NEW YORK--(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, 2021 (“Q3 2021”).
HIGHLIGHTS OF THIRD QUARTER 2021
- 19,683 ecommerce units sold, up 123% YoY
- Ecommerce revenue of $701.7 million, up 216% YoY
- Ecommerce gross profit of $50.4 million, up 161% YoY
- Vroom enters into definitive agreement to acquire United Auto Credit Corporation ("UACC")
- Vroom appoints new Chief Financial Officer
Paul Hennessy, Chief Executive Officer of Vroom, commented:
“Vroom had yet another strong quarter that continued the momentum that has been building all year. By executing well across our organization, we delivered triple digit year-over-year growth in both ecommerce units and gross profit, as well as improvement in unit economics. We also continued to optimize our mix of inventory sources throughout the quarter, with approximately 81% of our retail inventory sold sourced from consumers, enabling us to scale our inventory while maintaining strong unit economics. Looking ahead, we intend to continue to focus on strong execution and maintain the momentum in our business to drive continued growth in unit sales and on improving unit economics. We also are excited to move forward with our acquisition of United Auto Credit Corporation, which will accelerate our strategic objective to establish a captive financing arm.”
THIRD QUARTER 2021 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted.
Ecommerce Results
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
|
Change |
|
% Change |
|
2021 |
|
2020 |
|
|
Change |
|
% Change |
||||||||||||||||||||
|
|
(in thousands, except unit
|
|
|
|
|
|
|
|
|
(in thousands, except unit
|
|
|
|
|
|
|
|
||||||||||||||||||||
Ecommerce units sold |
|
|
|
19,683 |
|
|
|
|
8,823 |
|
|
|
|
10,860 |
|
|
|
123.1 |
% |
|
|
|
53,455 |
|
|
|
|
23,466 |
|
|
|
|
29,989 |
|
|
|
127.8 |
% |
Ecommerce revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Vehicle revenue |
|
$ |
|
677,170 |
|
|
$ |
|
213,943 |
|
|
$ |
|
463,227 |
|
|
|
216.5 |
% |
|
$ |
|
1,644,494 |
|
|
$ |
|
610,008 |
|
|
$ |
|
1,034,486 |
|
|
|
169.6 |
% |
Product revenue |
|
|
|
24,508 |
|
|
|
|
7,818 |
|
|
|
|
16,690 |
|
|
|
213.5 |
% |
|
|
|
59,155 |
|
|
|
|
20,493 |
|
|
|
|
38,662 |
|
|
|
188.7 |
% |
Total ecommerce revenue |
|
$ |
|
701,678 |
|
|
$ |
|
221,761 |
|
|
$ |
|
479,917 |
|
|
|
216.4 |
% |
|
$ |
|
1,703,649 |
|
|
$ |
|
630,501 |
|
|
$ |
|
1,073,148 |
|
|
|
170.2 |
% |
Ecommerce gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Vehicle gross profit |
|
$ |
|
25,875 |
|
|
$ |
|
11,486 |
|
|
$ |
|
14,389 |
|
|
|
125.3 |
% |
|
$ |
|
72,704 |
|
|
$ |
|
20,296 |
|
|
$ |
|
52,408 |
|
|
|
258.2 |
% |
Product gross profit |
|
|
|
24,508 |
|
|
|
|
7,818 |
|
|
|
|
16,690 |
|
|
|
213.5 |
% |
|
|
|
59,155 |
|
|
|
|
20,493 |
|
|
|
|
38,662 |
|
|
|
188.7 |
% |
Total ecommerce gross profit |
|
$ |
|
50,383 |
|
|
$ |
|
19,304 |
|
|
$ |
