Shift Technologies, which went public through a reverse merger at the beginning of October, has eyes on expanding its finance and insurance revenue after its first quarter as a publicly traded company.
Other revenue, which Shift defines as revenue from ancillary products such as financing, vehicle protection and tire and wheel protections services, shot up 113.4% year over year to $2.04 million. In fact, Shift’s third-quarter F&I revenue makes up over half of its nine-month F&I revenue, which clocked in at $3.93 million.
F&I gross profit per unit increased to $745, a 48% increase year over year, largely due to “strategic investments” the online retailer made to better monetize unit sales, according to the company’s letter to shareholders. Looking forward, Shift will try to continue to drive gross revenue through the sales of ancillary products by increasing attachment rates on its various products.
E-commerce units sold came in at 2,946, up 34% from the same reporting period last year. Shift expanded its footprint to Seattle during the quarter, completing its West Coast footprint, and began purchasing vehicles from consumers in Austin, Texas. The retailer services six major markets in California, Oregon and Washington. Shift’s total revenue came in at $59.9 million, a 31% year-over-year increase and 85% sequential increase.
Shares of Shift Technologies [Nasdaq: SFT] were trading down 26.29% to 7.29 as of 3:25 pm ET, after opening slightly lower. Shift reported its earnings after markets closed yesterday, and has a market capitalization of $598.56 million.