Vroom Reports Second Quarter 2021 Results

Rhea-AI Summary

Vroom, Inc. (Nasdaq:VRM) reported a robust Q2 2021, with ecommerce units sold increasing by 172% year-over-year to 18,268. Ecommerce revenue surged 230% to $579.7 million, and gross profit skyrocketed 588% to $49.6 million. The company attributes this growth to enhanced inventory levels, marketing efforts, and rising consumer demand. Despite these gains, losses from operations rose 54.2% to $63.8 million, and net loss increased 4.1% to $65.8 million. Vroom anticipates continued growth, projecting unit sales to reach 20,000 to 20,500 for Q3 2021.

Positive

• Ecommerce units sold increased 172% YoY to 18,268.
• Ecommerce revenue up 230% YoY to $579.7 million.
• Ecommerce gross profit surged 588% YoY to $49.6 million.
• Average vehicle selling price per unit rose 20.5% to $30,601.

Negative

• Loss from operations increased 54.2% to $63.8 million.
• Net loss grew 4.1% to $65.8 million.

Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the second quarter ended June 30, 2021 (“Q2 2021”).

HIGHLIGHTS OF SECOND QUARTER 2021

• 18,268 ecommerce units sold, up 172% YoY

• Ecommerce revenue of $579.7 million, up 230% YoY

• Ecommerce gross profit of $49.6 million, up 588% YoY

• Convertible Note offering provided over $600.0 million of additional liquidity

Paul Hennessy, Chief Executive Officer of Vroom, commented:

“Vroom had an outstanding second quarter. We drove strong expansion in units and gross profit per unit. Ecommerce gross profit per unit continued its upward trajectory, growing $664 (+32%) quarter over quarter, as we continue to execute against our expansion plans in a favorable yet dynamic pricing environment. Our ecommerce units accelerated as our offering to consumers continues to resonate. Moving forward, we intend to continue to scale our capacity and efficiency ahead of growing demand with investments across our business, particularly in logistics, where we are ahead of schedule compared to our initial targets. We will also continue to strive for a frictionless ecommerce checkout experience to drive a compelling customer proposition and improved unit economics over time.”

SECOND QUARTER 2021 FINANCIAL DISCUSSION

All financial comparisons are on a year-over-year basis unless otherwise noted.

Ecommerce Results

		Three Months Ended June 30,																			Six Months Ended June 30,
		2021					2020					Change					% Change				2021					2020					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				18,268					6,713					11,555				172.1	%				33,772					14,643					19,129				130.6	%
Ecommerce revenue:
Vehicle revenue		$		559,010			$		170,460			$		388,550				227.9	%		$		967,324			$		396,065			$		571,259				144.2	%
Product revenue				20,653					5,108					15,545				304.3	%				34,647					12,675					21,972				173.3	%
Total ecommerce revenue		$		579,663			$		175,568			$		404,095				230.2	%		$		1,001,971			$		408,740			$		593,231				145.1	%
Ecommerce gross profit:
Vehicle gross profit		$		28,985			$		2,111			$		26,874				1,273.0	%		$		46,828			$		8,811			$		38,017				431.5	%
Product gross profit				20,653					5,108					15,545				304.3	%				34,647					12,675					21,972				173.3	%
Total ecommerce gross profit		$		49,638			$		7,219			$		42,419				587.6	%		$		81,475			$		21,486			$		59,989				279.2	%
Average vehicle selling price per ecommerce unit		$		30,601			$		25,393			$		5,208				20.5	%		$		28,643			$		27,048			$		1,595				5.9	%
Gross profit per ecommerce unit:
Vehicle gross profit per ecommerce unit		$		1,587			$		314			$		1,273				405.4	%		$		1,387			$		602			$		785				130.4	%
Product gross profit per ecommerce unit				1,131					761					370				48.6	%				1,026					866					160				18.5	%
Total gross profit per ecommerce unit		$		2,718			$		1,075			$		1,643				152.8	%		$		2,413			$		1,468			$		945				64.4	%
Ecommerce average days to sale				68					66					2				3.0	%				76					67					9				13.4	%

Ecommerce Units

Ecommerce units sold increased 172.1% to 18,268 driven by higher inventory levels, increased marketing spend, increased consumer demand as a result of the popularity of our business model, strong market demand for used vehicles, and further process improvements in our ecommerce platform. Average monthly unique visitors to our platform increased 75.0% to 1,749,480.

