net Income: Net income in 2022 was $(8.9) million, compared to $(33.6) million in 2021.
• Profit Margins: Gross profit margins have remained relatively stable, while operating margins are still negative.
• Earnings per Share (EPS): EPS in 2022 was $(0.27), compared to $(1.09) in 2021.

Cash Flow and Balance Sheet:

RumbleON's cash flow has been negative in recent years, reflecting its ongoing investments in growth initiatives. The company's balance sheet shows a moderate level of debt.

Dividends and Shareholder Returns:

Dividend History:

RumbleON does not currently pay a dividend. The company has indicated that it plans to focus on reinvesting its earnings to support growth.

Shareholder Returns:

Shareholder returns have been negative in recent years due to the company's declining stock price.

Growth Trajectory:

Historical Growth:

RumbleON has experienced strong revenue growth in recent years, driven by increased market share and expansion of its retail and wholesale operations.

Future Growth Projections:

The company projects continued growth in the coming years, fueled by the expanding used motorcycle market and continued platform enhancements.

Recent Product Launches and Initiatives:

RumbleON has been actively investing in new technologies and expanding its product offerings. Recent initiatives include:

• RumbleON Express: A mobile app for buying and selling used motorcycles.
• RumbleON Finance: A financing platform for used motorcycle purchases.
• Expansion into international markets: The company is exploring opportunities to expand its operations into new markets.

Market Dynamics:

Industry Trends:

The used motorcycle market is expected to continue growing in the coming years, driven by factors such as:

• Rising disposable income
• Increasing demand for affordable transportation
• Growing interest in adventure and leisure activities
• Technological advancements

RumbleON's Positioning:

RumbleON is well-positioned to benefit from these market trends due to its strong brand recognition, extensive inventory, and focus on technology.

Competitors:

Key Competitors:

• CycleTrader.com (NASDAQ: TRDR)
• Autotrader.com (NYSE: COX)
• eBay Motors (NASDAQ: EBAY)

Market Share Comparison:

RumbleON holds a significant market share in the online used motorcycle market, but faces competition from larger players in the automotive industry.

Competitive Advantages and Disadvantages:

Advantages:

• Strong brand recognition
• Extensive inventory
• User-friendly platform
• Focus on technology

Disadvantages:

• Smaller scale compared to competitors
• Limited financial resources
• Negative profitability

Potential