Vroom Reports Second Quarter 2021 Results

Vroom Delivers Record Ecommerce Units and Gross Profit

Ecommerce Unit Sales Up 172% YoY

Ecommerce Gross Profit Up 588% YoY

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, 2021 (“Q2 2021”).

HIGHLIGHTS OF SECOND QUARTER 2021

  • 18,268 ecommerce units sold, up 172% YoY
  • Ecommerce revenue of $579.7 million, up 230% YoY
  • Ecommerce gross profit of $49.6 million, up 588% YoY
  • Convertible Note offering provided over $600.0 million of additional liquidity

Paul Hennessy, Chief Executive Officer of Vroom, commented:

“Vroom had an outstanding second quarter. We drove strong expansion in units and gross profit per unit. Ecommerce gross profit per unit continued its upward trajectory, growing $664 (+32%) quarter over quarter, as we continue to execute against our expansion plans in a favorable yet dynamic pricing environment. Our ecommerce units accelerated as our offering to consumers continues to resonate. Moving forward, we intend to continue to scale our capacity and efficiency ahead of growing demand with investments across our business, particularly in logistics, where we are ahead of schedule compared to our initial targets. We will also continue to strive for a frictionless ecommerce checkout experience to drive a compelling customer proposition and improved unit economics over time.”

SECOND QUARTER 2021 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,

 

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

Change

 

% Change

 

2021

 

2020

 

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

 

 

 

18,268

 

 

 

 

6,713

 

 

 

 

11,555

 

 

 

172.1

%

 

 

 

33,772

 

 

 

 

14,643

 

 

 

 

19,129

 

 

 

130.6

%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

559,010

 

 

$

 

170,460

 

 

$

 

388,550

 

 

 

227.9

%

 

$

 

967,324

 

 

$

 

396,065

 

 

$

 

571,259

 

 

 

144.2

%

Product revenue

 

 

 

20,653

 

 

 

 

5,108

 

 

 

 

15,545

 

 

 

304.3

%

 

 

 

34,647

 

 

 

 

12,675

 

 

 

 

21,972

 

 

 

173.3

%

Total ecommerce revenue

 

$

 

579,663

 

 

$

 

175,568

 

 

$

 

404,095

 

 

 

230.2

%

 

$

 

1,001,971

 

 

$

 

408,740

 

 

$

 

593,231

 

 

 

145.1

%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

28,985

 

 

$

 

2,111

 

 

$

 

26,874

 

 

 

1,273.0

%

 

$

 

46,828

 

 

$

 

8,811

 

 

$

 

38,017

 

 

 

431.5

%

Product gross profit

 

 

 

20,653

 

 

 

 

5,108

 

 

 

 

15,545

 

 

 

304.3

%

 

 

 

34,647

 

 

 

 

12,675

 

 

 

 

21,972

 

 

 

173.3

%

Total ecommerce gross profit

 

$

 

49,638

 

 

$

 

7,219

 

 

$

 

42,419

 

 

 

587.6

%

 

$

 

81,475

 

 

$

 

21,486

 

 

$

 

59,989

 

 

 

279.2

%

Average vehicle selling price per ecommerce unit

 

$

 

30,601

 

 

$

 

25,393

 

 

$

 

5,208

 

 

 

20.5

%

 

$

 

28,643

 

 

$

 

27,048

 

 

$

 

1,595

 

 

 

5.9

%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

1,587

 

 

$

 

314

 

 

$

 

1,273

 

 

 

405.4

%

 

$

 

1,387

 

 

$

 

602

 

 

$

 

785

 

 

 

130.4

%

Product gross profit per ecommerce unit

 

 

 

1,131

 

 

 

 

761

 

 

 

 

370

 

 

 

48.6

%

 

 

 

1,026

 

 

 

 

866

 

 

 

 

160

 

 

 

18.5

%

Total gross profit per ecommerce unit

 

$

 

2,718

 

 

$

 

1,075

 

 

$

 

1,643

 

 

 

152.8

%

 

$

 

2,413

 

 

$

 

