German online used car seller Auto1 raised its full-year revenue and profit targets on Wednesday after posting record third-quarter results on strong demand, doing strongly climb its actions.
The Berlin-based company is benefiting from the increasing digitization of the used car trade with its “wirkaufendeinauto.de” platform and also from the focus on growing sales to private customers through its Autohero unit.
“With our reconditioning sites, we should be able to prepare vehicles for resale faster and more efficiently to meet the huge demand,” Managing Director Christian Bertermann told Reuters in an interview.
Auto1 said it now expects its revenue for 2021 to be € 4.5 billion to € 4.6 billion ($ 5.09 billion to $ 5.20 billion) compared to its previous forecast range of 4.0 to 4.4 billion euros. Auto1’s full-year gross margin is expected to reach 415 to 425 million euros compared to the previous target of 380 to 410 million euros, the company said.
“Our higher outlook also reflects that we are selling more higher value cars, which is directly attributable to Autohero’s success,” said CFO Markus Boser.
Shares of Auto1 were up 5.5% at 9.45am GMT. The company said its third-quarter revenue rose 64% to 1.26 billion euros, the company’s highest quarterly sales since it went public in February.