vrm-8k_20210303.htm

 

  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): March 3, 2021

 

 

VROOM, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Delaware

 

001-39315

 

901112566

(State or other jurisdiction

of incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

1375 Broadway, Floor 11

New York, New York 10018

(Address of principal executive offices) (Zip Code)

 

(855) 524-1300

(Registrant’s telephone number, include area code)

N/A

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.001 par value per share

VRM

The Nasdaq Global Select Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 

 


 

Item 2.02. Results of Operations and Financial Condition.

On March 3, 2021, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter and year ended December 31, 2020. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.  

The information contained in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

The following exhibit relating to Item 2.02 shall be deemed to be furnished, and not filed:

 

Exhibit No.

 

Description

 

 

99.1

 

Press Release dated March 3, 2021.

 

 


 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

VROOM, INC.

 

 

 

Date: March 3, 2021

 

By:

 

/s/ David K. Jones

 

 

 

 

David K. Jones

 

 

 

 

Chief Financial Officer

 

 

vrm-ex991_6.htm

        

Exhibit 99.1

 

Vroom Reports Fourth Quarter and FY 2020 Results

Vroom Delivers Record Ecommerce Units and Gross Profit

Quarterly and FY 2020 Ecommerce Unit Sales Up 74% and 82% YoY, respectively

Quarterly and FY 2020 Ecommerce Gross Profit Up 95% and 89% YoY, respectively

 

NEW YORK – March 3, 2021 – Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the fourth quarter and fiscal year ended December 31, 2020.

HIGHLIGHTS OF FOURTH QUARTER 2020

 

11,022 ecommerce units sold, up 74% YoY

 

Ecommerce revenue of $285.0 million, up 43% YoY

 

Ecommerce gross profit of $20.1 million, up 95% YoY

 

HIGHLIGHTS OF FISCAL YEAR 2020

 

34,488 ecommerce units sold, up 82% YoY

 

Ecommerce revenue of $915.5 million, up 56% YoY

 

Ecommerce gross profit of $60.9 million, up 89% YoY

 

Paul Hennessy, Chief Executive Officer of Vroom, commented:

 

“Vroom had a strong fourth quarter, with significant year-over-year growth in our ecommerce business. Inventory and marketing are scaling as planned, which is increasing the velocity of the Vroom flywheel, driving conversion and increased sales and revenues. Consistent with our relentless focus on data science, we announced the acquisition of CarStory, a leader in AI-powered analytics and digital services for automotive retail, which closed in January 2021. As the used vehicle market continues to embrace the ecommerce model, we will continue to execute our plan and invest in scaling our business and improving our customer experience as we transform the market for buying and selling used vehicles.”

 

COVID-19 Update

 

Note: All sequential comparisons are on a fourth quarter over third quarter basis.

After the initial disruption in our ecommerce operations due to the COVID-19 pandemic, consumer demand for used vehicles now exceeds pre-COVID-19 levels and, in the quarter ended December 31, 2020, we experienced continued strong consumer demand for our ecommerce solutions and contact-free delivery. Ecommerce units sold increased sequentially 24.9% to 11,022 units and ecommerce revenue increased sequentially 28.5% to $285.0 million, both driven by increased consumer demand, higher inventory levels and increased marketing spend.

 

 


 

 

FOURTH QUARTER FINANCIAL DISCUSSION

All financial comparisons are for the fourth quarter on a year-over-year basis unless otherwise noted.