1,468

 

 

$

 

945

 

 

 

64.4

%

Ecommerce average days to sale

 

 

 

68

 

 

 

 

66

 

 

 

 

2

 

 

 

3.0

%

 

 

 

76

 

 

 

 

67

 

 

 

 

9

 

 

 

13.4

%

Ecommerce Units

Ecommerce units sold increased 172.1% to 18,268 driven by higher inventory levels, increased marketing spend, increased consumer demand as a result of the popularity of our business model, strong market demand for used vehicles, and further process improvements in our ecommerce platform. Average monthly unique visitors to our platform increased 75.0% to 1,749,480.

Ecommerce Revenue

Ecommerce revenue increased 230.2% to $579.7 million.

  • Ecommerce Vehicle revenue increased 227.9% to $559.0 million. The increase in ecommerce Vehicle revenue was primarily attributable to the increase in ecommerce units sold as well as an increase in the average selling price per unit, which increased from $25,393 to $30,601.
  • Ecommerce Product revenue increased 304.3% to $20.7 million. The increase in ecommerce Product revenue was primarily attributable to the increase in ecommerce units sold as well as an increase in ecommerce Product revenue per unit, which increased from $761 to $1,131 per unit.

Ecommerce Gross Profit

Ecommerce gross profit increased 587.6% to $49.6 million.

  • Ecommerce Vehicle gross profit increased to $28.9 million. The increase in ecommerce Vehicle gross profit was primarily due to a $1,273 increase in ecommerce Vehicle gross profit per unit to $1,587 as well as an increase in ecommerce units sold.
  • Ecommerce Product gross profit increased 304.3% to $ 20.7 million. The increase in ecommerce Product gross profit was primarily attributable to the increase in ecommerce units sold as well as an increase in ecommerce Product gross profit per unit, which increased from $761 to $1,131 per unit.

Ecommerce Gross Profit per Unit

Ecommerce gross profit per unit increased 152.8% to $2,718.

  • Ecommerce Vehicle gross profit per unit increased 405.4% to $1,587, primarily driven by higher sales margins and improvements in reconditioning and inbound logistics costs, partially offset by a higher inventory reserve as a result of an increase in inventory levels. Strong sales margin per unit was partially driven by a record retail pricing environment during the second quarter of 2021 as well as an increase in vehicles sourced directly from consumers and further improvements in our pricing methodologies. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by a strategic decision to reduce vehicle pricing in order to sell pre-COVID-19 inventory. Based on data from Cox Automotive, retail prices are expected to peak in the third quarter and begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.
  • Ecommerce Product gross profit per unit increased 48.6% to $1,131, primarily driven by higher attachment rates and an increase in the average loan size as a result of higher ASP.

Results by Segment

 

 

Three Months Ended

June 30,

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

 

 

 

 

 

 

 

 

 

 

2021

 

2020 (1)

 

Change

 

% Change

 

2021

 

2020 (1)

 

Change

 

% Change

 

 

(in thousands, except unit

data)

 

 

 

 

 

 

 

 

 

 

(in thousands, except unit

data)

 

 

 

 

 

 

 

 

 

Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

 

18,268

 

 

 

6,713

 

 

 

 

11,555

 

 

 

172.1

%

 

 

33,772

 

 

 

14,643

 

 

 

 

19,129

 

 

 

130.6

%

Wholesale

 

 

10,020

 

 

 

3,259

 

 

 

 

6,761

 

 

 

207.5

%

 

 

18,661

 

 

 

7,944

 

 

 

 

10,717

 

 

 

134.9

%

TDA

 

 

1,583

 

 

 

1,110

 

 

 

 

473

 

 

 

42.6

%

 

 

3,358

 

 

 

4,145

 

 

 

 

(787

)

 

 

(19.0

)%

Total units

 

 

29,871

 

 

 

11,082

 

 

 

 

18,789

 

 

 

169.5

%

 

 

55,791

 

 

 

26,732

 

 

 

 

29,059

 

 

 

108.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

579,663

 

 

$

175,568

 

 