|
31,079 |
|
|
|
161.0 |
% |
|
$ |
|
131,859 |
|
|
$ |
|
40,789 |
|
|
$ |
|
91,070 |
|
|
|
223.3 |
% |
Average vehicle selling price per ecommerce unit |
|
$ |
|
34,404 |
|
|
$ |
|
24,248 |
|
|
$ |
|
10,156 |
|
|
|
41.9 |
% |
|
$ |
|
30,764 |
|
|
$ |
|
25,995 |
|
|
$ |
|
4,769 |
|
|
|
18.3 |
% |
Gross profit per ecommerce unit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Vehicle gross profit per ecommerce unit |
|
$ |
|
1,315 |
|
|
$ |
|
1,302 |
|
|
$ |
|
13 |
|
|
|
1.0 |
% |
|
$ |
|
1,360 |
|
|
$ |
|
865 |
|
|
$ |
|
495 |
|
|
|
57.2 |
% |
Product gross profit per ecommerce unit |
|
|
|
1,245 |
|
|
|
|
886 |
|
|
|
|
359 |
|
|
|
40.5 |
% |
|
|
|
1,107 |
|
|
|
|
873 |
|
|
|
|
234 |
|
|
|
26.8 |
% |
Total gross profit per ecommerce unit |
|
$ |
|
2,560 |
|
|
$ |
|
2,188 |
|
|
$ |
|
372 |
|
|
|
17.0 |
% |
|
$ |
|
2,467 |
|
|
$ |
|
1,738 |
|
|
$ |
|
729 |
|
|
|
41.9 |
% |
Ecommerce average days to sale |
|
|
|
68 |
|
|
|
|
52 |
|
|
|
|
16 |
|
|
|
30.8 |
% |
|
|
|
73 |
|
|
|
|
62 |
|
|
|
|
11 |
|
|
|
17.7 |
% |
Ecommerce Units
Ecommerce units sold increased 123.1% to 19,683 driven by higher inventory levels, strong national brand recognition driven by our national advertising campaign and increased marketing spend, and increased demand due to growing consumer acceptance of our business model. The increase was also attributable to strong market demand generally for used vehicles, caused in part by the shortage of microchips and delays in new car manufacturing. Average monthly unique visitors to our platform increased 140.9% to 2,236,168.
Ecommerce Revenue
Ecommerce revenue increased 216.4% to $701.7 million.
- Ecommerce Vehicle revenue increased 216.5% to $677.2 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 $24,248 to $34,404, primarily attributable to market appreciation.
- Ecommerce Product revenue increased 213.5% to $24.5 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 $886 to $1,245 per unit.
Ecommerce Gross Profit
Ecommerce gross profit increased 161.0% to $50.4 million.
- Ecommerce Vehicle gross profit increased 125.3% to $25.9 million. The increase in ecommerce Vehicle gross profit was primarily due to an increase in ecommerce units sold.
- Ecommerce Product gross profit increased 213.5% to $ 24.5 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 $886 to $1,245 per unit.
Ecommerce Gross Profit per Unit
Ecommerce gross profit per unit increased 17.0% to $2,560.
- Ecommerce Vehicle gross profit per unit increased slightly to $1,315, primarily driven by improvements in reconditioning costs, partially offset by lower sales margins as a result of higher purchase prices of vehicle acquisitions.
- Ecommerce Product gross profit per unit increased 40.5% to $1,245, primarily driven by higher attachment rates and an increase in the average loan size as a result of a higher average selling price per unit.
