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Cazoo Group Ltd Stock Price: Quote, Forecast, Splits & News (CZOO)

Perplexity Finance

Company Profile

Cazoo Group Ltd Price & Performance (CZOO)

Stock Performance

Updated May 20, 2024, 8:00 PM UTC

Cazoo Group Ltd

$6.04USD

-$120.96 (-95.24%)

Open

$6.01

Market Cap

$29.54M

Year High

$189.00

High

$6.24

P/E Ratio

-0.0

Year Low

$2.11

Low

$5.85

Dividend Yield

0.00%

Volume

59.23K

Latest News

Motors Unveils Revamped Cazoo as New Flagship Marketplace
Apr 21, 2025
Motors has relaunched Cazoo as its primary used car marketplace, introducing a redesigned website and promising new features for both dealers and buyers. The move follows Motors’ acquisition of the Cazoo brand last year after Cazoo’s collapse, and aims to challenge sector leaders by leveraging Cazoo’s strong UK consumer recognition.12
Cazoo Group Faces Delisting Pressure Amid Strategic Shift
Apr 21, 2025
Cazoo Group has received a non-compliance notice from the NYSE for failing to file its annual report, citing liquidity issues and a pivot to a marketplace model. The company, already struggling after a failed business model, faces potential delisting if it cannot resolve regulatory and financial challenges in the coming months.34
Stock Performance Remains Flat as Cazoo Group’s Future Uncertain
Aug 19, 2024
Cazoo Group Ltd’s stock price was unchanged at $0.0001, reflecting ongoing volatility and uncertainty. Technical analysis suggests a hold position, with no clear direction anticipated. Investors remain cautious as the company’s transition and regulatory hurdles contribute to a high-risk environment for the near term.56

What's Happening

Peers

Earnings

Report Date

Oct 25, 2023

Rev Estimate

345M

Avg 1d Change

10.49%

Report Period

Q3 2023

EPS Estimate

-102.16

Implied Move 1d

1.92%

Transcript

1m 17s

Greetings. Welcome to the Kizzoo Q3 2023 Earnings Call.

1m 22s

At this time, all participants are in a listen only mode.

1m 25s

A question and answer session will follow the formal presentation.

1m 34s

As a reminder, this conference is being recorded.

1m 37s

At this time, I would like to hand the call over to Anna

1m 40s

Gaborlova, Head of Investor Relations

1m 42s

Thank you. You may begin.

1m 46s

Good morning, everyone.

1m 48s

Thank you for joining today's call to discuss our results for the Q3 of

1m 52s

2023.

1m 54s

You will be able to find today's press release

1m 58s

on our Investor Relations website

at investors.

2m 2s

Kazoo.co.uk.

2m 3s

[indiscernible]

2m 4s

We appreciate everyone joining us today.

2m 7s

With me on the call are Alex Jessiman,

2m 10s

Founder and Executive Chairman

2m 13s

Paul Whitehead,

2m 14s

Chief Executive Officer

2m 16s

and Paul Wolfe,

2m 17s

Chief Financial Officer.

2m 19s

Before we get started,

2m 21s

would like to remind you of the company's

2m 24s

Safe Harbor language.

2m 25s

Which I'm sure you're all familiar with.

2m 28s

Management may make forward looking

2m 31s

including guidance and underlying assumptions.

2m 34s

Forward looking statements are based on expectations

2m 38s

that involve risks and uncertainties

2m 40s

that could cause actual results

2m 42s

to differ materially.

2m 44s

For a further discussion of risks

2m 47s

related to our business,

2m 48s

Please

2m 49s

see the filings of

2m 50s

Kazzo Group Limited

2m 52s

with the U. S. Securities and Exchange Commission.

2m 56s

Today's call will not be recorded

2m 59s

will not be available for replay.

3m 1s

We kindly ask you not to record it and not to transcribe it.

3m 6s

I will now hand the call over

3m 9s

Whitehead.

3m 10s

[indiscernible]

3m 11s

Thanks, Bennett.

3m 12s

Morning, everyone, and thanks a lot for joining us today.

3m 16s

I'm very pleased with the results we are reporting today.

3m 18s

And that we have delivered another quarter of meaningful improvement in our profitability.

3m 24s

We achieved a lot over the 1st 9 months of this year,

3m 27s

We restructured our operational footprint

3m 31s

and headcount to better match

3m 32s

scale of our business

3m 33s

And at the same time, we've consistently been driving improvement

3m 37s

in our unit economics

3m 38s

quarter on quarter,

3m 40s

against the backdrop of a deteriorating

3m 42s

economic environment.

