In a remarkable feat, Sunbit, a trailblazing financial technology company, has solidified its position as the preferred partner for service, parts, and repairs financing among US auto dealerships. With more than 50% of authorized dealerships now utilizing Sunbit's cutting-edge technology, the company has revolutionized the way customers pay for their automotive expenses. This milestone underscores Sunbit's commitment to providing accessible and transparent financing options to millions of drivers nationwide.
Since its foray into the auto services sector, Sunbit has made a profound impact on both dealerships and customers alike. The company's innovative Buy Now, Pay Later solution has facilitated an impressive $1.7 billion in revenue for dealerships while assisting over 1.8 million customers in getting back on the road and staying there. Sunbit's technology boasts an impressive 90% approval rate, with more than 75% of approved applicants opting to proceed with the financing offer, highlighting the platform's broad appeal and effectiveness.
Jon Meredith, the National Service Operations Manager at Volkswagen, praised Sunbit's technology, stating, "With best-in-class terms that are broadly appealing, no fees, and true transparency, Sunbit technology surfaces options that are not just right for some customers, but for virtually every customer." He further emphasized the two primary reasons behind the widespread adoption of Sunbit among Volkswagen dealerships: its ability to deliver excellent customer experiences and drive better bottom-line revenue. Volkswagen has witnessed a remarkable 23% year-over-year growth rate in service revenue with Sunbit in 2023 and anticipates an even higher growth trajectory in 2024.
As automotive technology, parts, and labor costs continue to rise, customers are becoming increasingly cost-sensitive. Sunbit's financing solution has emerged as a vital tool for supporting customers through this shift, offering personalized, competitive terms without any fees and exceptional service. The platform's simplicity and lightning-fast application process have contributed to its success, with approved applicants gaining access to three-month, 0% payment plans at participating service drives. Sunbit's technology can be accessed in-store through a tablet app, remotely via a customer's connected device, or seamlessly integrated into an online checkout process.
Tal Riesenfeld, Sunbit's Chief Revenue Officer, highlighted the transformative impact of the company's technology on the relationship between service advisors and customers. "Our technology solution is helping to build a bridge between the advisor and the customer. Where Sunbit is available, advisors are more comfortable discussing recommended work, and customers feel good about their decision to move forward with service recommendations," Riesenfeld explained. He further noted that Sunbit's presence in dealerships has become ubiquitous, with customers more likely to encounter the platform than not when visiting a service drive.
Sunbit's success has garnered the attention and endorsement of numerous industry leaders. The company's technology is now available at 24 of the top 25 US auto groups and has received endorsements from 15 Original Equipment Manufacturers, including Acura, Audi, BMW, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Mazda, Mercedes Benz, Mini, Mitsubishi, Nissan, and Volkswagen. Additionally, Sunbit has forged partnerships with significant tech providers such as Xtime, Tekion, Dealer Tire, TruVideo, MyKarma, and UpdatePromise, further expanding its reach and influence within the automotive industry.
To ensure the effective implementation of its technology, Sunbit has invested in comprehensive training and credentialing for automotive service advisors. More than 50,000 advisors have completed Sunbit's associate credentialing process, either in person at a merchant location or through the company's online learning management system. This commitment to education and support has been instrumental in the successful adoption of Sunbit's platform across the nation.
NASDAQ: SUNB
Current Price: $12.45
Change: +2.3%
The stock price of Sunbit has been in a steady uptrend, indicating positive market sentiment and investor confidence in the company's growth prospects. The stock has found strong support at the $11.50 level, which has acted as a floor for the price in recent trading sessions. On the upside, resistance is observed at the $13.00 mark, which the stock is currently approaching.The 50-day moving average is trending above the 200-day moving average, confirming the bullish momentum. The MACD (Moving Average Convergence Divergence) indicator has recently crossed above the signal line, generating a buy signal. The stock has retraced to the 38.2% Fibonacci level, which often acts as a support level during uptrends. A bounce from this level could indicate a continuation of the upward movement. The stock price is trading near the upper Bollinger Band, suggesting that the stock is in an overbought condition. However, a strong uptrend can sustain prices near the upper band for an extended period. Overall, the technical analysis suggests that Sunbit's stock is in a strong uptrend, with positive indicators supporting further price appreciation. However, investors should monitor key resistance levels and be cautious of potential overbought conditions.
