Shift Technologies Inc. (SFT) stock finally enters green with an 8.23% change at $7.10 in the after-hours, against its last close at $6.56 (-1.35%) on November 11. SFT declared its third-quarter financial results for the year at 4:00 pm Eastern Time, on November 11, 2021. The earnings beat of the Q3 gave Shift Technologies Inc. (SFT) stock the much needed positive boost, making it go up aftermarket at a volume of 637.11K
More about Shift Technologies Inc.
Founded in 2013, SFT is an end-to-end E-commerce platform, providing digital solutions to customers in the used car market. Making used car purchase and ownership easy, Shift Technology is transforming the industry. SFT provides high-value support services in the process of car ownership in order to make used car sale and purchase easy, simple, and accessible to everyone.
Shift Technologies Inc. (SFT) operates through both retail and wholesale segments.
SFT’s Third Quarter Results
As per the third quarter financial results 2021, SFT achieved record revenue of $179.8 million and 8,111 units sold, showing respective growth of 200% and 100% Year over Year. The total gross profit showed an increase of 248% Year over Year, standing at $13.0 million for the Q3.
Going ahead of the guidance range for Q3, the adjusted EBITDA loss was $33.3 million i.e. 18.5% of revenue against the loss of 16.9% of revenue in Q2.
According to the results, the loss for the third quarter of 2021 was $37.4 million. For the same quarter, the loss of $0.48 per basic and diluted share beat the consensus estimate of $0.52 per basic and diluted share.
STF’s Guidance for the Future Financials
According to CFO, Oded Shein, SFT, the expected revenue for the fourth quarter of 2021 is between $180 and $188 million. These estimates will place an increase of 145% or 156% from the revenue in the fourth quarter of 2020. The company also expects an adjusted EBITDA loss between $40 million and $44 million for the upcoming quarter.
Furthermore, in guidance for the 2021 revenue, the company places the revenue between the range of $621 million and $629 million. This new estimate for 2021 revenue shows an increase of $40 million approx. from the previous guidance.
SFT also expects to sell 23,000 to 24,000 e-commerce cars. With the excellent Q4 guidance, the company is headed towards even better prospects for the future.
