Continued Progress on Long-Term
Roadmap
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, 2022.
HIGHLIGHTS OF THIRD QUARTER 2022 VERSUS SECOND QUARTER
2022
- Ecommerce gross profit per unit of $4,206, up 16%
- SG&A expenses decreased $18.3 million
- Net loss improved from $(115.1) million to $(51.1) million
- Adjusted EBITDA improved from $(85.6) million to $(73.3)
million
- Adjusted EBITDA excluding non-recurring costs improved from
$(77.3) million to $(57.5) million
Tom Shortt, Chief Executive Officer of Vroom, commented: “We
continued to make progress on our three key objectives and four
strategic initiatives as outlined during our Investor Day in May.
We are intensely focused on improving the customer experience. For
the month of October, 98% of our customers received their completed
registrations before the expiration of their initial temporary
tags. We will continue this focus as we work to achieve our goal of
becoming best-in-class in titling and registration. We achieved
Ecommerce gross profit per unit of $4,206, improved our Adjusted
EBITDA excluding non-recurring costs to $(57.5) million and reduced
our leverage by $56 million. I would like to thank all of our
Vroommates, UACC Colleagues and third-party partners for their
contributions in transforming our business and improving our
customer experience."
Bob Krakowiak, Vroom’s Chief Financial Officer, commented: “I am
pleased with our financial and operational performance in the third
quarter. We took several actions to maximize liquidity and
strengthen our balance sheet, including unlocking $59 million of
restricted cash, repurchasing a portion of our convertible notes
and completing our second securitization since the acquisition of
UACC. Based on our progress, we are forecasting year-end cash
liquidity near the midpoint of our previous guidance of $450 to
$565 million.”
THIRD QUARTER 2022 FINANCIAL RESULTS
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,
2022
2021
Change
% Change
2022
2021
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
6,428
19,683
(13,255
)
(67.3
)%
35,134
53,455
(18,321
)
(34.3
)%
Ecommerce revenue:
Vehicle revenue
$
212,980
$
677,170
$
(464,190
)
(68.5
)%
$
1,173,727
$
1,644,494
$
(470,767
)
(28.6
)%
Product revenue
12,461
24,508
(12,047
)
(49.2
)%
48,709
59,155
(10,446
)
(17.7
)%
Total ecommerce revenue
$
225,441
$
701,678
$
(476,237
)
(67.9
)%
$
1,222,436
$
1,703,649
$
(481,213
)
(28.2
)%
Ecommerce gross profit:
Vehicle gross profit
$
14,573
$
25,875
$
(11,302
)
(43.7
)%
$
46,153
$
72,704
$
(26,551
)
(36.5
)%
Product gross profit
12,461
24,508
(12,047
)
(49.2
)%
48,709
59,155
(10,446
)
(17.7
)%
Total ecommerce gross profit
$
27,034
$
50,383
$
(23,349
)
(46.3
)%
$
94,862
$
131,859
$
(36,997
)
(28.1
)%
Average vehicle selling price per
ecommerce unit
$
33,133
$
34,404
$
(1,271
)
(3.7
)%
$
33,407
$
30,764
$
2,643
8.6
%
Gross profit per ecommerce unit:
Vehicle gross profit per ecommerce
unit
$
2,267
$
1,315
$
952
72.4
%
$
1,314
$
1,360
$
(46
)
(3.4
)%
Product gross profit per ecommerce
unit
1,939
1,245
694
55.7
%
1,386
1,107
279
25.2
%
Total gross profit per ecommerce unit
$
4,206
$
2,560
$
1,646
64.3
%
$
2,700
$
2,467
$
233
9.4
%
Ecommerce average days to sale
186
68
118
173.5
%
118
73
45
61.6
%
Results by Segment
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021(1)
Change
% Change
2022
2021(1)
Change
% Change
(in thousands, except unit
data)
(in thousands, except unit
data)
Units:
Ecommerce
6,428
19,683
(13,255
)
(67.3
)%
35,134
53,455
(18,321
)
(34.3
)%
Wholesale
3,128
9,760
(6,632
)
(68.0
)%
19,108
28,421
(9,313
)
(32.8
)%
All Other (2)
662
1,583
(921
)
(58.2
)%
3,408
3,358
50
1.5
%
Total units
10,218
31,026
(20,808
)
(67.1
)%
57,650
85,234
(27,584
)
(32.4
)%
Revenue:
Ecommerce
$
225,441
$
701,678
$
(476,237
)
(67.9
)%
$
1,222,436
$
1,703,649
$
(481,213
)
(28.2
)%
Wholesale
47,604
131,306
(83,702
)
(63.7
)%
270,489
377,438
(106,949
)
(28.3