 

$

404,095

 

 

 

230.2

%

 

$

1,001,971

 

 

$

408,740

 

 

 

$

593,231

 

 

 

145.1

%

Wholesale

 

 

128,108

 

 

 

50,921

 

 

 

 

77,187

 

 

 

151.6

%

 

 

246,132

 

 

 

106,497

 

 

 

 

139,635

 

 

 

131.1

%

TDA

 

 

50,759

 

 

 

26,318

 

 

 

 

24,441

 

 

 

92.9

%

 

 

98,346

 

 

 

112,902

 

 

 

 

(14,556

)

 

 

(12.9

)%

All Other (2)

 

 

3,360

 

 

 

286

 

 

 

 

3,074

 

 

 

1,074.8

%

 

 

6,559

 

 

 

726

 

 

 

 

5,833

 

 

 

803.4

%

Total revenue

 

$

761,890

 

 

$

253,093

 

 

 

$

508,797

 

 

 

201.0

%

 

$

1,353,008

 

 

$

628,865

 

 

 

$

724,143

 

 

 

115.2

%

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

49,638

 

 

$

7,219

 

 

 

$

42,419

 

 

 

587.6

%

 

$

81,475

 

 

$

21,486

 

 

 

$

59,989

 

 

 

279.2

%

Wholesale

 

 

8,516

 

 

 

(543

)

 

 

9,059

 

 

 

1,668.3

%

 

 

8,234

 

 

 

(1,838

)

 

 

10,072

 

 

 

548.0

%

TDA

 

 

3,148

 

 

 

864

 

 

 

 

2,284

 

 

 

264.4

%

 

 

5,939

 

 

 

6,124

 

 

 

 

(185

)

 

 

(3.0

)%

All Other (2)

 

 

1,826

 

 

 

67

 

 

 

 

1,759

 

 

 

2,625.4

%

 

 

3,656

 

 

 

222

 

 

 

 

3,434

 

 

 

1,546.8

%

Total gross profit

 

$

63,128

 

 

$

7,607

 

 

 

$

55,521

 

 

 

729.9

%

 

$

99,304

 

 

$

25,994

 

 

 

$

73,310

 

 

 

282.0

%

Gross profit (loss) per unit (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

2,718

 

 

$

1,075

 

 

 

$

1,643

 

 

 

152.8

%

 

$

2,413

 

 

$

1,468

 

 

 

$

945

 

 

 

64.4

%

Wholesale

 

$

850

 

 

$

(167

)

 

$

1,017

 

 

 

609.0

%

 

$

441

 

 

$

(231

)

 

$

672

 

 

 

290.9

%

TDA

 

$

1,988

 

 

$

778

 

 

 

$

1,210

 

 

 

155.5

%

 

$

1,768

 

 

$

1,477

 

 

 

$

291

 

 

 

19.7

%

(1)

We reclassified other revenue and gross profit related to the vehicle repair service at TDA from the TDA reportable segment to the “All Other” category to conform to current year presentation.

(2)

All Other revenues and gross profit consist of the CarStory business and vehicle repair services at TDA.

(3)

Gross profit per unit metrics exclude the CarStory business and vehicle repair services at TDA.

Total Units

Total units sold increased 169.5% to 29,871.

  • Ecommerce units sold increased 172.1% to 18,268, as discussed above.
  • Wholesale units sold increased 207.5% to 10,020, primarily driven by an increase of wholesale grade units purchased from consumers, an increase in the number of trade-in vehicles as a result of the increase in number of ecommerce units sold and strong wholesale market demand for used vehicles.
  • TDA units sold increased 42.6% to 1,583. Despite strong market demand for used vehicles, TDA unit sales continue to be negatively impacted by reduced inventory at the TDA location as the ecommerce business continues to scale. TDA units sold were negatively impacted during the second quarter of 2020 as a result of a significant reduction in foot traffic due to the COVID-19 pandemic.

Total Revenue

Total revenue increased 201.0% to $761.9 million.