Ecommerce Results

 

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

 

 

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

 

Change

 

 

% Change

 

 

2020

 

 

2019

 

 

 

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

 

 

 

11,022

 

 

 

 

6,339

 

 

 

 

4,683

 

 

 

73.9

%

 

 

 

34,488

 

 

 

 

18,945

 

 

 

 

15,543

 

 

 

82.0

%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

274,552

 

 

$

 

195,289

 

 

$

 

79,263

 

 

 

40.6

%

 

$

 

884,560

 

 

$

 

576,998

 

 

$

 

307,562

 

 

 

53.3

%

Product revenue

 

 

 

10,398

 

 

 

 

3,904

 

 

 

 

6,494

 

 

 

166.3

%

 

 

 

30,891

 

 

 

 

11,116

 

 

 

 

19,775

 

 

 

177.9

%

Total ecommerce revenue

 

$

 

284,950

 

 

$

 

199,193

 

 

$

 

85,757

 

 

 

43.1

%

 

$

 

915,451

 

 

$

 

588,114

 

 

$

 

327,337

 

 

 

55.7

%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

9,674

 

 

$

 

6,400

 

 

$

 

3,274

 

 

 

51.2

%

 

$

 

29,970

 

 

$

 

21,011

 

 

$

 

8,959

 

 

 

42.6

%

Product gross profit

 

 

 

10,398

 

 

 

 

3,904

 

 

 

 

6,494

 

 

 

166.3

%

 

 

 

30,891

 

 

 

 

11,116

 

 

 

 

19,775

 

 

 

177.9

%

Total ecommerce gross profit

 

$

 

20,072

 

 

$

 

10,304

 

 

$

 

9,768

 

 

 

94.8

%

 

$

 

60,861

 

 

$

 

32,127

 

 

$

 

28,734

 

 

 

89.4

%

Average vehicle selling price per ecommerce unit

 

$

 

24,909

 

 

$

 

30,808

 

 

$

 

(5,899

)

 

 

(19.1

)%

 

$

 

25,648

 

 

$

 

30,456

 

 

$

 

(4,808

)

 

 

(15.8

)%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

878

 

 

$

 

1,010

 

 

$

 

(132

)

 

 

(13.1

)%

 

$

 

869

 

 

$

 

1,109

 

 

$

 

(240

)

 

 

(21.6

)%

Product gross profit per ecommerce unit

 

 

 

943

 

 

 

 

616

 

 

 

 

327

 

 

 

53.1

%

 

 

 

896

 

 

 

 

587

 

 

 

 

309

 

 

 

52.6

%

Total gross profit per ecommerce unit

 

$

 

1,821

 

 

$

 

1,626

 

 

$

 

195

 

 

 

12.0

%

 

$

 

1,765

 

 

$

 

1,696

 

 

$

 

69

 

 

 

4.1

%

Ecommerce average days to sale

 

 

 

77

 

 

 

 

68

 

 

 

 

9

 

 

 

13.2

%

 

 

 

66

 

 

 

 

68

 

 

 

 

(2

)

 

 

(2.9

)%

 

2

 


 

 

Fourth Quarter 2020

Ecommerce Units

Ecommerce units sold increased 73.9% to 11,022 driven by increased consumer demand, higher inventory levels and increased marketing spend. Average monthly unique visitors to our platform increased 26.3% to 1,004,368.

Ecommerce Revenue

Ecommerce revenue increased 43.1% to $285.0 million.

 

Ecommerce Vehicle revenue increased 40.6% to $274.6 million. The increase in ecommerce Vehicle revenue was primarily attributable to the increase in ecommerce units sold, partially offset by a decrease in the average selling price per unit, which decreased from $30,808 to $24,909. The decrease in average selling price was primarily driven by demand predicted by our data analytics.

 

Ecommerce Product revenue increased 166.3% to $10.4 million. The increase in ecommerce Product revenue was primarily attributable to the increase in ecommerce units sold, and further increased by an improvement in ecommerce Product revenue per unit, which increased from $616 to $943 per unit. The increase in ecommerce Product revenue per unit was driven by higher attachment rates, improved financing features in our ecommerce platform as well as our strategic lender partnerships.

Ecommerce Gross Profit

Ecommerce gross profit increased 94.8% to $20.1 million.

