Shift Technologies Q3 earnings: Losses grow to $76M – Automotive News
Shift Technologies Inc. said it recorded a wider net loss and decreased revenue in the quarter ending Sept. 30, but made progress in executing on a business restructuring plan it announced in August.
The San Francisco-based online used-vehicle retailer reported a net loss of $75.8 million in the third quarter. That is larger than its second-quarter loss of $52.2 million and larger than the $37.389 million loss it posted in the third quarter of 2021.
Shift Technologies said its total revenue fell to $161.9 million in the quarter, down 10 percent year-over-year. It retailed 4,855 vehicles via its e-commerce channel, down 25 percent year-over-year from 6,487. Shift recorded a $529 profit for each e-commerce vehicle it sold, down 54 percent from $1,150 a year ago.
“The third quarter was a transition period for the company as we pursued our new strategy,” Shift CEO Jeff Clementz said Tuesday on a quarterly call with investors and analysts. “The new operating plan prioritizes accelerated profitability and lower cash burn, though at lower unit volumes.”
Shift eliminated its test drive offering and focused on selling through its online checkout channel in the third quarter — key parts of its previously announced restructuring plan, Clementz said. The company also further shifted its inventory mix to skew toward value vehicles, which it defines as vehicles older than eight years or those that have more than 80,000 miles. Half of Shift’s mix is now considered value vehicles, Clementz said.
The restructuring also included cutting the number of hub locations from 10 to three to give the company the ability to focus on its West Coast presence in the third quarter. Clementz previously told Automotive News that the retailer’s hubs in Los Angeles, Oakland, Calif. and Portland, Ore. remain open.
Shift Technologies’ shares fell 11 percent to 41 cents in Wednesday morning trading.
In August, Shift Technologies also announced it had agreed to a stock-for-stock merger with CarLotz, a used-vehicle consignment company. Shift Technologies and CarLotz will hold a special meeting via webcast on Dec. 7 to allow their stockholders to vote on key proposals of that merger agreement, according to a document filed Tuesday with the U.S. Securities and Exchange Commission.
Q3 total revenue: $161.9 million, down 10 percent from a year earlier.
Q3 net loss: $75.8 million, wider than its loss of $37.389 million a year earlier.
Q3 e-commerce vehicles sold: 4,855, down 25 percent.
Q3 gross profit per e-commerce vehicle: $529, down 54 percent.
Send us a letter
Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.
Please enter a valid email address.
Please enter your email address.
Please verify captcha.
Please select at least one newsletter to subscribe.
See more newsletter options at autonews.com/newsletters.
You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.
Sign up and get the best of Automotive News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.
Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.
Our mission
The Automotive News mission is to be the primary source of industry news, data and understanding for the industry’s decision-makers interested in North America.
1155 Gratiot Avenue
Detroit, Michigan
48207-2997
(877) 812-1584
Email us
Automotive News
ISSN 0005-1551 (print)
ISSN 1557-7686 (online)
Fixed Ops Journal
ISSN 2576-1064 (print)
ISSN 2576-1072 (online)