Vroom Announces Third Quarter 2023 Results
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, 2023. HIGHLIGHTS OF THIRD QUART...
Continued Progress on Long-Term Roadmap Driving Unit Growth, GPPU Improvement and Cost Reductions
NEW YORK: 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, 2023.
HIGHLIGHTS OF THIRD QUARTER 2023 VERSUS SECOND QUARTER 2023
- 11% sequential growth in Ecommerce units
- $3,144 Ecommerce gross profit per unit (GPPU) as compared to $2,954
- Continued reductions in fixed costs per unit as well as per unit costs across marketing, logistics, and titling and registrations and support
- $(82.9) million net loss as compared to $(66.3) million
- $(64.5) million Adjusted EBITDA as compared to $(56.3) million
Tom Shortt, Chief Executive Officer of Vroom, said, “In the third quarter of 2023, consistent with our Long-Term Roadmap, we continued to make progress on our three key objectives and four strategic initiatives. Our ecommerce unit growth rate doubled sequentially to 11%, while we also sequentially improved GPPU and reduced SG&A spend. Ecommerce GPPU increased to $3,144 in Q3 2023 from $2,954 in Q2 2023, benefiting from an improved mix of unaged vehicles sold within the quarter. During the third quarter of 2023, 34% of our units sold were aged units, or units held greater than 180 days. Adjusted EBITDA declined sequentially, driven by headwinds in the loan portfolio performance at UACC due to higher delinquencies and realized net losses, partially offset by improved unit economics. We continue to drive process improvements across titling and registration, pricing, marketing, sales, reconditioning and logistics.”
Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We succeeded in reducing per-unit costs across 1) marketing, 2) logistics, 3) titling, registration and support, and 4) fixed costs. We further strengthened our balance sheet by recovering $48 million of cash trapped on the balance sheet as we sold through aged inventory, and ended the quarter with cash and cash equivalents of approximately $209 million. We will continue to pursue opportunities to reduce costs, strengthen our balance sheet and enhance our liquidity and intend to seek additional capital through equity or debt financing.”
THIRD 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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| Nine Months 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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| 4,561 |
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| 6,428 |
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| (1,867 | ) |
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| (29.0 | )% |
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| 12,621 |
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| 35,134 |
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| (22,513 | ) |
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| (64.1 | )% |
Ecommerce revenue: |
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Vehicle revenue |
| $ |
| 136,949 |
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| $ |
| 212,980 |
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| $ |
| (76,031 | ) |
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| (35.7 | )% |
| $ |
| 387,585 |
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| $ |
| 1,173,727 |
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| $ |
| (786,142 | ) |
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| (67.0 | )% |
Product revenue |
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| 12,902 |
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| 12,461 |
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| 441 |
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| 3.5 | % |
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| 36,128 |
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| 48,709 |
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| (12,581 | ) |
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| (25.8 | )% |
Total ecommerce revenue |
| $ |
| 149,851 |
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| $ |
| 225,441 |
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| $ |
| (75,590 | ) |
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| (33.5 | )% |
| $ |
| 423,713 |
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| $ |
| 1,222,436 |
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| $ |
| (798,723 | ) |
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| (65.3 | )% |
Ecommerce gross profit: |
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Vehicle gross profit |
| $ |
| 2,354 |
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| $ |
| 14,573 |
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| $ |
| (12,219 | ) |
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| (83.8 | )% |
| $ |
| 2,956 |
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| $ |
| 46,153 |
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| $ |
| (43,197 | ) |
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| (93.6 | )% |
Product gross profit |
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| 11,985 |
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| 12,461 |
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| (476 | ) |
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| (3.8 | )% |
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| 33,610 |
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| 48,709 |
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| (15,099 | ) |
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| (31.0 | )% |
Total ecommerce gross profit |
| $ |
| 14,339 |
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| $ |
| 27,034 |
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| $ |
| (12,695 | ) |
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| (47.0 | )% |
| $ |
| 36,566 |
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| $ |
| 94,862 |
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| $ |
| (58,296 | ) |
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| (61.5 | )% |
Average vehicle selling price per ecommerce unit |
| $ |
| 30,026 |
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| $ |
| 33,133 |
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| $ |
| (3,107 | ) |
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| (9.4 | )% |
| $ |
| 30,710 |
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| $ |
| 33,407 |
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| $ |
| (2,697 | ) |
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| (8.1 | )% |
Product revenue per ecommerce unit |
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| 2,829 |
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| 1,939 |
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| 890 |
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| 45.9 | % |
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| 2,863 |
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| 1,386 |
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| 1,477 |
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| 106.5 | % |
Gross profit per ecommerce unit: |
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Vehicle gross profit per ecommerce unit |
| $ |
| 516 |
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| $ |
| 2,267 |
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