Continued Progress on Long-Term Roadmap
Driving Unit Growth, GPPU Improvement and Cost Reductions
Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for
buying and selling used vehicles, today announced financial results
for the third quarter ended September 30, 2023.
HIGHLIGHTS OF THIRD QUARTER 2023 VERSUS SECOND QUARTER
2023
- 11% sequential growth in Ecommerce units
- $3,144 Ecommerce gross profit per unit (GPPU) as compared to
$2,954
- Continued reductions in fixed costs per unit as well as per
unit costs across marketing, logistics, and titling and
registrations and support
- $(82.9) million net loss as compared to $(66.3) million
- $(64.5) million Adjusted EBITDA as compared to $(56.3)
million
Tom Shortt, Chief Executive Officer of Vroom, said, “In the
third quarter of 2023, consistent with our Long-Term Roadmap, we
continued to make progress on our three key objectives and four
strategic initiatives. Our ecommerce unit growth rate doubled
sequentially to 11%, while we also sequentially improved GPPU and
reduced SG&A spend. Ecommerce GPPU increased to $3,144 in Q3
2023 from $2,954 in Q2 2023, benefiting from an improved mix of
unaged vehicles sold within the quarter. During the third quarter
of 2023, 34% of our units sold were aged units, or units held
greater than 180 days. Adjusted EBITDA declined sequentially,
driven by headwinds in the loan portfolio performance at UACC due
to higher delinquencies and realized net losses, partially offset
by improved unit economics. We continue to drive process
improvements across titling and registration, pricing, marketing,
sales, reconditioning and logistics.”
Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We
succeeded in reducing per-unit costs across 1) marketing, 2)
logistics, 3) titling, registration and support, and 4) fixed
costs. We further strengthened our balance sheet by recovering $48
million of cash trapped on the balance sheet as we sold through
aged inventory, and ended the quarter with cash and cash
equivalents of approximately $209 million. We will continue to
pursue opportunities to reduce costs, strengthen our balance sheet
and enhance our liquidity and intend to seek additional capital
through equity or debt financing.”
THIRD QUARTER 2023 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless
otherwise noted.
Ecommerce Results
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(in thousands, except unit
data and average days to sale)
(in thousands, except unit
data and average days to sale)
Ecommerce units sold
4,561
6,428
(1,867
)
(29.0
)%
12,621
35,134
(22,513
)
(64.1
)%
Ecommerce revenue:
Vehicle revenue
$
136,949
$
212,980
$
(76,031
)
(35.7
)%
$
387,585
$
1,173,727
$
(786,142
)
(67.0
)%
Product revenue
12,902
12,461
441
3.5
%
36,128
48,709
(12,581
)
(25.8
)%
Total ecommerce revenue
$
149,851
$
225,441
$
(75,590
)
(33.5
)%
$
423,713
$
1,222,436
$
(798,723
)
(65.3
)%
Ecommerce gross profit:
Vehicle gross profit
$
2,354
$
14,573
$
(12,219
)
(83.8
)%
$
2,956
$
46,153
$
(43,197
)
(93.6
)%
Product gross profit
11,985
12,461
(476
)
(3.8
)%
33,610
48,709
(15,099
)
(31.0
)%
Total ecommerce gross profit
$
14,339
$
27,034
$
(12,695
)
(47.0
)%
$
36,566
$
94,862
$
(58,296
)
(61.5
)%
Average vehicle selling price per
ecommerce unit
$
30,026
$
33,133
$
(3,107
)
(9.4
)%
$
30,710
$
33,407
$
(2,697
)
(8.1
)%
Product revenue per ecommerce unit