 

Ecommerce Vehicle gross profit increased 51.2% to $9.7 million. The increase in ecommerce Vehicle gross profit was due to an increase in units sold, partially offset by a $132 decrease in ecommerce Vehicle gross profit per unit, which was driven primarily by lower sales margins, partially offset by improvements in inbound logistics and reconditioning costs.

 

Ecommerce Product gross profit increased 166.3% to $10.4 million. The increase in ecommerce Product gross profit was primarily attributable to the increase in ecommerce units sold, and further increased by an improvement in ecommerce Product gross profit per unit, which increased from $616 to $943 per unit. The increase in Product gross profit per unit was driven by higher attachment rates, improved financing features in our ecommerce platform as well as our strategic lender partnerships.

Ecommerce Gross Profit per Unit

Ecommerce gross profit per unit increased 12.0% to $1,821.

 

Ecommerce Vehicle gross profit per unit decreased 13.1% to $878, driven primarily by lower sales margins, partially offset by improvements in inbound logistics and reconditioning costs per unit.

 

Ecommerce Product gross profit per unit increased 53.1% to $943. The increase in Product gross profit per unit was driven by higher attachment rates, improved financing features in our ecommerce platform as well as our strategic lender partnerships.

 

 

3

 


 

Results by Segment

 

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

 

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

2019

 

 

Change

 

 

% Change

 

 

2020

 

 

2019

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

 

11,022

 

 

 

6,339

 

 

 

4,683

 

 

 

73.9

%

 

 

34,488

 

 

 

18,945

 

 

 

15,543

 

 

 

82.0

%

Wholesale

 

 

6,998

 

 

 

4,151

 

 

 

2,847

 

 

 

68.6

%

 

 

21,108

 

 

 

20,197

 

 

 

911

 

 

 

4.5

%

TDA

 

 

1,777

 

 

 

3,574

 

 

 

(1,797

)

 

 

(50.3

)%

 

 

7,385

 

 

 

13,018

 

 

 

(5,633

)

 

 

(43.3

)%

Total units

 

 

19,797

 

 

 

14,064

 

 

 

5,733

 

 

 

40.8

%

 

 

62,981

 

 

 

52,160

 

 

 

10,821

 

 

 

20.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

284,950

 

 

$

199,193

 

 

$

85,757

 

 

 

43.1

%

 

$

915,451

 

 

$

588,114

 

 

$

327,337

 

 

 

55.7

%

Wholesale

 

 

75,111

 

 

 

47,759

 

 

 

27,352

 

 

 

57.3

%

 

 

245,580

 

 

 

213,464

 

 

 

32,116

 

 

 

15.0

%

TDA

 

 

45,768

 

 

 

108,640

 

 

 

(62,872

)

 

 

(57.9

)%

 

 

196,669

 

 

 

390,243

 

 

 

(193,574

)

 

 

(49.6

)%

Total revenue

 

$

405,829

 

 

$

355,592

 

 

$

50,237

 

 

 

14.1

%

 

$

1,357,700

 

 

$

1,191,821

 

 

$

165,879

 

 

 

13.9

%

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

20,072

 

 

$

10,304

 

 

$

9,768

 

 

 

94.8

%

 

$

60,861

 

 

$

32,127

 

 

$

28,734

 

 

 

89.4

%

Wholesale

 

 

(2,938

)

 

 

(535

)

 

 

(2,403

)

 

 

449.2

%

 

 

(1,432

)

 

 

340

 

 

 

(1,772

)

 

 

(521.2

)%

TDA

 

 

2,972

 

 

 

6,562

 

 

 

(3,590

)

 

 

(54.7

)%

 

 

12,116

 

 

 

25,392

 

 

 

(13,276

)

 

 

(52.3

)%

Total gross profit

 

$

20,106

 

 

$

16,331

 

 

$

3,775

 

 

 

23.1

%

 

$

71,545

 

 

$

57,859

 

 

$

13,686

 

 

 

23.7

%

Gross profit (loss) per unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

1,821

 