)%
Retail Financing (3)
40,654
—
40,654
100.0
%
120,005
—
120,005
100.0
%
All Other (4)
27,098
63,772
(36,674
)
(57.5
)%
126,622
168,677
(42,055
)
(24.9
)%
Total revenue
$
340,797
$
896,756
$
(555,959
)
(62.0
)%
$
1,739,552
$
2,249,764
$
(510,212
)
(22.7
)%
Gross profit (loss):
Ecommerce
$
27,034
$
50,383
$
(23,349
)
(46.3
)%
$
94,862
$
131,859
$
(36,997
)
(28.1
)%
Wholesale
(1,574
)
2,103
(3,677
)
(174.8
)%
(6,260
)
10,337
(16,597
)
(160.6
)%
Retail Financing (3)
35,954
—
35,954
100.0
%
109,637
—
109,637
100.0
%
All Other (4)
5,917
5,603
314
5.6
%
17,089
15,197
1,892
12.4
%
Total gross profit
$
67,331
$
58,089
$
9,242
15.9
%
$
215,328
$
157,393
$
57,935
36.8
%
Gross profit (loss) per unit
(5):
Ecommerce
$
4,206
$
2,560
$
1,646
64.3
%
$
2,700
$
2,467
$
233
9.4
%
Wholesale
$
(503
)
$
215
$
(718
)
(334.0
)%
$
(328
)
$
364
$
(692
)
(190.1
)%
(1)
In the second quarter of 2022, we
reevaluated our reporting segments based on relative revenue and
gross profit and significance in our long term strategy. As a
result of that analysis, we determined to no longer report TDA as a
separate operating segment. As of June 30, 2022, we are organized
into three reportable segments: Ecommerce, Wholesale, and Retail
Financing. We reclassified TDA revenue and TDA gross profit from
the TDA reportable segment to the “All Other” category to conform
to current year presentation.
(2)
All Other units consist of retail sales of
used vehicles from TDA.
(3)
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.
(4)
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.
(5)
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,
2022
2021
Change
% Change
2022
2021
Change
% Change
(in thousands)
(in thousands)
Compensation & benefits
$
55,694
$
53,900
$
1,794
3.3
%
$
199,111
$
145,580
$
53,531
36.8
%
Marketing expense
14,945
35,214
(20,269
)
(57.6
)%
69,818
88,267
(18,449
)
(20.9
)%
Outbound logistics
4,945
22,717
(17,772
)
(78.2
)%
39,925
57,987
(18,062
)
(31.1
)%
Occupancy and related costs
6,041
4,635
1,406
30.3
%
17,408
12,599
4,809
38.2
%
Professional fees
6,459
7,694
(1,235
)
(16.1
)%
26,585
15,951
10,634
66.7
%
Software and IT costs
11,277
7,232
4,045
55.9
%
33,406
19,367
14,039
72.5
%
Other
35,282
17,326
17,956
103.6
%
89,374
41,731
47,643
114.2
%
Total selling, general &
administrative expenses
$
134,643
$
148,718
$
(14,075
)
(9.5
)%
$
475,627
$
381,482
$
94,145
24.7
%
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;
- Non-GAAP net loss;
- Non-GAAP net loss per share;
- Non-GAAP net loss excluding securitization gain; and
- Non-GAAP net loss per share excluding securitization gain.
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, Adjusted EBITDA
excluding securitization gain and non-recurring costs to address
operational and customer experience issues, Non-GAAP net loss,
Non-GAAP net loss per share, Non-GAAP net loss excluding
securitization gain, and Non-GAAP net loss per share excluding
securitization gain 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
realignment costs, acquisition related costs, change in fair value
of finance receivables, gain on debt extinguishment, goodwill
impairment charge and other costs, which relate to the write off of
the upfront shares issued as part of the Rocket Auto agreement and
previously recognized within "Other assets". Changes in fair value
of finance receivables can fluctuate significantly from period to
period and relate 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. Therefore, these historical finance
receivables acquired, which are accounted for under the fair value
option, will experience fluctuations in value from period to
period. We believe it is appropriate to remove this temporary
volatility from our Adjusted EBITDA results to better reflect our
ongoing business model. Additionally, these historical finance
receivables acquired from UACC are expected to run-off within
approximately 12 months.