  • Ecommerce revenue increased 230.2% to $579.7 million, as discussed above.
  • Wholesale revenue increased 151.6% to $128.1 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold, partially offset by a lower average selling price per unit, which decreased from $15,625 to $12,785. The higher average selling price per unit in the second quarter of 2020 was primarily driven by the sale of retail vehicles through wholesale channels to reduce our inventory levels at the start of the COVID-19 pandemic.
  • TDA revenue increased 92.9% to $50.8 million, primarily due to a higher average selling price per unit, which increased from $23,144 to $31,021 as well as the increase in TDA units sold.

Total Gross Profit (Loss)

Total gross profit increased 729.9% to $63.1 million.

  • Ecommerce gross profit increased 588% to $49.6 million, as discussed above.
  • Wholesale gross profit increased to $8.5 million. Wholesale gross profit increased primarily due to a higher gross profit per unit, which increased from gross loss per unit of $(167) to gross profit per unit of $850.
  • TDA gross profit increased 264.4% to $3.1 million. TDA gross profit increased primarily due to an increase in TDA gross profit per unit of $1,210 as well as an increase in TDA units sold.

Gross Profit (Loss) per Unit

  • Ecommerce gross profit per unit increased 152.8% to $2,718, as discussed above.
  • Wholesale gross profit per unit increased 609.0% to $850 as a result of favorable wholesale market conditions. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by the sale of retail vehicles through wholesale channels to reduce our inventory levels at the start of the COVID-19 pandemic. Based on data from Cox Automotive, wholesale prices appear to have reached their peak in June and are expected to begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.
  • TDA gross profit per unit increased 155.5% to $1,988 driven primarily by higher sales margin and improvements in reconditioning and inbound logistics costs, partially offset by a higher inventory reserve as a result of an increase in inventory levels. Strong sales margin per unit was partially driven by a record retail pricing environment during the second quarter of 2021 as well as an increase in vehicles sourced directly from consumers and further improvements in our pricing methodologies. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by a strategic decision to reduce vehicle pricing in order to sell pre-COVID-19 inventory. Based on data from Cox Automotive, retail prices are expected to peak in the third quarter and begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.

SG&A

 

 

Three Months Ended

June 30,

 

 

 

 

 

 

 

 

 

Six Months Ended

June 30,

 

 

 

 

 

 

 

 

 

 

2021

 

2020

 

Change

 

% Change

 

2021

 

2020

 

Change

 

% Change

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Compensation & benefits

 

$

 

51,811

 

 

$

 

20,618

 

 

$

31,193

 

 

 

151.3

%

 

$

 

91,681

 

 

$

 

40,940

 

 

$

50,741

 

 

 

123.9

%

Marketing expense

 

 

 

23,495

 

 

 

 

11,573

 

 

 

11,922

 

 

 

103.0

%

 

 

 

53,053

 

 

 

 

29,488

 

 

 

23,565

 

 

 

79.9

%

Outbound logistics

 

 

 

20,153

 

 

 

 

5,470

 

 

 

14,683

 

 

 

268.4

%

 

 

 

35,271

 

 

 

 

11,261

 

 

 

24,010

 

 

 

213.2

%

Occupancy and related costs

 

 

 

4,042

 

 

 

 

2,267

 

 

 

1,775

 

 

 

78.3

%

 

 

 

7,964

 

 

 

 

4,964

 

 

 

3,000

 

 

 

60.4

%

Professional fees

 

 

 

4,259

 

 

 

 

1,465

 

 

 

2,794

 

 

 

190.7

%

 

 

 

8,257

 

 

 

 

3,924

 

 

 

4,333

 

 

 

110.4

%

Other

 

 

 

20,138

 

 

 

 

6,518

 

 

 

13,620

 

 

 

209.0

%

 

 

 

36,538

 

 

 

 

15,714

 

 

 

20,824

 

 

 

132.5

%

Total selling, general & administrative expenses

 

$

 

123,898

 

 

$

 

47,911

 

 

$

75,987

 

 

 

158.6

%

 

$

 

232,764

 

 

$

 

106,291

 

