Vroom, Inc. (Nasdaq:VRM) today announced financial results for the fourth quarter and fiscal year ended December 31, 2024. HIGHLIGHTS OF FOURTH QUARTER AND FULL YEAR 2024 $57.5 million consolidated...
Autore: Business Wire
Vroom Completes Recapitalization
Positions the Company for Long-Term Growth
NEW YORK: Vroom, Inc. (Nasdaq:VRM) today announced financial results for the fourth quarter and fiscal year ended December 31, 2024.
HIGHLIGHTS OF FOURTH QUARTER AND FULL YEAR 2024
Tom Shortt, the Company’s Chief Executive Officer, said, “The last year was pivotal. We successfully wound down our ecommerce used vehicle dealership business, developed a Long-Term Strategic Plan to capitalize on our remaining assets including UACC, CarStory and the Vroom ecommerce technology and IP, began the process of recapitalizing our business and ended the year with $57.5 million of consolidated total cash and excess liquidity. We enter 2025 having completed the recapitalization and with continued focus on executing our Long-Term Strategic Plan.”
1) Adjusted EBITDA is a non-GAAP measure. For definitions and a reconciliation to the most comparable GAAP measure, please see Non-GAAP Financial Measures section below. |
2) Tangible book value is a non-GAAP measure and represents total assets, excluding intangible assets less liabilities. A reconciliation of tangible book value to equity is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, the fresh-start accounting valuation adjustments, which have not been completed at this time. |
FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.
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| Three Months Ended |
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| Year Ended |
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| 2024 |
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| 2023 |
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| $ Change |
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| 2024 |
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| 2023 |
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| $ Change |
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Interest income |
| $ | 48,681 |
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| $ | 49,540 |
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| $ | (859 | ) |
| $ | 201,833 |
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| $ | 178,482 |
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| $ | 23,351 |
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Interest expense: |
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Warehouse credit facility |
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| 6,568 |
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| 7,635 |
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| (1,067 | ) |
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| 29,276 |
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| 19,914 |
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| 9,362 |
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Securitization debt |
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| 8,124 |
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| 5,537 |
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| 2,587 |
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| 30,084 |
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| 21,979 |
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|
| 8,105 |
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Total interest expense |
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| 14,692 |
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| 13,172 |
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|
| 1,520 |
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| 59,360 |
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|
| 41,893 |
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|
| 17,467 |
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Net interest income |
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| 33,989 |
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| 36,368 |
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| (2,379 | ) |
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| 142,473 |
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| 136,589 |
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| 5,884 |
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Realized and unrealized losses, net of recoveries |
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| 31,974 |
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| 46,368 |
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| (14,394 | ) |
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| 119,868 |
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| 122,541 |
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|
| (2,673 | ) |
Net interest income after losses and recoveries |
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| 2,015 |
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| (10,000 | ) |
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| 12,015 |
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| 22,605 |
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| 14,048 |
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| 8,557 |
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Noninterest income: |
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Servicing income |
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| 1,400 |
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| 2,206 |
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| (806 | ) |
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| 6,501 |
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| 10,041 |
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| (3,540 | ) |
Warranties and GAP income (loss), net |
|
| 1,737 |
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| 1,981 |
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|
| (244 | ) |
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| (2,610 | ) |
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| 5,713 |
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| (8,323 | ) |
CarStory revenue |
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| 2,828 |
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| 2,992 |
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| (164 | ) |
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| 11,610 |
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| 12,384 |
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| (774 | ) |
Gain on debt extinguishment |
|
| — |
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| 18,238 |
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| (18,238 | ) |
|
| — |
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|
| 37,878 |
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|
| (37,878 | ) |
Other income |
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| 2,506 |
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|
| 950 |
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| 1,556 |
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| 10,850 |
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| 9,110 |
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| 1,740 |
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Total noninterest income |
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| 8,471 |
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| 26,367 |
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| (17,896 | ) |
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| 26,351 |
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| 75,126 |
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| (48,775 | ) |
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Expenses: |
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Compensation and benefits |
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| 20,642 |
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| 22,287 |
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| (1,645 | ) |
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| 97,293 |
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| 86,700 |
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