Vroom Announces Third Quarter 2024 Results

Rhea-AI Summary

Vroom (VRM) reported Q3 2024 financial results, highlighting $51.1 million in cash and cash equivalents. The company recorded a net loss from continuing operations of $(37.7) million and Adjusted EBITDA of $(25.5) million. Notably, Vroom entered an agreement to restructure $290 million of unsecured convertible notes into equity through a prepackaged Chapter 11 case. The company aims to emerge without long-term debt at Vroom Inc., while its subsidiary UACC will maintain obligations related to asset-backed securitizations and trust preferred securities. Following the wind-down of its ecommerce used automotive dealer business, Vroom is focusing on maximizing remaining asset value and implementing cost reduction initiatives.

Positive

• Agreement to eliminate $290 million of unsecured notes through restructuring
• Plan to emerge with no long-term debt at Vroom Inc level
• Interest income increased by $2.6 million YoY to $50.2 million

Negative

• Net loss from continuing operations of $(37.7) million
• Adjusted EBITDA loss of $(25.5) million
• Total expenses increased by $3.9 million YoY to $44.9 million
• Net interest income decreased by $1.1 million YoY

Insights

Financial Analyst

The Q3 2024 results reveal significant financial challenges for Vroom. Key concerns include a $37.7 million net loss from continuing operations and a negative Adjusted EBITDA of $25.5 million. The company's cash position of $51.1 million appears concerning given the burn rate.

The most significant development is the agreement to restructure $290 million of unsecured convertible notes through a prepackaged Chapter 11 case. While this debt-to-equity conversion will strengthen the balance sheet, it signals severe financial distress. The UACC segment shows deteriorating performance with Adjusted EBITDA declining by 44.4% year-over-year.

Interest expenses increased substantially - up 31.9% year-over-year, while realized and unrealized losses remained high at $38.3 million. The company's shift away from ecommerce operations indicates a fundamental business model transformation, adding uncertainty to future prospects.

Restructuring Expert

The prepackaged Chapter 11 restructuring represents a strategic but necessary move to address Vroom's unsustainable debt load. The conversion of $290 million in unsecured notes to equity will significantly de-lever the balance sheet, though at the cost of substantial dilution to existing shareholders.

The restructuring plan appears well-thought-out, maintaining UACC's separate debt obligations while cleaning up the parent company's balance sheet. However, the underlying business challenges persist, evidenced by rising losses and operational costs. The 26.1% increase in UACC segment expenses and declining performance metrics suggest that post-restructuring success is not guaranteed without significant operational improvements.

Reaches an Agreement to Recapitalize Debt

Positions the Company for Long-Term Growth

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

HIGHLIGHTS OF THIRD QUARTER 2024

• $51.1 million cash and cash equivalents as of September 30, 2024
• $32.9 million of liquidity available to UACC under the warehouse credit facilities
• $(37.7) million net loss from continuing operations
• $(25.5) million Adjusted EBITDA¹
• Entered into an agreement to restructure $290 million of unsecured convertible notes, into equity through a prepackaged Chapter 11 case.

Tom Shortt, the Company’s Chief Executive Officer, said, “Since winding down our ecommerce used automotive dealer business, we have been focused on maximizing the value of our remaining assets for our stakeholders. We believe eliminating our unsecured notes will significantly strengthen our balance sheet and allow us to emerge without any long-term debt at Vroom, Inc., while its subsidiary, UACC, will continue to be obligated to debt that is related to asset-backed securitizations and their trust preferred securities. Our team remains focused on executing our Long-Term Strategic Plan announced in September. We continue to make progress on our key initiatives and are focused on portfolio performance, improving processes and technology, digitization and automation, and reducing costs across the business.”

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.

