Cazoo reported Q3 revenues up 267% in Q3 to £174.7m with gross profit per unit of £801.
Alex Chesterman OBE, Founder & CEO of Cazoo, said he was encouraged by the growth in revenues and said biggest challenge is at the back end, reconditioning cars.
“The biggest constraint to growth remains our ability to recondition cars fast enough to meet demand.
“Bringing that process in-house has led to a recent dip in vehicles available for sale during the transition and we firmly believe that greater stock levels would have resulted in even higher retail sales over Q3.
“Continuing to scale our reconditioning output remains a key priority and we expect to make further progress in growing our inventory levels through the remainder of the year. The acquisition of SMH this quarter has provided us with significant additional refurbishment capability to support our future growth.”
Chesterman said the current number of vehicles for sale on its website was not ‘optimal’.
In July Cazoo launched its car buying service. In Q3 10% of retail cars sold were sourced directly from consumers and this is set to increase.
“During the period we also acquired Cazana, enhancing our data team and capabilities and enabling us to further optimise our vehicle purchasing and pricing across the UK and Europe.
“We are very excited about our upcoming launch into mainland Europe as we continue to develop our team and infrastructure in both France and Germany, and we remain on track to launch in both markets later this quarter. We will continue to accelerate our investment and rollout plans where we believe it is right to do so.
“Looking forward to the remainder of the year, we continue to see very strong consumer demand in both our car buying and selling channels. We currently have lower levels of vehicles available for sale than we consider optimal, and we continue to make solid progress on ramping up our reconditioning output following our acquisition of SMH.
“We forecast 2021 revenues of over £650 million (which excludes £15-20 million of sales where Cazoo sold vehicles as an agent for third parties), implying Q4 growth of over 25% quarter on quarter and over 200% year on year.”