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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...

Business Wire

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

 

 

Three Months Ended
December 31,

 

 

 

 

 

 

 

 

 

Year Ended
December 31,

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Change

 

 

% Change

 

 

2023

 

 

2022

 

 

 

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

 

 

 

4,780

 

 

 

 

4,144

 

 

 

 

636

 

 

 

15.3

%

 

 

 

17,401

 

 

 

 

39,278

 

 

 

 

(21,877

)

 

 

(55.7

)%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

136,360

 

 

$

 

131,069

 

 

$

 

5,291

 

 

 

4.0

%

 

$

 

523,945

 

 

$

 

1,304,797

 

 

$

 

(780,852

)

 

 

(59.8

)%

Product revenue

 

 

 

16,101

 

 

 

 

10,689

 

 

 

 

5,412

 

 

 

50.6

%

 

 

 

52,225

 

 

 

 

59,398

 

 

 

 

(7,173

)

 

 

(12.1

)%

Total ecommerce revenue

 

$

 

152,461

 

 

$

 

141,758

 

 

$

 

10,703

 

 

 

7.6

%

 

$

 

576,170

 

 

$

 

1,364,195

 

 

$

 

(788,025

)

 

 

(57.8

)%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

7,387

 

 

$

 

(5,579

)

 

$

 

12,966

 

 

 

232.4

%

 

$

 

10,343

 

 

$

 

40,575

 

 

$

 

(30,232

)

 

 

(74.5

)%

Product gross profit

 

 

 

15,281

 

 

 

 

10,689

 

 

 

 

4,592

 

 

 

43.0

%

 

 

 

48,888

 

 

 

 

59,398

 

 

 

 

(10,510

)

 

 

(17.7

)%

Total ecommerce gross profit

 

$

 

22,668

 

 

$

 

5,110

 

 

$

 

17,558

 

 

 

343.6

%

 

$

 

59,231

 

 

$

 

99,973

 

 

$

 

(40,742

)

 

 

(40.8

)%

Average vehicle selling price per ecommerce unit

 

$

 

28,527

 

 

$

 

31,629

 

 

$

 

(3,102

)

 

 

(9.8

)%

 

$

 

30,110

 

 

$

 

33,220

 

 

$

 

(3,110

)

 

 

(9.4

)%

Product revenue per ecommerce unit

 

 

 

3,368

 

 

 

 

2,579

 

 

 

 

789

 

 

 

30.6

%

 

 

 

3,001

 

 

 

 

1,512

 

 

 

 

1,489

 

 

 

98.5

%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

1,545

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