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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
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

...