British auto vertical Cazoo has shared its financial results for the first quarter of 2021. The company made a gross profit of £3.7 million ($5.2 million U.S.) on revenue of £113.9 million ($160.7 million U.S.). Net profit or loss figures were not disclosed.
As a private company, Cazoo is not required to publish results and didn’t publish any for 2020. These results provide a comparison with the previous year’s corresponding quarter, but do not provide detailed costing figures. In its first set of financial results for 2019, which covered just its first month of trading, Cazoo reported a loss of $24 million, including its start up and launch costs.
In Q1 2021, Cazoo sold 9,762 cars, an increase of 373% compared to Q1 2020 when the company sold 2,062 cars, and total revenue was £19.6 million. The latest figure represents a 481% increase in revenue from Q120. Cazoo attributed its 3.3% gross profit margin to operational efficiencies.
Cazoo’s revenue came in part from recent acquisitions Drover, Cazoo’s new subscription service, vehicle refurbishment company SFS and car subscription service Cluno. The retail gross profit per unit of sale for the quarter was £143, which Cazoo attributed to an improved buying mix, stock turn and higher finance attachment. The company had £117.6 million in cash on hand at the end of March 2021 and sold its 25,000th retail vehicle this month.
Cazoo said it was on course to make £700 million in revenue for FY2021 and launch in Germany and France by the end of the year.
On March 29, Cazoo announced its intention to list on the New York stock exchange as part of a special-purpose acquisition company (SPAC), after agreeing to a merger transaction that valued the company at $7 billion and will be completed by Q3.
“In Q1 we continued our rapid growth trajectory, delivering record revenue growth of almost 500% year-on-year, demonstrating the strength of our market leading brand and fully-integrated platform in the U.K., which we intend to replicate across Europe,” said Alex Chesterman, Cazoo founder & CEO.
“Our recent acquisitions will enable us to bring our U.K. vehicle reconditioning entirely in-house by the end of Q1 and to launch the full Cazoo proposition in France and Germany by the end of the year. We are hugely excited by the growth opportunities that lie ahead.”
This week, Cazoo announced it has purchased a new 18,000-square-foot car handover customer center network in Doncaster to use as a click and collect facility.