3m 44s

Interest rates are much higher than a year ago,

3m 47s

and inflation is persisting far above the 2% target

3m 50s

set by the Bank of England.

3m 52s

Higher cost of living and cost of credit are caused

3m 56s

volatility in demand

3m 57s

for used cars.

At the same time, supply of new cars

4m 2s

has been rising towards levels seen before the COVID pandemic.

4m 6s

This has had the effects of aggravating the misalignment of

4m 9s

supply and demand.

4m 10s

The used car market

4m 12s

and daily depreciation for our stock selection

4m 15s

has been higher than normal market conditions.

4m 18s

Despite all of this, we have continued to focus

4m 21s

on unit economics

4m 22s

and we managed to maintain quarter on quarter improvement in retail GPU.

4m 27s

Reaching a new Kedoo record of 10

4m 31s

£470 per unit.

4m 33s

The improvement was achieved across several areas.

4m 36s

We took a number of steps which helped to partially mitigate the impact of higher interest

4m 40s

Right.

4m 41s

On customer demand.

4m 42s

And most significantly,

4m 44s

we focused our web platform optimization efforts

4m 47s

on enhancing customers' digital finance journey

4m 50s

with our finance first approach.

4m 54s

Despite these improvements, our finance attachment rate declined to 49

4m 57s

[indiscernible]

4m 58s

our record performance of

5m 1s

3.2% in the previous quarter.

5m 3s

And we are implementing a range of actions to target areas such as

5m 7s

pre eligibility

5m 8s

and preapproval

5m 10s

with the goal of enhancing our future

5m 12s

in this area.

5m 14s

We also initiated

5m 16s

a program to enable our delivery specialists

5m 18s

and our kazoo customer centers

5m 20s

to sell ancillary products offline

5m 22s

when we hand over the purchase car to the customer.

5m 26s

This has proved to be a growing source of ancillary revenue for us

5m 29s

helping to increase attachment rates for the products we offer.

5m 34s

And we've made further progress in reducing our reconditioning costs

5m 38s

as we focus on the efficiency of our operations.

5m 41s

And we continue to work on optimizing our car acquisition pricing

5m 45s

by combining our own proprietary data

5m 48s

with third party sources.

5m 50s

And there is still further scope to sustain and grow our retail GPU.

5m 54s

By targeting opportunities

5m 56s

across all these areas,

5m 58s

with particular focus on faster stock turn

as well as further efficiencies in our operations

6m 4s

through digitalization.

6m 6s

In the Q3, we sold 9,500

6m 10s

25 retail cars

6m 11s

as our fully online proposition continues to resonate with customers.

6m 15s

And we generated revenues of million.

6m 20s

These results were in line with our focus on unit economics

6m 24s

Retail GPU of £1470

6m 27s

increased by 14% quarter on quarter

6m 30s

and by 2 0 1% year on year.

6m 33s

Average retail GPU for the 1st 9 months of 2023

6m 38s

was £1215,

6m 41s

Gross profit of 11,000,000

6m 43s

increased by million year on year

6m 45s

driven primarily by higher retail GPU

6m 48s

to lower volume of units.

6m 50s

Gross margin improved by 3 50 basis points to

6m 54s

6.5%.

6m 57s

Ancillary revenue per retail unit

sold at GBP 735 increased by 29% year on year

7m 4s

and the finance attachment rate

7m 7s

49.8%

7m 8s

represented a 6.7

7m 10s

percentage points improvement year on year.

7m 12s

Growth metrics, however, declined quarter on

7m 14s

quarter due to factors related to higher interest rate

7m 18s

We continued to reduce fixed and variable costs in line with expectation

7m 22s

to extend our cash

7m 25s

Our cash position remains strong

7m 27s

with million of cash and cash equivalents

7m 30s

plus approximately 1,000,000 of

7m 33s

self financed inventory

7m 35s

as of September 30, 2020

7m 37s

Great.

7m 39s

We announced at September that we had entered into

7m 42s

a transaction support agreement

7m 43s

for certain note holders

7m 44s

and shareholders in connection with the contemplated transaction.

7m 49s

We are updating our cash balance guidance for 2020

7m 52s

year end

7m 53s

to take into account such transaction related costs

7m 57s

which were incurred in the Q3,

7m 59s

and will be incurred in the Q4.

8m 1s

We now expect to finish the year with between GBP 100,000,000

8m 5s

and 1,000,000 of cash and cash equivalents.

