Online used-vehicle retailer Shift Technologies Inc. said Thursday its board of directors is working with management and financial and legal advisers to assess a range of “strategic alternatives” for the company.
in a statementShift said its board of directors was 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 the completion of the review process. There is “no assurance” it 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 Thursday.
Shift reported a net loss of $48.1 million in the three months ended March 31, narrower than a loss of $57 million in the year-earlier period. Revenue during the first quarter fell 74% 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% from the first quarter of 2022 but up 65% from $895 in the fourth quarter.
Shares of Shift Technologies fell 3.8% to $1.77 in premarket trading Friday.
First-quarter earnings highlights:
- Q1 revenues: $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%.
- Q1 total gross profit per vehicle: $1,477, down 8%.