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Vroom Announces Record Ecommerce Gross Profit Per Unit of $3,629

Substantial 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 second quarter ended June 30, 2022.

HIGHLIGHTS OF SECOND QUARTER 2022 VERSUS FIRST QUARTER 2022

  • Ecommerce gross profit per unit of $3,629, up 106%
  • SG&A expenses decreased $35.0 million
  • Net loss improved from $310.5 million to $115.1 million
  • Adjusted EBITDA loss improved from $107.4 million to $85.6 million

Tom Shortt, Chief Executive Officer of Vroom, commented: “The second quarter of 2022 marked substantial progress for Vroom against our four strategic initiatives outlined in our recent investor and analyst event. We announced record Ecommerce gross profit per unit and improved our adjusted EBITDA from the prior quarter. We also began scaling UACC-originated loans for Vroom, which contributed to our improvement in gross profit per unit. I would like to thank all of our Vroommates and our third-party partners for their support in serving our customers.”

Bob Krakowiak, Vroom’s Chief Financial Officer, commented: “I am proud of our achievements in the second quarter. Our Ecommerce gross profit per unit of $3,629 reflects our commitment to our first key objective of prioritizing unit economics. We are making progress in reducing our cost structure as detailed in our business realignment plan presented in May. We realized a $35 million sequential improvement in SG&A and, as a result of our initiatives, we ended the quarter with $533 million in liquidity. Based on our progress, we are continuing to forecast year-end liquidity of approximately $500 million at the midpoint.”

SECOND QUARTER 2022 FINANCIAL RESULTS

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,

 

 

 

 

 

 

 

 

 

 

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

 

 

 

9,233

 

 

 

 

18,268

 

 

 

 

(9,035

)

 

 

(49.5

)%

 

 

 

28,706

 

 

 

 

33,772

 

 

 

 

(5,066

)

 

 

(15.0

)%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

308,123

 

 

$

 

559,010

 

 

$

 

(250,887

)

 

 

(44.9

)%

 

$

 

960,747

 

 

$

 

967,324

 

 

$

 

(6,577

)

 

 

(0.7

)%

Product revenue

 

 

 

13,509

 

 

 

 

20,653

 

 

 

 

(7,144

)

 

 

(34.6

)%

 

 

 

36,248

 

 

 

 

34,647

 

 

 

 

1,601

 

 

 

4.6

%

Total ecommerce revenue

 

$

 

321,632

 

 

$

 

579,663

 

 

$

 

(258,031

)

 

 

(44.5

)%

 

$

 

996,995

 

 

$

 

1,001,971

 

 

$

 

(4,976

)

 

 

(0.5

)%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

20,000

 

 

$

 

28,985

 

 

$

 

(8,985

)

 

 

(31.0

)%

 

$

 

31,580

 

 

$

 

46,828

 

 

$

 

(15,248

)

 

 

(32.6

)%

Product gross profit

 

 

 

13,509

 

 

 

 

20,653

 

 

 

 

(7,144

)

 

 

(34.6

)%

 

 

 

36,248

 

 

 

 

34,647

 

 

 

 

1,601

 

 

 

4.6

%

Total ecommerce gross profit

 

$

 

33,509

 

 

$

 

49,638

 

 

$

 

(16,129

)

 

 

(32.5

)%

 

$

 

67,828

 

 

$

 

81,475

 

 

$

 

(13,647

)

 

 

(16.7

)%

Average vehicle selling price per ecommerce unit

 

$

 

33,372

 

 

$

 

30,601

 

 

$

 

2,771

 

 

 

9.1

%

 

$

 

33,469

 

 

$

 

28,643

 

 

$

 

4,826

 

 

 

16.8

%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

2,166

 

 

$

 

1,587

 

 

$

 

579

 

 

 

36.5

%

 

$

 

1,100

 

 

$

 

1,387

 

 

$

 

(287

)

 

 

(20.7

)%

Product gross profit per ecommerce unit

 

 

 

1,463

 

 

 

 

1,131

 

 

 

 

332

 

 

 

29.4

%

 

 

 

1,263

 

 

 

 

1,026

 

 

 

 

237

 

 

 

23.1

%

Total gross profit per ecommerce unit

 

$

 

