Continued Progress on Long-Term Roadmap
Driving 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 second quarter ended June 30, 2023.
HIGHLIGHTS OF SECOND QUARTER 2023 VERSUS FIRST QUARTER
2023
- 5% sequential growth in Ecommerce units - first quarter with
sequential growth since the introduction of the Long-Term Roadmap
in Q2 2022
- $2,954 Ecommerce gross profit per unit (GPPU) as compared to
$2,552
- $(66.3) million net loss as compared to $(75.0) million
- $(56.3) million Adjusted EBITDA as compared to $(64.8)
million
- Continued to reduce sequential cost per unit in 4 out of 5
SG&A financial levers outlined in our Long-Term Roadmap
- Improving Adjusted EBITDA mid-point guidance for the full year
2023
Tom Shortt, Chief Executive Officer of Vroom, said, “In the
second quarter of 2023, consistent with our Long-Term Roadmap, we
continued to make progress on our three key objectives and four
strategic initiatives, improving Adjusted EBITDA by $8.5 million
sequentially. Ecommerce GPPU increased from $2,552 in Q1 2023 to
$2,954 in Q2 2023, benefiting from GPPU on unaged units, which
exceeded $5,000, as well as vehicle inventory reserves taken in
prior periods. During the second quarter of 2023, 80% of our units
sold were aged units, or units held greater than 180 days. We
continue to drive process improvements across titling and
registration, pricing, marketing, sales, reconditioning and
logistics. Looking forward to Q3 2023, we expect <40% of our mix
to be aged units. We expect to deliver sequential Adjusted EBITDA
improvements through the balance of the year.”
Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We
succeeded in reducing per-unit costs across 1) logistics, 2) sales,
3) titling, registration and support, and 4) fixed costs. We
further strengthened our balance sheet by repurchasing $18 million
of our convertible notes and enhanced our liquidity by selling our
non-investment grade notes from UACC’s 2023-1 securitization.
During the second half of 2023, we will continue to pursue
opportunities to reduce costs, strengthen our balance sheet and
enhance our liquidity.”
SECOND QUARTER 2023 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless
otherwise noted.
Ecommerce Results
Three Months Ended June
30,
Six Months Ended June
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
4,127
9,233
(5,106
)
(55.3
)%
8,060
28,706
(20,646
)
(71.9
)%
Ecommerce revenue:
Vehicle revenue
$
126,529
$
308,123
$
(181,594
)
(58.9
)%
$
250,636
$
960,747
$
(710,111
)
(73.9
)%
Product revenue
11,696
13,509
(1,813
)
(13.4
)%
23,222
36,248
(13,026
)
(35.9
)%
Total ecommerce revenue
$
138,225
$
321,632
$
(183,407
)
(57.0
)%
$
273,858
$
996,995
$
(723,137
)
(72.5
)%
Ecommerce gross profit:
Vehicle gross profit
$
1,196
$
20,000
$
(18,804
)
(94.0
)%
$
602
$
31,580
$
(30,978
)
(98.1
)%
Product gross profit
10,993
13,509
(2,516
)
(18.6
)%
21,621
36,248
(14,627
)
(40.4
)%
Total ecommerce gross profit
$
12,189
$
33,509
$
(21,320
)
(63.6
)%
$
22,223
$
67,828
$
(45,605
)
(67.2
)%
Average vehicle selling price per
ecommerce unit
$
30,659
$
33,372
$
(2,713
)
(8.1
)%
$
31,096
$
33,469
$
(2,373
)
(7.1
)%
Product revenue per ecommerce unit
2,834
1,463
1,371
93.7
%
2,881
1,263
1,618
128.1
%
Gross profit per ecommerce unit:
Vehicle gross profit per ecommerce
unit
$
290
$
2,166
$
(1,876
)
(86.6
)%
$
75
$
1,100
$
(1,025
)
(93.2
)%
