Yahoo Finance Vroom Announces Record Ecommerce Gross Profit Per Unit of $4,206
Continued Progress on Long-Term Roadmap
NEW YORK, November 07, 2022--(BUSINESS WIRE)--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 | Nine Months Ended | |||||||||||||||||||||||||||||||||||||
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 | Nine Months Ended | |||||||||||||||||||||||||||||||
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 | ... | ||||||||||||||||||