3,629

 

 

$

 

2,718

 

 

$

 

911

 

 

 

33.5

%

 

$

 

2,363

 

 

$

 

2,413

 

 

$

 

(50

)

 

 

(2.1

)%

Ecommerce average days to sale

 

 

 

128

 

 

 

 

68

 

 

 

 

60

 

 

 

88.2

%

 

 

 

110

 

 

 

 

76

 

 

 

 

34

 

 

 

44.7

%

Results by Segment

 

 

Three Months Ended

June 30,

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

 

 

 

 

 

 

 

 

 

2022

 

 

2021(1)

 

 

Change

 

 

% Change

 

 

2022

 

 

2021(1)

 

 

Change

 

 

% Change

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

 

9,233

 

 

 

18,268

 

 

 

(9,035

)

 

 

(49.5

)%

 

 

28,706

 

 

 

33,772

 

 

 

(5,066

)

 

 

(15.0

)%

Wholesale

 

 

5,867

 

 

 

10,020

 

 

 

(4,153

)

 

 

(41.4

)%

 

 

15,980

 

 

 

18,661

 

 

 

(2,681

)

 

 

(14.4

)%

All Other (2)

 

 

1,047

 

 

 

1,583

 

 

 

(536

)

 

 

(33.9

)%

 

 

2,746

 

 

 

3,358

 

 

 

(612

)

 

 

(18.2

)%

Total units

 

 

16,147

 

 

 

29,871

 

 

 

(13,724

)

 

 

(45.9

)%

 

 

47,432

 

 

 

55,791

 

 

 

(8,359

)

 

 

(15.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

321,632

 

 

$

579,663

 

 

$

(258,031

)

 

 

(44.5

)%

 

$

996,995

 

 

$

1,001,971

 

 

$

(4,976

)

 

 

(0.5

)%

Wholesale

 

 

82,901

 

 

 

128,108

 

 

 

(45,207

)

 

 

(35.3

)%

 

 

222,885

 

 

 

246,132

 

 

 

(23,247

)

 

 

(9.4

)%

Retail Financing (3)

 

 

32,121

 

 

 

 

 

 

32,121

 

 

 

100.0

%

 

 

79,808

 

 

 

 

 

 

79,808

 

 

 

100.0

%

All Other (4)

 

 

38,783

 

 

 

54,119

 

 

 

(15,336

)

 

 

(28.3

)%

 

 

99,524

 

 

 

104,905

 

 

 

(5,381

)

 

 

(5.1

)%

Total revenue

 

$

475,437

 

 

$

761,890

 

 

$

(286,453

)

 

 

(37.6

)%

 

$

1,399,212

 

 

$

1,353,008

 

 

$

46,204

 

 

 

3.4

%

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

33,509

 

 

$

49,638

 

 

$

(16,129

)

 

 

(32.5

)%

 

$

67,828

 

 

$

81,475

 

 

$

(13,647

)

 

 

(16.7

)%

Wholesale

 

 

(1,934

)

 

 

8,516

 

 

 

(10,450

)

 

 

(122.7

)%

 

 

(4,686

)

 

 

8,234

 

 

 

(12,920

)

 

 

(156.9

)%

Retail Financing (3)

 

 

28,720

 

 

 

 

 

 

28,720

 

 

 

100.0

%

 

 

73,682

 

 

 

 

 

 

73,682

 

 

 

100.0

%

All Other (4)

 

 

6,062

 

 

 

4,974

 

 

 

1,088

 

 

 

21.9

%

 

 

11,173

 

 

 

9,595

 

 

 

1,578

 

 

 

16.4

%

Total gross profit

 

$

66,357

 

 

$

63,128

 

 

$

3,229

 

 

 

5.1

%

 

$

147,997

 

 

$

99,304

 

 

$

48,693

 

 

 

49.0

%

Gross profit (loss) per unit (5):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

3,629

 

 

$

2,718

 

 

$

911

 

 

 

33.5

%

 

$

2,363

 

 

$

2,413

 

 

$

(50

)

 

 

(2.1

)%

Wholesale

 

$

(330

)

 

$

850

 

 

$

(1,180

)

 

 

(138.8

)%

 

$

(293

)

 

$

441

 

 

$

(734

)

