$LOTZ ER Takeaways:

Overview:
Exceeded top line expectations, very pleased with results
3 hubs opened in Q1, Seattle + Orlando most successful openings in company history
Remain on track to open 14-16 new hubs in 2021
Currently onboarding several new comm relationships

Marketing:
236% inc in leads generated YOY
Triple digit inc in unique online users YOY
New brand campaign being launched in 2H 2021

Tech/People:
50% team growth in Q1
Fully redesigned online experience/mobile app in progress: Rollout to begin in June 2021

Retail GPU:
1182 in Q1, below expectations
Due to old inventory carry over issue, which has now been completely cleared out
On track for FY Retail GPU estimates: 1800-2000
Strong Retail GPU growth in Q2

Supply/Demand:
Best environment for inventory is when there is gap between wholesale & retail prices
When wholesale prices rise rapidly, gap narrows and creates inventory constraints
Inventory getting back to desired levels now

Cash:
$293m in cash/securities
Net cash will fund growth for foreseeable future

Outlook:
$335-375m FY21 rev (180% inc YOY)
18-20,000 units sold FY21 (180% inc YOY)
Retail GPU to accelerate in Q3/4
Significant investments in people, tech, & marketing

Overall:

Solid quarter even with analyst concerns about Retail GPU. Cause was old inventory carryover, which has been resolved ahead of sched. They are seeing beginning of inc in consumer consignment as brand awareness increases. Potential huge growth driver w/ brand campaign

Cont.

Rollout of new tech platform is exciting as well, they want user to be able to do as much or little of transaction online as they want.

Always been impressed with mgmt stance that they will not raise $ unless absolutely have to. Want to be self-funded via growth