2,829
1,939
890
45.9
%
2,863
1,386
1,477
106.5
%
Gross profit per ecommerce unit:
Vehicle gross profit per ecommerce
unit
$
516
$
2,267
$
(1,751
)
(77.2
)%
$
234
$
1,314
$
(1,080
)
(82.2
)%
Product gross profit per ecommerce
unit
2,628
1,939
689
35.5
%
2,663
1,386
1,277
92.1
%
Total gross profit per ecommerce unit
$
3,144
$
4,206
$
(1,062
)
(25.2
)%
$
2,897
$
2,700
$
197
7.3
%
Ecommerce average days to sale
202
186
16
8.6
%
266
118
148
125.4
%
Results by Segment
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(in thousands, except unit
data)
(in thousands, except unit
data)
Units:
Ecommerce
4,561
6,428
(1,867
)
(29.0
)%
12,621
35,134
(22,513
)
(64.1
)%
Wholesale
2,270
3,128
(858
)
(27.4
)%
5,273
19,108
(13,835
)
(72.4
)%
All Other (1)
357
662
(305
)
(46.1
)%
1,022
3,408
(2,386
)
(70.0
)%
Total units
7,188
10,218
(3,030
)
(29.7
)%
18,916
57,650
(38,734
)
(67.2
)%
Revenue:
Ecommerce
$
149,851
$
225,441
$
(75,590
)
(33.5
)%
$
423,713
$
1,222,436
$
(798,723
)
(65.3
)%
Wholesale
30,898
47,604
(16,706
)
(35.1
)%
75,593
270,489
(194,896
)
(72.1
)%
Retail Financing (2)
40,823
40,654
169
0.4
%
114,939
120,005
(5,066
)
(4.2
)%
All Other (3)
14,062
27,098
(13,036
)
(48.1
)%
43,034
126,622
(83,588
)
(66.0
)%
Total revenue
$
235,634
$
340,797
$
(105,163
)
(30.9
)%
$
657,279
$
1,739,552
$
(1,082,273
)
(62.2
)%
Gross profit (loss):
Ecommerce
$
14,339
$
27,034
$
(12,695
)
(47.0
)%
$
36,566
$
94,862
$
(58,296
)
(61.5
)%
Wholesale
(1,495
)
(1,574
)
79
5.0
%
(5,426
)
(6,260
)
834
13.3
%
Retail Financing (2)
32,341
35,954
(3,613
)
(10.0
)%
92,184
109,637
(17,453
)
(15.9
)%
All Other (3)
2,909
5,917
(3,008
)
(50.8
)%
9,576
17,089
(7,513
)
(44.0
)%
Total gross profit
$
48,094
$
67,331
$
(19,237
)
(28.6
)%
$
132,900
$
215,328
$
(82,428
)
(38.3
)%
Gross profit (loss) per unit
(4):
Ecommerce
$
3,144
$
4,206
$
(1,062
)
(25.2
)%
$
2,897
$
2,700
$
197
7.3
%
Wholesale
$
(659
)
$
(503
)
$
(156
)
31.0
%
$
(1,029
)
$
(328
)
$
(701
)
213.7
%
(1)
All Other units consist of retail
sales of used vehicles from TDA.
(2)
The Retail Financing segment
represents UACC’s operations with its network of third-party
dealership customers as of the closing of the UACC acquisition in
February 2022.
(3)
All Other revenues and gross
profit consist of retail sales of used vehicles from TDA and fees
earned on sales of value-added products associated with those
vehicles sales and the CarStory business.
(4)
Gross profit per unit metrics
exclude the Retail Financing gross profit and All Other gross
profit.
SG&A
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(in thousands)
(in thousands)
Compensation & benefits
$
37,695
$
55,694
$
(17,999
)
(32.3
)%
$
130,318
$
199,111
$
(68,793
)
(34.6
)%
Marketing expense
13,429
14,945
(1,516
)
(10.1
)%
39,871
69,818
(29,947
)
(42.9
)%
Outbound logistics
2,209
4,945
(2,736
)
(55.3
)%
6,251
39,925
(33,674
)
(84.3
)%
Occupancy and related costs
4,575
6,041
(1,466
)
(24.3
)%
13,600
17,408
(3,808
)
(21.9
)%
Professional fees
5,277
6,459
(1,182
)
(18.3
)%
15,504
26,585
(11,081
)
(41.7
)%
Software and IT costs
9,227
11,277
(2,050
)
(18.2
)%
27,555
33,406
(5,851
)
(17.5
)%
Other
7,174
35,282
(28,108
)
(79.7
)%
29,979
89,374
(59,395
)
(66.5
)%
Total selling, general &
administrative expenses
$
79,586
$
134,643
$
(55,057
)
(40.9
)%
$
263,078
$
475,627
$
(212,549
)
(44.7
)%
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S.
