Auto1 Group, the German digital-automotive platform, announced that it has achieved profitability based on its preferred adjusted earnings metric. This marks the company’s first profitability since its initial public offering. As a result, Auto1 Group has raised its full-year guidance.
Positive Third Quarter Results
In the third quarter, Auto1 Group reported positive adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda). The adjusted Ebitda for the quarter was €495,000 compared to an adjusted Ebitda loss of €35.2 million in the same period last year. This achievement comes one quarter ahead of the company’s year-end target. Auto1 Group attributes this success to increased gross profit and reduced expenses in personnel and marketing.
Improved Full-Year Outlook
Auto1 Group now expects a full-year adjusted Ebitda loss between €39 million and €49 million, which is an improvement from its previous forecast of a loss between €50 million and €70 million. The company’s adjusted Ebitda breakeven in the third quarter has contributed to this enhanced outlook.
Sales and Gross Profit
Although Auto1 Group experienced a decline in sales for the third quarter, with revenues dropping from €1.71 billion to €1.29 billion, gross profit saw an increase. Gross profit rose to €134.4 million from €123.4 million in the same period last year. The company maintains its gross profit target range of between €500 million and €550 million.
Auto1 Group’s remarkable financial performance has positively impacted its share price, which rose by 11.23% to €7.09.