Ecommerce Revenue

Ecommerce revenue increased 230.2% to $579.7 million.

• Ecommerce Vehicle revenue increased 227.9% to $559.0 million. The increase in ecommerce Vehicle revenue was primarily attributable to the increase in ecommerce units sold as well as an increase in the average selling price per unit, which increased from $25,393 to $30,601.

• Ecommerce Product revenue increased 304.3% to $20.7 million. The increase in ecommerce Product revenue was primarily attributable to the increase in ecommerce units sold as well as an increase in ecommerce Product revenue per unit, which increased from $761 to $1,131 per unit.

Ecommerce Gross Profit

Ecommerce gross profit increased 587.6% to $49.6 million.

• Ecommerce Vehicle gross profit increased to $28.9 million. The increase in ecommerce Vehicle gross profit was primarily due to a $1,273 increase in ecommerce Vehicle gross profit per unit to $1,587 as well as an increase in ecommerce units sold.

• Ecommerce Product gross profit increased 304.3% to $ 20.7 million. The increase in ecommerce Product gross profit was primarily attributable to the increase in ecommerce units sold as well as an increase in ecommerce Product gross profit per unit, which increased from $761 to $1,131 per unit.

Ecommerce Gross Profit per Unit

Ecommerce gross profit per unit increased 152.8% to $2,718.

• Ecommerce Vehicle gross profit per unit increased 405.4% to $1,587, primarily driven by higher sales margins and improvements in reconditioning and inbound logistics costs, partially offset by a higher inventory reserve as a result of an increase in inventory levels. Strong sales margin per unit was partially driven by a record retail pricing environment during the second quarter of 2021 as well as an increase in vehicles sourced directly from consumers and further improvements in our pricing methodologies. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by a strategic decision to reduce vehicle pricing in order to sell pre-COVID-19 inventory. Based on data from Cox Automotive, retail prices are expected to peak in the third quarter and begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.

• Ecommerce Product gross profit per unit increased 48.6% to $1,131, primarily driven by higher attachment rates and an increase in the average loan size as a result of higher ASP.

Results by Segment

		Three Months Ended June 30,																		Six Months Ended June 30,
		2021				2020 (1)						Change				% Change				2021				2020 (1)						Change				% Change
		(in thousands, except unit data)																		(in thousands, except unit data)
Units:
Ecommerce			18,268				6,713						11,555				172.1	%			33,772				14,643						19,129				130.6	%
Wholesale			10,020				3,259						6,761				207.5	%			18,661				7,944						10,717				134.9	%
TDA			1,583				1,110						473				42.6	%			3,358				4,145						(787	)			(19.0	)%
Total units			29,871				11,082						18,789				169.5	%			55,791				26,732						29,059				108.7	%
Revenue:
Ecommerce		$	579,663			$	175,568					$	404,095				230.2	%		$	1,001,971			$	408,740					$	593,231				145.1	%
Wholesale			128,108				50,921						77,187				151.6	%			246,132				106,497						139,635				131.1	%
TDA			50,759				26,318						24,441				92.9	%			98,346				112,902						(14,556	)			(12.9	)%
All Other (2)			3,360				286						3,074				1,074.8	%			6,559				726						5,833				803.4	%
Total revenue		$	761,890			$	253,093					$	508,797				201.0	%		$	1,353,008			$	628,865					$	724,143				115.2	%
Gross profit (loss):
Ecommerce		$	49,638			$	7,219					$	42,419				587.6	%		$	81,475			$	21,486					$	59,989				279.2	%
Wholesale			8,516				(543	)					9,059				1,668.3	%			8,234				(1,838	)					10,072				548.0	%
TDA			3,148				864						2,284				264.4	%			5,939				6,124						(185	)			(3.0	)%
All Other (2)			1,826				67						1,759				2,625.4	%			3,656				222						3,434				1,546.8	%
Total gross profit		$	63,128			$	7,607					$	55,521				729.9	%		$	99,304			$	25,994					$	73,310				282.0	%
Gross profit (loss) per unit (3):
Ecommerce		$	2,718			$	1,075					$	1,643				152.8	%		$	2,413			$	1,468					$	945				64.4	%
Wholesale		$	850			$	(167	)				$	1,017				609.0	%		$	441			$	(231	)				$	672				290.9	%
TDA		$	1,988			$	778					$	1,210				155.5	%		$	1,768			$	1,477					$	291				19.7	%

