Vroom Announces Second Quarter 2024 Results

Rhea-AI Summary

Vroom (Nasdaq:VRM) announced Q2 2024 results, showing continued progress on operational initiatives and improved portfolio performance at UACC. Key highlights include:

- $63.4 million cash and cash equivalents as of June 30, 2024
- $34.0 million liquidity available to UACC under warehouse credit facilities
- $(19.1) million net loss from continuing operations
- $(7.5) million Adjusted EBITDA

The company successfully completed a UACC securitization transaction in April 2024. CEO Tom Shortt expressed satisfaction with Q2 results, noting growth in origination volume and serviced loan portfolio year-over-year. Vroom expects originations since early 2023 to perform at pre-pandemic levels and is seeing positive impacts from tightened credit policies, resulting in improved credit losses compared to the previous quarter.

Positive

• Growth in origination volume and serviced loan portfolio year-over-year
• Improvements in credit losses compared to the prior quarter
• Successful completion of UACC securitization transaction in April 2024
• Expectations for originations since early 2023 to perform at pre-pandemic levels

Negative

• Net loss from continuing operations of $19.1 million
• Negative Adjusted EBITDA of $7.5 million
• Decrease in net interest income from $37.4 million in Q2 2023 to $36.9 million in Q2 2024
• Increase in total expenses from $41.9 million in Q2 2023 to $46.4 million in Q2 2024

Insights

Financial Analyst

Vroom's Q2 2024 results show mixed signals. The company reported a net loss from continuing operations of $19.1 million, widening from $7.5 million in Q2 2023. However, there are some positive indicators:

• Interest income increased by $4.9 million year-over-year to $51.9 million
• Realized and unrealized losses decreased by $4.5 million to $18.7 million
• Net interest income after losses and recoveries improved by $4.0 million to $18.2 million

The company's focus on improving portfolio performance and tightening credit seems to be yielding results. However, increased expenses, particularly in compensation and benefits (up $5.8 million), are offsetting these gains. The Adjusted EBITDA of -$7.5 million indicates ongoing operational challenges.

Credit Risk Analyst

The credit performance of Vroom's portfolio shows signs of improvement. The company reports that originations since early 2023 are expected to perform at pre-pandemic levels, indicating a potential turnaround in credit quality. This is supported by:

• A decrease in realized and unrealized losses by 19.2% year-over-year
• Improvements in credit losses compared to the previous quarter

However, the total realized and unrealized losses of $18.7 million remain significant. The increase in interest expense, particularly on the warehouse credit facility (up 91%), suggests higher borrowing costs which could pressure margins. The company's liquidity position with $63.4 million in cash and $34.0 million available under credit facilities provides some buffer, but careful management of credit risk remains important for Vroom's financial health.

Auto Industry Analyst

Vroom's Q2 results reflect the ongoing challenges in the used car market, but also show adaptability. The company's focus on improving processes, digitization and automation is a step in the right direction for long-term sustainability. Key observations:

• The UACC segment shows growth in origination volume and serviced loan portfolio year-over-year
• CarStory revenue declined by 9.6%, indicating potential softness in the market or competitive pressures
• The successful completion of the UACC securitization transaction in April 2024 demonstrates access to capital markets

While Vroom is making operational improvements, the persistent net losses and negative Adjusted EBITDA suggest that the company is still navigating a challenging environment. The used car market's dynamics, including inventory levels and pricing trends, will be important factors to watch for Vroom's future performance.

Continued Progress on Operational Initiatives and Improved Portfolio Performance at UACC

NEW YORK--(BUSINESS WIRE)-- Vroom, Inc. (Nasdaq:VRM) today announced financial results for the second quarter ended June 30, 2024.

HIGHLIGHTS OF SECOND QUARTER 2024

• $63.4 million cash and cash equivalents as of June 30, 2024
• $34.0 million of liquidity available to UACC under the warehouse credit facilities
• $(19.1) million net loss from continuing operations
• $(7.5) million Adjusted EBITDA
• Successfully Completed UACC Securitization Transaction in April 2024

Tom Shortt, the Company’s Chief Executive Officer, said “Overall, I am pleased with our second quarter 2024 results. We grew origination volume and our serviced loan portfolio year over year, while continuing to focus on portfolio performance. We currently expect originations since early 2023 to perform at pre-pandemic levels, and are beginning to see positive impacts of our prior decision to tighten credit, resulting in improvements in credit losses compared to the prior quarter. We are focused on improving processes and technology, digitization and automation, and reducing costs across the business.”