Results by Segment
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 (1) |
|
Change |
|
% Change |
|
2021 |
|
2020 (1) |
|
Change |
|
% Change |
||||||||||||||||
|
|
(in thousands, except unit data) |
|
|
|
|
|
|
|
(in thousands, except unit data) |
|
|
|
|
|
|
||||||||||||||||
Units: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ecommerce |
|
|
19,683 |
|
|
|
8,823 |
|
|
|
10,860 |
|
|
|
123.1 |
% |
|
|
53,455 |
|
|
|
23,466 |
|
|
|
29,989 |
|
|
|
127.8 |
% |
Wholesale |
|
|
9,760 |
|
|
|
6,166 |
|
|
|
3,594 |
|
|
|
58.3 |
% |
|
|
28,421 |
|
|
|
14,110 |
|
|
|
14,311 |
|
|
|
101.4 |
% |
TDA |
|
|
1,749 |
|
|
|
1,463 |
|
|
|
286 |
|
|
|
19.5 |
% |
|
|
5,107 |
|
|
|
5,608 |
|
|
|
(501 |
) |
|
|
(8.9 |
)% |
Total units |
|
|
31,192 |
|
|
|
16,452 |
|
|
|
14,740 |
|
|
|
89.6 |
% |
|
|
86,983 |
|
|
|
43,184 |
|
|
|
43,799 |
|
|
|
101.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ecommerce |
|
$ |
701,678 |
|
|
$ |
221,761 |
|
|
$ |
479,917 |
|
|
|
216.4 |
% |
|
$ |
1,703,649 |
|
|
$ |
630,501 |
|
|
$ |
1,073,148 |
|
|
|
170.2 |
% |
Wholesale |
|
|
131,306 |
|
|
|
63,972 |
|
|
|
67,334 |
|
|
|
105.3 |
% |
|
|
377,438 |
|
|
|
170,469 |
|
|
|
206,969 |
|
|
|
121.4 |
% |
TDA |
|
|
60,582 |
|
|
|
36,955 |
|
|
|
23,627 |
|
|
|
63.9 |
% |
|
|
158,928 |
|
|
|
149,858 |
|
|
|
9,070 |
|
|
|
6.1 |
% |
All Other (2) |
|
|
3,190 |
|
|
|
317 |
|
|
|
2,873 |
|
|
|
906.3 |
% |
|
|
9,749 |
|
|
|
1,043 |
|
|
|
8,706 |
|
|
|
834.7 |
% |
Total revenue |
|
$ |
896,756 |
|
|
$ |
323,005 |
|
|
$ |
573,751 |
|
|
|
177.6 |
% |
|
$ |
2,249,764 |
|
|
$ |
951,871 |
|
|
$ |
1,297,893 |
|
|
|
136.4 |
% |
Gross profit: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ecommerce |
|
$ |
50,383 |
|
|
$ |
19,304 |
|
|
$ |
31,079 |
|
|
|
161.0 |
% |
|
$ |
131,859 |
|
|
$ |
40,789 |
|
|
$ |
91,070 |
|
|
|
223.3 |
% |
Wholesale |
|
|
2,103 |
|
|
|
3,343 |
|
|
|
(1,240 |
) |
|
|
(37.1 |
)% |
|
|
10,337 |
|
|
|
1,506 |
|
|
|
8,831 |
|
|
|
586.4 |
% |
TDA |
|
|
3,805 |
|
|
|
2,675 |
|
|
|
1,130 |
|
|
|
42.2 |
% |
|
|
9,743 |
|
|
|
8,799 |
|
|
|
944 |
|
|
|
10.7 |
% |
All Other (2) |
|
|
1,798 |
|
|
|
123 |
|
|
|
1,675 |
|
|
|
1,361.8 |
% |
|
|
5,454 |
|
|
|
345 |
|
|
|
5,109 |
|
|
|
1,480.9 |
% |
Total gross profit |
|
$ |
58,089 |
|
|
$ |
25,445 |
|
|
$ |
32,644 |
|
|
|
128.3 |
% |
|
$ |
157,393 |
|
|
$ |
51,439 |
|
|
$ |
105,954 |
|
|
|
206.0 |
% |
Gross profit per unit (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Ecommerce |
|
$ |
2,560 |
|
|
$ |
2,188 |
|
|
$ |
372 |
|
|
|
17.0 |
% |
|
$ |
2,467 |
|
|
$ |
1,738 |
|
|
$ |
729 |
|
|
|
41.9 |
% |
Wholesale |
|
$ |
215 |
|
|
$ |
542 |
|
|
$ |
(327 |
) |
|
|
(60.3 |
)% |
|
$ |
364 |
|
|
$ |
107 |
|
|
$ |
257 |
|
|
|
240.2 |
% |
TDA |
|
$ |
2,175 |
|
|
$ |
1,828 |
|
|
$ |
347 |
|
|
|
19.0 |
% |
|
$ |
1,907 |
|
|
$ |
1,569 |
|
|
$ |
338 |
|
|
|
21.5 |
% |
(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 89.6% to 31,192.
- Ecommerce units sold increased 123.1% to 19,683, as discussed above.
- Wholesale units sold increased 58.3% to 9,760, primarily driven by an increase in wholesale units purchased from consumers, a higher number of trade-in vehicles associated with the increase in the number of ecommerce units sold and strong wholesale market demand for used vehicles.