(1)		We reclassified other revenue and gross profit related to the vehicle repair service at TDA from the TDA reportable segment to the “All Other” category to conform to current year presentation.
(2)		All Other revenues and gross profit consist of the CarStory business and vehicle repair services at TDA.
(3)		Gross profit per unit metrics exclude the CarStory business and vehicle repair services at TDA.

Total Units

Total units sold increased 169.5% to 29,871.

• Ecommerce units sold increased 172.1% to 18,268, as discussed above.

• Wholesale units sold increased 207.5% to 10,020, primarily driven by an increase of wholesale grade units purchased from consumers, an increase in the number of trade-in vehicles as a result of the increase in number of ecommerce units sold and strong wholesale market demand for used vehicles.

• TDA units sold increased 42.6% to 1,583. Despite strong market demand for used vehicles, TDA unit sales continue to be negatively impacted by reduced inventory at the TDA location as the ecommerce business continues to scale. TDA units sold were negatively impacted during the second quarter of 2020 as a result of a significant reduction in foot traffic due to the COVID-19 pandemic.

Total Revenue

Total revenue increased 201.0% to $761.9 million.

• Ecommerce revenue increased 230.2% to $579.7 million, as discussed above.

• Wholesale revenue increased 151.6% to $128.1 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold, partially offset by a lower average selling price per unit, which decreased from $15,625 to $12,785. The higher average selling price per unit in the second quarter of 2020 was primarily driven by the sale of retail vehicles through wholesale channels to reduce our inventory levels at the start of the COVID-19 pandemic.

• TDA revenue increased 92.9% to $50.8 million, primarily due to a higher average selling price per unit, which increased from $23,144 to $31,021 as well as the increase in TDA units sold.

Total Gross Profit (Loss)

Total gross profit increased 729.9% to $63.1 million.

• Ecommerce gross profit increased 588% to $49.6 million, as discussed above.

• Wholesale gross profit increased to $8.5 million. Wholesale gross profit increased primarily due to a higher gross profit per unit, which increased from gross loss per unit of $(167) to gross profit per unit of $850.

• TDA gross profit increased 264.4% to $3.1 million. TDA gross profit increased primarily due to an increase in TDA gross profit per unit of $1,210 as well as an increase in TDA units sold.

Gross Profit (Loss) per Unit

• Ecommerce gross profit per unit increased 152.8% to $2,718, as discussed above.

• Wholesale gross profit per unit increased 609.0% to $850 as a result of favorable wholesale market conditions. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by the sale of retail vehicles through wholesale channels to reduce our inventory levels at the start of the COVID-19 pandemic. Based on data from Cox Automotive, wholesale prices appear to have reached their peak in June and are expected to begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.

• TDA gross profit per unit increased 155.5% to $1,988 driven primarily by higher sales margin and improvements in reconditioning and inbound logistics costs, partially offset by a higher inventory reserve as a result of an increase in inventory levels. Strong sales margin per unit was partially driven by a record retail pricing environment during the second quarter of 2021 as well as an increase in vehicles sourced directly from consumers and further improvements in our pricing methodologies. Additionally, in the second quarter of 2020, our sales margin was negatively impacted by a strategic decision to reduce vehicle pricing in order to sell pre-COVID-19 inventory. Based on data from Cox Automotive, retail prices are expected to peak in the third quarter and begin to gradually return to normal market conditions and vehicle depreciation during the second half of 2021.

