RumbleOn, Inc.

Greetings and welcome to Rumble On's third quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Will Newell. Thank you, Will. You may begin.

Thank you, Operator. Good morning, ladies and gentlemen. Thank you for joining us on this conference call to discuss Rumble On's third quarter 2021 financial results. Joining me on the call today are Marshall Chesrown, Rumble On's chairman and chief executive officer, and Peter Levy, Rumble On's president. Full details of our results and additional management commentary are available in our earnings release, which can be found on the investor relations section of the website at investors.rumbleon.com. Before we start, I would like to remind you that the following discussion contains forward-looking statements. including but not limited to RumbleOn's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here. Additional information that could cause actual results to differ from forward-looking statements can be found in RumbleOn's periodic and other SEC filings. The forward-looking statements and risks in this conference call, including responses to your questions, are based on current expectations as of today, and RumbleOn assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. Also, the following discussion contains non-GAAP financial measures. For a reconciliation of non-GAAP financial measures, please see our earnings release issued earlier this morning. Our earnings release and supplemental financial results highlight our financial results on an as reported or GAAP basis and on a combined or pro forma basis. In our comments today, we will discuss certain pro forma results and all comparisons will be on a year over year basis, assuming a business combination as of January 1st, 2020. Now I will turn the call over to Marshall. Marshall?

Thank you, Will, and thank you everyone for joining us this morning. RumbleOn is the nation's first technology-based omni-channel marketplace in power sports, transforming the power sports industry. Our vision is to use technology to drive lifetime engagement by offering a best-in-class customer experience with unmatched omni-channel capabilities giving consumers a destination for all things power sports. In the third quarter, we closed our business combination with RightNow and delivered strong results, demonstrating broad-based strength across our business. In addition to delivering $392 million in revenue, record GPU, and adjusted EBITDA of $23.6 million, we are increasing our prior guidance ranges. We are pleased with our strong third quarter results and the progress we have made, but this is just the beginning. Our aggressive approach to strategic acquisitions translates to long-term market share as we march towards the objective of transforming and dominating the industry over time. Our full results can be found in the press release and supplemental tables we issued today. So instead of walking through the P&L, I'd like to focus on the drivers and trends we're seeing. then peter will come on to talk about our operational progress and i will walk through our outlook before we take questions you've heard everyone talking about the supply and demand imbalances in the market for several quarters now and it's our view that this is not going to correct itself in the next 12 or likely even 24 months we've said all along that the key to our omni-channel growth strategy is used unit sales and that insulates us in this environment and it's evident in our results. New vehicle sales were down 7% year over year in Q3, but used retail unit sales were up 53%. In September alone, we drove a 65% increase in used retail unit sales, continuing the momentum. Year over year, our new-to-use sales mix went from 3 to 1 in Q3 2020 to 1.8 to 1 in Q3 2021. After only one month in Q3 as a merged company, we can clearly see that our goal of one-to-one ratio of new to used over time is more than achievable. Current inbound new supply is trending positive, and current showroom inventories remain basically flat. The net effect, short supply is driving GPU increases on new and unit growth in used, which will more than offset the volume decline in new. Please also keep in mind we have yet to see the benefits of our full omnichannel capabilities. Components of the process and infrastructure to accomplish our consumer sales objectives will evolve over the coming quarters, and we anticipate being nearly fully functional by late 2022. We anticipate that everything we are building into our omnichannel strategy will be incremental to the already stellar performance of the current physical locations. We have a superior technology-driven and proven used vehicle acquisition strategy that we've been optimizing since day one. Between our over 40 physical locations and fast-growing online platform, we are converting more cash offers than ever before. By deepening our presence in existing markets and expanding into new markets through strategic acquisitions, we have set the flywheel in motion. Our cash offer technology brings in high-quality used inventory, which attracts more riders and drives more volume in used unit sales. This model enables us to quickly and effectively gain market share. Dealer groups around the country are meeting us with tremendous enthusiasm as they recognize the value of what RumbleOn is bringing to the power sports industry. Our recent announcements demonstrate this positive reception and we will continue to strategically evaluate opportunities to realize synergies across the ecosystem. Our vision is to drive lifetime engagement by offering a best-in-class customer experience with unmatched omnichannel capabilities, giving customers more control in the sales process. We are pleased that not only are we increasing the outlook that we provided back in March, we are exiting the year with strong momentum and I'm excited to share our preliminary expectations for our financial performance in 2022. One quick housekeeping update. We've met with several extremely qualified CFO candidates over the past few months since the unfortunate passing of Steve Berard. Our CFO search is a top priority for us, and we will, of course, provide an update as soon as the person has been appointed. In the meantime, the role of interim CFO is in very capable hands with Beverly Rath. Now I'll pass the call over to our president, Peter Levy, to discuss our operational progress. Thank you, Marshall, and good morning, everyone.