- TDA units sold increased 19.5% to 1,749, primarily due to strong market demand generally for used vehicles and higher inventory levels.
Total Revenue
Total revenue increased 177.6% to $896.8 million.
- Ecommerce revenue increased 216.4% to $701.7 million, as discussed above.
- Wholesale revenue increased 105.3% to $131.3 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold as well as a higher average selling price per unit, which increased from $10,375 to $13,453, primarily attributable to market appreciation.
- TDA revenue increased 63.9% to $60.6 million, primarily due to a higher average selling price per unit, which increased from $24,316 to $33,474 as well as the increase in TDA units sold.
Total Gross Profit
Total gross profit increased 128.3% to $58.1 million.
- Ecommerce gross profit increased 161.0% to $50.4 million, as discussed above.
- Wholesale gross profit decreased 37.1% to $2.1 million. Wholesale gross profit decreased primarily due to a lower Wholesale gross profit per unit of $327, partially offset by an increase in wholesale units sold.
- TDA gross profit increased 42.2% to $3.8 million. TDA gross profit increased primarily due to an increase in TDA gross profit per unit of $347 as well as an increase in TDA units sold.
Gross Profit per Unit
- Ecommerce gross profit per unit increased 17.0% to $2,560, as discussed above.
- Wholesale gross profit per unit decreased 60.3% to $215 as a result sales margin compression due to unfavorable wholesale price movements, which declined during the first half of the third quarter of 2021.
- TDA gross profit per unit increased 19.0% to $2,175 driven by increased TDA product gross profit per unit of $221, primarily due to improvements in inbound logistics costs and increased TDA vehicle gross profit per unit of $126, primarily due to an increase in the average loan size as a result of a higher average selling price per unit.
SG&A
|
|
Three Months Ended
|
|
|
|
|
|
|
|
Nine Months Ended
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
2021 |
|
2020 |
|
Change |
|
% Change |
|
2021 |
|
2020 |
|
Change |
|
% Change |
||||||||||||||||||||
|
|
(in thousands) |
|
|
|
|
|
|
|
(in thousands) |
|
|
|
|
|
|
||||||||||||||||||||
Compensation & benefits |
|
$ |
|
53,900 |
|
|
$ |
|
22,881 |
|
|
$ |
31,019 |
|
|
|
135.6 |
% |
|
$ |
|
145,580 |
|
|
$ |
|
63,821 |
|
|
$ |
81,759 |
|
|
|
128.1 |
% |
Marketing expense |
|
|
|
35,214 |
|
|
|
|
15,341 |
|
|
|
19,873 |
|
|
|
129.5 |
% |
|
|
|
88,267 |
|
|
|
|
44,829 |
|
|
|
43,438 |
|
|
|
96.9 |
% |
Outbound logistics |
|
|
|
22,717 |
|
|
|
|
8,500 |
|
|
|
14,217 |
|
|
|
167.3 |
% |
|
|
|
57,987 |
|
|
|
|
19,762 |
|
|
|
38,225 |
|
|
|
193.4 |
% |
Occupancy and related costs |
|
|
|
4,635 |
|
|
|
|
2,610 |
|
|
|
2,025 |
|
|
|
77.6 |
% |
|
|
|
12,599 |
|
|
|
|
7,574 |
|
|
|
5,025 |
|
|
|
66.3 |
% |
Professional fees |
|
|
|
7,694 |
|
|
|
|
1,773 |
|
|
|
5,921 |
|
|
|
334.0 |
% |
|
|
|
15,951 |
|
|
|
|
5,697 |
|
|
|
10,254 |
|
|
|
180.0 |
% |
Other |
|
|
|
24,558 |
|
|
|
|
10,022 |
|
|
|
14,536 |
|
|
|
145.0 |
% |
|
|
|
61,098 |
|
|
|
|
25,735 |
|
|
|
35,363 |
|
|
|
137.4 |
% |
Total selling, general & administrative expenses |
|
$ |
|
148,718 |
|
|
$ |
|
61,127 |
|
|
$ |
87,591 |
|
|
|
143.3 |
% |
|
$ |
|
381,482 |
|
|
$ |
|
167,418 |
|
|
$ |
214,064 |
|
|
|
127.9 |
% |
Selling, general and administrative expenses increased 143.3% to $148.7 million. The increase was primarily due to:
- $31.0 million increase in compensation and benefits due to an increase in headcount and an increase in variable fees for third-party sales and sales support providers as a result of an increase in units sold;
- $19.9 million increase in marketing expense as we expanded our national broad-reach brand advertising, produced new commercials, and increased performance and online marketing as we continue to grow our listed inventory;
- $14.2 million increase in outbound logistics costs primarily attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $10.5 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $3.7 million;
- $5.9 million increase in professional fees primarily related to acquisition related costs incurred in connection with the definitive agreement to acquire UACC, as well as increased consulting expenses in the marketing and engineering departments; and
- $14.5 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.