 

$

126,473

 

 

 

119.0

%

Selling, general and administrative expenses increased 158.6% to $123.9 million. The increase was primarily due to:

  • $31.2 million increase in compensation and benefits due to an increase in headcount, an increase in variable fees for third-party sales and sales support providers as a result of an increase in units sold, as well as a $1.3 million increase in stock-based compensation to $5.4 million;
  • $14.7 million increase in outbound logistics costs partially attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $9.4 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $5.3 million;
  • $13.6 million increase in other selling, general and administrative expenses primarily related to volume-based fees for software licenses and other variable expenses as our business continues to scale as well as additional insurance costs associated with being a publicly traded company and growing inventory; and
  • $11.9 million increase in marketing expense as we expanded our national broad-reach brand advertising and increased performance and online marketing as we continue to grow our listed inventory.

We expect selling, general and administrative expenses to increase in the future as we scale our business and sell more ecommerce units. We also expect to incur increased selling, general and administrative expenses as we continue to invest in and improve our customer experience, invest in expanding our proprietary logistics and reconditioning networks, and explore a variety of strategies for a proprietary lending operation.

Loss from Operations and Net Loss

Loss from operations increased 54.2% to $ 63.8 million. Net loss increased 4.1% to $ 65.8 million.

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 loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted. 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 loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted 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 loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted, facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.

EBITDA and Adjusted EBITDA

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 the one-time, IPO related acceleration of non-cash stock-based compensation expense and the one-time, IPO related non-cash revaluation of a preferred stock warrant. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure:

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

 

(in thousands)

Net loss

 

$

(65,807

)

 

$

(63,228

)

 

$

(142,996

)

 

$

(104,287

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,880

 

 

 

1,297

 

 

 

7,692

 

 

 

4,123

 

Interest income

 

 

(2,062

)

 

 

(715

)

 

 

(4,358

)

 

 

(2,671

)

Provision for income taxes

 

 

194

 

 

 

52

 

 

 

350

 

 

 

105

 

Depreciation and amortization expense

 

 

3,122

 

 

 

1,089

 

 

 

6,028

 

 

 

2,059

 

EBITDA

 

$

(60,673

)

 

$

(61,505

)

 

$

(133,284

)

 

$

(100,671

)

One-time IPO related acceleration of non-cash stock-based compensation

 

 

 

 

 

1,262

 

 

 

 

 

 

1,262

 

One-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

21,260

 

 

 

 

 

 

20,470

 

Adjusted EBITDA

 

$

(60,673

)

 

$

(38,983

)

 

$

(133,284

)

 

$

(78,939

)

Adjusted loss from Operations

We calculate Adjusted loss from operations as loss from operations adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense. The following table presents a reconciliation of Adjusted loss from operations to loss from operations, which is the most directly comparable U.S. GAAP measure:

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(in thousands)

 

(in thousands)

Loss from operations

 

$

(63,828

)

 

$

(41,387

)

 

$

(139,360

)

 

$

(82,346

)

Add: One-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

1,262

 

 

 

 

 

 

1,262

 

Adjusted loss from operations

 

$

(63,828

)

 

$

(40,125

)

 

$

(139,360

)

 

$

(81,084

)

Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted

We calculate Non-GAAP net loss as net loss adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and the one-time, IPO related non-cash revaluation of a preferred stock warrant. We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding. The following table presents a reconciliation of Non-GAAP net loss and Non-GAAP net loss per share 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,

 

 

2021

 

2020

 

2021

 

2020

 

(in thousands, except share and per share amounts)

Net loss

 

$

(65,807

)

 

$

(63,228

)

 

$

(142,996

)

 

$

(104,287

)

Net loss attributable to common stockholders

 

$

(65,807

)

 

$

(63,228

)

 

$

(142,996

)

 

$

(104,287

)

Add: One-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

1,262

 

 

 

 

 

 

1,262

 

Add: One-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

21,260

 

 

 

 

 

 

20,470

 

Non-GAAP net loss

 

$

(65,807

)

