Seeking Alpha • Jan 18
Cazoo rises on Q4 updates, revised 2023 plan
Cazoo Group (NYSE:CZOO) rose ~7% pre-market after the online car retailer updated on Q4 revenue and announced aims to rapidly improve the unit economics as part of revised 2023 plan.
The company had consolidated its resources on the U.K. market in the past one year.
In the current economic environment, CZOO believes the right course of action for 2023 is to focus on further improving its unit economics, reducing its fixed cost base and maximizing its cash runway.
The 2023 top line ambitions have been reset to 40,000-50,000 U.K. retail units. Following the reset, retail unit sales are expected to return to growth in FY24 and beyond.
CZOO said its Q4 U.K. revenue came to ~£315M and FY22 revenue to £1.25M.
The company's U.K. retail units sold of around ~17,750 in Q4 and ~65,000 in FY22
U.K. retail GPU stood at ~£600 in Q4.
The company had cash, cash equivalents and self-funded vehicles of over £325M at year-end.
Additionally, CZOO appointed COO Paul Whitehead CEO, effective from the start of April.
The roles of executive chairman and CEO will be split, with Alex Chesterman continuing in the role of full time executive chairman.
Also, David Hobbs will step down from the board, effective from close of business on Jan. 31.
Mary Reilly will join the board as a class I director, effective Feb. 1.
Separately, the board has approved a share consolidation plan to bring the company's share price back into compliance with NYSE's listing standards.
Source: Press Release