SG&A

		Three Months Ended June 30,																		Six Months Ended June 30,
		2021					2020					Change				% Change				2021					2020					Change				% Change
		(in thousands)																		(in thousands)
Compensation & benefits		$		51,811			$		20,618			$	31,193				151.3	%		$		91,681			$		40,940			$	50,741				123.9	%
Marketing expense				23,495					11,573				11,922				103.0	%				53,053					29,488				23,565				79.9	%
Outbound logistics				20,153					5,470				14,683				268.4	%				35,271					11,261				24,010				213.2	%
Occupancy and related costs				4,042					2,267				1,775				78.3	%				7,964					4,964				3,000				60.4	%
Professional fees				4,259					1,465				2,794				190.7	%				8,257					3,924				4,333				110.4	%
Other				20,138					6,518				13,620				209.0	%				36,538					15,714				20,824				132.5	%
Total selling, general & administrative expenses		$		123,898			$		47,911			$	75,987				158.6	%		$		232,764			$		106,291			$	126,473				119.0	%

Selling, general and administrative expenses increased 158.6% to $123.9 million. The increase was primarily due to:

• $31.2 million increase in compensation and benefits due to an increase in headcount, an increase in variable fees for third-party sales and sales support providers as a result of an increase in units sold, as well as a $1.3 million increase in stock-based compensation to $5.4 million;

• $14.7 million increase in outbound logistics costs partially attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $9.4 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $5.3 million;

• $13.6 million increase in other selling, general and administrative expenses primarily related to volume-based fees for software licenses and other variable expenses as our business continues to scale as well as additional insurance costs associated with being a publicly traded company and growing inventory; and

• $11.9 million increase in marketing expense as we expanded our national broad-reach brand advertising and increased performance and online marketing as we continue to grow our listed inventory.

We expect selling, general and administrative expenses to increase in the future as we scale our business and sell more ecommerce units. We also expect to incur increased selling, general and administrative expenses as we continue to invest in and improve our customer experience, invest in expanding our proprietary logistics and reconditioning networks, and explore a variety of strategies for a proprietary lending operation.

Loss from Operations and Net Loss

Loss from operations increased 54.2% to $ 63.8 million. Net loss increased 4.1% to $ 65.8 million.

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, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted. 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, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted, 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, interest income, income tax expense and depreciation and amortization expense and we calculate Adjusted EBITDA as EBITDA adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and the one-time, IPO related non-cash revaluation of a preferred stock warrant. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure:

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
		(in thousands)								(in thousands)
Net loss		$	(65,807	)		$	(63,228	)		$	(142,996	)		$	(104,287	)
Adjusted to exclude the following:
Interest expense			3,880				1,297				7,692				4,123
Interest income			(2,062	)			(715	)			(4,358	)			(2,671	)
Provision for income taxes			194				52				350				105
Depreciation and amortization expense			3,122				1,089				6,028				2,059
EBITDA		$	(60,673	)		$	(61,505	)		$	(133,284	)		$	(100,671	)
One-time IPO related acceleration of non-cash stock-based compensation			—				1,262				—				1,262
One-time IPO related non-cash revaluation of preferred stock warrant			—				21,260				—				20,470
Adjusted EBITDA		$	(60,673	)		$	(38,983	)		$	(133,284	)		$	(78,939	)

Adjusted loss from Operations

We calculate Adjusted loss from operations as loss from operations adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense. The following table presents a reconciliation of Adjusted loss from operations to loss from operations, which is the most directly comparable U.S. GAAP measure:

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
		(in thousands)								(in thousands)
Loss from operations		$	(63,828	)		$	(41,387	)		$	(139,360	)		$	(82,346	)
Add: One-time IPO related acceleration of non-cash stock based compensation			—				1,262				—				1,262
Adjusted loss from operations		$	(63,828	)		$	(40,125	)		$	(139,360	)		$	(81,084	)

Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted

We calculate Non-GAAP net loss as net loss adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and the one-time, IPO related non-cash revaluation of a preferred stock warrant. We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding. The following table presents a reconciliation of Non-GAAP net loss and Non-GAAP net loss per share to net loss and net loss per share, which are the most directly comparable U.S. GAAP measures:

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
	(in thousands, except share and per share amounts)
Net loss		$	(65,807	)		$	(63,228	)		$	(142,996	)		$	(104,287	)
Net loss attributable to common stockholders		$	(65,807	)		$	(63,228	)		$	(142,996	)		$	(104,287	)
Add: One-time IPO related acceleration of non-cash stock based compensation			—				1,262				—				1,262
Add: One-time IPO related non-cash revaluation of preferred stock warrant			—				21,260				—				20,470
Non-GAAP net loss		$	(65,807	)		$	(40,706	)		$	(142,996	)		$	(82,555	)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted			136,507,177				31,599,497				136,002,344				20,035,476
Net loss per share, basic and diluted		$	(0.48	)		$	(2.00	)		$	(1.05	)		$	(5.21	)
Impact of one-time IPO related acceleration of non-cash stock based compensation			—				0.04				—				0.07
Impact of one-time IPO related non-cash revaluation of preferred stock warrant			—				0.67				—				1.02
Non-GAAP net loss per share, basic and diluted		$	(0.48	)		$	(1.29	)		$	(1.05	)		$	(4.12	)
Non-GAAP net loss per share, as adjusted, basic and diluted(a)		$	(0.48	)		$	(0.34	)		$	(1.05	)		$	(0.70	)

(a)

Non-GAAP net loss per share, as adjusted has been computed to give effect to, as of the beginning of each period presented, (i) the shares of common stock issued in connection with our IPO and (ii) the automatic conversion of all outstanding shares of redeemable convertible preferred stock into shares of common stock that occurred upon the consummation of our IPO. The computation of Non-GAAP net loss per share, as adjusted is as follows:

		Three Months Ended June 30,								Six Months Ended June 30,
		2021				2020				2021				2020
	(in thousands, except share and per share amounts)
Non-GAAP net loss		$	(65,807	)		$	(40,706	)		$	(142,996	)		$	(82,555	)
Non-GAAP net loss, as adjusted		$	(65,807	)		$	(40,706	)		$	(142,996	)		$	(82,555	)
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted			136,507,177				31,599,497				136,002,344				20,035,476
Add: unweighted adjustment for common stock issued in connection with IPO			—				24,437,500				—				24,437,500
Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO			—				85,533,394				—				85,533,394
Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented			—				(22,960,956	)			—				(11,480,478	)
Weighted-average number of shares outstanding used to compute net loss per share, as adjusted, basic and diluted			136,507,177				118,609,435				136,002,344				118,525,892
Non-GAAP net loss per share, as adjusted, basic and diluted		$	(0.48	)		$	(0.34	)		$	(1.05	)		$	(0.70	)

Financial Outlook

For the full year 2021, we continue to expect triple digit year-over-year growth in ecommerce unit sales and more than 200% year-over-year growth in aggregate gross profit. For the third quarter 2021, we expect the following results:

• Ecommerce unit sales of 20,000 to 20,500, implying year over year growth of 130% at the mid-point of the guidance range.

• Average ecommerce selling price per unit of $32,000 to $33,000 and average ecommerce gross profit per unit of $2,350 to $2,450.

• Wholesale unit sales of 9,500 to 10,500, average selling price per unit of $12,000 to $13,000 and average gross profit per unit of $50 to $100.

• TDA unit sales of 1,550 to 1,650, average selling price per unit of $32,000 to $33,000 and average gross profit per unit of $1,650 to $1,750.

