Revenue at Berlin-based digital auto retailer Auto1 Group SE declined by 24.5% year on year (y-o-y) and by 3.6% quarter on quarter (q-o-q) to €1.3 billion ($1.4 billion U.S.) in Q3 2023, according to its latest financial reporting.
Adjusted EBITDA stood at €0.5 million in Q3 2023, an improvement of €35.7 million y-o-y. Total gross profit was up 8.9% y-o-y and 5.2% q-o-q, to €134 million. In this period, Auto1 sold 140,630 units, down 0.7% q-o-q.
The company reported reaching its profit goals one quarter earlier than expected. “Our team has delivered a strong quarter and successfully reached our profitability goal ahead of plan. We are keeping the momentum of these significant improvements going, refocusing on growth across all business units,” CEO and co-founder Christian Bertermann said.
The company’s retail business AutoHero significantly improved its gross profit per unit (GPU) to €1,912, up by 72.9% y-o-y. This strong increase, combined with the sale of 14,845 units, led to revenue of €235 million and gross profit of €28.9 million, up 52% y-o-y.
Auto1 confirmed it expected gross profit of between €500 million and €550 million and improved its adjusted EBITDA guidance from between -€50 million and -€70 million to between -€39 million and -€49 million for 2023 as a whole. The company also confirmed its sales goal for the year, placing it at 625,000 +/-5% unit sales, with 65,000 +/-5% of these through retail.
“We are well positioned to become the most profitable used-car platform by continuing to leverage our scale, unique car trading dataset and ability to innovate,” added CFO Markus Boser.
Established in 2012 and a listed company since 2021, Auto1 Group SE is present in 30 countries and operates such consumer brands as WirKaufenDeinAuto in Germany and CompramosTuCoche in Spain (both of which literally mean “We buy your car”). According to the company, it is the largest wholesale platform for professional car dealers in Europe.