 

 

(166.4

)%

(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

June 30,

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

 

 

 

 

 

 

 

 

 

 

2022

 

 

 

2021

 

 

Change

 

 

% Change

 

 

 

2022

 

 

 

2021

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

Compensation & benefits

 

$

 

68,891

 

 

$

 

51,811

 

 

$

17,080

 

 

 

33.0

%

 

$

 

143,416

 

 

$

 

91,681

 

 

$

51,735

 

 

 

56.4

%

Marketing expense

 

 

 

21,138

 

 

 

 

23,495

 

 

 

(2,357

)

 

 

(10.0

)%

 

 

 

54,874

 

 

 

 

53,053

 

 

 

1,821

 

 

 

3.4

%

Outbound logistics

 

 

 

8,232

 

 

 

 

20,153

 

 

 

(11,921

)

 

 

(59.2

)%

 

 

 

34,980

 

 

 

 

35,271

 

 

 

(291

)

 

 

(0.8

)%

Occupancy and related costs

 

 

 

5,721

 

 

 

 

4,042

 

 

 

1,679

 

 

 

41.5

%

 

 

 

11,367

 

 

 

 

7,964

 

 

 

3,403

 

 

 

42.7

%

Professional fees

 

 

 

6,827

 

 

 

 

4,259

 

 

 

2,568

 

 

 

60.3

%

 

 

 

20,126

 

 

 

 

8,257

 

 

 

11,869

 

 

 

143.7

%

Software and IT costs

 

 

 

11,306

 

 

 

 

6,855

 

 

 

4,451

 

 

 

64.9

%

 

 

 

22,129

 

 

 

 

12,135

 

 

 

9,994

 

 

 

82.4

%

Other

 

 

 

30,875

 

 

 

 

13,283

 

 

 

17,592

 

 

 

132.4

%

 

 

 

54,092

 

 

 

 

24,403

 

 

 

29,689

 

 

 

121.7

%

Total selling, general & administrative expenses

 

$

 

152,990

 

 

$

 

123,898

 

 

$

29,092

 

 

 

23.5

%

 

$

 

340,984

 

 

$

 

232,764

 

 

$

108,220

 

 

 

46.5

%

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 securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, 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 securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, 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 EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding securitization gain, Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.

EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding securitization gain

We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense and we calculate Adjusted EBITDA as EBITDA adjusted to exclude realignment costs, acquisition related costs, change in fair value of finance receivables, 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 15 months. 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. The following table presents a reconciliation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA excluding securitization gain to net loss, which is the most directly comparable U.S. GAAP measure:

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

 

(in thousands)

 

Net loss

 

$

(115,089

)

 

$

(65,807

)

 

$

(425,548

)

 

$

(142,996

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,533

 

 

 

3,880

 

 

 

18,913

 

 

 

7,692

 

Interest income

 

 

(3,935

)

 

 

(2,062

)

 

 

(7,887

)

 

 

(4,358

)

(Benefit) provision for income taxes

 

 

256

 

 

 

194

 

 

 

(22,984

)

 

 

350

 

Depreciation and amortization

 

 

10,115

 

 

 

3,122

 

 

 

18,010

 

 

 

6,028

 

EBITDA

 

$

(99,120

)

 

$

(60,673

)

 

$

(419,496

)

 

$

(133,284

)

Realignment costs

 

$

9,529

 

 

$

 

 

$

9,529

 

 

$

 

Acquisition related costs

 

 

 

 

 

 

 

 

5,653

 

 

 

 

Change in fair value of finance receivables

 

 

1,846

 

 

 

 

 

 

7,467

 

 

 

 

Goodwill impairment charge

 

 

 

 

 

 

 

 

201,703

 

 

 

 

Other

 

 

2,127

 

 

 

 

 

 

2,127

 

 

 

 

Adjusted EBITDA

 

$

(85,618

)

 

$

(60,673

)

 

$

(193,017

)

 

$

(133,284

)

Securitization gain

 

 

 

 

 

 

 

$

(29,617

)

 

 

 

Adjusted EBITDA excluding securitization gain

 

$

(85,618

)

 

$

(60,673

)

 

$

(222,634

)

 

$

(133,284

)