GAAP, we believe the following non-GAAP financial measures are
useful in evaluating our operating performance:
- EBITDA;
- Adjusted EBITDA;
- Adjusted EBITDA excluding non-recurring costs to address
operational and customer experience issues;
- Adjusted EBITDA excluding securitization gain;
- Adjusted EBITDA excluding securitization gain and non-recurring
costs to address operational and customer experience issues;
These non-GAAP financial measures have limitations as analytical
tools in that they do not reflect all of the amounts associated
with our results of operations as determined in accordance with
U.S. GAAP. Because of these limitations, these non-GAAP financial
measures should be considered along with other operating and
financial performance measures presented in accordance with U.S.
GAAP. The presentation of these non-GAAP financial measures is not
intended to be considered in isolation or as a substitute for, or
superior to, financial information prepared and presented in
accordance with U.S. GAAP. We have reconciled all non-GAAP
financial measures with the most directly comparable U.S. GAAP
financial measures.
EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues,
Adjusted EBITDA excluding securitization gain, and Adjusted EBITDA
excluding securitization gain and non-recurring costs to address
operational and customer experience issues are supplemental
performance measures that our management uses to assess our
operating performance and the operating leverage in our business.
Because each of these non-GAAP financial measures facilitate
internal comparisons of our historical operating performance on a
more consistent basis, we use these measures for business planning
purposes.
EBITDA
We calculate EBITDA as net loss before interest expense,
interest income, income tax expense and depreciation and
amortization expense.
Adjusted EBITDA
We calculate Adjusted EBITDA as EBITDA adjusted to exclude
severance costs, gain on debt extinguishment, severe
weather-related costs, goodwill impairment charge, realignment
costs, acquisition related costs, and other costs which relate to
impairment of long-lived assets. Changes in fair value of financial
instruments can fluctuate significantly from period to period and
previously related primarily to historical loans and debt which
have been securitized, and acquired on February 1, 2022 from UACC.
Our ongoing business model is to originate or purchase finance
receivables with the intent to sell which we recognize at the lower
of cost or fair value. As a result of current market conditions,
the financial instruments related to the 2022-2 and 2023-1
securitization transactions are recognized on balance-sheet and
accounted for under the fair value option. See Note 16 — Financial
Instruments and Fair Value Measurements to our condensed
consolidated financial statements included in our Quarterly Report
on Form 10-Q for the three months ended September 30, 2023. As a
result, the majority of our finance receivables are now carried at
fair value and a significant portion of the risk of loss associated
with these finance receivables have been retained by UACC. We
therefore have determined we will no longer make any adjustments
for such fluctuations in fair value to our Adjusted EBITDA results.
We have recast the prior period presented to conform to current
period presentation. We may account for future securitizations as
on balance sheet transactions depending on the market
conditions.
Adjusted EBITDA excluding non-recurring costs to address
operational and customer experience issues
We calculate Adjusted EBITDA excluding non-recurring costs to
address operational and customer experience issues as Adjusted
EBITDA adjusted to exclude the non-recurring costs incurred to
address operational and customer experience issues, including
rental cars for our customers and legal settlements with customers
and state DMVs. While we expect to continue to incur these costs
over the next few quarterly periods, we expect such costs to
continue to decline due to the improvements across our
operations.
Adjusted EBITDA excluding securitization gain
We calculate Adjusted EBITDA excluding securitization gain as
Adjusted EBITDA adjusted to exclude the securitization gain from
the sale of UACC's finance receivables, and believe that it
provides a useful perspective on the underlying operating results
and trends and a means to compare our period-over-period
results.
Adjusted EBITDA excluding securitization gain and
non-recurring costs to address operational and customer experience
issues
We calculate Adjusted EBITDA excluding securitization gain and
non-recurring costs to address operational and customer experience
issues as Adjusted EBITDA adjusted to exclude the securitization
gain from the sale of UACC’s finance receivables and the
non-recurring costs incurred to address operational and customer
experience issues.