8m 8s

And between million and

8m 10s

[indiscernible]

8m 11s

pounds of self financed

8m 12s

[indiscernible]

8m 14s

Higher interest rates

8m 16s

high used car prices,

8m 17s

rising insurance premiums,

8m 19s

and the recent spikes in fuel prices

8m 21s

driven by geopolitical conflicts

8m 24s

means higher cost of car ownership customers

8m 27s

Demand for used cars will remain volatile

8m 29s

and against this backdrop are priority

8m 32s

is to continue to deliver better unique

8m 35s

economics per unit sold

8m 37s

And we expect retail unit sales in Q4 2023

8m 41s

to be around 8,500

8m 44s

and the full year retail sales to Beauty Queen

8m 47s

40,000

8m 48s

[indiscernible]

8m 51s

Total unit sales, including both retail and wholesale,

8m 54s

are expected to amount

8m 56s

To be

8m 57s

to be between 50,052,000 units.

9m 2s

Given that we have averaged £1215

9m 5s

retail GPU

9m 6s

the 1st 9 months of this year

9m 8s

we expect the average retail GPU

9m 10s

[indiscernible]

9m 11s

be higher than previous guidance.

9m 13s

And we now expect to end the year with average retail GPU approaching 1200

9m 18s

£50.

9m 19s

And the exit rate is expected to be around GBP 1400.

9m 23s

Which reflects normal market seasonality

9m 26s

and a challenging economic environment.

9m 29s

We are maintaining our adjusted EBITDA forecast

9m 32s

between negative $100,000,000

9m 33s

and negative million.

9m 37s

Our top priorities

9m 39s

remain to further improve

9m 40s

Unit economics.

9m 42s

Reduce our fixed cost base,

9m 43s

and extend our cash runway.

9m 46s

As we work towards our goal,

9m 47s

of reaching profitability,

9m 50s

Thank you very much. And we'll now take any questions you might have

9m 56s

Thank you.

9m 57s

Will now be conducting a question and answer session.

10m 12s

[indiscernible]

10m 25s

Our first questions come from the line of Rajat Gupta with JP

10m 29s

Morgan. Please proceed with your questions.

10m 32s

Great. Thanks for taking the question.

10m 35s

I had a first question just on the

10m 38s

[indiscernible]

10m 41s

Curious to know if there are more cost savings or

10m 45s

on the SG and A side or more GPU opportunity

10m 50s

at the current level of units,

10m 53s

that you can capture before the company can decide to return to growth again?

10m 59s

And when can we expect the business to return to growth

11m 2s

target return to growth in order to

11m 5s

start scaling the fixed cost eventually.

11m 9s

And then related to the, what kind of macro or company

11m 13s

specific factors we should be watching to determine that timing?

11m 16s

Thanks. I have a quick follow-up.

11m 22s

So I would say

11m 24s

[indiscernible]

11m 26s

Thanks so much for the question. So

11m 29s

There's there's a

11m 31s

bit more to do as we

11m 33s

said and referred to in the announcement,

11m 36s

[indiscernible]

11m 38s

And I think our

11m 40s

there's a number there are a number of levers across multiple areas

11m 43s

The 2 that are

11m 45s

sort of forefront of our mind, the one is

11m 49s

to reduce

11m 50s

the days to sale,

11m 52s

in the business.

11m 55s

Obviously, the faster we turn over

11m 58s

vehicles, not particularly on the website, but that is the

12m 2s

Taking on

12m 3s

refurbishment

12m 4s

getting onto our

12m 6s

[indiscernible]

12m 7s

And then eventually the fulfillment. The faster we do that,

12m 11s

the less the vehicles

12m 13s

depreciate,

12m 16s

still remains a significant lever

12m 20s

Finance and ancillaries has been a success story all the way through.

12m 24s

Just described how it

12m 26s

It has taken a step back at an attachment rate level

12m 29s

finance attachment that is in

12m 31s

12m 32s

But mind you, that's been largely offset in terms of overall finance income

12m 36s

or ancillary income by the

12m 39s

other products. So we continue to evaluate new products.

12m 42s

We continue to drive attachment through opening up new channels to drive attachment

12m 47s

and improving our digital journey.

12m 50s

Which

12m 51s

Which is

12m 51s

[indiscernible]

12m 53s

[indiscernible]

12m 55s

really where a lot of our

12m 57s

technical team is spending their time at the moment

12m 59s

We describe it as finance first.

13m 2s

And then there's a question also. So GPU, yes, it works the

13m 7s

expect that to continue to go up, albeit we've

13m 9s

called out in the announcement that Q3

13m 11s

Paul will take

13m 13s

pop here. We expect it to take a small step back from the Q3 number due to

13m 17s

the market and

13m 20s

So those 2 things are against us

13m 22s

in Q4.

