Revenue at Berlin-based digital auto retailer Auto1 Group SE rose by 2.4% quarter on quarter (q-o-q) but fell by 8.5% year on year (y-o-y) to €1.3 billion ($1.4 billion U.S.) in Q4 2023, according to its latest financial reporting.

Having recorded positive adjusted EBITDA for the first time in Q3 2023 (€0.5 million), Auto1 slipped back into the red in Q4, recording an adjusted EBITDA loss of €4.5 million ($4.9 million). Nonetheless, this was much less than the adjusted EBITDA loss of €36.0 million it recorded in Q4 2022.

AUTO1 sold a total of 146,666 units in Q4 — up 4.0% q-o-q but down 2.5% y-o-y — with 130,921 of these sold to merchants and 15,745 to consumers.

Gross profit rose by 16.9% y-o-y to €134 million ($145 million) in Q4 2023, with gross profit per unit (GPU) coming in at €918, up 24.6% y-o-y.

For 2023 as a whole, revenue at Auto1 declined by 16.4% y-o-y to €5.5 billion ($6.0 billion).

The company’s adjusted EBITDA loss eased by more than two thirds to €43.9 million ($47.5 million U.S.) in 2023 from €166 million in the previous year.

Total gross profit increased by 8.1% y-o-y to €528 ($571 million U.S.).

Auto1 sold a total of 586,084 units in 2023, with GPU rising by 22.0% to €899.

Company expects to reach Adjusted EBITDA break-even this year

Auto1 expects unit sales of between 610,000 and 665,000 and gross profit of between €565 million and €625 million during 2024, and it aims to reach adjusted EBITDA break-even for the full year.

Auto1 co-founder and CEO Christian Bertermann commented: “2023 was a huge success from a financial perspective: We significantly improved the balance of investments, costs and margin requirements and hit our first profitable quarter of adjusted EBITDA in Q3.”

“Having laid the foundation for long-term profitable growth over the past 12 months, we aim to seize the massive €700 billion market opportunity ahead of us with increasing traction. We are looking at the year ahead with excitement and curiosity and the high energy level that characterizes our teams. Our north star remains to maximize value for our merchants and consumers when they buy, sell or finance their next vehicle”

Established in 2012 and a listed company since 2021, Auto1 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”). The company describes itself as “the largest wholesale platform for professional car dealers in Europe.”

Source: Auto1

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