RumbleOn, Inc.

Greetings and welcome to the Rumble On fourth quarter and full year 2021 earnings call. At this time, all participants are in a listen only mode. A 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. I would now like to turn the conference over to your host, Will Newell, head of investor relations for Rumble On. Thank you. 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 fourth quarter and full year 2021 financial results. Joining me on the call today are Marshall Chesron, Rumble On's chairman and chief executive officer, and Narendra Sahai, Rumble On's chief financial officer. Full details of our results and additional management commentary are available in our shareholder letter, 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 Rumble On'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 Rumble On'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 reconciliation of these non-GAAP financial measures, please see our earnings release issued earlier this morning. Our earnings release, shareholder letter, 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 1, 2020. Now, I will turn the call over to Marshall.

Thanks, Will, and thank you, everyone, for joining us this morning. I'm very pleased to be reporting on our fourth quarter and full year 2021 results. We generated $117.4 million in adjusted EBITDA, the middle of our guidance range of 115 million to 120 million and delivered record revenue of nearly 1.6 billion at the high end of our revenue guidance we sold a total of over 55 000 power sports units in 2021 and meaningfully increased the number of used retail power sports units sold i want to start by giving out special thanks to the entire 2400 person staff of the company our integration efforts are well underway, and the reception from everyone has been extremely encouraging. The Ride Now and Freedom teams are a fantastic representation of what will be the best foundation possible as we further build this incredible company and as we embark on transforming the industry we all enjoy. 2021 was a transformational year for RumbleOn, and we ended the year with momentum that is continuing in the early days of 2022. We are reimagining the customer experience. building the future of power sports, both online and in-store, and we've made incredible progress on our mission. We delivered on our financial targets, and we continue to execute on our operational objectives. With that said, there is certainly a lot of work ahead. So far this year, we recruited a fantastic finance leader, Narendra Sahai, as our chief financial officer, appointed our president, Peter Levy, as president and COO, and announced our new regional management structure to support continued and scalable growth. In the last seven months, we acquired RightNow, completed the acquisition of a Jacksonville-based power sports retail facility, acquired Freedom Power Sports, and much more. Through these acquisitions, we grew to 55 retail locations and added several additional manufacturer product lines to the RumbleOn portfolio. There is no question that our business has changed meaningfully in the last year. not only in scale, but also in our ability to better serve our customers. We are absolutely focused on providing customers an unparalleled choice of products and services, as well as an unmatched buying experience, both online and in our retail locations. We are confident that this will position us as a dominant participant in the market for new and used power sports and make us a go-to partner for the major manufacturers and ensure sustainable long-term growth and profitability. We're quickly becoming the destination for used power sports, and introducing more used inventory into our showrooms attracts new customers to our platform and, most important, new riders due to the affordability that used units provide. We're focused on both new and used. However, the opportunity to dramatically increase the number of used retail power sports units presents the greatest near-term opportunity. In a supply-constrained environment, we can better control used inventory than new because it is not dependent upon manufacturers' current production or distribution constraints. In fact, our access to used inventory is and will continue to be an important differentiator for us in any market environment. We will continue to leverage short supply and potential pan-up demand to advance our opportunities to change the customer experience and grow market share for many quarters to come. We are advancing quickly with a keen eye on what we call our North Star, the customer experience. Our key priorities are coming to life over the following months. First, implementing our customer experience center network for efficient inventory acquisition, distribution, and fulfillment for new used parts and merchandise. We will use our physical locations to augment the online experience and vice versa, to offer a simple, friction-free customer experience. Powersports is a lifestyle, and consumers want to walk into a retail location and see the wide variety of experiences that Powersports represents. Our customers can come into one of our retail locations and shop for merchandise, talk to an expert about new and innovative products and features, and start to plan their next Powersports adventure. The future lies in creating a true experience center. a destination for power sports enthusiasts to interact and engage with not only the products they desire, but also the broader power sports community and with our brand. Our vision is to co-locate our customer experience centers with our fulfillment needs in facilities of scale never seen in the industry. We're currently in the design phase and plan to open our first customer experience center in the second half of 2022. Second, continually expanding and enhancing our technology stack with a specific focus on inventory integration, data analytics, upgrading our retail location infrastructure, and improving the customer shopping experience. In order to truly improve the customer experience, we are building a technology engine across the organization, integrating real-time pricing and sales data from in-store transactions, will enable us to further optimize offers and pricing to increase capture rates. Implementing a proven fulfillment system with near real-time inventory replenishment will enable us to ensure we have the right vehicle, the right part or merchandise in the right place at the right time. And with digital inventory integration, RumbleOn will dominate digital search across the entire addressable market. Additionally, important to the future of RumbleOn's brand is creating a unified customer experience across all locations from technology and infrastructure to corporate culture. And third, developing our people and processes to attract and retain the best talent and build a scalable organization. This begins with our people and culture. We believe that the people and culture set the tone for our executions. We announced our new regional management structure. We appointed a new national senior vice president of retail overseeing six regional directors who will lead the daily operations of multiple facilities based primarily on geographic location. The regional directors will share best practices in customer service and general operations to enhance the overall performance of our retail locations. Our new regional management structure both enshrines our unique culture and ensures stable footing for continued growth. We're gaining momentum in 2022 and are very excited to have a truly incredible team and such an opportunity ahead of us. By focusing on improving the customer experience, implementing better inventory control and fulfillment, and adding technology that allows us to operate more efficiently, we are poised to benefit from our unique strategy, massive total addressable market, and our first mover advantage. Although many and other vehicle segments are experiencing and signaling headwinds, we're continuing to see robust demand for PowerSports products in all categories, on-road, off-road, and personal watercraft. We intend to capitalize on this incredible opportunity and focus on things that we can control, and that is executing on our business plan. We believe the steps we are taking with our plans discussed here today will allow us to be successful in driving long-term value for all our shareholders. Now I'll pass the call over to our new CFO, Narendra Sahai, who will provide more detail on our fourth quarter financials, as well as our outlook and guidance for 2022. Narendra?