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 do not expect these costs
to continue to be incurred once our operational issues have been
resolved.
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,
2022
2021
2022
2021
(in thousands)
(in thousands)
Net loss
$
(51,127
)
$
(98,122
)
$
(476,675
)
$
(241,118
)
Adjusted to exclude the following:
—
—
—
—
Interest expense
9,704
7,028
28,617
14,720
Interest income
(5,104
)
(2,930
)
(12,991
)
(7,288
)
(Benefit) provision for income taxes
899
29
(22,085
)
379
Depreciation and amortization
9,995
3,469
28,005
9,497
EBITDA
$
(35,633
)
$
(90,526
)
$
(455,129
)
$
(223,810
)
Realignment costs
$
3,243
$
—
$
12,772
$
—
Acquisition related costs
—
3,412
5,653
3,412
Change in fair value of finance
receivables
(3,012
)
—
4,455
—
Goodwill impairment charge
—
—
201,703
—
Gain on debt extinguishment
(37,917
)
—
(37,917
)
—
Other
—
—
2,127
—
Adjusted EBITDA
$
(73,319
)
$
(87,114
)
$
(266,336
)
$
(220,398
)
Non-recurring costs to address operational
and customer experience issues
15,785
—
25,059
—
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(57,534
)
$
(87,114
)
$
(241,277
)
$
(220,398
)
Securitization gain
(15,972
)
—
(45,589
)
—
Adjusted EBITDA excluding securitization
gain
$
(89,291
)
$
(87,114
)
$
(311,925
)
$
(220,398
)
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(73,506
)
$
(87,114
)
$
(286,866
)
$
(220,398
)
Non-GAAP net loss
We calculate Non-GAAP net loss as net loss adjusted to exclude
realignment costs, acquisition related costs, change in fair value
of finance receivables, goodwill impairment charge, gain on debt
extinguishment, and other costs, which relate to the write off of
the upfront shares issued as part of the Rocket Auto agreement and
previously recognized within "Other assets".
Non-GAAP net loss per share
We calculate Non-GAAP net loss per share as Non-GAAP net loss
divided by weighted average number of shares outstanding.
Non-GAAP net loss excluding securitization gain
We calculate Non-GAAP net loss excluding securitization gain as
Non-GAAP net loss adjusted to exclude the securitization gain from
the sale of UACC's finance receivables.
Non-GAAP net loss per share excluding securitization
gain
We calculate Non-GAAP net loss per share excluding
securitization gain as Non-GAAP net loss excluding securitization
gain divided by weighted average number of shares outstanding.
The following table presents a reconciliation of the foregoing
non-GAAP financial measures to net loss and net loss per share,
which are the most directly comparable U.S. GAAP measures:
Three Months Ended September
30,
Nine Months Ended September
30,
2022
2021
2022
2021
(in thousands, except share
and per share amounts)
Net loss
$
(51,127
)
$
(98,122
)
$
(476,675
)
$
(241,118
)
Net loss attributable to common
stockholders
$
(51,127
)
$
(98,122
)
$
(476,675
)
$
(241,118
)
Add: Realignment costs
3,243
—
12,772
—
Add: Acquisition related costs
—
3,412
5,653
3,412
Add: Change in fair value of finance
receivables
(3,012
)
—
4,455
—
Add: Goodwill impairment charge
—
—
201,703
—
Subtract: Gain on debt extinguishment
(37,917
)
—
(37,917
)
—
Add: Other
—
—
2,127
—
Non-GAAP net loss
$
(88,813
)
$
(94,710
)
$
(287,882
)
$
(237,706
)
Subtract: Securitization gain
(15,972
)
—
(45,589
)
—
Non-GAAP net loss excluding securitization
gain
$
(104,785
)
$
(94,710
)
$
(333,471
)
$
(237,706
)
—
—
—
—
Weighted-average number of shares
outstanding used to compute net loss per share, basic and
diluted
138,118,679
136,766,015
137,817,839
136,256,901
Net loss per share, basic and diluted
$
(0.37
)
$
(0.72
)
$
(3.46
)
$
(1.77
)
Impact of realignment costs
0.02
—
0.09
—
Impact of acquisition related costs
—
0.02
0.04
0.03
Impact of change in fair value of finance