SECOND QUARTER 2024 FINANCIAL DISCUSSION

All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.

		Three Months Ended June 30,												Six Months Ended June 30,
		2024				2023				$ Change				2024				2023				$ Change
Interest income		$	51,862			$	46,995			$	4,867			$	102,939			$	81,363			$	21,576
Interest expense:
Warehouse credit facility			6,986				3,658				3,328				16,457				6,757				9,700
Securitization debt			7,995				5,981				2,014				12,864				10,326				2,538
Total interest expense			14,981				9,639				5,342				29,321				17,083				12,238
Net interest income			36,881				37,356				(475	)			73,618				64,280				9,338
Realized and unrealized losses, net of recoveries			18,729				23,187				(4,458	)			49,548				38,915				10,633
Net interest income after losses and recoveries			18,152				14,169				3,983				24,070				25,365				(1,295	)
Noninterest income:
Servicing income			1,587				2,551				(964	)			3,606				5,405				(1,799	)
Warranties and GAP income (loss), net			1,378				751				627				(8,264	)			3,586				(11,850	)
CarStory revenue			2,913				3,224				(311	)			5,892				6,394				(502	)
Gain on debt extinguishment			—				10,931				(10,931	)			—				19,640				(19,640	)
Other income			3,141				3,071				70				5,925				6,103				(178	)
Total noninterest income			9,019				20,528				(11,509	)			7,159				41,128				(33,969	)
Expenses:
Compensation and benefits			27,176				21,341				5,835				51,286				44,562				6,724
Professional fees			1,488				2,444				(956	)			4,831				7,417				(2,586	)
Software and IT costs			4,036				4,804				(768	)			8,658				10,050				(1,392	)
Depreciation and amortization			7,232				7,190				42				14,858				14,422				436
Interest expense on corporate debt			1,549				1,527				22				2,940				2,867				73
Impairment charges			—				—				—				2,752				—				2,752
Other expenses			4,961				4,571				390				9,416				9,773				(357	)
Total expenses			46,442				41,877				4,565				94,741				89,091				5,650
Loss from continuing operations before provision for income taxes			(19,271	)			(7,180	)			(12,091	)			(63,512	)			(22,598	)			(40,914	)
(Benefit) provision for income taxes from continuing operations			(167	)			286				(453	)			269				337				(68	)
Net loss from continuing operations		$	(19,104	)		$	(7,466	)		$	(11,638	)		$	(63,781	)		$	(22,935	)		$	(40,846	)
Net loss from discontinued operations		$	(2,084	)		$	(58,573	)		$	56,489			$	(25,025	)		$	(117,844	)		$	92,819
Net loss		$	(21,188	)		$	(66,039	)		$	44,851			$	(88,806	)		$	(140,779	)		$	51,973

Results by Segment

UACC

	Three Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	52,389			$	47,531			$	4,858				10.2	%
Interest expense:
Warehouse credit facility		6,986				3,658				3,328				91.0	%
Securitization debt		7,995				5,981				2,014				33.7	%
Total interest expense		14,981				9,639				5,342				55.4	%
Net interest income		37,408				37,892				(484	)			(1.3	)%
Realized and unrealized losses, net of recoveries		19,582				20,386				(804	)			(3.9	)%
Net interest income after losses and recoveries		17,826				17,506				320				1.8	%
Noninterest income:
Servicing income		1,587				2,551				(964	)			(37.8	)%
Warranties and GAP income, net		1,640				1,478				162				11.0	%
Other income		2,098				977				1,121				114.7	%
Total noninterest income		5,325				5,006				319				6.4	%
Expenses:
Compensation and benefits		20,539				16,392				4,147				25.3	%
Professional fees		575				1,028				(453	)			(44.1	)%
Software and IT costs		2,605				2,974				(369	)			(12.4	)%
Depreciation and amortization		5,630				5,582				48				0.9	%
Interest expense on corporate debt		629				436				193				44.2	%
Other expenses		3,054				1,841				1,213				65.9	%
Total expenses		33,032				28,253				4,779				16.9	%
Adjusted EBITDA	$	(2,824	)		$	291			$	(3,115	)			(1,070.4	)%
Interest income on cash and cash equivalents	$	(560	)		$	(506	)			(54	)			10.7	%
Stock compensation expense	$	865			$	519				346				66.8	%