13m 23s

Q1, we'd expect to be sort of back on the growth

13m 26s

track again.

13m 27s

And then in terms of fixed costs,

13m 30s

there is more to come out. I think the big the main numbers are out

13m 35s

now. So it's smaller slices, but we continue to reduce fixed costs.

13m 39s

Really every quarter. We're not

13m 41s

shouting about it because the numbers are relative

13m 43s

Smaller, but

13m 44s

you know, the the the big chunks are done. But there are there are

13m 48s

certainly the numbers aren't going to go up in

13m 50s

have the

13m 51s

[indiscernible]

13m 53s

Go down, notwithstanding inflation,

13m 56s

everything else.

13m 58s

And there's a question

14m

and the final question was around which is the great question around growth.

14m 4s

What we've consistently said is once we establish

14m 8s

the right foundations for unit economics, we would

14m 11s

we would we wish to push the growth button again

14m 15s

But when we do that, we're not going to be

14m 17s

we wouldn't expect to be growing at

14m 20s

Hello.

14m 20s

50% or 100%,

14m 22s

as we were prior to 2023,

14m 26s

We're in the process of putting together our plans for next year, and we'll be talking about that in due

14m 31s

course. But we're certainly

14m 33s

at the levels of profitability now per unit, which

14m 37s

you rightly point out means the

14m 38s

we by doing more

14m 40s

units, we will be

14m 43s

He did.

14m 47s

Got it. That's really helpful.

14m 49s

Color and thanks for all the detail. Just one follow-up

14m 52s

just on that. Could you could you help or give us an update

14m 56s

as it stands today on what

14m 58s

the fixed versus variable mix is within

15m 1s

your SG and A?

15m 3s

That would be all

15m 6s

Yes, sure. So the fixed versus variable mix

15m 10s

I mean, it hasn't really changed.

15m 12s

It is

15m 13s

sort of 50% to 60%

15m 15s

[indiscernible]

15m 16s

Within SG and A

15m 19s

Understood. Got it. That's helpful.

15m 21s

Thanks a lot.

15m 26s

Thank you.

15m 27s

We have reached the end of our question and answer session. I would now like to turn the floor back over to Anna Graf

15m 32s

[indiscernible]

15m 32s

Lova for closing comments.

15m 36s

Thank you very much, everyone, for joining us today.

15m 39s

We'll speak to you next time.

15m 41s

Thank you.

15m 43s

Thank you. This does conclude today's teleconference.

15m 46s

We appreciate your participation. You may disconnect your lines at this time.

15m 50s

Enjoy the rest of your day.

Key Insights

CZOO reported continued improvement in profitability for Q3 2023, with a record retail GPU (gross profit per unit) of £1,470, up 14% quarter-on-quarter and 201% year-on-year.
The company sold 9,525 retail cars in Q3 and generated revenues in line with its focus on unit economics; gross margin improved by 350 basis points to 6.5%.
Ancillary revenue per retail unit increased by 29% year-on-year to £735, and the finance attachment rate improved by 6.7 percentage points year-on-year to 49.8%, though it declined quarter-on-quarter.
CZOO expects Q4 2023 retail unit sales of around 8,500 and full-year retail sales of approximately 40,000 units; total unit sales (retail and wholesale) are expected to be between 50,000 and 52,000 units.
Updated guidance: average retail GPU for the year is expected to approach £1,250, with an exit rate around £1,400; year-end cash and cash equivalents are forecasted between £100 million and £110 million; adjusted EBITDA is maintained between negative £100 million and negative £110 million.

Recent Transcripts

Q3 profitability improved with record retail GPU, cost reductions, and strong cash position despite market headwinds.

Oct 25

Q3 2023

Retail GPU

£14.70/unit, +14% QoQ, +201% YoY

Gross Margin

6.5%, +3.5bps YoY

Cazoo shifts focus to unit economics, cost reduction, and UK market, improving profitability metrics.

Aug 01

Q2 2023

Retail GPU

£1,290 in Q2 (+116% YoY)

Cost Savings

£120M annualized SG&A

Q1 2023 gross profit and margins improved significantly through cost reduction and operational efficiencies.

Kazoo shifts focus to profitability, improving unit economics and cost base amid strong revenue growth.