Product gross profit per ecommerce
unit
2,664
1,463
1,201
82.1
%
2,683
1,263
1,420
112.4
%
Total gross profit per ecommerce unit
$
2,954
$
3,629
$
(675
)
(18.6
)%
$
2,758
$
2,363
$
395
16.7
%
Ecommerce average days to sale
327
128
199
155.4
%
304
110
194
175.9
%
Results by Segment
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(in thousands, except unit
data)
(in thousands, except unit
data)
Units:
Ecommerce
4,127
9,233
(5,106
)
(55.3
)%
8,060
28,706
(20,646
)
(71.9
)%
Wholesale
1,834
5,867
(4,033
)
(68.7
)%
3,003
15,980
(12,977
)
(81.2
)%
All Other (1)
309
1,047
(738
)
(70.5
)%
665
2,746
(2,081
)
(75.8
)%
Total units
6,270
16,147
(9,877
)
(61.2
)%
11,728
47,432
(35,704
)
(75.3
)%
Revenue:
Ecommerce
$
138,225
$
321,632
$
(183,407
)
(57.0
)%
$
273,858
$
996,995
$
(723,137
)
(72.5
)%
Wholesale
30,800
82,901
(52,101
)
(62.8
)%
44,695
222,885
(178,190
)
(79.9
)%
Retail Financing (2)
42,128
32,121
10,007
31.2
%
74,116
79,808
(5,692
)
(7.1
)%
All Other (3)
14,025
38,783
(24,758
)
(63.8
)%
28,976
99,524
(70,548
)
(70.9
)%
Total revenue
$
225,178
$
475,437
$
(250,259
)
(52.6
)%
$
421,645
$
1,399,212
$
(977,567
)
(69.9
)%
Gross profit (loss):
Ecommerce
$
12,189
$
33,509
$
(21,320
)
(63.6
)%
$
22,223
$
67,828
$
(45,605
)
(67.2
)%
Wholesale
(3,993
)
(1,934
)
(2,059
)
106.5
%
(3,931
)
(4,686
)
755
16.1
%
Retail Financing (2)
34,068
28,720
5,348
18.6
%
59,842
73,682
(13,840
)
(18.8
)%
All Other (3)
3,737
6,062
(2,325
)
(38.4
)%
6,672
11,173
(4,501
)
(40.3
)%
Total gross profit
$
46,001
$
66,357
$
(20,356
)
(30.7
)%
$
84,806
$
147,997
$
(63,191
)
(42.7
)%
Gross profit (loss) per unit
(4):
Ecommerce
$
2,954
$
3,629
$
(675
)
(18.6
)%
$
2,758
$
2,363
$
395
16.7
%
Wholesale
$
(2,177
)
$
(330
)
$
(1,847
)
559.7
%
$
(1,309
)
$
(293
)
$
(1,016
)
346.8
%
(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 June
30,
Six Months Ended June
30,
2023
2022
Change
% Change
2023
2022
Change
% Change
(in thousands)
(in thousands)
Compensation & benefits
$
41,957
$
68,891
$
(26,934
)
(39.1
)%
$
92,622
$
143,416
$
(50,794
)
(35.4
)%
Marketing expense
14,970
21,138
(6,168
)
(29.2
)%
26,441
54,874
(28,433
)
(51.8
)%
Outbound logistics
1,970
8,232
(6,262
)
(76.1
)%
4,042
34,980
(30,938
)
(88.4
)%
Occupancy and related costs
4,284
5,721
(1,437
)
(25.1
)%
9,025
11,367
(2,342
)
(20.6
)%
Professional fees
3,635
6,827
(3,192
)
(46.8
)%
10,227
20,126
(9,899
)
(49.2
)%
Software and IT costs
8,987
11,306
(2,319
)
(20.5
)%
18,328
22,129
(3,801
)
(17.2
)%
Other
11,152
30,875
(19,723
)
(63.9
)%
22,807
54,092
(31,285
)
(57.8
)%
Total selling, general &
administrative expenses
$
86,955
$
152,990
$
(66,035
)
(43.2
)%
$
183,492
$
340,984
$
(157,492
)
(46.2
)%
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 related to lease
impairment charges associated with closing one of our physical
office locations. 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 June 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 June
30,
Six Months Ended June
30,
2023
2022
2023
2022
(in thousands)
(in thousands)
Net loss
$
(66,318
)
$
(115,089
)
$
(141,362
)
$
(425,548
)
Adjusted to exclude the following:
Interest expense
8,938
9,533
18,857
18,913
Interest income
(4,921
)
(3,935
)
(10,863
)
(7,887
)
Provision (benefit) for income taxes
385
256
658
(22,984
)
Depreciation and amortization
10,536
10,115
21,173
18,010
EBITDA
$
(51,380
)
$
(99,120
)
$
(111,537
)
$
(419,496