• Total revenue of $858 to $891 million.

• Total gross profit of $51 to $56 million.

• EBITDA* of $(100) to $(92) million.

• Stock-based compensation expense of $6.6 million.

• Net loss per share of $(0.78) to $(0.73).

*A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for our third quarter 2021 Financial Outlook is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, these costs and expenses that may be incurred in the future. We have provided a reconciliation of GAAP to non-GAAP financial measures for the second quarter 2021 in the reconciliation table in the Non-GAAP Financial Measures section above.

We expect the following number of GAAP weighted average shares outstanding for the third quarter and the full year 2021:

				Quarter				YTD
2021				136,717,347				136,359,846

These estimates exclude any shares potentially issuable under stock-based compensation plans.

The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of August 11, 2021 and are subject to substantial uncertainty. See “Forward-Looking Statements” below.

Conference Call & Webcast Information

Vroom management will discuss these results and other information regarding the Company during a conference call and audio webcast Wednesday, August 11, 2021 at 5:00 p.m. ET.

The conference call can be accessed via telephone by dialing 1-833-519-1297 (or 914-800-3868 for international access) and entering the conference ID 1597432. A live audio webcast will also be available at ir.vroom.com. An archived webcast of the conference call will be accessible on the website within 48 hours of its completion.

About Vroom (NASDAQ: VRM)

Vroom is an innovative, end-to-end ecommerce platform that offers a better way to buy and a better way to sell used vehicles. The Company’s scalable, data-driven technology brings all phases of the vehicle buying and selling process to consumers wherever they are and offers an extensive selection of vehicles, transparent pricing, competitive financing, and contact-free, at-home pick-up and delivery. For more information visit www.vroom.com.

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 our expectations regarding our business strategy and plans, including our ability to scale our business, grow inventory, expand reconditioning capacity, invest in logistics and improve our end-to-end customer experience, and for future results of operations and financial position, including our ability to improve our unit economics and our outlook for the third quarter ended September 30, 2021 and the year ended December 31, 2021. 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, 2020, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30, 2021, each of 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				As of
		June 30,				December 31,
		2021				2020
ASSETS
Current Assets:
Cash and cash equivalents		$	1,463,573			$	1,056,213
Restricted cash			37,116				33,826
Accounts receivable, net of allowance of $3,304 and $2,803, respectively			100,491				60,576
Inventory			519,966				423,647
Prepaid expenses and other current assets			49,984				23,617
Total current assets			2,171,130				1,597,879
Property and equipment, net			21,397				15,092
Intangible assets, net			31,318				34
Goodwill			159,306				78,172
Operating lease right-of-use assets			17,679				17,137
Other assets			19,809				15,742
Total assets		$	2,420,639			$	1,724,056
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Accounts payable		$	69,813			$	32,925
Accrued expenses			86,328				59,405
Vehicle floorplan			363,614				329,231
Deferred revenue			41,648				24,822
Operating lease liabilities, current			6,612				6,052
Other current liabilities			90,986				30,275
Total current liabilities			659,001				482,710
Convertible senior notes			608,960				—
Operating lease liabilities, excluding current portion			12,348				12,093
Other long-term liabilities			3,584				2,151
Total liabilities			1,283,893				496,954
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $0.001 par value; 500,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 136,717,347 and 134,043,969 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively			134				132
Additional paid-in-capital			2,057,479				2,004,841
Accumulated deficit			(920,867	)			(777,871	)
Total stockholders’ equity			1,136,746				1,227,102
Total liabilities and stockholders’ equity		$	2,420,639			$	1,724,056