The following table presents a reconciliation of the foregoing
non-GAAP financial measures to net loss, which is the most directly
comparable U.S. GAAP measure:
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
(in thousands)
(in thousands)
Net loss
$
(82,857
)
$
(51,127
)
$
(224,219
)
$
(476,675
)
Adjusted to exclude the following:
Interest expense
12,058
9,704
30,915
28,617
Interest income
(5,506
)
(5,104
)
(16,369
)
(12,991
)
Provision (benefit) for income taxes
260
899
918
(22,085
)
Depreciation and amortization
11,248
9,995
32,421
28,005
EBITDA
$
(64,797
)
$
(35,633
)
$
(176,334
)
$
(455,129
)
Severance costs
$
274
$
—
$
6,655
$
—
Gain on debt extinguishment
—
(37,917
)
(19,640
)
(37,917
)
Hail storm costs
—
—
2,353
—
Goodwill impairment charge
—
—
—
201,703
Realignment costs
—
3,243
—
12,772
Acquisition related costs
—
—
—
5,653
Other
—
—
1,352
2,127
Adjusted EBITDA
$
(64,523
)
$
(70,307
)
$
(185,614
)
$
(270,791
)
Non-recurring costs to address operational
and customer experience issues
32
15,785
818
25,059
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(64,491
)
$
(54,522
)
$
(184,796
)
$
(245,732
)
Securitization gain
—
(15,972
)
—
(45,589
)
Adjusted EBITDA excluding securitization
gain
$
(64,523
)
$
(86,279
)
$
(185,614
)
$
(316,380
)
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(64,491
)
$
(70,494
)
$
(184,796
)
$
(291,321
)
THIRD QUARTER 2023 AS COMPARED TO SECOND QUARTER 2023
Three Months Ended September
30,
Three Months Ended June
30,
2023
2023
Change
% Change
(in thousands, except unit
data)
Total revenues
$
235,634
$
225,178
$
10,456
4.6
%
Total gross profit
$
48,094
$
46,001
$
2,093
4.5
%
Ecommerce units sold
4,561
4,127
434
10.5
%
Ecommerce revenue
$
149,851
$
138,225
$
11,626
8.4
%
Ecommerce gross profit
$
14,339
$
12,189
$
2,150
17.6
%
Vehicle gross profit (loss) per ecommerce
unit
$
516
$
290
$
226
77.9
%
Product gross profit per ecommerce
unit
2,628
2,664
(36
)
(1.4
)%
Total gross profit per ecommerce unit
$
3,144
$
2,954
$
190
6.4
%
Wholesale units sold
2,270
1,834
436
23.8
%
Wholesale revenue
$
30,898
$
30,800
$
98
0.3
%
Wholesale gross (loss) profit
$
(1,495
)
$
(3,993
)
$
2,498
62.6
%
Wholesale gross (loss) profit per unit
$
(659
)
$
(2,177
)
$
1,518
69.7
%
Retail Financing revenue
$
40,823
$
42,128
$
(1,305
)
(3.1
)%
Retail Financing gross profit
$
32,341
$
34,068
$
(1,727
)
(5.1
)%
Total selling, general, and administrative
expenses
$
79,586
$
86,955
$
(7,369
)
(8.5
)%
Three Months Ended September
30,
Three Months Ended June
30,
2023
2023
Change
% Change
(in thousands)
Net loss
$
(82,857
)
$
(66,318
)
$
(16,539
)
24.9
%
Adjusted to exclude the following:
Interest expense
12,058
8,938
3,120
34.9
%
Interest income
(5,506
)
(4,921
)
(585
)
11.9
%
Provision for income taxes
260
385
(125
)
(32.5
)%
Depreciation and amortization
11,248
10,536
712
6.8
%
EBITDA
$
(64,797
)
$
(51,380
)
$
(13,417
)
26.1
%
Severance costs
$
274
$
2,277
$
(2,003
)
(88.0
)%
Gain on debt extinguishment
—
(10,931
)
10,931
100.0
%
Hail storm costs
—
2,353
(2,353
)
(100.0
)%
Other
—
1,352
(1,352
)
(100.0
)%
Adjusted EBITDA
$
(64,523
)
$
(56,329
)
$
(8,194
)
14.5
%
Non-recurring costs to address operational
and customer experience issues
32
126
(94
)
(74.3
)%
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(64,491
)
$
(56,203
)
$
(8,288
)
(14.7
)%
Securitization gain
—
—
—
0.0
%
Adjusted EBITDA excluding securitization
gain
$
(64,523
)
$
(56,329
)
$
(8,194
)
14.5
%
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(64,491
)
$
(56,203
)
$
(8,288
)
14.7
%
Financial Outlook
For the full year 2023, we updated our guidance on Adjusted
EBITDA performance and year-end cash and cash equivalents:
- Adjusted EBITDA(1) of $(245.0) to $(225.0) million;
- Year-end cash and cash equivalents of $137.0 to $162.0
million.