THIRD 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 September 30,												Nine Months Ended September 30,
		2024				2023				$ Change				2024				2023				$ Change
Interest income		$	50,213			$	47,579			$	2,634			$	153,152			$	128,942			$	24,210
Interest expense:
Warehouse credit facility			6,251				5,522				729				22,708				12,279				10,429
Securitization debt			9,096				6,116				2,980				21,960				16,442				5,518
Total interest expense			15,347				11,638				3,709				44,668				28,721				15,947
Net interest income			34,866				35,941				(1,075	)			108,484				100,221				8,263
Realized and unrealized losses, net of recoveries			38,346				37,258				1,088				87,894				76,173				11,721
Net interest income after losses and recoveries			(3,480	)			(1,317	)			(2,163	)			20,590				24,048				(3,458	)
Noninterest income:
Servicing income			1,495				2,430				(935	)			5,101				7,835				(2,734	)
Warranties and GAP income (loss), net			3,917				146				3,771				(4,347	)			3,732				(8,079	)
CarStory revenue			2,890				2,998				(108	)			8,782				9,392				(610	)
Gain on debt extinguishment			—				—				—				—				19,640				(19,640	)
Other income			2,419				2,057				362				8,344				8,160				184
Total noninterest income			10,721				7,631				3,090				17,880				48,759				(30,879	)
Expenses:
Compensation and benefits			25,365				19,851				5,514				76,651				64,413				12,238
Professional fees			1,587				3,648				(2,061	)			6,418				11,065				(4,647	)
Software and IT costs			3,360				4,685				(1,325	)			12,018				14,735				(2,717	)
Depreciation and amortization			7,105				7,298				(193	)			21,963				21,720				243
Interest expense on corporate debt			1,601				1,593				8				4,541				4,460				81
Impairment charges			2,407				—				2,407				5,159				—				5,159
Other expenses			3,436				3,861				(425	)			12,853				13,631				(778	)
Total expenses			44,861				40,936				3,925				139,603				130,024				9,579
Loss from continuing operations before provision for income taxes			(37,620	)			(34,622	)			(2,998	)			(101,133	)			(57,217	)			(43,916	)
Provision for income taxes from continuing operations			124				117				7				393				453				(60	)
Net loss from continuing operations		$	(37,744	)		$	(34,739	)		$	(3,005	)		$	(101,526	)		$	(57,670	)		$	(43,856	)
Net loss from discontinued operations		$	(1,999	)		$	(47,988	)		$	45,989			$	(27,024	)		$	(165,838	)		$	138,814
Net loss		$	(39,743	)		$	(82,727	)		$	42,984			$	(128,550	)		$	(223,508	)		$	94,958

Results by Segment

UACC

	Three Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	50,801			$	48,068			$	2,734				5.7	%
Interest expense:
Warehouse credit facility		6,251				5,522				729				13.2	%
Securitization debt		9,096				6,116				2,980				48.7	%
Total interest expense		15,347				11,638				3,709				31.9	%
Net interest income		35,454				36,430				(975	)			(2.7	)%
Realized and unrealized losses, net of recoveries		30,117				30,323				(206	)			(0.7	)%
Net interest income after losses and recoveries		5,338				6,107				(769	)			(12.6	)%
Noninterest income:
Servicing income		1,495				2,430				(935	)			(38.5	)%
Warranties and GAP income, net		2,074				1,487				587				39.5	%
Other income		1,698				570				1,128				197.9	%
Total noninterest income		5,267				4,487				780				17.4	%
Expenses:
Compensation and benefits		19,819				14,976				4,843				32.3	%
Professional fees		875				986				(111	)			(11.3	)%
Software and IT costs		2,346				2,798				(452	)			(16.2	)%
Depreciation and amortization		5,505				5,689				(184	)			(3.2	)%
Interest expense on corporate debt		681				540				141				26.1	%
Impairment charges		2,407				—				2,407				100.0	%
Other expenses		1,991				1,666				325				19.5	%
Total expenses		33,624				26,656				6,968				26.1	%
Adjusted EBITDA	$	(14,119	)		$	(9,780	)		$	(4,339	)			44.4	%
Interest income on cash and cash equivalents	$	(548	)		$	(520	)			(28	)			5.4	%
Stock compensation expense	$	834			$	572				262				45.9	%
Severance	$	20			$	—				20				100.0	%