)
Severance costs
$
2,277
$
—
$
6,381
$
—
Gain on debt extinguishment
(10,931
)
—
(19,640
)
—
Hail storm costs
2,353
—
2,353
—
Goodwill impairment charge
—
—
—
201,703
Realignment costs
—
9,529
—
9,529
Acquisition related costs
—
—
—
5,653
Other
1,352
2,127
1,352
2,127
Adjusted EBITDA
$
(56,329
)
$
(87,464
)
$
(121,091
)
$
(200,484
)
Non-recurring costs to address operational
and customer experience issues
126
8,274
785
9,274
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(56,203
)
$
(79,190
)
$
(120,306
)
$
(191,210
)
Securitization gain
—
—
—
(29,617
)
Adjusted EBITDA excluding securitization
gain
$
(56,329
)
$
(87,464
)
$
(121,091
)
$
(230,101
)
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(56,203
)
$
(79,190
)
$
(120,306
)
$
(220,827
)
SECOND QUARTER 2023 AS COMPARED TO
FIRST QUARTER 2023
Three Months Ended June
30,
Three Months Ended March
31,
2023
2023
Change
% Change
(in thousands, except unit
data)
Total revenues
$
225,178
$
196,467
$
28,711
14.6
%
Total gross profit
$
46,001
$
38,805
$
7,196
18.5
%
Ecommerce units sold
4,127
3,933
194
4.9
%
Ecommerce revenue
$
138,225
$
135,633
$
2,592
1.9
%
Ecommerce gross profit
$
12,189
$
10,035
$
2,154
21.5
%
Vehicle gross profit (loss) per ecommerce
unit
$
290
$
(151
)
$
441
292.1
%
Product gross profit per ecommerce
unit
2,664
2,703
(39
)
(1.4
)%
Total gross profit per ecommerce unit
$
2,954
$
2,552
$
402
15.8
%
Wholesale units sold
1,834
1,169
665
56.9
%
Wholesale revenue
$
30,800
$
13,895
$
16,905
121.7
%
Wholesale gross (loss) profit
$
(3,993
)
$
62
$
(4,055
)
(6,540.3
)%
Wholesale gross (loss) profit per unit
$
(2,177
)
$
53
$
(2,230
)
(4,207.5
)%
Retail Financing revenue
$
42,128
$
31,988
$
10,140
31.7
%
Retail Financing gross profit
$
34,068
$
25,774
$
8,294
32.2
%
Total selling, general, and administrative
expenses
$
86,955
$
96,537
$
(9,582
)
(9.9
)%
Three Months Ended June
30,
Three Months Ended March
31,
2023
2023
Change
% Change
(in thousands)
Net loss
$
(66,318
)
$
(75,044
)
$
8,726
11.6
%
Adjusted to exclude the following:
Interest expense
8,938
9,919
(981
)
(9.9
)%
Interest income
(4,921
)
(5,942
)
1,021
17.2
%
Provision for income taxes
385
273
112
41.0
%
Depreciation and amortization
10,536
10,637
(101
)
(0.9
)%
EBITDA
$
(51,380
)
$
(60,157
)
$
8,777
14.6
%
Severance costs
$
2,277
$
4,104
$
(1,827
)
(44.5
)%
Gain on debt extinguishment
(10,931
)
(8,709
)
(2,222
)
25.5
%
Hail storm costs
2,353
—
2,353
100.0
%
Other
1,352
—
1,352
100.0
%
Adjusted EBITDA
$
(56,329
)
$
(64,762
)
$
8,433
13.0
%
Non-recurring costs to address operational
and customer experience issues
126
659
(533
)
(80.8
)%
Adjusted EBITDA excluding non-recurring
costs to address operational and customer experience issues
$
(56,203
)
$
(64,103
)
$
7,900
(12.3
)%
Securitization gain
—
—
—
0.0
%
Adjusted EBITDA excluding securitization
gain
$
(56,329
)
$
(64,762
)
$
8,433
13.0
%
Adjusted EBITDA excluding securitization
gain and non-recurring costs to address operational and customer
experience issues
$
(56,203
)
$
(64,103
)
$
7,900
12.3
%
Financial Outlook
For the full year 2023, we updated our guidance to reflect an
improved outlook on Adjusted EBITDA performance and convertible
note repurchases:
- Adjusted EBITDA(1) of $(225.0) to $(200.0) million;
- Year-end cash and cash equivalents of $137.0 to $187.0 million;
reflecting $13.0 million of convertible note repurchases.