(1) A reconciliation of non-GAAP
guidance measures to corresponding GAAP measures for the full year
2023 Financial Outlook is not available on a forward-looking basis
without unreasonable effort due to the uncertainty regarding, and
the potential variability of, the costs and expenses that may be
incurred in the future. We have provided a reconciliation of GAAP
to non-GAAP financial measures for the third quarter 2023 in the
reconciliation table in the Non-GAAP Financial Measures section
above.
The foregoing estimates are forward-looking statements that
reflect the Company’s expectations as of November 7, 2023 and are
subject to substantial uncertainty. See “Forward-Looking
Statements” below.
Conference Call & Webcast Information
Vroom management will discuss these results and other
information regarding the Company during a conference call and
audio webcast Wednesday, November 8, 2023 at 8:30 a.m. ET.
To access the conference call, please register at this embedded
link. Registered participants will be sent a unique PIN to access
the call. A listen-only webcast will also be available via the same
link and at ir.vroom.com. An archived webcast of the conference
call will be accessible on the website within 48 hours of its
completion.
About Vroom (Nasdaq: VRM)
Vroom is an innovative, end-to-end ecommerce platform that
offers a better way to buy and a better way to sell used vehicles.
The Company’s scalable, data-driven technology brings all phases of
the vehicle buying and selling process to consumers wherever they
are and offers an extensive selection of vehicles, transparent
pricing, competitive financing, and contact-free, at-home pick-up
and delivery. For more information visit www.vroom.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements
regarding expected timelines with respect to, our execution of and
the expected benefits from our long term roadmap, declining costs
due to improvements across our operations, and other cost-saving
initiatives; our future results of operations and financial
position, including for the full year 2023; our ability to improve
our unit economics and future growth, including with respect to our
Adjusted EBITDA and liquidity, our ability to improve our
transaction processes, increase and optimize our internal sales
force, sell through aged vehicles and the potential impacts as we
sell through our inventory, improve variable cost per unit, such as
logistics costs and marketing costs, and reduce fixed costs; and
our plans to enhance liquidity and strengthen our balance sheet,
including by seeking additional capital through equity or debt
financing. These statements are based on management’s current
assumptions and are neither promises nor guarantees, but involve
known and unknown risks, uncertainties and other important factors
that may cause our actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. For factors that could cause actual results to differ
materially from the forward-looking statements in this press
release, please see the risks and uncertainties identified under
the heading "Risk Factors" in our Annual Report on Form 10-K for
the year ended December 31, 2022, as updated by our Quarterly
report on Form 10-Q for the quarter ended September 30, 2023, which
is available on our Investor Relations website at ir.vroom.com and
on the SEC website at www.sec.gov. All forward-looking statements
reflect our beliefs and assumptions only as of the date of this
press release. We undertake no obligation to update forward-looking
statements to reflect future events or circumstances.