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

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, 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". We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding. 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. 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 Non-GAAP net loss, Non-GAAP net loss excluding securitization gain, Non-GAAP net loss per share, and Non-GAAP net loss per share excluding securitization gain to net loss and net loss per share, which are the most directly comparable U.S. GAAP measures:

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

 

 

(in thousands, except share and per share amounts)

 

Net loss

 

$

(115,089

)

 

$

(65,807

)

 

$

(425,548

)

 

$

(142,996

)

Net loss attributable to common stockholders

 

$

(115,089

)

 

$

(65,807

)

 

$

(425,548

)

 

$

(142,996

)

Add: Realignment costs

 

 

9,529

 

 

 

 

 

 

9,529

 

 

 

 

Add: Acquisition related costs

 

 

 

 

 

 

 

 

5,653

 

 

 

 

Add: Change in fair value of finance receivables

 

 

1,846

 

 

 

 

 

 

7,467

 

 

 

 

Add: Goodwill impairment charge

 

 

 

 

 

 

 

 

201,703

 

 

 

 

Add: Other

 

 

2,127

 

 

 

 

 

 

2,127

 

 

 

 

Non-GAAP net loss

 

$

(101,587

)

 

$

(65,807

)

 

$

(199,069

)

 

$

(142,996

)

Subtract: Securitization gain

 

 

 

 

 

 

 

 

(29,617

)

 

 

 

Non-GAAP net loss excluding securitization gain

 

$

(101,587

)

 

$

(65,807

)

 

$

(228,686

)

 

$

(142,996

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted

 

 

138,075,210

 

 

 

136,507,177

 

 

 

137,667,419

 

 

 

136,002,344

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.83

)

 

$

(0.48

)

 

$

(3.09

)

 

$

(1.05

)

Impact of realignment costs

 

 

0.07

 

 

 

 

 

 

0.07

 

 

 

 

Impact of acquisition related costs

 

 

 

 

 

 

 

 

0.04

 

 

 

 

Impact of change in fair value of finance receivables

 

 

0.01

 

 

 

 

 

 

0.05

 

 

 

 

Impact of goodwill impairment charge

 

 

 

 

 

 

 

 

1.47

 

 

 

 

Impact of other

 

 

0.02

 

 

 

 

 

 

0.02

 

 

 

 

Non-GAAP net loss per share, basic and diluted

 

$

(0.73

)

 

$

(0.48

)

 

$

(1.44

)

 

$

(1.05

)

Impact of securitization gain

 

 

 

 

 

 

 

 

(0.22

)

 

 

 

Non-GAAP net loss per share excluding securitization gain, basic and diluted

 

$

(0.73

)

 

$

(0.48

)

 

$

(1.66

)

 

$

(1.05

)

SECOND QUARTER 2022 AS COMPARED TO FIRST QUARTER 2022

 

Three Months Ended

June 30,

 

Three Months Ended

March 31,

 

 

 

 

 

 

 

 

2022

 

2022

 

 

Change

 

 

% Change

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

Total revenues

 

$

475,437

 

 

$

923,775

 

 

$

(448,338

)

 

 

(48.5

)%

Total gross profit

 

$

66,357

 

 

$

81,640

 

 

$

(15,283

)

 

 

(18.7

)%

Ecommerce units sold

 

 

9,233

 

 

 

19,473

 

 

 

(10,240

)

 

 

(52.6

)%

Ecommerce revenue

 

$

321,632

 

 

$

675,364

 

 

$

(353,732

)

 

 

(52.4

)%

Ecommerce gross profit

 

$

33,509

 

 

$

34,320

 

 

$

(811

)

 

 

(2.4

)%

Vehicle gross profit per ecommerce unit

 

$

2,166

 

 

$

595

 

 

$

1,571

 

 

 

264.0

%

Product gross profit per ecommerce unit

 

 

1,463

 

 

 

1,168

 

 

 

295

 

 

 

25.3

%

Total gross profit per ecommerce unit

 

$

3,629

 

 

$

1,763

 

 

$

1,866

 

 

 

105.8

%

Wholesale units sold

 

 

5,867

 

 

 

10,113

 

 

 

(4,246

)

 

 

(42.0

)%

Wholesale revenue

 