(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 second 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 August 8, 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, August 9, 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 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, 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. 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 June 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 June 30,
As of December 31,
2023
2022
ASSETS
Current Assets:
Cash and cash equivalents
$
237,925
$
398,915
Restricted cash (including restricted cash
of consolidated VIEs of $44.9 million and $24.7 million,
respectively)
66,306
73,095
Accounts receivable, net of allowance of
$9.9 million and $21.5 million, respectively
9,565
13,967
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $12.4
million and $11.5 million, respectively)
13,117
12,939
Finance receivables held for sale, net
(including finance receivables of consolidated VIEs of $204.4
million and $305.9 million, respectively)
290,015
321,626
Inventory
208,871
320,648
Beneficial interests in
securitizations
6,553
20,592
Prepaid expenses and other current assets
(including other current assets of consolidated VIEs of $20.9
million and $11.7 million, respectively)
57,221
58,327
Total current assets
889,573
1,220,109
Finance receivables at fair value
(including finance receivables of consolidated VIEs of $442.4
million and $119.6 million, respectively)
454,580
140,235
Property and equipment, net
50,689
50,201
Intangible assets, net
145,399
158,910
Operating lease right-of-use assets
26,837
23,568
Other assets
24,791
26,004
Total assets
$
1,591,869
$
1,619,027
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current Liabilities:
Accounts payable
$
29,345
$
34,702
Accrued expenses
58,307
76,795
Vehicle floorplan
132,480
276,988
Warehouse credit facilities of
consolidated VIEs
177,864
229,518
Current portion of long term debt
(including current portion of securitization debt of consolidated
VIEs at fair value of $219.4 million and $47.2 million,
respectively)
231,471
47,239
Deferred revenue
16,717
10,655
Operating lease liabilities, current
9,267
9,730
Other current liabilities (including other
current liabilities of consolidated VIEs of $2.8 million and $1.5
million, respectively)
11,912
17,693
Total current liabilities
667,363
703,320
Long term debt, net of current portion
(including securitization debt of consolidated VIEs of $197.6
million and $32.6 million at fair value, respectively)
544,931
402,154
Operating lease liabilities, excluding
current portion
23,929
20,129
Other long-term liabilities (including
other long-term liabilities of consolidated VIEs of $9.2 million
and $7.4 million, respectively)
17,410
18,183
Total liabilities
1,253,633
1,143,786
Commitments and contingencies (Note
13)
Stockholders’ equity:
Common stock, $0.001 par value;
500,000,000 shares authorized as of June 30, 2023 and December 31,
2022; 139,649,290 and 138,201,903 shares issued and outstanding as
of June 30, 2023 and December 31, 2022, respectively
135
135
Additional paid-in-capital
2,080,155
2,075,798
Accumulated deficit
(1,742,054
)
(1,600,692
)
Total stockholders’ equity
338,236
475,241
Total liabilities and stockholders’
equity
$
1,591,869
$
1,619,027
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(in thousands, except share
and per share amounts)
(unaudited)
Three Months Ended June
30,
Six Months Ended June
30,
2023
2022
2023
2022
Revenue:
Retail vehicle, net
$
136,568
$
341,724
$
271,838
$
1,048,910
Wholesale vehicle
30,800
82,901
44,695
222,885
Product, net
11,924
14,324
23,424
38,773
Finance
42,128
32,121
74,116
79,808
Other
3,758
4,367
7,572
8,836
Total revenue
225,178
475,437
421,645
1,399,212
Cost of sales:
Retail vehicle
134,539
319,903
270,263
1,015,412
Wholesale vehicle
34,793
84,834
48,626
227,571
Product
704
—
1,601
—
Finance
8,060
3,402
14,274
6,126
Other
1,081
941
2,075
2,106
Total cost of sales
179,177
409,080
336,839
1,251,215
Total gross profit
46,001
66,357
84,806
147,997
Selling, general and administrative
expenses
86,955
152,990
183,492
340,984
Depreciation and amortization
10,304
10,039
20,835
17,895