	Nine Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	154,731			$	130,897			$	23,834				18.2	%
Interest expense:
Warehouse credit facility		22,708				12,279				10,429				84.9	%
Securitization debt		21,960				16,442				5,518				33.6	%
Total interest expense		44,668				28,721				15,947				55.5	%
Net interest income		110,063				102,176				7,887				7.7	%
Realized and unrealized losses, net of recoveries		77,460				62,980				14,479				23.0	%
Net interest income after losses and recoveries		32,604				39,196				(6,592	)			(16.8	)%
Noninterest income:
Servicing income		5,101				7,835				(2,734	)			(34.9	)%
Warranties and GAP income, net		5,324				5,168				156				3.0	%
Other income		6,266				2,601				3,665				140.9	%
Total noninterest income		16,691				15,604				1,087				7.0	%
Expenses:
Compensation and benefits		59,146				49,904				9,242				18.5	%
Professional fees		2,326				4,555				(2,229	)			(48.9	)%
Software and IT costs		8,048				8,478				(430	)			(5.1	)%
Depreciation and amortization		17,156				16,898				258				1.5	%
Interest expense on corporate debt		1,781				1,173				608				51.8	%
Impairment charges		5,159				—				5,159				100.0	%
Other expenses		7,569				5,927				1,642				27.7	%
Total expenses		101,186				86,935				14,251				16.4	%
Adjusted EBITDA	$	(27,091	)		$	(13,956	)		$	(13,135	)			94.1	%
Interest income on cash and cash equivalents	$	(1,676	)		$	(1,474	)			(202	)			13.7	%
Stock compensation expense	$	1,867			$	1,580				287				18.2	%
Severance	$	513			$	—				513				100.0	%

CarStory

	Three Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Noninterest income:
CarStory revenue	$	2,890			$	2,998			$	(108	)			(3.6	)%
Other income		199				141				58				41.1	%
Total noninterest income		3,089				3,139				(50	)			(1.6	)%
Expenses:
Compensation and benefits		3,127				2,328				799				34.3	%
Professional fees		(112	)			71				(183	)			(257.7	)%
Software and IT costs		17				170				(153	)			(90.0	)%
Depreciation and amortization		1,600				1,609				(9	)			(0.6	)%
Other expenses		127				161				(34	)			(21.1	)%
Total expenses		4,759				4,339				420				9.7	%
Adjusted EBITDA	$	(210	)		$	536			$	(746	)			(139.2	)%
Interest income on cash and cash equivalents	$	(198	)		$	(141	)			(57	)			40.4	%
Stock compensation expense	$	59			$	268				(210	)			(78.2	)%

	Nine Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Noninterest income:
CarStory revenue	$	8,782			$	9,392			$	(610	)			(6.5	)%
Other income		562				282				280				99.3	%
Total noninterest income		9,344				9,674				(330	)			(3.4	)%
Expenses:
Compensation and benefits		7,802				7,149				653				9.1	%
Professional fees		90				361				(271	)			(75.2	)%
Software and IT costs		205				515				(310	)			(60.2	)%
Depreciation and amortization		4,807				4,822				(15	)			(0.3	)%
Other expenses		300				462				(162	)			(35.1	)%
Total expenses		13,203				13,308				(105	)			(0.8	)%
Adjusted EBITDA	$	720			$	1,738			$	(1,018	)			(58.6	)%
Interest income on cash and cash equivalents	$	(561	)		$	(275	)			(286	)			103.9	%
Stock compensation expense	$	334			$	825				(490	)			(59.5	)%

