Online used-vehicle retailer Shift Technologies Inc. said Thursday its board of directors is working with management and financial and legal advisors to assess a range of “strategic alternatives” for the company.
In a statement, the company said its board of directors is conducting a process to “explore and evaluate strategic alternatives, including exploring a potential sale of certain operating businesses, third party investment or partnership opportunities and/or funding alternatives for our marketplace business, to further enhance value for all stakeholders.”
The company said its board did not set a timetable for a completion of that review process. There is “no assurance” the review process will result in a transaction or other alternative, the release said.
The company did not hold a question-and-answer session at the end of its first-quarter earnings call on Thursday.
Shift Technologies reported a net loss of $48.1 million in the three months ended March 31, narrower than a loss of $57 million in the first quarter of 2022. Revenue during the first quarter fell 74 percent to $57.7 million.
The company’s retail sales plunged 64 percent to 2,396 vehicles in the quarter. It reported $1,477 in total gross profit per vehicle, down 8 percent from the first quarter in 2022, but up 65 percent from $895 in fourth quarter 2022.
Shares of Shift Technologies Inc. fell 4.89 percent to $1.75 in Thursday after-hours trading.
First-quarter earnings highlights:
- Q1 revenue: $57.7 million, down 74 percent from the year-earlier period.
- Q1 net loss: $48.1 million, narrower than a loss of $57 million.
- Q1 retail vehicles sold: 2,396, down 64 percent.
- Q1 total gross profit per vehicle: $1,477, down 8 percent.
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