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,
		2021				2020				2021				2020
Revenue:
Retail vehicle, net		$	608,116			$	196,150			$	1,062,439			$	504,862
Wholesale vehicle			128,108				50,921				246,132				106,497
Product, net			22,306				5,736				37,878				16,780
Other			3,360				286				6,559				726
Total revenue			761,890				253,093				1,353,008				628,865
Cost of sales			698,762				245,486				1,253,704				602,871
Total gross profit			63,128				7,607				99,304				25,994
Selling, general and administrative expenses			123,898				47,911				232,764				106,291
Depreciation and amortization			3,058				1,083				5,900				2,049
Loss from operations			(63,828	)			(41,387	)			(139,360	)			(82,346	)
Interest expense			3,880				1,297				7,692				4,123
Interest income			(2,062	)			(715	)			(4,358	)			(2,671	)
Revaluation of preferred stock warrant			—				21,260				—				20,470
Other income, net			(33	)			(53	)			(48	)			(86	)
Loss before provision for income taxes			(65,613	)			(63,176	)			(142,646	)			(104,182	)
Provision for income taxes			194				52				350				105
Net loss		$	(65,807	)		$	(63,228	)		$	(142,996	)		$	(104,287	)
Net loss per share attributable to common stockholders, basic and diluted		$	(0.48	)		$	(2.00	)		$	(1.05	)		$	(5.21	)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted			136,507,177				31,599,497				136,002,344				20,035,476

VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Six Months Ended June 30,
		2021				2020
Operating activities
Net loss		$	(142,996	)		$	(104,287	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization			6,028				2,059
Amortization of debt issuance costs			698				375
Stock-based compensation expense			8,212				4,700
Provision to record inventory at lower of cost or net realizable value			3,093				(1,564	)
Revaluation of preferred stock warrant			—				20,470
Other			2,818				632
Changes in operating assets and liabilities:
Accounts receivable			(41,393	)			14,863
Inventory			(99,412	)			66,247
Prepaid expenses and other current assets			(26,669	)			(7,909	)
Other assets			(3,948	)			(1,285	)
Accounts payable			36,507				919
Accrued expenses			26,306				4,714
Deferred revenue			16,788				(1,835	)
Other liabilities			62,117				1,905
Net cash (used in) provided by operating activities			(151,851	)			4
Investing activities
Purchase of property and equipment			(8,943	)			(3,128	)
Acquisition of business, net of cash acquired			(76,145	)			—
Net cash used in investing activities			(85,088	)			(3,128	)
Financing activities
Proceeds from vehicle floorplan			1,070,110				465,663
Repayments of vehicle floorplan			(1,035,727	)			(529,341	)
Payment of vehicle floorplan upfront commitment fees			—				(1,125	)
Proceeds from issuance of convertible senior notes			625,000				—
Issuance costs paid for convertible senior notes			(16,175	)			—
Proceeds from the issuance of redeemable convertible preferred stock, net			—				21,694
Repurchase of common stock			—				(1,818	)
Common stock shares withheld to satisfy employee tax withholding obligations			—				(878	)
Proceeds from the issuance of common stock in connection with IPO, net of underwriting discount			—				504,023
Payments of costs related to IPO			—				(1,740	)
Proceeds from exercise of stock options			4,381				13
Other financing activities			—				(66	)
Net cash provided by financing activities			647,589				456,425
Net increase in cash, cash equivalents and restricted cash			410,650				453,301
Cash, cash equivalents and restricted cash at the beginning of period			1,090,039				219,587
Cash, cash equivalents and restricted cash at the end of period		$	1,500,689			$	672,888

 

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FAQ

What were Vroom's Q2 2021 ecommerce unit sales?

Vroom reported ecommerce unit sales of 18,268 for Q2 2021, up 172% year-over-year.

How much did Vroom's ecommerce revenue increase in Q2 2021?

Ecommerce revenue increased by 230% to $579.7 million in Q2 2021.

What was Vroom's gross profit in Q2 2021?

Vroom's ecommerce gross profit for Q2 2021 was $49.6 million, an increase of 588% year-over-year.

What is Vroom's projected ecommerce unit sales for Q3 2021?

Vroom expects ecommerce unit sales of 20,000 to 20,500 for Q3 2021.

What was Vroom's net loss in Q2 2021?

Vroom reported a net loss of $65.8 million in Q2 2021, which is up 4.1% from the previous year.