Corporate

	Three Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	(588	)		$	(489	)		$	(100	)			20.5	%
Realized and unrealized losses, net of recoveries		8,229				6,935				1,294				18.7	%
Net interest income after losses and recoveries		(8,818	)			(7,424	)			(1,394	)			18.8	%
Noninterest income:
Warranties and GAP income (loss), net	$	1,843			$	(1,341	)		$	3,184				237.4	%
Other income		522				1,346				(824	)			(61.2	)%
Total noninterest income		2,365				5				2,360				47,200.0	%
Expenses:
Compensation and benefits		2,419				2,547				(128	)			(5.0	)%
Professional fees		824				2,591				(1,767	)			(68.2	)%
Software and IT costs		997				1,717				(720	)			(41.9	)%
Interest expense on corporate debt		920				1,053				(133	)			(12.6	)%
Other expenses		1,318				2,034				(716	)			(35.2	)%
Total expenses		6,478				9,941				(3,463	)			(34.8	)%
Adjusted EBITDA	$	(11,205	)		$	(16,715	)		$	5,510				33.0	%
Interest income on cash and cash equivalents	$	(289	)		$	(1,346	)			1,057				78.5	%
Stock compensation expense	$	351			$	939				(587	)			(62.6	)%
Severance	$	743			$	—				743				100.0	%

	Nine Months Ended September 30,
	2024				2023				Change				% Change
	(in thousands)
Interest income	$	(1,579	)		$	(1,955	)		$	376				19.2	%
Realized and unrealized losses, net of recoveries		10,434				13,192				(2,758	)			(20.9	)%
Net interest income after losses and recoveries		(12,013	)			(15,148	)			3,134				20.7	%
Noninterest (loss) income:
Warranties and GAP loss, net		(9,671	)			(1,436	)		$	(8,235	)			573.5	%
Gain on debt extinguishment		—				19,640				(19,640	)			(100.0	)%
Other income		1,516				5,277				(3,761	)			(71.3	)%
Total noninterest (loss) income		(8,155	)			23,481				(31,636	)			(134.7	)%
Expenses:
Compensation and benefits		9,703				7,360				2,342				31.8	%
Professional fees		4,002				6,149				(2,148	)			(34.9	)%
Software and IT costs		3,765				5,742				(1,977	)			(34.4	)%
Interest expense on corporate debt		2,760				3,287				(527	)			(16.0	)%
Other expenses		4,984				7,242				(2,259	)			(31.2	)%
Total expenses		25,213				29,781				(4,568	)			(15.3	)%
Adjusted EBITDA	$	(38,858	)		$	(40,358	)		$	1,500				3.7	%
Interest income on cash and cash equivalents	$	(984	)		$	(5,276	)			4,292				81.3	%
Stock compensation expense	$	2,812			$	2,722				91				3.3	%
Severance	$	1,935			$	—				1,935				100.0	%

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 September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
		(in thousands)								(in thousands)
Net loss from continuing operations		$	(37,744	)		$	(34,739	)		$	(101,526	)		$	(57,670	)
Adjusted to exclude the following:
Interest expense on corporate debt			1,601				1,593				4,541				4,460
Interest income on cash and cash equivalents			(1,035	)			(2,007	)			(3,221	)			(7,026	)
Provision for income taxes			124				117				393				453
Depreciation and amortization			7,105				7,298				21,963				21,720
EBITDA		$	(29,949	)		$	(27,738	)		$	(77,850	)		$	(38,063	)
Stock compensation expense			1,244				1,779				5,014				5,126
Severance			763				—				2,448				—
Gain on debt extinguishment			—				—				—				(19,640	)
Impairment charges			2,407				—				5,159				—
Adjusted EBITDA		$	(25,534	)		$	(25,959	)		$	(65,229	)		$	(52,576	)