$

82,901

 

 

$

139,984

 

 

$

(57,083

)

 

 

(40.8

)%

Wholesale gross loss

 

$

(1,934

)

 

$

(2,753

)

 

$

819

 

 

 

29.7

%

Wholesale gross loss per unit

 

$

(330

)

 

$

(272

)

 

$

(58

)

 

 

(21.2

)%

Retail Financing revenue

 

$

32,121

 

 

$

47,687

 

 

$

(15,566

)

 

 

(32.6

)%

Retail Financing gross profit

 

$

28,720

 

 

$

44,963

 

 

$

(16,243

)

 

 

(36.1

)%

Total selling, general, and administrative expenses

 

$

152,990

 

 

$

187,994

 

 

$

(35,004

)

 

 

(18.6

)%

 

 

Three Months Ended

June 30,

 

 

Three Months Ended

March 31,

 

 

 

 

 

 

 

 

 

2022

 

 

2022

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

Net loss

 

$

(115,089

)

 

$

(310,459

)

 

$

195,370

 

 

 

62.9

%

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

9,533

 

 

 

9,380

 

 

 

153

 

 

 

1.6

%

Interest income

 

 

(3,935

)

 

 

(3,952

)

 

 

17

 

 

 

0.4

%

(Benefit) provision for income taxes

 

 

256

 

 

 

(23,240

)

 

 

23,496

 

 

 

101.1

%

Depreciation and amortization

 

 

10,115

 

 

 

7,895

 

 

 

2,220

 

 

 

28.1

%

EBITDA

 

$

(99,120

)

 

$

(320,376

)

 

$

221,256

 

 

 

69.1

%

Realignment costs

 

$

9,529

 

 

$

 

 

$

9,529

 

 

 

100.0

%

Acquisition related costs

 

 

 

 

 

5,653

 

 

 

(5,653

)

 

 

(100.0

)%

Change in fair value of finance receivables

 

 

1,846

 

 

 

5,621

 

 

 

(3,775

)

 

 

(67.2

)%

Goodwill impairment charge

 

 

 

 

 

201,703

 

 

 

(201,703

)

 

 

(100.0

)%

Other

 

 

2,127

 

 

 

 

 

 

2,127

 

 

 

100.0

%

Adjusted EBITDA

 

$

(85,618

)

 

$

(107,399

)

 

$

21,781

 

 

 

20.3

%

Securitization gain

 

 

 

 

 

(29,617

)

 

 

29,617

 

 

 

100.0

%

Adjusted EBITDA excluding securitization gain

 

$

(85,618

)

 

$

(137,016

)

 

$

51,398

 

 

 

37.5

%

Conference Call & Webcast Information

Vroom management will discuss these results and other information regarding the Company during a conference call and audio webcast Tuesday, August 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, 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 June 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 June 30,

 

 

As of December 31,

 

 

 

 

 

 

 

 

2022

 

 

2021

 

ASSETS

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

532,642

 

 

$

1,132,325

 

Restricted cash (including restricted cash of consolidated VIEs of $33.5 million and $0 million, respectively)

 

 

153,741

 

 

 

82,450

 

Accounts receivable, net of allowance of $19.5 million and $8.9 million, respectively

 

 

60,122

 

 

 

105,433

 

Finance receivables at fair value (including finance receivables of consolidated VIEs of $13.6 million and $0 million, respectively)

 

 

14,461

 

 

 

 

Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $253.1 million and $0 million, respectively)

 

 

295,303

 

 

 

 

Inventory

 

 

535,772

 

 

 

726,384

 

Beneficial interests in securitizations

 

 

13,432

 

 

 

 

Prepaid expenses and other current assets

 

 

61,430

 

 

 

55,700

 

Total current assets

 

 

1,666,903

 

 

 

2,102,292

 

Finance receivables at fair value (including finance receivables of consolidated VIEs

of $164.6 million and $0 million, respectively)

 

 

213,323

 

 

 

 

Property and equipment, net

 

 

49,836

 

 

 

37,042

 

Intangible assets, net

 

 

172,425

 

 

 

28,207

 

Goodwill

 

 

 

 

 

158,817

 

Operating lease right-of-use assets

 

 

11,281

 

 

 

15,359

 