We expect selling, general and administrative expenses to increase in the future as we continue to scale our business, integrate and invest in UACC, invest in and improve our customer experience, and continue expanding our proprietary logistics and reconditioning networks.
Loss from Operations and Net Loss
Loss from operations increased 154.9% to $94.0 million. Net loss increased 159.2% to $98.1 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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and costs related to our acquisition of UACC. 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
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(in thousands) |
|
(in thousands) |
||||||||||||
Net loss |
|
$ |
(98,122 |
) |
|
$ |
(37,850 |
) |
|
$ |
(241,118 |
) |
|
$ |
(142,137 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
7,028 |
|
|
|
2,259 |
|
|
|
14,720 |
|
|
|
6,382 |
|
Interest income |
|
|
(2,930 |
) |
|
|
(1,289 |
) |
|
|
(7,288 |
) |
|
|
(3,960 |
) |
Provision for income taxes |
|
|
29 |
|
|
|
33 |
|
|
|
379 |
|
|
|
138 |
|
Depreciation and amortization expense |
|
|
3,469 |
|
|
|
1,196 |
|
|
|
9,497 |
|
|
|
3,255 |
|
EBITDA |
|
$ |
(90,526 |
) |
|
$ |
(35,651 |
) |
|
$ |
(223,810 |
) |
|
$ |
(136,322 |
) |
One-time IPO related acceleration of non-cash stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,262 |
|
One-time IPO related non-cash revaluation of preferred stock warrant |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,470 |
|
Acquisition related costs |
|
|
3,412 |
|
|
|
— |
|
|
|
3,412 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(87,114 |
) |
|
$ |
(35,651 |
) |
|
$ |
(220,398 |
) |
|
$ |
(114,590 |
) |
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 and costs related to our acquisition of UACC. 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
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
(in thousands) |
|
(in thousands) |
||||||||||||
Loss from operations |
|
$ |
(94,005 |
) |
|
$ |
(36,873 |
) |
|
$ |
(233,365 |
) |
|
$ |
(119,218 |
) |
Add: One-time IPO related acceleration of non-cash stock based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,262 |
|
Add: Acquisition related costs |
|
|
3,412 |
|
|
|
— |
|
|
|
3,412 |
|
|
|
— |
|
Adjusted loss from operations |
|
$ |
(90,593 |
) |
|
$ |
(36,873 |
) |
|
$ |
(229,953 |
) |
|
$ |
(117,956 |
) |
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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and costs related to our acquisition of UACC. 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
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands, except share and per share amounts) |
|
||||||||||||||
Net loss |
|
$ |
(98,122 |
) |
|
$ |
(37,850 |
) |
|
$ |
(241,118 |
) |
|
$ |
(142,137 |
) |
Net loss attributable to common stockholders |
|
$ |
(98,122 |
) |
|
$ |
(37,850 |
) |
|
$ |
(241,118 |
) |
|
$ |
(142,137 |
) |
Add: One-time IPO related acceleration of non-cash stock based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,262 |
|
Add: One-time IPO related non-cash revaluation of preferred stock warrant |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,470 |
|
Add: Acquisition related costs |
|
|
3,412 |
|
|
|
— |
|
|
|
3,412 |
|
|
|
— |
|
Non-GAAP net loss |
|
$ |
(94,710 |
) |
|
$ |
(37,850 |
) |
|
$ |
(237,706 |
) |
|
$ |
(120,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted |
