Cazoo Group, Europe’s main on-line automotive retailer, which makes shopping for and promoting a automotive so simple as ordering some other product on-line at this time, has introduced its monetary outcomes for the yr ended December 31, 2021.
Alex Chesterman OBE, Founder & CEO of Cazoo, commented, “I’m extremely happy with what the staff at Cazoo has achieved since launch and significantly over the past 12 months. Our robust progress, speedy market growth and market-leading shopper suggestions, give us growing confidence in each our technique and our potential to ship on our market share and profitability ambitions.
Throughout 2021, we made some vital strategic progress, creating additional moats round our enterprise. Within the UK we introduced our car reconditioning in-house properly forward of schedule, a difficult course of however one which has vital long-term benefits. We additionally efficiently launched our automotive shopping for channel, now sourcing a considerable proportion of our automobiles instantly from customers.
Exterior of the UK, we’ve expanded our complete addressable market (“TAM”) dramatically by way of our entry into France, Germany, Italy and Spain, the 4 largest automotive retail markets within the EU. Along with the UK, these 5 key markets have a mixed TAM of over £300 billion and our long-term goal is to seize a 5% market share, which is why we’re extraordinarily energised by our future progress alternatives.
While we’ve achieved an infinite quantity in a brief interval, we’re nonetheless simply firstly of this thrilling journey. Our robust progress in 2021 mixed with the strategic constructing blocks that we’ve put in place, together with our vital funding, implies that we’re very properly positioned to ship on our bold progress plans.”
Stephen Morana, Chief Monetary Officer of Cazoo, added, “I’m delighted with the superb progress we’ve made in 2021. We have now seen speedy income progress of 312% YoY to £668m, pushed by a 233% improve in automobiles offered and additional uptake of our finance and ancillary merchandise. Final yr was solely our second full yr of operations and I’m very happy with how rapidly we’ve scaled the enterprise.
I’m additionally extraordinarily inspired by the strategic steps we made in 2021 that we consider have set us up for vital future GPU growth. We have now made smart investments by bringing UK reconditioning in-house and with the launch of our automotive shopping for channel, which has seen unbelievable traction and in This autumn 2021 we sourced over 30% of our retail gross sales instantly from customers.
While these investments have impacted GPU within the brief time period, the advantages are clear and provides us a lot higher visibility and confidence to ship on our long-term GPU goal of £3,000. We stay laser targeted on persevering with our path to profitability and whereas our UK Retail GPU might be sequentially decrease in Q1 2022, we anticipate to see materials enhancements by way of the yr, up considerably in Q2 2022 and approaching £900 for FY22.
Our stability sheet stays very robust. In February 2022 we raised $630 million from the issuance of convertible notes. We consider this, when mixed with our December 31, 2021 money place of just about £200m, provides us a transparent runway for a minimum of the subsequent 24 months to execute on our bold technique, and by which stage we consider our UK enterprise will attain profitability.”
