Auto1, the used-car marketplace based in Berlin, reported third quarter revenue of €769 million ($931 million U.S.), a quarter-on-quarter increase of 90%. But due to the reduction of inventory during the early stages of the Covid-19 pandemic, revenue was down 17% compared to last year.

Adjusted EBITDA in the third quarter was €16 million, compared to a loss of €11.5 million in the same quarter last year. The gross profit margin increased to 11.3% from 9.5% in Q3 2019.

“We are proud to have reached profitability on an adjusted EBITDA level in Q3,” said CEO and co-founder of Auto1 Group, Christian Bertermann, in a news release.

The Softbank-backed startup was founded in 2012 and is said to be preparing for an initial public offering on the Frankfurt Stock Exchange. A possible listing could value the company at more than €5 billion ($6 billion U.S.).

After raising €255 million from investors in the form of convertible notes in July, Auto1 is keen to expand its presence and wants to develop its retail brand, Autohero.

“It’s now time to continue our mission to build Autohero into the best way to buy a car online,“ said Bertermann. “There is strong demand for a fully digital used car buying experience for customers, and that’s why we are now rapidly scaling our Autohero brand to become Europe’s go-to brand for buying used cars online.”

CFO Markus Boser said the company planned to “significantly” invest into building its retail business. “We intend to invest over the next years to promote the Autohero brand, build out the necessary infrastructure and to establish additional service offerings around our retail business,” he said.

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