	Six Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	103,930			$	82,830			$	21,100				25.5	%
Interest expense:
Warehouse credit facility		16,457				6,757				9,700				143.6	%
Securitization debt		12,864				10,326				2,538				24.6	%
Total interest expense		29,321				17,083				12,238				71.6	%
Net interest income		74,609				65,747				8,862				13.5	%
Realized and unrealized losses, net of recoveries		47,343				32,658				14,685				45.0	%
Net interest income after losses and recoveries		27,266				33,089				(5,823	)			(17.6	)%
Noninterest income:
Servicing income		3,606				5,405				(1,799	)			(33.3	)%
Warranties and GAP income, net		3,250				3,681				(431	)			(11.7	)%
Other income		4,568				2,031				2,537				124.9	%
Total noninterest income		11,424				11,117				307				2.8	%
Expenses:
Compensation and benefits		39,327				34,928				4,399				12.6	%
Professional fees		1,451				3,569				(2,118	)			(59.3	)%
Software and IT costs		5,702				5,679				23				0.4	%
Depreciation and amortization		11,651				11,209				442				3.9	%
Interest expense on corporate debt		1,100				633				467				73.7	%
Impairment charges		2,752				—				2,752				100.0	%
Other expenses		5,577				4,261				1,316				30.9	%
Total expenses		67,561				60,279				7,282				12.1	%
Adjusted EBITDA	$	(12,970	)		$	(4,177	)		$	(8,793	)			210.5	%
Interest income on cash and cash equivalents	$	(1,128	)		$	(954	)			(174	)			18.2	%
Stock compensation expense	$	1,033			$	1,008				24				2.4	%

CarStory

	Three Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Noninterest income:
CarStory revenue	$	2,913			$	3,224			$	(311	)			(9.6	)%
Other income		190				93				97				104.3	%
Total noninterest income		3,103				3,317				(214	)			(6.5	)%
Expenses:
Compensation and benefits		2,461				2,420				41				1.7	%
Professional fees		80				113				(33	)			(29.3	)%
Software and IT costs		21				171				(150	)			(87.7	)%
Depreciation and amortization		1,602				1,608				(6	)			(0.4	)%
Other expenses		55				152				(97	)			(63.8	)%
Total expenses		4,219				4,464				(245	)			(5.5	)%
Adjusted EBITDA	$	372			$	634			$	(262	)			(41.3	)%
Interest income on cash and cash equivalents	$	(190	)		$	(88	)			(102	)			116.9	%
Stock compensation expense	$	76			$	261				(185	)			(71.0	)%

	Six Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Noninterest income:
CarStory revenue	$	5,892			$	6,394			$	(502	)			(7.9	)%
Other income		363				141				222				157.4	%
Total noninterest income		6,255				6,535				(280	)			(4.3	)%
Expenses:
Compensation and benefits		4,675				4,821				(146	)			(3.0	)%
Professional fees		202				290				(88	)			(30.4	)%
Software and IT costs		188				345				(157	)			(45.5	)%
Depreciation and amortization		3,207				3,213				(6	)			(0.2	)%
Other expenses		173				301				(128	)			(42.5	)%
Total expenses		8,444				8,969				(525	)			(5.9	)%
Adjusted EBITDA	$	930			$	1,201			$	(271	)			(22.5	)%
Interest income on cash and cash equivalents	$	(363	)		$	(134	)			(229	)			170.7	%
Stock compensation expense	$	276			$	556				(281	)			(50.4	)%