Impairment charges
1,353
3,407
1,353
205,110
Loss from operations
(52,611
)
(100,079
)
(120,874
)
(415,992
)
Gain on debt extinguishment
(10,931
)
—
(19,640
)
—
Interest expense
8,938
9,533
18,857
18,913
Interest income
(4,921
)
(3,935
)
(10,863
)
(7,887
)
Other loss, net
20,236
9,156
31,476
21,514
Income (loss) before provision for income
taxes
(65,933
)
(114,833
)
(140,704
)
(448,532
)
Provision (benefit) for income taxes
385
256
658
(22,984
)
Net loss
$
(66,318
)
$
(115,089
)
$
(141,362
)
$
(425,548
)
Net loss per share attributable to common
stockholders, basic
$
(0.48
)
$
(0.83
)
$
(1.02
)
$
(3.09
)
Weighted-average number of shares
outstanding used to compute net loss per share attributable to
common stockholders, basic
139,146,848
138,075,210
138,838,866
137,667,419
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Six Months Ended June
30,
2023
2022
Operating activities
Net loss
$
(141,362
)
$
(425,548
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Impairment charges
1,353
205,110
Gain on debt extinguishment
(19,640
)
—
Depreciation and amortization
21,173
18,010
Amortization of debt issuance costs
2,248
2,523
Realized gains on securitization
transactions
—
(29,617
)
Deferred taxes
—
(23,855
)
Losses on finance receivables and
securitization debt, net
42,532
29,457
Stock-based compensation expense
4,357
5,405
Provision to record inventory at lower of
cost or net realizable value
(11,811
)
(2,006
)
Provision for bad debt
529
11,119
Provision to record finance receivables
held for sale at lower of cost or fair value
1,651
1,986
Amortization of unearned discounts on
finance receivables at fair value
(13,414
)
(8,788
)
Other, net
(7,579
)
(851
)
Changes in operating assets and
liabilities:
Finance receivables, held for sale
Originations of finance receivables held
for sale
(274,707
)
(319,314
)
Principal payments received on finance
receivables held for sale
42,862
23,179
Proceeds from sale of finance receivables
held for sale, net
—
271,820
Other
505
(4,011
)
Accounts receivable
3,873
34,192
Inventory
123,588
192,618
Prepaid expenses and other current
assets
16,611
13,513
Other assets
1,213
(1,670
)
Accounts payable
(5,357
)
(15,352
)
Accrued expenses
(19,042
)
(23,832
)
Deferred revenue
6,062
(58,003
)
Other liabilities
(7,770
)
(33,604
)
Net cash used in operating activities
(232,125
)
(137,519
)
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
91,892
74,690
Proceeds from sale of finance receivables
at fair value, net
—
29,026
Consolidation of VIEs
11,409
—
Principal payments received on beneficial
interests
3,306
2,720
Purchase of property and equipment
(8,521
)
(16,046
)
Acquisition of business, net of cash
acquired of $47.9 million
—
(267,488
)
Net cash provided by (used in) investing
activities
94,694
(226,573
)
Financing activities
Proceeds from borrowings under secured
financing agreements
261,991
—
Principal repayment under secured
financing agreements
(103,980
)
(105,563
)
Proceeds from financing of beneficial
interests in securitizations
24,506
—
Principal repayments of financing of
beneficial interests in securitizations
(2,304
)
—
Proceeds from vehicle floorplan
182,734
1,074,184
Repayments of vehicle floorplan
(327,242
)
(1,164,533
)
Proceeds from warehouse credit
facilities
211,400
261,700
Repayments of warehouse credit
facilities
(263,216
)
(228,744
)
Repurchases of convertible senior
notes
(13,194
)
—
Other financing activities
(1,043
)
(1,344
)
Net cash used in financing activities
(30,348
)
(164,300
)
Net decrease in cash, cash equivalents
and restricted cash
(167,779
)
(528,392
)
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
$
304,231
$
686,383
VROOM, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (continued)
(in thousands)
(unaudited)
Supplemental disclosure of cash flow
information:
Cash paid for interest
$
25,983
$
16,299
Cash paid for income taxes
$
3,682
$
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
$
—
$
16,473
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230808120348/en/
Investor Relations:
Vroom Jon Sandison investors@vroom.com
Media Contact:
Vroom Chris Hayes chris.hayes@vroom.com
Vroom (NASDAQ:VRM)
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