Other assets

 

 

28,531

 

 

 

25,033

 

Total assets

 

$

2,142,299

 

 

$

2,366,750

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

Accounts payable

 

$

43,631

 

 

$

52,651

 

Accrued expenses

 

 

107,091

 

 

 

121,508

 

Vehicle floorplan

 

 

422,452

 

 

 

512,801

 

Warehouse credit facilities of consolidated VIEs

 

 

210,577

 

 

 

 

Current portion of securitization debt of consolidated VIEs at fair value

 

 

115,325

 

 

 

 

Deferred revenue

 

 

17,800

 

 

 

75,803

 

Operating lease liabilities, current

 

 

7,097

 

 

 

6,889

 

Other current liabilities

 

 

22,139

 

 

 

57,604

 

Total current liabilities

 

 

946,112

 

 

 

827,256

 

Long term debt, net of current portion (including securitization debt of consolidated VIEs of $51.8 million and $0 million at fair value, respectively)

 

 

674,331

 

 

 

610,618

 

Operating lease liabilities, excluding current portion

 

 

8,347

 

 

 

9,592

 

Other long-term liabilities

 

 

18,458

 

 

 

4,090

 

Total liabilities

 

 

1,647,248

 

 

 

1,451,556

 

Commitments and contingencies (Note 13)

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2022 and December 31, 2021; 138,102,755 and 137,092,891 shares issued and outstanding as of June 30, 2022 and December 31, 2021, respectively

 

 

135

 

 

 

135

 

Additional paid-in-capital

 

 

2,069,246

 

 

 

2,063,841

 

Accumulated deficit

 

 

(1,574,330

)

 

 

(1,148,782

)

Total stockholders’ equity

 

 

495,051

 

 

 

915,194

 

Total liabilities and stockholders’ equity

 

$

2,142,299

 

 

$

2,366,750

 

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,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Retail vehicle, net

 

$

341,724

 

 

$

608,116

 

 

$

1,048,910

 

 

$

1,062,439

 

Wholesale vehicle

 

 

82,901

 

 

 

128,108

 

 

 

222,885

 

 

 

246,132

 

Product, net

 

 

14,324

 

 

 

22,306

 

 

 

38,773

 

 

 

37,878

 

Finance

 

 

32,121

 

 

 

 

 

 

79,808

 

 

 

 

Other

 

 

4,367

 

 

 

3,360

 

 

 

8,836

 

 

 

6,559

 

Total revenue

 

 

475,437

 

 

 

761,890

 

 

 

1,399,212

 

 

 

1,353,008

 

Cost of sales:

 

 

 

 

 

 

 

 

 

 

 

 

Retail vehicle

 

 

319,903

 

 

 

577,636

 

 

 

1,015,412

 

 

 

1,012,903

 

Wholesale vehicle

 

 

84,834

 

 

 

119,592

 

 

 

227,571

 

 

 

237,898

 

Finance

 

 

3,402

 

 

 

 

 

 

6,126

 

 

 

 

Other

 

 

941

 

 

 

1,534

 

 

 

2,106

 

 

 

2,903

 

Total cost of sales

 

 

409,080

 

 

 

698,762

 

 

 

1,251,215

 

 

 

1,253,704

 

Total gross profit

 

 

66,357

 

 

 

63,128

 

 

 

147,997

 

 

 

99,304

 

Selling, general and administrative expenses

 

 

152,990

 

 

 

123,898

 

 

 

340,984

 

 

 

232,764

 

Depreciation and amortization

 

 

10,039

 

 

 

3,058

 

 

 

17,895

 

 

 

5,900

 

Impairment charges

 

 

3,407

 

 

 

 

 

 

205,110

 

 

 

 

Loss from operations

 

 

(100,079

)

 

 

(63,828

)

 

 

(415,992

)

 

 

(139,360

)

Interest expense

 

 

9,533

 

 

 

3,880

 

 

 

18,913

 

 

 

7,692

 

Interest income

 

 

(3,935

)

 

 

(2,062

)

 

 

(7,887

)

 

 

(4,358

)

Other loss (income), net

 

 

9,156

 

 

 

(33

)

 

 

21,514

 

 

 

(48

)

Loss before provision for income taxes

 

 