Income Statement

Revenue

	2018	2019	2020	2021	2022
Revenue	£0	£1M	£146M	£561M	£1.2B
Cost of Revenue	£0	£2M	£149M	£540M	£1.2B
Gross Profit	£0	-£947K	-£2.6M	£21M	£21M
Gross Profit %	0%	-91%	-1.8%	3.7%	1.7%
R&D Expenses	£0	£0	£5.7M	£23M	£42M

2018

2019

2020

2021

2022

Revenue

£0

£1M

£146M

£561M

£1.2B

Cost of Revenue

£0

£2M

£149M

£540M

£1.2B

Gross Profit

£0

-£947K

-£2.6M

£21M

Gross Profit %

-91%

-1.8%

3.7%

1.7%

R&D Expenses

£0

£5.7M

£23M

£42M

Cash Flow

Net Income

	2018	2019	2020	2021	2022
Net Income	-£717K	-£16M	-£93M	-£462M	-£704M
Dep. & Amort.	£0	£691K	£12M	£55M	£380M
Def. Tax	£0	£132K	-£873K	£840K	-£10M
Stock Comp.	£0	£176K	£3.4M	£37M	£44M
Chg. in WC	-£196K	-£45M	-£28M	-£281M	£122M

2018

2019

2020

2021

2022

Net Income

-£717K

-£16M

-£93M

-£462M

-£704M

Dep. & Amort.

£0

£691K

£12M

£55M

£380M

Def. Tax

£0

£132K

-£873K

£840K

-£10M

Stock Comp.

£0

£176K

£3.4M

£37M

£44M

Chg. in WC

-£196K

-£45M

-£28M

-£281M

£122M

Balance Sheet

Cash

	2018	2019	2020	2021	2022
Cash	£26M	£31M	£220M	£162M	£246M
ST Investments	£0	£0	£0	£0	£0
Cash & ST Inv.	£26M	£31M	£220M	£162M	£246M
Receivables	£49K	£12M	£26M	£65M	£56M
Inventory	£0	£38M	£103M	£283M	£233M

2018

2019

2020

2021

2022

Cash

£26M

£31M

£220M

£162M

£246M

ST Investments

£0

Cash & ST Inv.

£26M

£31M

£220M

£162M

£246M

Receivables

£49K

£12M

£26M

£65M

£56M

Inventory

£0

£38M

£103M

£283M

£233M

Go Deeper

Financial information provided by Financial Modeling Prep. Options data provided by Unusual Whales. Live transcripts provided by Quartr. Reported revenue and EPS data from Earnings powered by FinChat.io. All data is provided for informational purposes only, and is not intended for trading purposes or financial, investment, tax, legal, accounting or other advice. · See all tickers.

Overview
Latest News
Earnings
Income Statement
Cash Flow
Balance Sheet
Related

Earnings

Report Date

Oct 25, 2023

Rev Estimate

345M

Avg 1d Change

10.49%

Report Period

Q3 2023

EPS Estimate

-102.16

Implied Move 1d

1.92%

Transcript

1m 17s

Greetings. Welcome to the Kizzoo Q3 2023 Earnings Call.

1m 22s

At this time, all participants are in a listen only mode.

1m 25s

A question and answer session will follow the formal presentation.

1m 34s

As a reminder, this conference is being recorded.

1m 37s

At this time, I would like to hand the call over to Anna

1m 40s

Gaborlova, Head of Investor Relations

1m 42s

Thank you. You may begin.

1m 46s

Good morning, everyone.

1m 48s

Thank you for joining today's call to discuss our results for the Q3 of

1m 52s

2023.

1m 54s

You will be able to find today's press release

1m 58s

on our Investor Relations website

at investors.

2m 2s

Kazoo.co.uk.

2m 3s

[indiscernible]

2m 4s

We appreciate everyone joining us today.

2m 7s

With me on the call are Alex Jessiman,

2m 10s

Founder and Executive Chairman

2m 13s

Paul Whitehead,

2m 14s

Chief Executive Officer

2m 16s

and Paul Wolfe,

2m 17s

Chief Financial Officer.

2m 19s

Before we get started,

2m 21s

would like to remind you of the company's

2m 24s

Safe Harbor language.

2m 25s

Which I'm sure you're all familiar with.

2m 28s

Management may make forward looking

2m 31s

including guidance and underlying assumptions.

2m 34s

Forward looking statements are based on expectations

2m 38s

that involve risks and uncertainties

2m 40s

that could cause actual results

2m 42s

to differ materially.

2m 44s

For a further discussion of risks

2m 47s

related to our business,

2m 48s

Please

2m 49s

see the filings of

2m 50s

Kazzo Group Limited

2m 52s

with the U. S. Securities and Exchange Commission.