 

$

(40,706

)

 

$

(142,996

)

 

$

(82,555

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

136,507,177

 

 

 

31,599,497

 

 

 

136,002,344

 

 

 

20,035,476

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.48

)

 

$

(2.00

)

 

$

(1.05

)

 

$

(5.21

)

Impact of one-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

0.04

 

 

 

 

 

 

0.07

 

Impact of one-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

0.67

 

 

 

 

 

 

1.02

 

Non-GAAP net loss per share, basic and diluted

 

$

(0.48

)

 

$

(1.29

)

 

$

(1.05

)

 

$

(4.12

)

Non-GAAP net loss per share, as adjusted, basic and diluted(a)

 

$

(0.48

)

 

$

(0.34

)

 

$

(1.05

)

 

$

(0.70

)

(a)

Non-GAAP net loss per share, as adjusted has been computed to give effect to, as of the beginning of each period presented, (i) the shares of common stock issued in connection with our IPO and (ii) the automatic conversion of all outstanding shares of redeemable convertible preferred stock into shares of common stock that occurred upon the consummation of our IPO. The computation of Non-GAAP net loss per share, as adjusted is as follows:

 

 

Three Months Ended

June 30,

 

Six Months Ended

June 30,

 

 

2021

 

2020

 

2021

 

2020

 

(in thousands, except share and per share amounts)

Non-GAAP net loss

 

$

(65,807

)

 

$

(40,706

)

 

$

(142,996

)

 

$

(82,555

)

Non-GAAP net loss, as adjusted

 

$

(65,807

)

 

$

(40,706

)

 

$

(142,996

)

 

$

(82,555

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding used to compute net loss per

share, basic and diluted

 

 

136,507,177

 

 

 

31,599,497

 

 

 

136,002,344

 

 

 

20,035,476

 

Add: unweighted adjustment for common stock issued in connection with IPO

 

 

 

 

 

24,437,500

 

 

 

 

 

 

24,437,500

 

Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO

 

 

 

 

 

85,533,394

 

 

 

 

 

 

85,533,394

 

Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented

 

 

 

 

 

(22,960,956

)

 

 

 

 

 

(11,480,478

)

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

 

 

136,507,177

 

 

 

118,609,435

 

 

 

136,002,344

 

 

 

118,525,892

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP net loss per share, as adjusted, basic and diluted

 

$

(0.48

)

 

$

(0.34

)

 

$

(1.05

)

 

$

(0.70

)

Financial Outlook

For the full year 2021, we continue to expect triple digit year-over-year growth in ecommerce unit sales and more than 200% year-over-year growth in aggregate gross profit. For the third quarter 2021, we expect the following results:

  • Ecommerce unit sales of 20,000 to 20,500, implying year over year growth of 130% at the mid-point of the guidance range.
  • Average ecommerce selling price per unit of $32,000 to $33,000 and average ecommerce gross profit per unit of $2,350 to $2,450.
  • Wholesale unit sales of 9,500 to 10,500, average selling price per unit of $12,000 to $13,000 and average gross profit per unit of $50 to $100.
  • TDA unit sales of 1,550 to 1,650, average selling price per unit of $32,000 to $33,000 and average gross profit per unit of $1,650 to $1,750.
  • Total revenue of $858 to $891 million.
  • Total gross profit of $51 to $56 million.
  • EBITDA* of $(100) to $(92) million.
  • Stock-based compensation expense of $6.6 million.
  • Net loss per share of $(0.78) to $(0.73).

*A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for our third quarter 2021 Financial Outlook is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, these 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 2021 in the reconciliation table in the Non-GAAP Financial Measures section above.

We expect the following number of GAAP weighted average shares outstanding for the third quarter and the full year 2021:

 

 

Quarter

 

YTD

 

2021

 

136,717,347

 

136,359,846

 

These estimates exclude any shares potentially issuable under stock-based compensation plans.

The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of August 11, 2021 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 11, 2021 at 5:00 p.m. ET.