|
|
136,766,015 |
|
|
|
121,123,472 |
|
|
|
136,256,901 |
|
|
|
53,731,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share, basic and diluted |
|
$ |
(0.72 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.77 |
) |
|
$ |
(2.65 |
) |
Impact of one-time IPO related acceleration of non-cash stock based compensation |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.02 |
|
Impact of one-time IPO related non-cash revaluation of preferred stock warrant |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.38 |
|
Impact of acquisition related costs |
|
|
0.02 |
|
|
|
— |
|
|
|
0.03 |
|
|
|
— |
|
Non-GAAP net loss per share, basic and diluted |
|
$ |
(0.70 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.74 |
) |
|
$ |
(2.25 |
) |
Non-GAAP net loss per share, as adjusted, basic and diluted(a) |
|
$ |
(0.70 |
) |
|
$ |
(0.29 |
) |
|
$ |
(1.74 |
) |
|
$ |
(0.93 |
) |
(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, (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 and (iii) the shares of common stock issued with our follow-on public offering. The computation of Non-GAAP net loss per share, as adjusted is as follows:
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
(in thousands, except share and per share amounts) |
|
||||||||||||||
Non-GAAP net loss |
|
$ |
(94,710 |
) |
|
$ |
(37,850 |
) |
|
$ |
(237,706 |
) |
|
$ |
(120,405 |
) |
Non-GAAP net loss, as adjusted |
|
$ |
(94,710 |
) |
|
$ |
(37,850 |
) |
|
$ |
(237,706 |
) |
|
$ |
(120,405 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted |
|
|
136,766,015 |
|
|
|
121,123,472 |
|
|
|
136,256,901 |
|
|
|
53,731,475 |
|
Add: unweighted adjustment for common stock issued in connection with IPO |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
24,437,500 |
|
Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
85,533,394 |
|
Add: unweighted adjustment for common stock issued in connection with follow-on public offering |
|
|
— |
|
|
|
10,800,000 |
|
|
|
— |
|
|
|
10,800,000 |
|
Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented |
|
|
— |
|
|
|
(1,760,869 |
) |
|
|
— |
|
|
|
(44,897,573 |
) |
Weighted-average number of shares outstanding used to compute net loss per share, as adjusted, basic and diluted |
|
|
136,766,015 |
|
|
|
130,162,603 |
|
|
|
136,256,901 |
|
|
|
129,604,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-GAAP net loss per share, as adjusted, basic and diluted |
|
$ |
(0.70 |
) |
|
$ |
(0.29 |
) |
|
$ |
(1.74 |
) |
|
$ |
(0.93 |
) |
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 fourth quarter 2021, we expect the following results:
- Ecommerce unit sales of 20,000 to 20,500, implying year over year growth of 84% at the mid-point of the guidance range.
- Average ecommerce selling price per unit of $35,000 to $36,000 and average ecommerce gross profit per unit of $2,100 to $2,300.
- Wholesale unit sales of 6,500 to 7,500, average selling price per unit of $13,000 to $14,000 and average gross profit per unit of $550 to $750.
- TDA unit sales of 1,500 to 1,600, average selling price per unit of $35,000 to $36,000 and average gross profit per unit of $1,800 to $2,000.
- Total revenue of $865 to $900 million.
- Total gross profit of $50 to $58 million.
- Adjusted EBITDA* of $(104) to $(95) million.
- Stock-based compensation expense of $4.2 million.
- Net loss per share, as adjusted* of $(0.77) to $(0.70).