VROOM, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
and per share amounts)
(unaudited)
As of September 30,
As of December 31,
2023
2022
ASSETS
Current Assets:
Cash and cash equivalents
$
208,562
$
398,915
Restricted cash (including restricted cash
of consolidated VIEs of $47.2 million and $24.7 million,
respectively)
80,517
73,095
Accounts receivable, net of allowance of
$8.9 million and $21.5 million, respectively
9,022
13,967
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $12.2
million and $11.5 million, respectively)
12,901
12,939
Finance receivables held for sale, net
(including finance receivables of consolidated VIEs of $338.4
million and $305.9 million, respectively)
399,836
321,626
Inventory
240,676
320,648
Beneficial interests in
securitizations
5,287
20,592
Prepaid expenses and other current assets
(including other current assets of consolidated VIEs of $24.3
million and $11.7 million, respectively)
56,889
58,327
Total current assets
1,013,690
1,220,109
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $376.7
million and $119.6 million, respectively)
387,796
140,235
Property and equipment, net
49,220
50,201
Intangible assets, net
138,644
158,910
Operating lease right-of-use assets
30,836
23,568
Other assets (including other assets of
consolidated VIEs of $2.0 million and $0 million, respectively)
26,525
26,004
Total assets
$
1,646,711
$
1,619,027
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Accounts payable
$
27,280
$
34,702
Accrued expenses (including accrued
expenses of consolidated VIEs of $3.3 million and $1.5 million,
respectively)
57,435
76,795
Vehicle floorplan
212,486
276,988
Warehouse credit facilities of
consolidated VIEs
294,653
229,518
Current portion of long term debt
(including current portion of securitization debt of consolidated
VIEs at fair value of $186.6 million and $47.2 million,
respectively)
197,045
47,239
Deferred revenue
12,487
10,655
Operating lease liabilities, current
9,511
9,730
Other current liabilities
12,284
17,693
Total current liabilities
823,181
703,320
Long term debt, net of current portion
(including securitization debt of consolidated VIEs of $175.3
million and $32.6 million at fair value, respectively)
521,353
402,154
Operating lease liabilities, excluding
current portion
26,938
20,129
Other long-term liabilities (including
other long-term liabilities of consolidated VIEs of $9.5 million
and $7.4 million, respectively)
16,969
18,183
Total liabilities
1,388,441
1,143,786
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock, $0.001 par value;
500,000,000 shares authorized as of September 30, 2023 and December
31, 2022; 139,752,858 and 138,201,903 shares issued and outstanding
as of September 30, 2023 and December 31, 2022, respectively
135
135
Additional paid-in-capital
2,083,046
2,075,798
Accumulated deficit
(1,824,911
)
(1,600,692
)
Total stockholders’ equity
258,270
475,241
Total liabilities and stockholders’
equity
$
1,646,711
$
1,619,027
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share
and per share amounts)
(unaudited)
Three Months Ended September
30,
Nine Months Ended September
30,
2023
2022
2023
2022
Revenue:
Retail vehicle, net
$
147,710
$
234,353
$
419,548
$
1,283,263
Wholesale vehicle
30,898
47,604
75,593
270,489
Product, net
13,075
13,181
36,499
51,954
Finance
40,823
40,654
114,939
120,005
Other
3,128
5,005
10,700
13,841
Total revenue
235,634
340,797
657,279
1,739,552
Cost of sales:
Retail vehicle
144,654
218,726
414,917
1,234,138
Wholesale vehicle
32,393
49,178
81,019
276,749
Product
917
—
2,518
—
Finance
8,481
4,699
22,755
10,368
Other
1,095
863
3,170
2,969
Total cost of sales
187,540
273,466
524,379
1,524,224
Total gross profit
48,094
67,331
132,900
215,328
Selling, general and administrative
expenses
79,586
134,643
263,078
475,627
Depreciation and amortization
11,010
9,833
31,845
27,728
Impairment charges
—
1,017
1,353
206,127
Loss from operations
(42,502
)
(78,162
)
(163,376
)
(494,154
)
Gain on debt extinguishment
—
(37,917
)
(19,640
)
(37,917
)
Interest expense
12,058
9,704
30,915
28,617
Interest income
(5,506
)
(5,104
)
(16,369
)
(12,991
)
Other loss, net
33,543
5,383
65,019
26,897
Income (loss) before provision for income
taxes
(82,597
)
(50,228
)
(223,301
)
(498,760
)
Provision (benefit) for income taxes
260
899
918
(22,085
)
Net loss
$
(82,857
)
$