The conference call can be accessed via telephone by dialing 1-833-519-1297 (or 914-800-3868 for international access) and entering the conference ID 1597432. A live audio webcast will also be available 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 our expectations regarding our business strategy and plans, including our ability to scale our business, grow inventory, expand reconditioning capacity, invest in logistics and improve our end-to-end customer experience, and for future results of operations and financial position, including our ability to improve our unit economics and our outlook for the third quarter ended September 30, 2021 and the year ended December 31, 2021. 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, 2020, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30, 2021, 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.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

As of

 

As of

 

 

June 30,

 

December 31,

 

 

2021

 

2020

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,463,573

 

 

$

1,056,213

 

Restricted cash

 

 

37,116

 

 

 

33,826

 

Accounts receivable, net of allowance of $3,304 and $2,803, respectively

 

 

100,491

 

 

 

60,576

 

Inventory

 

 

519,966

 

 

 

423,647

 

Prepaid expenses and other current assets

 

 

49,984

 

 

 

23,617

 

Total current assets

 

 

2,171,130

 

 

 

1,597,879

 

Property and equipment, net

 

 

21,397

 

 

 

15,092

 

Intangible assets, net

 

 

31,318

 

 

 

34

 

Goodwill

 

 

159,306

 

 

 

78,172

 

Operating lease right-of-use assets

 

 

17,679

 

 

 

17,137

 

Other assets

 

 

19,809

 

 

 

15,742

 

Total assets

 

$

2,420,639

 

 

$

1,724,056

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

69,813

 

 

$

32,925

 

Accrued expenses

 

 

86,328

 

 

 

59,405

 

Vehicle floorplan

 

 

363,614

 

 

 

329,231

 

Deferred revenue

 

 

41,648

 

 

 

24,822

 

Operating lease liabilities, current

 

 

6,612

 

 

 

6,052

 

Other current liabilities

 

 

90,986

 

 

 

30,275

 

Total current liabilities

 

 

659,001

 

 

 

482,710

 

Convertible senior notes

 

 

608,960

 

 

 

 

Operating lease liabilities, excluding current portion

 

 

12,348

 

 

 

12,093

 

Other long-term liabilities

 

 

3,584

 

 

 

2,151

 

Total liabilities

 

 

1,283,893

 

 

 

496,954

 

Commitments and contingencies (Note 10)

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 136,717,347 and 134,043,969 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

 

 

134

 

 

 

132

 

Additional paid-in-capital

 

 

2,057,479

 

 

 

2,004,841

 

Accumulated deficit

 

 

(920,867

)

 

 

(777,871

)

Total stockholders’ equity

 

 

1,136,746

 

 

 

1,227,102

 

Total liabilities and stockholders’ equity

 

$

2,420,639

 

 

$

1,724,056

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

 

 

Three Months Ended

June 30,

 

 

Six Months Ended

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retail vehicle, net

 

$

608,116

 

 

$

196,150

 

 

$

1,062,439

 

 

$

504,862

 

Wholesale vehicle

 

 

128,108

 

 

 

50,921

 

 

 

246,132

 

 

 

106,497

 

Product, net

 

 

22,306

 

 

 

5,736

 

 

 

37,878

 

 

 

16,780

 

Other

 

 

3,360

 

 

 

286

 

 

 

6,559

 

 

 

726

 

Total revenue

 

 

761,890

 

 

 

253,093

 

 

 

1,353,008

 

 

 

628,865

 

Cost of sales

 

 

698,762

 

 

 

245,486

 

 

 

1,253,704

 

 

 

602,871

 

Total gross profit

 

 

63,128

 

 

 

7,607

 

 

 

99,304

 

 

 

25,994

 

Selling, general and administrative expenses

 

 

123,898

 

 

 

47,911

 

 

 

232,764

 

 

 

106,291

 

Depreciation and amortization

 

 

3,058

 

 

 

1,083

 

 

 

5,900

 

 

 

2,049

 

Loss from operations

 

 

(63,828

)

 

 

(41,387

)

 

 

(139,360

)

 

 

(82,346

)

Interest expense

 

 

