On March 15, Shift Technologies Inc. (SFT) declared its financial results for the fourth quarter and full-year 2021 with guidance for 2022. The company also announced a definitive agreement as well as a commitment letter for senior notes. Consequently, the stock plunged down in the after-hours while it remained bullish in the regular session.
During the regular session, the stock traded actively at an above-average volume of 6.8 million shares. SFT gained a huge 20.63% during the session after fluctuating between a high of $1.97 and a low of $1.62. Following the announcement, the stock plunged down by 6,74% in the after-hours as 1.46 million shares exchanged hands. Hence, SFT was trading at $1.80 per share in the after-hours on Tuesday.
The online automobile purchasing services provider, Shift Technologies Inc. is based in San Francisco, CA. Currently, its 81.31 million outstanding shares trade at a market capitalization of $130.09 million. While standing at a year-to-date loss of 43.40%, SFT has increased by 10.29% in the past five days. The stock subtracted a value of 78.51% last year.
SFT’s 2021 Financial Results
Total Revenue
The company’s revenue increased by 167% YOY to $196.2 million in Q4 2021, with an increase of 80% YOY in total units sold.
Moreover, the fiscal 2021 revenue grew by 225% YOY to $636.9 million and total units sold by 131% YOY.
Net Loss
SFT had a net loss of $54.5 million in Q4 2021, against $4.5 million in the year-ago period. The net loss for the quarter was wider-than-expected as it missed the analysts’ estimates.
Financial Position
Furthermore, the company ended the quarter with cash, cash equivalents, and restricted cash of $194.3 million with a decrease of $54.8 million YOY.
Future Outlook
For Q1 2022, the company expected an adjusted EBITDA loss of $46-$48 million on revenue of $205-$215 million. Additionally, the company expects an adjusted EBITDA margin of $(12-15)% on revenue of $1-$1.1 billion for fiscal 2022.
SFT’s Other Developments
On Tuesday, the company also announced entering into a definitive agreement for the acquisition of certain assets of Fair Technologies. The assets would be purchased through a combination of cash and Class A common stock shares of SFT.
In addition, the company entered into a commitment letter with SoftBank Group Corp. for funding the acquisition. SoftBank has agreed to buy senior unsecured notes due 2025.
Conclusion
While the company surpassed the revenues estimated, it missed the earnings expectations. Thus, despite huge growth in revenue, the stock tumbled down in the after-hours due to a wider-than-expected loss.