receivables
(0.02
)
—
0.03
—
Impact of goodwill impairment charge
—
—
1.46
—
Impact of gain on debt extinguishment
(0.27
)
—
(0.28
)
—
Impact of other
—
—
0.02
—
Non-GAAP net loss per share, basic and
diluted
$
(0.64
)
$
(0.70
)
$
(2.10
)
$
(1.74
)
Impact of securitization gain
(0.12
)
—
(0.33
)
—
Non-GAAP net loss per share excluding
securitization gain and non-recurring costs to address operational
and customer experience issues, basic and diluted
$
(0.76
)
$
(0.70
)
$
(2.43
)
$
(1.74
)
THIRD QUARTER 2022 AS COMPARED TO SECOND QUARTER 2022
Three Months Ended September
30,
Three Months Ended June
30,
2022
2022
Change
% Change
(in thousands, except unit
data)
Total revenues
$
340,797
$
475,437
$
(134,640
)
(28.3
)%
Total gross profit
$
67,331
$
66,357
$
974
1.5
%
Ecommerce units sold
6,428
9,233
(2,805
)
(30.4
)%
Ecommerce revenue
$
225,441
$
321,632
$
(96,191
)
(29.9
)%
Ecommerce gross profit
$
27,034
$
33,509
$
(6,475
)
(19.3
)%
Vehicle gross profit per ecommerce
unit
$
2,267
$
2,166
$
101
4.7
%
Product gross profit per ecommerce
unit
1,939
1,463
476
32.5
%
Total gross profit per ecommerce unit
$
4,206
$
3,629
$
577
15.9
%
Wholesale units sold
3,128
5,867
(2,739
)
(46.7
)%
Wholesale revenue
$
47,604
$
82,901
$
(35,297
)
(42.6
)%
Wholesale gross loss
$
(1,574
)
$
(1,934
)
$
360
18.6
%
Wholesale gross loss per unit
$
(503
)
$
(330
)
$
(173
)
(52.4
)%
Retail Financing revenue
$
40,654
$
32,121
$
8,533
26.6
%
Retail Financing gross profit
$
35,954
$
28,720
$
7,234
25.2
%
Total selling, general, and administrative
expenses
$
134,643
$
152,990
$
(18,347
)
(12.0
)%
Three Months Ended September
30,
Three Months Ended June
30,
2022
2022
Change
% Change
(in thousands)
Net loss
$
(51,127
)
$
(115,089
)
$
63,962
55.6
%
Adjusted to exclude the following:
Interest expense
9,704
9,533
171
1.8
%
Interest income
(5,104
)
(3,935
)
(1,169
)
29.7
%
(Benefit) provision for income taxes
899
256
643
251.2
%
Depreciation and amortization
9,995
10,115
(120
)
(1.2
)%
EBITDA
$
(35,633
)
$
(99,120
)
$
63,487
64.1
%
Realignment costs
$
3,243
$
9,529
$
(6,286
)
(66.0
)%
Change in fair value of finance
receivables
(3,012
)
1,846
(4,858
)
(263.2
)%
Gain on debt extinguishment
(37,917
)
—
(37,917
)
100.0
%
Other
—
2,127
(2,127
)
(100.0
)%
Adjusted EBITDA
$
(73,319
)
$
(85,618
)
$
12,299
14.4
%
Non-recurring costs to address operational
and customer experience issues
15,785
8,274
7,511
90.8
%
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(57,534
)
$
(77,344
)
$
19,810
25.6
%
Securitization gain
(15,972
)
—
(15,972
)
100.0
%
Adjusted EBITDA excluding securitization
gain
$
(89,291
)
$
(85,618
)
$
(3,673
)
(4.3
)%
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(73,506
)
$
(77,344
)
$
3,838
5.0
%
Conference Call & Webcast Information
Vroom management will discuss these results and other
information regarding the Company during a conference call and
audio webcast Tuesday, November 8, 2022 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, our execution of and the expected
benefits from our business realignment plan and cost-saving
initiatives, including our ability to improve our transaction
processes and customer service experience, our expectations
regarding our business strategy and plans, including our ongoing
ability to integrate and develop United Auto Credit Corporation
into a captive finance operation, and, for future results of
operations and financial position, including our ability to improve
our unit economics and our outlook for the full year ended December
31, 2022, including with respect to our liquidity. 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, 2021, as
updated by our Quarterly report on Form 10-Q for the quarter ended
September 30, 2022, each of 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