(51,127
)
$
(224,219
)
$
(476,675
)
Net loss per share attributable to common
stockholders, basic
$
(0.59
)
$
(0.37
)
$
(1.61
)
$
(3.46
)
Weighted-average number of shares
outstanding used to compute net loss per share attributable to
common stockholders, basic
139,692,323
138,118,679
139,123,352
137,817,839
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September
30,
2023
2022
Operating activities
Net loss
$
(224,219
)
$
(476,675
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Impairment charges
1,353
206,127
Gain on debt extinguishment
(19,640
)
(37,917
)
Depreciation and amortization
32,421
28,005
Amortization of debt issuance costs
3,418
3,777
Realized gains on securitization
transactions
—
(45,589
)
Deferred taxes
—
(23,855
)
Losses on finance receivables and
securitization debt, net
80,246
39,464
Stock-based compensation expense
7,248
6,613
Provision to record inventory at lower of
cost or net realizable value
(15,867
)
(5,033
)
Provision for bad debt
995
18,448
Provision to record finance receivables
held for sale at lower of cost or fair value
4,375
3,831
Amortization of unearned discounts on
finance receivables at fair value
(20,273
)
(12,121
)
Other, net
(11,792
)
(5,441
)
Changes in operating assets and
liabilities:
Finance receivables, held for sale
Originations of finance receivables held
for sale
(420,793
)
(483,167
)
Principal payments received on finance
receivables held for sale
71,906
38,297
Proceeds from sale of finance receivables
held for sale, net
—
509,612
Other
(868
)
(5,924
)
Accounts receivable
3,950
63,252
Inventory
95,839
293,589
Prepaid expenses and other current
assets
17,316
12,420
Other assets
2,097
(2,678
)
Accounts payable
(7,422
)
(22,183
)
Accrued expenses
(19,914
)
(27,020
)
Deferred revenue
1,832
(59,490
)
Other liabilities
(7,839
)
(39,444
)
Net cash used in operating activities
(425,631
)
(23,102
)
Investing activities
Finance receivables at fair value
Purchases of finance receivables at fair
value
(3,392
)
(49,475
)
Principal payments received on finance
receivables at fair value
136,644
106,829
Proceeds from sale of finance receivables
at fair value, net
—
43,262
Consolidation of VIEs
11,409
—
Principal payments received on beneficial
interests
4,334
5,571
Purchase of property and equipment
(11,553
)
(19,968
)
Acquisition of business, net of cash
acquired of $47.9 million
—
(267,488
)
Net cash provided by (used in) investing
activities
137,442
(181,269
)
Financing activities
Proceeds from borrowings under secured
financing agreements
261,991
—
Principal repayment under secured
financing agreements
(159,384
)
(176,909
)
Proceeds from financing of beneficial
interests in securitizations
24,506
—
Principal repayments of financing of
beneficial interests in securitizations
(5,699
)
—
Proceeds from vehicle floorplan
436,586
1,286,000
Repayments of vehicle floorplan
(501,088
)
(1,453,529
)
Proceeds from warehouse credit
facilities
332,700
419,000
Repayments of warehouse credit
facilities
(269,698
)
(460,566
)
Repurchases of convertible senior
notes
(13,194
)
(18,458
)
Other financing activities
(1,462
)
(1,977
)
Net cash provided by (used in) financing
activities
105,258
(406,439
)
Net decrease in cash, cash equivalents
and restricted cash
(182,931
)
(610,810
)
Cash, cash equivalents and restricted cash
at the beginning of period
472,010
1,214,775
Cash, cash equivalents and restricted
cash at the end of period
$
289,079
$
603,965
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
40,424
$
24,619
Cash paid for income taxes
$
5,153
$
2,062
Supplemental disclosure of non-cash
investing and financing activities:
Finance receivables from consolidation of
2022-2 securitization transaction
$
180,706
$
—
Elimination of beneficial interest from
the consolidation of 2022-2 securitization transaction
$
9,811
$
—
Securitization debt from consolidation of
2022-2 securitization transaction
$
186,386
$
—
Reclassification of finance receivables
held for sale to finance receivables at fair value, net
$
248,081
$
—
Fair value of beneficial interests
received in securitization transactions
$
—
$
30,082
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231107135758/en/
Investor Relations:
Vroom Jon Sandison investors@vroom.com
Media:
Vroom Chris Hayes chris.hayes@vroom.com
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