(114,833

)

 

 

(65,613

)

 

 

(448,532

)

 

 

(142,646

)

Provision (benefit) for income taxes

 

 

256

 

 

 

194

 

 

 

(22,984

)

 

 

350

 

Net loss

 

$

(115,089

)

 

$

(65,807

)

 

$

(425,548

)

 

$

(142,996

)

Net loss per share attributable to common stockholders, basic and diluted

 

$

(0.83

)

 

$

(0.48

)

 

$

(3.09

)

 

$

(1.05

)

Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted

 

 

138,075,210

 

 

 

136,507,177

 

 

 

137,667,419

 

 

 

136,002,344

 

VROOM, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Six Months Ended

June 30,

 

 

2022

 

2021

 

Operating activities

 

 

 

 

Net loss

 

$

(425,548

)

$

(142,996

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

Impairment charges

 

 

205,110

 

 

Depreciation and amortization

 

 

18,010

 

6,028

 

Amortization of debt issuance costs

 

 

2,523

 

698

 

Realized gain on the 2022-1 securitization transaction

 

 

(29,617

)

 

Deferred taxes

 

 

(23,855

)

 

Losses on finance receivables and securitization debt, net

 

 

29,457

 

 

Stock-based compensation expense

 

 

5,405

 

8,212

 

Provision to record inventory at lower of cost or net realizable value

 

 

(2,006

)

3,093

 

Other, net

 

 

3,466

 

2,818

 

Changes in operating assets and liabilities:

 

 

 

 

Finance receivables, held for sale

 

 

 

 

Originations of finance receivables held for sale

 

 

(319,314

)

 

Principal payments received on finance receivables held for sale

 

 

23,179

 

 

Proceeds from sale of finance receivables held for sale, net

 

 

271,820

 

 

Other

 

 

(4,011

)

 

Accounts receivable

 

 

34,192

 

(41,393

)

Inventory

 

 

192,618

 

(99,412

)

Prepaid expenses and other current assets

 

 

13,513

 

(26,669

)

Other assets

 

 

(1,670

)

(3,948

)

Accounts payable

 

 

(15,352

)

36,507

 

Accrued expenses

 

 

(23,832

)

26,306

 

Deferred revenue

 

 

(58,003

)

16,788

 

Other liabilities

 

 

(33,604

)

62,117

 

Net cash used in operating activities

 

 

(137,519

)

(151,851

)

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

 

 

74,690

 

 

Proceeds from sale of finance receivables at fair value, net

 

 

29,026

 

 

Principal payments received on beneficial interests

 

 

2,720

 

 

Purchase of property and equipment

 

 

(16,046

)

(8,943

)

Acquisition of business, net of cash acquired of $47.9 million

 

 

(267,488

)

(76,145

)

Net cash used in investing activities

 

 

(226,573

)

(85,088

)

Financing activities

 

 

 

 

Principal repayment under secured financing agreements

 

 

(105,563

)

 

Proceeds from vehicle floorplan

 

 

1,074,184

 

1,070,110

 

Repayments of vehicle floorplan

 

 

(1,164,533

)

(1,035,727

)

Proceeds from warehouse credit facilities

 

 

261,700

 

 

Repayments of warehouse credit facilities

 

 

(228,744

)

 

Other financing activities

 

 

(1,344

)

 

Proceeds from issuance of convertible senior notes

 

 

 

625,000

 

Issuance costs paid for convertible senior notes

 

 

 

(16,175

)

Proceeds from exercise of stock options

 

 

 

4,381

 

Net cash (used in) provided by financing activities

 

 

(164,300

)

647,589

 

Net (decrease) increase in cash, cash equivalents and restricted cash

 

 

(528,392

)

410,650

 

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

 

$

686,383

 

$

1,500,689

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

Cash paid for interest

 

$

16,299

$

6,713

 

Cash paid for income taxes

 

$

2,062

$

269

 

Supplemental disclosure of non-cash investing and financing activities:

 

 

 

 

Fair value of beneficial interests received in securitization transactions

 

$

16,473

$

 

Issuance of common stock for CarStory acquisition

 

$

$

39,030

 

Fair value of unvested stock options assumed for acquisition of business

 

$

$

1,017

 

 

 

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