As of
September 30,
December 31,
2022
2021
ASSETS
Current Assets:
Cash and cash equivalents
$
509,660
$
1,132,325
Restricted cash (including restricted cash
of consolidated VIEs of $19.5 million and $0 million,
respectively)
94,305
82,450
Accounts receivable, net of allowance of
$26.7 million and $8.9 million, respectively
23,733
105,433
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $10.9
million and $0 million, respectively)
13,644
—
Finance receivables held for sale, net
(including finance receivables of consolidated VIEs of $137.1
million and $0 million, respectively)
210,729
—
Inventory
437,828
726,384
Beneficial interests in
securitizations
23,984
—
Prepaid expenses and other current
assets
58,576
55,700
Total current assets
1,372,459
2,102,292
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $135.8
million and $0 million, respectively)
166,382
—
Property and equipment, net
50,520
37,042
Intangible assets, net
165,668
28,207
Goodwill
—
158,817
Operating lease right-of-use assets
24,392
15,359
Other assets
29,539
25,033
Total assets
$
1,808,960
$
2,366,750
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Accounts payable
$
36,800
$
52,651
Accrued expenses
103,903
121,508
Vehicle floorplan
345,272
512,801
Warehouse credit facilities of
consolidated VIEs
135,453
—
Current portion of securitization debt of
consolidated VIEs at fair value
54,652
—
Deferred revenue
16,313
75,803
Operating lease liabilities, current
8,268
6,889
Other current liabilities
19,061
57,604
Total current liabilities
719,722
827,256
Long term debt, net of current portion
(including securitization debt of consolidated VIEs of $40.8
million and $0 million at fair value, respectively)
607,790
610,618
Operating lease liabilities, excluding
current portion
20,620
9,592
Other long-term liabilities
15,696
4,090
Total liabilities
1,363,828
1,451,556
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock, $0.001 par value;
500,000,000 shares authorized as of September 30, 2022 and December
31, 2021; 138,154,063 and 137,092,891 shares issued and outstanding
as of September 30, 2022 and December 31, 2021, respectively
135
135
Additional paid-in-capital
2,070,454
2,063,841
Accumulated deficit
(1,625,457
)
(1,148,782
)
Total stockholders’ equity
445,132
915,194
Total liabilities and stockholders’
equity
$
1,808,960
$
2,366,750
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,
2022
2021
2022
2021
Revenue:
Retail vehicle, net
$
234,353
$
735,716
$
1,283,263
$
1,798,155
Wholesale vehicle
47,604
131,306
270,489
377,438
Product, net
13,181
26,544
51,954
64,422
Finance
40,654
—
120,005
—
Other
5,005
3,190
13,841
9,749
Total revenue
340,797
896,756
1,739,552
2,249,764
Cost of sales:
Retail vehicle
218,726
708,071
1,234,138
1,720,974
Wholesale vehicle
49,178
129,203
276,749
367,101
Finance
4,699
—
10,368
—
Other
863
1,393
2,969
4,296
Total cost of sales
273,466
838,667
1,524,224
2,092,371
Total gross profit
67,331
58,089
215,328
157,393
Selling, general and administrative
expenses
134,643
148,718
475,627
381,482
Depreciation and amortization
9,833
3,376
27,728
9,276
Impairment charges
1,017
—
206,127
—
Loss from operations
(78,162
)
(94,005
)
(494,154
)
(233,365
)
Gain on debt extinguishment
(37,917
)
—
(37,917
)
—
Interest expense
9,704
7,028
28,617
14,720
Interest income
(5,104
)
(2,930
)
(12,991
)
(7,288
)
Other loss (income), net
5,383
(10
)
26,897
(58
)
Loss before provision for income taxes
(50,228
)
(98,093
)
(498,760
)
(240,739
)
Provision (benefit) for income taxes
899
29
(22,085
)
379
Net loss
$
(51,127
)
$
(98,122
)
$
(476,675
)
$
(241,118
)
Net loss per share attributable to common
stockholders, basic and diluted
$
(0.37
)
$
(0.72
)
$
(3.46
)
$
(1.77
)
