RumbleON, Inc. (NASDAQ:RMBL) Q2 2018 Earnings Conference Call - Final Transcript
Jul 26, 2018 • 05:00 pm ET
Good afternoon. My name is Cheryl, and I will be your conference operator today. At this time, I would like to welcome everyone to the RumbleOn, Inc. 2Q 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks there will be a question-and-answer session. (Operator Instructions)
Thank you. Steve Berrard, CFO. You may begin your conference.
Thank you. Good afternoon. And thank you for joining our second quarter earnings conference call. On the call with me today is Marshall Chesrown, our President and Chief Executive Officer. Hopefully by now, most of you had an opportunity to have access to our second quarter shareholder letter, which we attempted to file prior to the call. In some respects, it's our first time so we have to work out the rough pages. Those of you that are looking on our website, I think you need to go to shareholder letter, not Investor Section, and if that doesn't work, you can go to the sec.gov and it should be out there under RumbleOn.
(Forward-Looking Cautionary Statements)
I'd like to turn the call now over to Marshall. Marshall?
Thank you, Steve, and welcome everyone to our second quarter earnings call. We're very excited to share strong Q2 results with you today. Hopefully, you have all had a chance to read our shareholder letter, which is available on our Investor Relations site. We decided to issue a shareholder letter prior to our call to give you all the information you need and to ensure you have time to digest it prior to the call, so we can focus more time on answering all of your questions.
We exceeded our prior unit sales guidance, achieved rapid revenue growth, improved unit economics and demonstrated operating leverage across the business. We are proud of our strong second quarter results and the growth trajectory of the company.
From the start RumbleOn's mission was to change the way people buy and sell pre-owned recreational vehicle. RumbleOn was founded on the concept that consumers were tired of the poor experience in buying and selling recreational vehicles, and would prefer to buy and sell pre-owned vehicles through a well-designed, simple online solution with a broad selection of vehicles at extremely competitive prices.
We recognized that there was a huge opportunity to disrupt the current supply chain solutions for consumers to gain liquidity, as over two-thirds of all transactions were being completed through the inefficient, peer-to-peer private party resale market. The market's appetite for such a solution has been extremely encouraging and we're quickly scaling our online model for the acquisition and distribution of vehicle in a meaningful way.
Our strong second quarter results and our forecasted growth trajectory are clear evidence of that. We made measurable progress towards our four key objectives in the first half of the year. To reiterate those, our objectives are, grow revenue and vehicle unit sales, increase total profit margin per vehicle, achieve operating leverage and strengthen our capital