Corporate

	Three Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	(527	)		$	(536	)		$	9				1.7	%
Realized and unrealized losses, net of recoveries		(853	)			2,801				(3,654	)			(130.4	)%
Net interest income after losses and recoveries		325				(3,337	)			3,663				109.8	%
Noninterest income:
Warranties and GAP loss, net	$	(262	)		$	(727	)		$	465				64.0	%
Gain on debt extinguishment		—				10,931				(10,931	)			(100.0	)%
Other income		853				2,001				(1,148	)			(57.4	)%
Total noninterest income		591				12,205				(11,614	)			(95.2	)%
Expenses:
Compensation and benefits		4,176				2,529				1,647				65.1	%
Professional fees		833				1,303				(470	)			(36.0	)%
Software and IT costs		1,410				1,659				(249	)			(15.0	)%
Interest expense on corporate debt		920				1,091				(171	)			(15.7	)%
Other expenses		1,852				2,578				(726	)			(28.2	)%
Total expenses		9,191				9,160				31				0.3	%
Adjusted EBITDA	$	(5,089	)		$	(11,244	)		$	6,155				54.7	%
Interest income on cash and cash equivalents	$	(432	)		$	(2,000	)			1,568				78.4	%
Stock compensation expense	$	1,505			$	889				615				69.2	%

	Six Months Ended June 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	(991	)		$	(1,467	)		$	476				32.5	%
Realized and unrealized losses, net of recoveries		2,205				6,257				(4,052	)			(64.8	)%
Net interest income after losses and recoveries		(3,196	)			(7,724	)			4,528				58.6	%
Noninterest (loss) income:
Warranties and GAP loss, net		(11,514	)			(95	)		$	(11,419	)			12,020.0	%
Gain on debt extinguishment		—				19,640				(19,640	)			(100.0	)%
Other income		994				3,931				(2,937	)			(74.7	)%
Total noninterest (loss) income		(10,520	)			23,476				(33,996	)			(144.8	)%
Expenses:
Compensation and benefits		7,284				4,813				2,470				51.3	%
Professional fees		3,178				3,559				(381	)			(10.7	)%
Software and IT costs		2,768				4,025				(1,258	)			(31.2	)%
Interest expense on corporate debt		1,840				2,234				(394	)			(17.6	)%
Other expenses		3,666				5,211				(1,546	)			(29.7	)%
Total expenses		18,735				19,842				(1,108	)			(5.6	)%
Adjusted EBITDA	$	(27,654	)		$	(23,644	)		$	(4,010	)			17.0	%
Interest income on cash and cash equivalents	$	(695	)		$	(3,930	)			3,235				82.3	%
Stock compensation expense	$	2,461			$	1,783				678				38.0	%

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 and Adjusted EBITDA. 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 and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA 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 on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense.

We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, severance expense related to the continuing operations, gain on debt extinguishment and long-lived asset impairment charges.

The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss from continuing operations, which is the most directly comparable U.S. GAAP measure:

		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
		(in thousands)								(in thousands)
Net loss from continuing operations		$	(19,104	)		$	(7,466	)		$	(63,781	)		$	(22,935	)
Adjusted to exclude the following:
Interest expense on corporate debt			1,549				1,527				2,940				2,867
Interest income on cash and cash equivalents			(1,182	)			(2,594	)			(2,187	)			(5,019	)
Provision for income taxes			(167	)			286				269				337
Depreciation and amortization			7,232				7,190				14,858				14,422
EBITDA		$	(11,672	)		$	(1,057	)		$	(47,901	)		$	(10,328	)
Stock compensation expense			2,446				1,669			$	3,770			$	3,348
Severance			1,685				—			$	1,685				—
Gain on debt extinguishment			—				(10,931	)			—				(19,640	)
Impairment charges			—				—				2,752				—
Adjusted EBITDA		$	(7,541	)		$	(10,319	)		$	(39,694	)		$	(26,620	)

About Vroom (Nasdaq: VRM)

Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. During fiscal 2023, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business.