2m 56s

Today's call will not be recorded

2m 59s

will not be available for replay.

3m 1s

We kindly ask you not to record it and not to transcribe it.

3m 6s

I will now hand the call over

3m 9s

Whitehead.

3m 10s

[indiscernible]

3m 11s

Thanks, Bennett.

3m 12s

Morning, everyone, and thanks a lot for joining us today.

3m 16s

I'm very pleased with the results we are reporting today.

3m 18s

And that we have delivered another quarter of meaningful improvement in our profitability.

3m 24s

We achieved a lot over the 1st 9 months of this year,

3m 27s

We restructured our operational footprint

3m 31s

and headcount to better match

3m 32s

scale of our business

3m 33s

And at the same time, we've consistently been driving improvement

3m 37s

in our unit economics

3m 38s

quarter on quarter,

3m 40s

against the backdrop of a deteriorating

3m 42s

economic environment.

3m 44s

Interest rates are much higher than a year ago,

3m 47s

and inflation is persisting far above the 2% target

3m 50s

set by the Bank of England.

3m 52s

Higher cost of living and cost of credit are caused

3m 56s

volatility in demand

3m 57s

for used cars.

At the same time, supply of new cars

4m 2s

has been rising towards levels seen before the COVID pandemic.

4m 6s

This has had the effects of aggravating the misalignment of

4m 9s

supply and demand.

4m 10s

The used car market

4m 12s

and daily depreciation for our stock selection

4m 15s

has been higher than normal market conditions.

4m 18s

Despite all of this, we have continued to focus

4m 21s

on unit economics

4m 22s

and we managed to maintain quarter on quarter improvement in retail GPU.

4m 27s

Reaching a new Kedoo record of 10

4m 31s

£470 per unit.

4m 33s

The improvement was achieved across several areas.

4m 36s

We took a number of steps which helped to partially mitigate the impact of higher interest

4m 40s

Right.

4m 41s

On customer demand.

4m 42s

And most significantly,

4m 44s

we focused our web platform optimization efforts

4m 47s

on enhancing customers' digital finance journey

4m 50s

with our finance first approach.

4m 54s

Despite these improvements, our finance attachment rate declined to 49

4m 57s

[indiscernible]

4m 58s

our record performance of

5m 1s

3.2% in the previous quarter.

5m 3s

And we are implementing a range of actions to target areas such as

5m 7s

pre eligibility

5m 8s

and preapproval

5m 10s

with the goal of enhancing our future

5m 12s

in this area.

5m 14s

We also initiated

5m 16s

a program to enable our delivery specialists

5m 18s

and our kazoo customer centers

5m 20s

to sell ancillary products offline

5m 22s

when we hand over the purchase car to the customer.

5m 26s

This has proved to be a growing source of ancillary revenue for us

5m 29s

helping to increase attachment rates for the products we offer.

5m 34s

And we've made further progress in reducing our reconditioning costs

5m 38s

as we focus on the efficiency of our operations.

5m 41s

And we continue to work on optimizing our car acquisition pricing

5m 45s

by combining our own proprietary data

5m 48s

with third party sources.

5m 50s

And there is still further scope to sustain and grow our retail GPU.

5m 54s

By targeting opportunities

5m 56s

across all these areas,

5m 58s

with particular focus on faster stock turn

as well as further efficiencies in our operations

6m 4s

through digitalization.

6m 6s

In the Q3, we sold 9,500

6m 10s

25 retail cars

6m 11s

as our fully online proposition continues to resonate with customers.

6m 15s

And we generated revenues of million.

6m 20s

These results were in line with our focus on unit economics

6m 24s

Retail GPU of £1470

6m 27s

increased by 14% quarter on quarter

6m 30s

and by 2 0 1% year on year.

6m 33s

Average retail GPU for the 1st 9 months of 2023

6m 38s

was £1215,

6m 41s

Gross profit of 11,000,000

6m 43s

increased by million year on year

6m 45s

driven primarily by higher retail GPU

6m 48s

to lower volume of units.

6m 50s

Gross margin improved by 3 50 basis points to

6m 54s

6.5%.

6m 57s

Ancillary revenue per retail unit

sold at GBP 735 increased by 29% year on year

7m 4s

and the finance attachment rate

7m 7s

49.8%

7m 8s

represented a 6.7

7m 10s

percentage points improvement year on year.