*A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for our fourth 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 third 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 fourth quarter and the full year 2021:
|
Quarter |
|
YTD |
|
2021 |
136,897,954 |
|
136,417,164 |
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 November 9, 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, November 10, 2021 at 8:30 a.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 5685139. 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 integrate and develop United Auto Credit Corporation into a captive finance operation, as well as 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 fourth quarter 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 September 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. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) |
||||||||
|
|
As of |
|
As of |
||||
|
|
September 30, |
|
December 31, |
||||
|
|
2021 |
|
2020 |
||||
ASSETS |
|
|
|
|
|
|
||
Current Assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
1,326,543 |
|
|
$ |
1,056,213 |
|
Restricted cash |
|
|
69,574 |
|
|
|
33,826 |
|
Accounts receivable, net of allowance of $4,937 and $2,803, respectively |
|
|
89,900 |
|
|
|
60,576 |
|
Inventory |
|
|
601,753 |
|
|
|
423,647 |
|
Prepaid expenses and other current assets |
|
|
62,390 |
|
|
|
23,617 |
|
Total current assets |
|
|
2,150,160 |
|
|
|
1,597,879 |
|
Property and equipment, net |
|
|
30,559 |
|
|
|
15,092 |
|
Intangible assets, net |
|
|
29,762 |
|
|
|
34 |
|
Goodwill |
|
|
158,817 |
|
|
|
78,172 |
|
Operating lease right-of-use assets |
|
|
16,994 |
|
|
|
17,137 |
|
Other assets |
|
|
23,251 |
|
|
|
15,742 |
|
Total assets |
|
$ |
2,409,543 |
|
|
$ |
1,724,056 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current Liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
59,522 |
|
|
$ |
32,925 |
|
Accrued expenses |
|
|
104,694 |
|
|
|
59,405 |
|
Vehicle floorplan |
|
|
441,473 |
|
|
|
329,231 |
|
Deferred revenue |
|
|
64,087 |
|
|
|
24,822 |
|
Operating lease liabilities, current |
|
|
6,872 |
|
|
|
6,052 |
|
Other current liabilities |
|
|
66,904 |
|
|
|
30,275 |
|
Total current liabilities |
|
|
743,552 |
|
|
|
482,710 |
|
Convertible senior notes |
|
|
609,811 |
|
|
|
— |
|
Operating lease liabilities, excluding current portion |
|
|
11,325 |
|
|
|
12,093 |
|
Other long-term liabilities |
|
|
4,204 |
|
|
|
2,151 |
|
Total liabilities |
|
|
1,368,892 |
|
|
|
496,954 |
|
Commitments and contingencies (Note 10) |
|
|
|
|
|
|
||
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock, $0.001 par value; 500,000,000 shares authorized as of September 30, 2021 and December 31, 2020; 136,897,954 and 134,043,969 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively |
|
|
135 |
|
|
|
132 |
|
Additional paid-in-capital |
|
|
2,059,505 |
|
|
|
2,004,841 |
|
Accumulated deficit |
|
|
(1,018,989 |
) |
|
|
(777,871 |
) |
Total stockholders’ equity |
|
|
1,040,651 |
|
|
|
1,227,102 |
|
Total liabilities and stockholders’ equity |
|
$ |
2,409,543 |
|
|
$ |
1,724,056 |
|
VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Retail vehicle, net |
|
$ |
735,716 |
|
|
$ |
249,518 |
|
|
$ |
1,798,155 |
|
|
$ |
754,380 |
|
Wholesale vehicle |
|
|
131,306 |
|
|
|
63,972 |
|
|
|
377,438 |
|
|
|
170,469 |
|
Product, net |
|
|
26,544 |
|
|
|
9,198 |
|
|
|
64,422 |
|
|
|
25,979 |
|
Other |
|
|
3,190 |
|
|
|
317 |
|
|
|
9,749 |
|
|
|
1,043 |
|
Total revenue |
|
|
896,756 |
|
|
|
323,005 |
|
|
|
2,249,764 |
|
|
|
951,871 |
|
Cost of sales |
|
|
838,667 |
|
|
|
297,560 |
|
|
|
2,092,371 |
|
|
|
900,432 |
|
Total gross profit |
|
|
58,089 |
|
|
|
25,445 |
|
|
|
157,393 |
|
|
|
51,439 |