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. Prior to January 2024, 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 the anticipated restructuring, including its impact, intended benefits, and outcome, our strategic initiatives, 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 September 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 September 30,				As of December 31,
		2024				2023
ASSETS
Cash and cash equivalents		$	51,093			$	135,585
Restricted cash (including restricted cash of consolidated VIEs of $46.2 million and $49.1 million, respectively)			47,068				73,234
Finance receivables at fair value (including finance receivables of consolidated VIEs of $446.7 million and $341.4 million, respectively)			487,573				348,670
Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $353.8 million and $457.2 million, respectively)			363,029				503,546
Interest receivable (including interest receivables of consolidated VIEs of $13.1 million and $13.7 million, respectively)			14,024				14,484
Property and equipment, net			3,055				4,982
Intangible assets, net			111,625				131,892
Operating lease right-of-use assets			6,805				7,063
Other assets (including other assets of consolidated VIEs of $12.2 million and $13.3 million, respectively)			36,446				59,429
Assets from discontinued operations			3,016				196,537
Total assets		$	1,123,734			$	1,475,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Warehouse credit facilities of consolidated VIEs		$	321,812			$	421,268
Long-term debt (including securitization debt of consolidated VIEs of $242.3 million at amortized cost and $167.7 million at fair value as of September 30, 2024 and $314.1 million at fair value as of December 31, 2023)			729,372				626,583
Operating lease liabilities			11,396				10,459
Other liabilities (including other liabilities of consolidated VIEs of $16.4 million and $14.3 million, respectively)			51,474				61,321
Liabilities from discontinued operations			4,997				228,120
Total liabilities			1,119,051				1,347,751
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock, $0.001 par value; 500,000,000 shares authorized as of September 30, 2024 and December 31, 2023; 1,808,243 and 1,791,286 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively			2				2
Additional paid-in-capital			2,093,941				2,088,381
Accumulated deficit			(2,089,260	)			(1,960,712	)
Total stockholders’ equity			4,683				127,671
Total liabilities and stockholders’ equity		$	1,123,734			$	1,475,422

VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited)
		Three Months Ended September 30,								Nine Months Ended September 30,
		2024				2023				2024				2023
Interest income		$	50,213				47,579			$	153,152			$	128,942
Interest expense:
Warehouse credit facility			6,251				5,522				22,708				12,279
Securitization debt			9,096				6,116				21,960				16,442
Total interest expense			15,347				11,638				44,668				28,721
Net interest income			34,866				35,941				108,484				100,221
Realized and unrealized losses, net of recoveries			38,346				37,258				87,894				76,173
Net interest income after losses and recoveries			(3,480	)			(1,317	)			20,590				24,048
Noninterest income:
Servicing income			1,495				2,430				5,101				7,835
Warranties and GAP income (loss), net			3,917				146				(4,347	)			3,732
CarStory revenue			2,890				2,998				8,782				9,392
Gain on debt extinguishment			—				—				—				19,640
Other income			2,419				2,057				8,344				8,160
Total noninterest income			10,721				7,631				17,880				48,759
Expenses:
Compensation and benefits			25,365				19,851				76,651				64,413
Professional fees			1,587				3,648				6,418				11,065
Software and IT costs			3,360				4,685				12,018				14,735
Depreciation and amortization			7,105				7,298				21,963				21,720
Interest expense on corporate debt			1,601				1,593				4,541				4,460
Impairment charges			2,407				—				5,159				—
Other expenses			3,436				3,861				12,853				13,631
Total expenses			44,861				40,936				139,603				130,024
Loss from continuing operations before provision for income taxes			(37,620	)			(34,622	)			(101,133	)			(57,217	)
Provision for income taxes from continuing operations			124				117				393				453
Net loss from continuing operations		$	(37,744	)		$	(34,739	)		$	(101,526	)		$	(57,670	)
Net loss from discontinued operations		$	(1,999	)		$	(47,988	)		$	(27,024	)		$	(165,838	)
Net loss		$	(39,743	)		$	(82,727	)		$	(128,550	)		$	(223,508	)
Net loss per share attributable to common stockholders, continuing operations, basic and diluted		$	(20.88	)		$	(19.89	)		$	(56.38	)		$	(33.16	)
Net loss per share attributable to common stockholders, discontinued operations, basic and diluted		$	(1.11	)		$	(27.48	)		$	(15.01	)		$	(95.36	)
Total net loss per share attributable to common stockholders, basic and diluted		$	(21.99	)		$	(47.38	)		$	(71.39	)		$	(128.52	)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted			1,807,398				1,746,154				1,800,729				1,739,042

VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Nine Months Ended September 30,
		2024				2023
Operating activities
Net loss from continuing operations		$	(101,526	)		$	(57,670	)
Adjustments to reconcile net loss to net cash used in operating activities:
Impairment charges			5,159				—
Profit share receivable			10,899				—
Gain on debt extinguishment			—				(19,640	)
Depreciation and amortization			21,963				21,720
Amortization of debt issuance costs			3,312				2,480
Losses on finance receivables and securitization debt, net			109,992				80,246
Stock-based compensation expense			4,949				5,126
Provision to record finance receivables held for sale at lower of cost or fair value			(3,586	)			4,375
Amortization of unearned discounts on finance receivables at fair value			(12,674	)			(20,273	)
Other, net			(3,846	)			(12,871	)
Changes in operating assets and liabilities:
Finance receivables, held for sale
Originations of finance receivables, held for sale			(322,967	)			(420,793	)
Principal payments received on finance receivables, held for sale			133,920				71,906
Other			1,243				(868	)
Interest receivable			460				(5,367	)
Other assets			8,395				1,629
Other liabilities			(9,847	)			(6,826	)
Net cash used in operating activities from continuing operations			(154,154	)			(356,826	)
Net cash provided by (used in) operating activities from discontinued operations			79,257				(68,805	)
Net cash used in operating activities			(74,897	)			(425,631	)
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			92,217				136,644
Consolidation of VIEs			—				11,409
Principal payments received on beneficial interests			1,953				4,334
Purchase of property and equipment			(2,111	)			(1,926	)
Net cash provided by investing activities from continuing operations			92,059				147,069
Net cash provided by (used in) investing activities from discontinued operations			15,908				(9,627	)
Net cash provided by investing activities			107,967				137,442
Financing activities
Proceeds from borrowings under secured financing agreements, net of issuance costs			296,145				261,991
Principal repayment under secured financing agreements			(194,746	)			(159,384	)
Proceeds from financing of beneficial interests in securitizations			15,821				24,506
Principal repayments of financing of beneficial interests in securitizations			(9,958	)			(5,699	)
Proceeds from warehouse credit facilities			257,200				332,700
Repayments of warehouse credit facilities			(356,656	)			(269,698	)
Repurchases of convertible senior notes			—				(13,194	)
Other financing activities			(356	)			(1,462	)
Net cash provided by financing activities from continuing operations			7,450				169,760
Net cash used in financing activities from discontinued operations			(151,178	)			(64,502	)
Net cash (used in) provided by financing activities			(143,728	)			105,258
Net decrease in cash, cash equivalents and restricted cash			(110,658	)			(182,931	)
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		$	98,161			$	289,079

VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) (unaudited)
Supplemental disclosure of cash flow information:
Cash paid for interest		$	43,669			$	26,746
Cash paid for income taxes		$	351			$	5,153
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/20241112066616/en/

Investor Relations:

Vroom

Jon Sandison

investors@vroom.com

Source: Vroom, Inc.

FAQ

What was Vroom's (VRM) net loss in Q3 2024?

Vroom (VRM) reported a net loss from continuing operations of $(37.7) million in Q3 2024.

How much cash does Vroom (VRM) have as of September 30, 2024?

Vroom (VRM) reported $51.1 million in cash and cash equivalents as of September 30, 2024.

What is Vroom's (VRM) debt restructuring plan?

Vroom (VRM) entered an agreement to restructure $290 million of unsecured convertible notes into equity through a prepackaged Chapter 11 case, aiming to emerge with no long-term debt at the Vroom Inc level.