7m 12s

Growth metrics, however, declined quarter on

7m 14s

quarter due to factors related to higher interest rate

7m 18s

We continued to reduce fixed and variable costs in line with expectation

7m 22s

to extend our cash

7m 25s

Our cash position remains strong

7m 27s

with million of cash and cash equivalents

7m 30s

plus approximately 1,000,000 of

7m 33s

self financed inventory

7m 35s

as of September 30, 2020

7m 37s

Great.

7m 39s

We announced at September that we had entered into

7m 42s

a transaction support agreement

7m 43s

for certain note holders

7m 44s

and shareholders in connection with the contemplated transaction.

7m 49s

We are updating our cash balance guidance for 2020

7m 52s

year end

7m 53s

to take into account such transaction related costs

7m 57s

which were incurred in the Q3,

7m 59s

and will be incurred in the Q4.

8m 1s

We now expect to finish the year with between GBP 100,000,000

8m 5s

and 1,000,000 of cash and cash equivalents.

8m 8s

And between million and

8m 10s

[indiscernible]

8m 11s

pounds of self financed

8m 12s

[indiscernible]

8m 14s

Higher interest rates

8m 16s

high used car prices,

8m 17s

rising insurance premiums,

8m 19s

and the recent spikes in fuel prices

8m 21s

driven by geopolitical conflicts

8m 24s

means higher cost of car ownership customers

8m 27s

Demand for used cars will remain volatile

8m 29s

and against this backdrop are priority

8m 32s

is to continue to deliver better unique

8m 35s

economics per unit sold

8m 37s

And we expect retail unit sales in Q4 2023

8m 41s

to be around 8,500

8m 44s

and the full year retail sales to Beauty Queen

8m 47s

40,000

8m 48s

[indiscernible]

8m 51s

Total unit sales, including both retail and wholesale,

8m 54s

are expected to amount

8m 56s

To be

8m 57s

to be between 50,052,000 units.

9m 2s

Given that we have averaged £1215

9m 5s

retail GPU

9m 6s

the 1st 9 months of this year

9m 8s

we expect the average retail GPU

9m 10s

[indiscernible]

9m 11s

be higher than previous guidance.

9m 13s

And we now expect to end the year with average retail GPU approaching 1200

9m 18s

£50.

9m 19s

And the exit rate is expected to be around GBP 1400.

9m 23s

Which reflects normal market seasonality

9m 26s

and a challenging economic environment.

9m 29s

We are maintaining our adjusted EBITDA forecast

9m 32s

between negative $100,000,000

9m 33s

and negative million.

9m 37s

Our top priorities

9m 39s

remain to further improve

9m 40s

Unit economics.

9m 42s

Reduce our fixed cost base,

9m 43s

and extend our cash runway.

9m 46s

As we work towards our goal,

9m 47s

of reaching profitability,

9m 50s

Thank you very much. And we'll now take any questions you might have

9m 56s

Thank you.

9m 57s

Will now be conducting a question and answer session.

10m 12s

[indiscernible]

10m 25s

Our first questions come from the line of Rajat Gupta with JP

10m 29s

Morgan. Please proceed with your questions.

10m 32s

Great. Thanks for taking the question.

10m 35s

I had a first question just on the

10m 38s

[indiscernible]

10m 41s

Curious to know if there are more cost savings or

10m 45s

on the SG and A side or more GPU opportunity

10m 50s

at the current level of units,

10m 53s

that you can capture before the company can decide to return to growth again?

10m 59s

And when can we expect the business to return to growth

11m 2s

target return to growth in order to

11m 5s

start scaling the fixed cost eventually.

11m 9s

And then related to the, what kind of macro or company

11m 13s

specific factors we should be watching to determine that timing?

11m 16s

Thanks. I have a quick follow-up.

11m 22s

So I would say

11m 24s

[indiscernible]

11m 26s

Thanks so much for the question. So

11m 29s

There's there's a

11m 31s

bit more to do as we

11m 33s

said and referred to in the announcement,

11m 36s

[indiscernible]

11m 38s

And I think our

11m 40s

there's a number there are a number of levers across multiple areas

11m 43s

The 2 that are

11m 45s

sort of forefront of our mind, the one is

11m 49s

to reduce

11m 50s

the days to sale,

11m 52s

in the business.

11m 55s

Obviously, the faster we turn over

11m 58s

vehicles, not particularly on the website, but that is the

12m 2s

Taking on

12m 3s

refurbishment

12m 4s

getting onto our

12m 6s

[indiscernible]

12m 7s

And then eventually the fulfillment. The faster we do that,

12m 11s

the less the vehicles

12m 13s

depreciate,

12m 16s

still remains a significant lever

12m 20s

Finance and ancillaries has been a success story all the way through.

