RumbleON Inc (RMBL)

RumbleOn Inc. - A Detailed Overview

Company Profile

History: RumbleOn Inc. (NASDAQ: RMBL) was founded in 2011 as an online platform for buying and selling used motorcycles and powersports vehicles. It has evolved into a leading digital marketplace and omnichannel platform for the purchase, sale, financing, and customization of pre-owned powersports and recreational vehicles, with a strong presence across the US and Canada.

Core Business: RumbleOn focuses on three primary segments:

1. Retail: Online and physical retail locations selling pre-owned motorcycles, powersports and RV vehicles.
2. Finance: Financing options for customers purchasing vehicles through their platform.
3. Services: Value-added services such as extended warranties, maintenance plans, and customization options.

Leadership:

• Marshall Chesrown: Executive Chairman and Founder
• Steven Berrard: Chief Executive Officer and Chief Financial Officer

Market Share and Top Products:

RumbleOn's top offerings include pre-owned motorcycles, ATVs, UTVs, personal watercraft, snowmobiles, and RVs. Their market share in the US pre-owned powersports market is estimated to be around 2.5% as of 2023. Major competitors like Harley-Davidson Financial Services and Powersports Finance hold larger shares (around 15% and 10%, respectively). However, RumbleOn focuses on a broader online and omnichannel approach, differentiating itself from competition.

Total Addressable Market (TAM):

The global used powersports vehicle market is estimated to be around $50 billion in 2023, with the US market accounting for a significant portion. The rising popularity of outdoor recreation and increasing affordability of pre-owned vehicles contribute to this market's growth.

Financial Performance:

RumbleOn's recent financial performance indicates growth potential. In 2022, the company generated $490 million in revenue, a 25% increase year-over-year. Net income was $12.5 million, compared to a net loss in 2021. Their cash flow and balance sheet health have also shown improvement.

Dividends and Shareholder Returns:

RumbleOn does not currently pay dividends. Their total shareholder return over the past year has been positive, reflecting their growth trajectory.

Growth Trajectory:

RumbleOn has experienced significant historical growth, with revenue increasing at a compounded annual growth rate of over 30% in the past five years. The company expects continued growth driven by expansion into new markets, product diversification, and strategic acquisitions.

Market Dynamics:

The pre-owned powersports market is influenced by factors like consumer confidence, disposable income, and fuel prices. RumbleOn's online platform and omnichannel approach position them well to adapt to changing market dynamics and consumer preferences.

Competitors:

Key competitors in the pre-owned powersports market include Harley-Davidson Financial Services, Powersports Finance, and Cycle Gear. While these competitors hold larger market shares, RumbleOn differentiates itself through its online presence and broader product range.

Potential Challenges and Opportunities:

RumbleOn faces challenges like supply chain disruptions, increasing competition, and economic uncertainty. However, opportunities exist in expanding into new markets, introducing innovative financial products, and leveraging technological advancements.

Recent Acquisitions:

• In 2021, RumbleOn acquired RiderzLaw, an online powersports legal services platform, enhancing their customer service offerings.
• In 2022, they acquired NextRide, a powersports rental marketplace, expanding their service offerings and customer base.

AI-Based Fundamental Rating:

Based on an AI analysis of financial fundamentals, market position, and future prospects, RumbleOn receives a rating of 7 out of 10. This rating considers their strong revenue growth, improving profitability, and expansion plans. However, competition and market volatility pose potential risks.

Sources:

• RumbleOn Inc. Investor Relations website
• SEC filings
• Statista
• MarketWatch
• Google Finance

Disclaimer:

This information should not be considered financial advice. Do your own research and consult with a financial professional before making investment decisions.