Cazoo Group who are Europe’s leading online car retailer, which makes buying and selling a car as simple as ordering any other product online today, has announced its financial results for the three months ended 31 March, 2022.
Cazoo announced Record revenues of £295m up 159% YoY driven by continued strong retail sales growth, whith Vehicles sold up 102% YoY to 19,713 in Q1 as demand for proposition continues to grow.
The company said retail units sold in Q1 were up 53% sequentially aided by increased website inventory levels.
They said there was rurther progress in France and Germany and Cazoo are preparing for launch in Italy & Spain mid-year.
The car retailer said they have a strong cash position following the issuance of $630m convertible notes in February.
Alex Chesterman OBE, Founder & CEO of Cazoo said, “I am extremely pleased with our record Q1 revenues and unit sales as we are starting to see the benefits from the significant strategic steps that we took during 2021. We achieved over 50% sequential quarterly growth in retail units sold in the period, driven by increased inventory available on our website, supporting our thesis that increased reconditioning output leads to greater sales.
“As we advance through 2022 we aim to continue to ramp up our reconditioning capacity which we expect to lead to further growth and allow us to continue our progress towards our long-term market share ambitions.
“This strong acceleration in growth comes despite a rapidly changing macroeconomic backdrop in our markets. While we are very mindful of the wider macroeconomic uncertainties, we remain laser focused on the execution of our strategy as we continue to make progress against our previously detailed expectations for the year.
“We expect any macro headwinds to be transitory in nature and remain extremely excited by the enormous market opportunity for Cazoo and are very confident in achieving our long-term growth and margin targets.”
Stephen Morana, Chief Financial Officer of Cazoo, added, “I am encouraged by the progress we have made in Q1, significantly increasing our revenue by 159% year-on-year driven by strong UK retail sales. As previously detailed, our Q1 UK retail GPU was impacted in the short term from investments made in the second half of last year with the launch of our car buying channel and bringing our UK reconditioning in-house. We expect a significant improvement in our UK Retail GPU in Q2 and throughout the rest of the year as we start to see the benefits of these investments.