3,880

 

 

 

1,297

 

 

 

7,692

 

 

 

4,123

 

Interest income

 

 

(2,062

)

 

 

(715

)

 

 

(4,358

)

 

 

(2,671

)

Revaluation of preferred stock warrant

 

 

 

 

 

21,260

 

 

 

 

 

 

20,470

 

Other income, net

 

 

(33

)

 

 

(53

)

 

 

(48

)

 

 

(86

)

Loss before provision for income taxes

 

 

(65,613

)

 

 

(63,176

)

 

 

(142,646

)

 

 

(104,182

)

Provision for income taxes

 

 

194

 

 

 

52

 

 

 

350

 

 

 

105

 

Net loss

 

$

(65,807

)

 

$

(63,228

)

 

$

(142,996

)

 

$

(104,287

)

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

 

$

(0.48

)

 

$

(2.00

)

 

$

(1.05

)

 

$

(5.21

)

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

 

 

136,507,177

 

 

 

31,599,497

 

 

 

136,002,344

 

 

 

20,035,476

 

VROOM, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

Six Months Ended

June 30,

 

 

 

2021

 

 

2020

 

Operating activities

 

 

 

 

 

 

 

 

Net loss

 

$

(142,996

)

 

$

(104,287

)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,028

 

 

 

2,059

 

Amortization of debt issuance costs

 

 

698

 

 

 

375

 

Stock-based compensation expense

 

 

8,212

 

 

 

4,700

 

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

 

 

3,093

 

 

 

(1,564

)

Revaluation of preferred stock warrant

 

 

 

 

 

20,470

 

Other

 

 

2,818

 

 

 

632

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(41,393

)

 

 

14,863

 

Inventory

 

 

(99,412

)

 

 

66,247

 

Prepaid expenses and other current assets

 

 

(26,669

)

 

 

(7,909

)

Other assets

 

 

(3,948

)

 

 

(1,285

)

Accounts payable

 

 

36,507

 

 

 

919

 

Accrued expenses

 

 

26,306

 

 

 

4,714

 

Deferred revenue

 

 

16,788

 

 

 

(1,835

)

Other liabilities

 

 

62,117

 

 

 

1,905

 

Net cash (used in) provided by operating activities

 

 

(151,851

)

 

 

4

 

Investing activities

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(8,943

)

 

 

(3,128

)

Acquisition of business, net of cash acquired

 

 

(76,145

)

 

 

 

Net cash used in investing activities

 

 

(85,088

)

 

 

(3,128

)

Financing activities

 

 

 

 

 

 

 

 

Proceeds from vehicle floorplan

 

 

1,070,110

 

 

 

465,663

 

Repayments of vehicle floorplan

 

 

(1,035,727

)

 

 

(529,341

)

Payment of vehicle floorplan upfront commitment fees

 

 

 

 

 

(1,125

)

Proceeds from issuance of convertible senior notes

 

 

625,000

 

 

 

 

Issuance costs paid for convertible senior notes

 

 

(16,175

)

 

 

 

Proceeds from the issuance of redeemable convertible preferred stock, net

 

 

 

 

 

21,694

 

Repurchase of common stock

 

 

 

 

 

(1,818

)

Common stock shares withheld to satisfy employee tax withholding obligations

 

 

 

 

 

(878

)

Proceeds from the issuance of common stock in connection with IPO, net of underwriting discount

 

 

 

 

 

504,023

 

Payments of costs related to IPO

 

 

 

 

 

(1,740

)

Proceeds from exercise of stock options

 

 

4,381

 

 

 

13

 

Other financing activities

 

 

 

 

 

(66

)

Net cash provided by financing activities

 

 

647,589

 

 

 

456,425

 

Net increase in cash, cash equivalents and restricted cash

 

 

410,650

 

 

 

453,301

 

Cash, cash equivalents and restricted cash at the beginning of period

 

 

1,090,039

 

 

 

219,587

 

Cash, cash equivalents and restricted cash at the end of period

 

$

1,500,689

 

 

$

672,888

 

 

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