12m 24s

Just described how it

12m 26s

It has taken a step back at an attachment rate level

12m 29s

finance attachment that is in

12m 31s

12m 32s

But mind you, that's been largely offset in terms of overall finance income

12m 36s

or ancillary income by the

12m 39s

other products. So we continue to evaluate new products.

12m 42s

We continue to drive attachment through opening up new channels to drive attachment

12m 47s

and improving our digital journey.

12m 50s

Which

12m 51s

Which is

12m 51s

[indiscernible]

12m 53s

[indiscernible]

12m 55s

really where a lot of our

12m 57s

technical team is spending their time at the moment

12m 59s

We describe it as finance first.

13m 2s

And then there's a question also. So GPU, yes, it works the

13m 7s

expect that to continue to go up, albeit we've

13m 9s

called out in the announcement that Q3

13m 11s

Paul will take

13m 13s

pop here. We expect it to take a small step back from the Q3 number due to

13m 17s

the market and

13m 20s

So those 2 things are against us

13m 22s

in Q4.

13m 23s

Q1, we'd expect to be sort of back on the growth

13m 26s

track again.

13m 27s

And then in terms of fixed costs,

13m 30s

there is more to come out. I think the big the main numbers are out

13m 35s

now. So it's smaller slices, but we continue to reduce fixed costs.

13m 39s

Really every quarter. We're not

13m 41s

shouting about it because the numbers are relative

13m 43s

Smaller, but

13m 44s

you know, the the the big chunks are done. But there are there are

13m 48s

certainly the numbers aren't going to go up in

13m 50s

have the

13m 51s

[indiscernible]

13m 53s

Go down, notwithstanding inflation,

13m 56s

everything else.

13m 58s

And there's a question

14m

and the final question was around which is the great question around growth.

14m 4s

What we've consistently said is once we establish

14m 8s

the right foundations for unit economics, we would

14m 11s

we would we wish to push the growth button again

14m 15s

But when we do that, we're not going to be

14m 17s

we wouldn't expect to be growing at

14m 20s

Hello.

14m 20s

50% or 100%,

14m 22s

as we were prior to 2023,

14m 26s

We're in the process of putting together our plans for next year, and we'll be talking about that in due

14m 31s

course. But we're certainly

14m 33s

at the levels of profitability now per unit, which

14m 37s

you rightly point out means the

14m 38s

we by doing more

14m 40s

units, we will be

14m 43s

He did.

14m 47s

Got it. That's really helpful.

14m 49s

Color and thanks for all the detail. Just one follow-up

14m 52s

just on that. Could you could you help or give us an update

14m 56s

as it stands today on what

14m 58s

the fixed versus variable mix is within

15m 1s

your SG and A?

15m 3s

That would be all

15m 6s

Yes, sure. So the fixed versus variable mix

15m 10s

I mean, it hasn't really changed.

15m 12s

It is

15m 13s

sort of 50% to 60%

15m 15s

[indiscernible]

15m 16s

Within SG and A

15m 19s

Understood. Got it. That's helpful.

15m 21s

Thanks a lot.

15m 26s

Thank you.

15m 27s

We have reached the end of our question and answer session. I would now like to turn the floor back over to Anna Graf

15m 32s

[indiscernible]

15m 32s

Lova for closing comments.

15m 36s

Thank you very much, everyone, for joining us today.

15m 39s

We'll speak to you next time.

15m 41s

Thank you.

15m 43s

Thank you. This does conclude today's teleconference.

15m 46s

We appreciate your participation. You may disconnect your lines at this time.

15m 50s

Enjoy the rest of your day.

Key Insights

CZOO reported continued improvement in profitability for Q3 2023, with a record retail GPU (gross profit per unit) of £1,470, up 14% quarter-on-quarter and 201% year-on-year.
The company sold 9,525 retail cars in Q3 and generated revenues in line with its focus on unit economics; gross margin improved by 350 basis points to 6.5%.
Ancillary revenue per retail unit increased by 29% year-on-year to £735, and the finance attachment rate improved by 6.7 percentage points year-on-year to 49.8%, though it declined quarter-on-quarter.
CZOO expects Q4 2023 retail unit sales of around 8,500 and full-year retail sales of approximately 40,000 units; total unit sales (retail and wholesale) are expected to be between 50,000 and 52,000 units.
Updated guidance: average retail GPU for the year is expected to approach £1,250, with an exit rate around £1,400; year-end cash and cash equivalents are forecasted between £100 million and £110 million; adjusted EBITDA is maintained between negative £100 million and negative £110 million.

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