Vroom Announces Fourth Quarter and Full Year 2023 Results
Vroom, Inc. (Nasdaq:VRM) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023. HIGHLIGHTS OF FOURTH QUARTER AND FULL YEAR 2023 $135.6 million cash and cash...
Substantial Progress on Value Maximization Plan
NEW YORK: Vroom, Inc. (Nasdaq:VRM) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.
HIGHLIGHTS OF FOURTH QUARTER AND FULL YEAR 2023
- $135.6 million cash and cash equivalents as of December 31, 2023
- 4,780 and 17,401 Ecommerce units sold for the fourth quarter and full year, respectively, representing third consecutive quarter of Ecommerce unit growth
- $4,742 and $3,403 Ecommerce gross profit per unit (GPPU) for the fourth quarter and full year, respectively
- $(141.3) million and $(365.5) million net loss for the fourth quarter and full year, respectively
- $(91.6) million and $(277.2) million Adjusted EBITDA for the fourth quarter and full year, respectively, including ~$27 million impact of aged inventory liquidations and inventory write-downs due to the discontinuance of ecommerce operations(1)
- $41.4 million and $74.2 million convertible note repurchases during the fourth quarter and full year, respectively, for $23.3 million and $36.5 million, respectively
CURRENT PROGRESS ON VALUE MAXIMIZATION PLAN
- Expected to be substantially complete with the ecommerce wind down by the end of the first quarter 2024
- ~$94.0 million cash and cash equivalents as of February 29, 2024
- Sold substantially all of our used vehicle inventory
- Repaid outstanding balance on Ally Floorplan Facility
- Reducing our outstanding commitments and executing a reduction-in-force commensurate with our reduced operations
Tom Shortt, the Company’s Chief Executive Officer, said “As we previously announced, in January 2024 Vroom’s Board of Directors approved a Value Maximization Plan pursuant to which the Company has discontinued its ecommerce operations and is winding down its used vehicle dealership business. I am incredibly proud of the commitment and professionalism demonstrated by our team as they execute an orderly wind down of our ecommerce operations with a focus on timeliness and cost effectiveness. We anticipate that the wind-down will be substantially complete by the end of the month and look forward to working to maximize stakeholder value through our remaining businesses, United Auto Credit and CarStory.”
(1) While the Value Maximization Plan was approved in January 2024, we determined a triggering event existed as of December 31, 2023 related to our long lived assets, which led to additional write-downs of inventory in the fourth quarter of 2023. |
FOURTH QUARTER 2023 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted.
Ecommerce Results
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| Three Months Ended |
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| Year Ended |
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| 2023 |
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| 2022 |
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| Change |
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| % Change |
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| 2023 |
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| 2022 |
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| Change |
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| % Change |
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| (in thousands, except unit |
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| (in thousands, except unit |
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Ecommerce units sold |
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| 4,780 |
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| 4,144 |
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| 636 |
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| 15.3 | % |
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| 17,401 |
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| 39,278 |
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| (21,877 | ) |
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| (55.7 | )% |
Ecommerce revenue: |
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Vehicle revenue |
| $ |
| 136,360 |
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| $ |
| 131,069 |
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| $ |
| 5,291 |
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| 4.0 | % |
| $ |
| 523,945 |
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| $ |
| 1,304,797 |
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| $ |
| (780,852 | ) |
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| (59.8 | )% |
Product revenue |
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| 16,101 |
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| 10,689 |
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| 5,412 |
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| 50.6 | % |
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| 52,225 |
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| 59,398 |
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| (7,173 | ) |
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| (12.1 | )% |
Total ecommerce revenue |
| $ |
| 152,461 |
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| $ |
| 141,758 |
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| $ |
| 10,703 |
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| 7.6 | % |
| $ |
| 576,170 |
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| $ |
| 1,364,195 |
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| $ |
| (788,025 | ) |
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| (57.8 | )% |
Ecommerce gross profit: |
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Vehicle gross profit |
| $ |
| 7,387 |
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| $ |
| (5,579 | ) |
| $ |
| 12,966 |
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| 232.4 | % |
| $ |
| 10,343 |
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| $ |
| 40,575 |
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| $ |
| (30,232 | ) |
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| (74.5 | )% |
Product gross profit |
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| 15,281 |
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| 10,689 |
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| 4,592 |
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| 43.0 | % |
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| 48,888 |
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| 59,398 |
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| (10,510 | ) |
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| (17.7 | )% |
Total ecommerce gross profit |
| $ |
| 22,668 |
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| $ |
| 5,110 |
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| $ |
| 17,558 |
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| 343.6 | % |
| $ |
| 59,231 |
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| $ |
| 99,973 |
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| $ |
| (40,742 | ) |
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| (40.8 | )% |
Average vehicle selling price per ecommerce unit |
| $ |
| 28,527 |
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| $ |
| 31,629 |
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| $ |
| (3,102 | ) |
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| (9.8 | )% |
| $ |
| 30,110 |
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| $ |
| 33,220 |
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| $ |
| (3,110 | ) |
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| (9.4 | )% |
Product revenue per ecommerce unit |
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| 3,368 |
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| 2,579 |
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| 789 |
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| 30.6 | % |
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| 3,001 |
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| 1,512 |
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| 1,489 |
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| 98.5 | % |
Gross profit per ecommerce unit: |
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Vehicle gross profit per ecommerce unit |
| $ |
| 1,545 |
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