|
Selling, general and administrative expenses |
|
|
148,718 |
|
|
|
61,127 |
|
|
|
381,482 |
|
|
|
167,418 |
|
Depreciation and amortization |
|
|
3,376 |
|
|
|
1,191 |
|
|
|
9,276 |
|
|
|
3,239 |
|
Loss from operations |
|
|
(94,005 |
) |
|
|
(36,873 |
) |
|
|
(233,365 |
) |
|
|
(119,218 |
) |
Interest expense |
|
|
7,028 |
|
|
|
2,259 |
|
|
|
14,720 |
|
|
|
6,382 |
|
Interest income |
|
|
(2,930 |
) |
|
|
(1,289 |
) |
|
|
(7,288 |
) |
|
|
(3,960 |
) |
Revaluation of preferred stock warrant |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,470 |
|
Other income, net |
|
|
(10 |
) |
|
|
(26 |
) |
|
|
(58 |
) |
|
|
(111 |
) |
Loss before provision for income taxes |
|
|
(98,093 |
) |
|
|
(37,817 |
) |
|
|
(240,739 |
) |
|
|
(141,999 |
) |
Provision for income taxes |
|
|
29 |
|
|
|
33 |
|
|
|
379 |
|
|
|
138 |
|
Net loss |
|
$ |
(98,122 |
) |
|
$ |
(37,850 |
) |
|
$ |
(241,118 |
) |
|
$ |
(142,137 |
) |
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.72 |
) |
|
$ |
(0.31 |
) |
|
$ |
(1.77 |
) |
|
$ |
(2.65 |
) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
136,766,015 |
|
|
|
121,123,472 |
|
|
|
136,256,901 |
|
|
|
53,731,475 |
|
VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
||||||||
|
|
Nine Months Ended
|
||||||
|
|
2021 |
|
2020 |
||||
Operating activities |
|
|
|
|
|
|
||
Net loss |
|
$ |
(241,118 |
) |
|
$ |
(142,137 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
9,497 |
|
|
|
3,255 |
|
Amortization of debt issuance costs |
|
|
1,784 |
|
|
|
656 |
|
Stock-based compensation expense |
|
|
9,754 |
|
|
|
8,930 |
|
Provision to record inventory at lower of cost or net realizable value |
|
|
5,625 |
|
|
|
2,917 |
|
Revaluation of preferred stock warrant |
|
|
— |
|
|
|
20,470 |
|
Other |
|
|
4,874 |
|
|
|
1,331 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(32,936 |
) |
|
|
(4,297 |
) |
Inventory |
|
|
(183,731 |
) |
|
|
(96,582 |
) |
Prepaid expenses and other current assets |
|
|
(39,356 |
) |
|
|
(6,639 |
) |
Other assets |
|
|
(7,390 |
) |
|
|
(2,246 |
) |
Accounts payable |
|
|
26,144 |
|
|
|
10,478 |
|
Accrued expenses |
|
|
43,512 |
|
|
|
15,679 |
|
Deferred revenue |
|
|
39,227 |
|
|
|
(24 |
) |
Other liabilities |
|
|
38,655 |
|
|
|
5,335 |
|
Net cash used in operating activities |
|
|
(325,459 |
) |
|
|
(182,874 |
) |
Investing activities |
|
|
|
|
|
|
||
Purchase of property and equipment |
|
|
(18,786 |
) |
|
|
(5,057 |
) |
Acquisition of business, net of cash acquired |
|
|
(75,875 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(94,661 |
) |
|
|
(5,057 |
) |
Financing activities |
|
|
|
|
|
|
||
Proceeds from vehicle floorplan |
|
|
1,901,457 |
|
|
|
842,865 |
|
Repayments of vehicle floorplan |
|
|
(1,789,215 |
) |
|
|
(767,359 |
) |
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 |
|
|
(16,129 |
) |
|
|
— |
|
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 |
|
|
— |
|
|
|
(2,915 |
) |
Proceeds from the issuance of common stock in connection with IPO, net of underwriting discount |
|
|
— |
|
|
|
504,023 |
|
Payments of costs related to IPO |
|
|
— |
|
|
|
(6,791 |
) |
Proceeds from the issuance of common stock in connection with follow-on public offering, net of underwriting discount |
|
|
— |
|
|
|
569,471 |
|
Payments of costs related to follow-on public offering |
|
|
— |
|
|
|
(196 |
) |
Proceeds from exercise of stock options |
|
|
5,085 |
|
|
|
133 |
|
Other financing activities |
|
|
— |
|
|
|
(315 |
) |
Net cash provided by financing activities |
|
|
726,198 |
|
|
|
1,157,667 |
|
Net increase in cash, cash equivalents and restricted cash |
|
|
306,078 |
|
|
|
969,736 |
|
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 |
|
$ |
1,396,117 |
|
|
$ |
1,189,323 |
|