Weighted-average number of shares
outstanding used to compute net loss per share attributable to
common stockholders, basic and diluted
138,118,679
136,766,015
137,817,839
136,256,901
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Nine Months Ended September
30,
2022
2021
Operating activities
Net loss
$
(476,675
)
$
(241,118
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Impairment charges
206,127
—
Gain on debt extinguishment
(37,917
)
—
Depreciation and amortization
28,005
9,497
Amortization of debt issuance costs
3,777
1,784
Realized gains on securitization
transactions
(45,589
)
—
Deferred taxes
(23,855
)
—
Losses on finance receivables and
securitization debt, net
39,464
—
Stock-based compensation expense
6,613
9,754
Provision to record inventory at lower of
cost or net realizable value
(5,033
)
5,625
Other, net
4,717
4,874
Changes in operating assets and
liabilities:
Finance receivables, held for sale
Originations of finance receivables held
for sale
(483,167
)
—
Principal payments received on finance
receivables held for sale
38,297
—
Proceeds from sale of finance receivables
held for sale, net
509,612
—
Other
(5,924
)
—
Accounts receivable
63,252
(32,936
)
Inventory
293,589
(183,731
)
Prepaid expenses and other current
assets
12,420
(39,356
)
Other assets
(2,678
)
(7,390
)
Accounts payable
(22,183
)
26,144
Accrued expenses
(27,020
)
43,512
Deferred revenue
(59,490
)
39,227
Other liabilities
(39,444
)
38,655
Net cash used in operating activities
(23,102
)
(325,459
)
Investing activities
Finance receivables at fair value
Originations of finance receivables at
fair value
(49,475
)
—
Principal payments received on finance
receivables at fair value
106,829
—
Proceeds from sale of finance receivables
at fair value, net
43,262
—
Principal payments received on beneficial
interests
5,571
—
Purchase of property and equipment
(19,968
)
(18,786
)
Acquisition of business, net of cash
acquired of $47.9 million
(267,488
)
(75,875
)
Net cash used in investing activities
(181,269
)
(94,661
)
Financing activities
Principal repayment under secured
financing agreements
(176,909
)
—
Proceeds from vehicle floorplan
1,286,000
1,901,457
Repayments of vehicle floorplan
(1,453,529
)
(1,789,215
)
Proceeds from warehouse credit
facilities
419,000
—
Repayments of warehouse credit
facilities
(460,566
)
—
Other financing activities
(1,977
)
—
Repayments of convertible senior notes
(18,458
)
—
Proceeds from issuance of convertible
senior notes
—
625,000
Issuance costs paid for convertible senior
notes
—
(16,129
)
Proceeds from exercise of stock
options
—
5,085
Net cash (used in) provided by financing
activities
(406,439
)
726,198
Net (decrease) increase in cash, cash
equivalents and restricted cash
(610,810
)
306,078
Cash, cash equivalents and restricted cash
at the beginning of period
1,214,775
1,090,039
Cash, cash equivalents and restricted
cash at the end of period
$
603,965
$
1,396,117
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
24,619
$
11,116
Cash paid for income taxes
$
2,062
$
329
Supplemental disclosure of non-cash
investing and financing activities:
Fair value of beneficial interests
received in securitization transactions
$
30,082
$
—
Accrued property and equipment
expenditures
$
538
$
1,652
Issuance of common stock for CarStory
acquisition
$
—
$
38,811
Fair value of unvested stock options
assumed for acquisition of business
$
—
$
1,017
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221107005758/en/
Investor Relations: Vroom Liam Harrington
investors@vroom.com Media Contact: Current Global Danny
Finlay dfinlay@currentglobal.com
Vroom (NASDAQ:VRM)
Historical Stock Chart
From Dec 2024 to Jan 2025
Vroom (NASDAQ:VRM)
Historical Stock Chart
From Jan 2024 to Jan 2025