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 cost-savings and their expected benefits, our expectations regarding UACC's business, including with respect to originations and the impact of credit tightening, future results of operations and financial position, including profitability and our available liquidity under the warehouse credit facilities, and the timing of any of the foregoing. 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, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30, 2024, 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. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited)
		As of June 30,				As of December 31,
		2024				2023
ASSETS
Cash and cash equivalents		$	63,393			$	135,585
Restricted cash (including restricted cash of consolidated VIEs of $47.3 million and $49.1 million, respectively)			48,205				73,234
Finance receivables at fair value (including finance receivables of consolidated VIEs of $429.3 million and $341.4 million, respectively)			466,905				348,670
Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $399.3 million and $457.2 million, respectively)			413,670				503,546
Interest receivable (including interest receivables of consolidated VIEs of $13.9 million and $13.7 million, respectively)			14,973				14,484
Property and equipment, net			2,219				4,982
Intangible assets, net			118,381				131,892
Operating lease right-of-use assets			8,918				7,063
Other assets (including other assets of consolidated VIEs of $9.6 million and $13.3 million, respectively)			33,908				59,429
Assets from discontinued operations			10,137				196,537
Total assets		$	1,180,709			$	1,475,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Warehouse credit facilities of consolidated VIEs		$	270,784			$	421,268
Long-term debt (including securitization debt of consolidated VIEs of $272.4 million at amortized cost and $199.8 million at fair value as of June 30, 2024 and $314.1 million at fair value as of December 31, 2023)			794,734				626,583
Operating lease liabilities			11,587				10,459
Other liabilities (including other liabilities of consolidated VIEs of $16.0 million and $14.3 million, respectively)			51,581				61,321
Liabilities from discontinued operations			8,881				228,120
Total liabilities			1,137,567				1,347,751
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2024 and December 31, 2023; 1,806,777 and 1,791,286 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively			2				2
Additional paid-in-capital			2,092,657				2,088,381
Accumulated deficit			(2,049,517	)			(1,960,712	)
Total stockholders’ equity			43,142				127,671
Total liabilities and stockholders’ equity		$	1,180,709			$	1,475,422

VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2023				2024				2023
Interest income		$	51,862			$	46,995			$	102,939			$	81,363
Interest expense:
Warehouse credit facility			6,986				3,658				16,457				6,757
Securitization debt			7,995				5,981				12,864				10,326
Total interest expense			14,981				9,639				29,321				17,083
Net interest income			36,881				37,356				73,618				64,280
Realized and unrealized losses, net of recoveries			18,729				23,187				49,548				38,915
Net interest income after losses and recoveries			18,152				14,169				24,070				25,365
Noninterest income:
Servicing income			1,587				2,551				3,606				5,405
Warranties and GAP income (loss), net			1,378				751				(8,264	)			3,586
CarStory revenue			2,913				3,224				5,892				6,394
Gain on debt extinguishment			—				10,931				—				19,640
Other income			3,141				3,071				5,925				6,103
Total noninterest income			9,019				20,528				7,159				41,128
Expenses:
Compensation and benefits			27,176				21,341				51,286				44,562
Professional fees			1,488				2,444				4,831				7,417
Software and IT costs			4,036				4,804				8,658				10,050
Depreciation and amortization			7,232				7,190				14,858				14,422
Interest expense on corporate debt			1,549				1,527				2,940				2,867
Impairment charges			—				—				2,752				—
Other expenses			4,961				4,571				9,416				9,773
Total expenses			46,442				41,877				94,741				89,091
Loss from continuing operations before provision for income taxes			(19,271	)			(7,180	)			(63,512	)			(22,598	)
(Benefit) provision for income taxes from continuing operations			(167	)			286				269				337
Net loss from continuing operations		$	(19,104	)		$	(7,466	)		$	(63,781	)		$	(22,935	)
Net loss from discontinued operations		$	(2,084	)		$	(58,573	)		$	(25,025	)		$	(117,844	)
Net loss		$	(21,188	)		$	(66,039	)		$	(88,806	)		$	(140,779	)
Net loss per share attributable to common stockholders, continuing operations, basic and diluted		$	(10.61	)		$	(4.29	)		$	(35.49	)		$	(13.22	)
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted		$	(1.16	)		$	(33.68	)		$	(13.92	)		$	(67.90	)
Total net loss per share attributable to common stockholders, basic and diluted		$	(11.77	)		$	(37.97	)		$	(49.41	)		$	(81.12	)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted			1,800,486				1,739,336				1,797,394				1,735,486

VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Six Months Ended June 30,
		2024				2023
Operating activities
Net loss from continuing operations		$	(63,781	)		$	(22,935	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment charges			2,752				—
Profit share receivable			11,405				—
Gain on debt extinguishment			—				(19,640	)
Depreciation and amortization			14,858				14,422
Amortization of debt issuance costs			2,021				1,623
Losses on finance receivables and securitization debt, net			69,430				42,532
Stock-based compensation expense			3,937				3,348
Provision to record finance receivables held for sale at lower of cost or fair value			(4,434	)			1,651
Amortization of unearned discounts on finance receivables at fair value			(9,772	)			(13,414	)
Other, net			(2,845	)			(6,755	)
Changes in operating assets and liabilities:
Finance receivables, held for sale
Originations of finance receivables, held for sale			(231,639	)			(274,707	)
Principal payments received on finance receivables, held for sale			85,905				42,862
Other			790				505
Interest receivable			(489	)			(5,028	)
Other assets			5,605				7,161
Other liabilities			(9,740	)			(11,488	)
Net cash used in operating activities from continuing operations			(125,997	)			(239,863	)
Net cash provided by operating activities from discontinued operations			82,820				7,738
Net cash used in operating activities			(43,177	)			(232,125	)
Investing activities
Finance receivables, held for investment at fair value
Purchases of finance receivables, held for investment at fair value			—				(3,392	)
Principal payments received on finance receivables, held for investment at fair value			65,523				91,892
Consolidation of VIEs			—				11,409
Principal payments received on beneficial interests			1,421				3,306
Purchase of property and equipment			(926	)			(1,249	)
Net cash provided by investing activities from continuing operations			66,018				101,966
Net cash provided by (used in) investing activities from discontinued operations			10,834				(7,272	)
Net cash provided by investing activities			76,852				94,694
Financing activities
Proceeds from borrowings under secured financing agreements, net of issuance costs			296,569				261,991
Principal repayment under secured financing agreements			(135,017	)			(103,980	)
Proceeds from financing of beneficial interests in securitizations			15,821				24,506
Principal repayments of financing of beneficial interests in securitizations			(6,281	)			(2,304	)
Proceeds from warehouse credit facilities			193,400				211,400
Repayments of warehouse credit facilities			(343,884	)			(263,216	)
Repurchases of convertible senior notes			—				(13,194	)
Other financing activities			(326	)			(1,043	)
Net cash provided by financing activities from continuing operations			20,282				114,160
Net cash used in financing activities from discontinued operations			(151,178	)			(144,508	)
Net cash used in financing activities			(130,896	)			(30,348	)
Net decrease in cash, cash equivalents and restricted cash			(97,221	)			(167,779	)
Cash, cash equivalents and restricted cash at the beginning of period			208,819				472,010
Cash, cash equivalents and restricted cash at the end of period		$	111,598			$	304,231

VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) (unaudited)
Supplemental disclosure of cash flow information:
Cash paid for interest		$	29,321			$	16,301
Cash paid for income taxes		$	373			$	3,682
Supplemental disclosure of non-cash investing and financing activities:
Finance receivables from consolidation of 2022-2 securitization transaction		$	—			$	180,706
Elimination of beneficial interest from the consolidation of 2022-2 securitization transaction		$	—			$	9,811
Securitization debt from consolidation of 2022-2 securitization transaction		$	—			$	186,386
Reclassification of finance receivables held for sale to finance receivables at fair value, net		$	—			$	248,081

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240808615708/en/

Investor Relations:

Vroom

Jon Sandison

investors@vroom.com

Source: Vroom, Inc.

FAQ

What was Vroom's (VRM) net loss from continuing operations in Q2 2024?

Vroom (VRM) reported a net loss from continuing operations of $19.1 million in Q2 2024.

How much cash and cash equivalents did Vroom (VRM) have as of June 30, 2024?

Vroom (VRM) had $63.4 million in cash and cash equivalents as of June 30, 2024.

What was Vroom's (VRM) Adjusted EBITDA for Q2 2024?

Vroom's (VRM) Adjusted EBITDA for Q2 2024 was $(7.5) million.

Did Vroom (VRM) complete any significant transactions in Q2 2024?

Yes, Vroom (VRM) successfully completed a UACC securitization transaction in April 2024.