 

$

1,626

 

 

$

195

 

 

 

12.0

%

 

$

1,765

 

 

$

1,696

 

 

$

69

 

 

 

4.1

%

Wholesale

 

$

(420

)

 

$

(129

)

 

$

(291

)

 

 

225.6

%

 

$

(68

)

 

$

17

 

 

$

(85

)

 

 

(500.0

)%

TDA

 

$

1,620

 

 

$

1,836

 

 

$

(216

)

 

 

(11.8

)%

 

$

1,581

 

 

$

1,894

 

 

$

(313

)

 

 

(16.5

)%

Total gross profit per unit

 

$

1,016

 

 

$

1,161

 

 

$

(145

)

 

 

(12.5

)%

 

$

1,136

 

 

$

1,109

 

 

$

27

 

 

 

2.4

%

Fourth Quarter 2020

Total Units

Total units sold increased 40.8% to 19,797.

 

Ecommerce units sold increased 73.9% to 11,022, primarily driven by the reasons discussed above.

 

Wholesale units sold increased 68.6% to 6,998, primarily driven by an increase of wholesale grade units purchased from consumers as well as an increase in the number of trade-in vehicles as a result of the increase in number of ecommerce units sold.

 

TDA units sold decreased 50.3% to 1,777, primarily due to reduced inventory at the TDA location as the ecommerce business continues to scale.

Total Revenue

Total revenue increased 14.1% to $405.8 million.

 

Ecommerce revenue increased 43.1% to $285.0 million, primarily driven by the reasons discussed above.

 

Wholesale revenue increased 57.3% to $75.1 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold, partially offset by a decrease in wholesale average selling price per unit, which decreased from $11,505 to $10,733.

 

TDA revenue decreased 57.9% to $45.7 million, primarily due to the decrease in TDA units sold and a lower average selling price per unit, which decreased from $29,302 to $24,546.

4

 


 

Total Gross Profit (Loss)

Total gross profit increased 23.1% to $20.1 million.

 

Ecommerce gross profit increased 94.8% to $20.1 million, primarily driven by the reasons discussed above.

 

Wholesale gross loss increased to $(2.9) million. Wholesale gross loss increased primarily due to an increase in wholesale units sold at a higher gross loss per unit of $(291) as a result of liquidating aged inventory in the fourth quarter.

 

TDA gross profit decreased 54.7% to $2.9 million. TDA gross profit decreased primarily due to a decrease in TDA units sold and a decrease in TDA gross profit per unit of $216.

Total Gross Profit (Loss) per Unit

Total gross profit per unit decreased 12.5% to $1,016.

 

Ecommerce gross profit per unit increased 12.0% to $1,821.

 

Wholesale gross loss per unit increased 225.6% to $(420).  

 

TDA gross profit per unit decreased 11.8% to $1,620.

 

SG&A

 

 

Three Months Ended

December 31,

 

 

 

 

 

 

 

 

 

 

Year Ended

December 31,

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

 

 

2019

 

 

Change

 

 

% Change

 

 

 

2020

 

 

 

2019

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

 

Compensation & benefits

 

$

 

28,384

 

 

$

 

20,455

 

 

$

7,929

 

 

 

38.8

%

 

$

 

92,205

 

 

$

 

72,473

 

 

$

19,732

 

 

 

27.2

%

Marketing expense

 

 

 

17,564

 

 

 

 

15,424

 

 

 

2,140

 

 

 

13.9

%

 

 

 

62,393

 

 

 

 

49,866

 

 

 

12,527

 

 

 

25.1

%

Outbound logistics

 

 

 

10,500

 

 

 

 

4,751

 

 

 

5,749

 

 

 

121.0

%

 

 

 

30,262

 

 

 

 

13,950

 

 

 

16,312

 

 

 

116.9

%

Occupancy and related costs

 

 

 

3,210

 

 

 

 

3,294

 

 

 

(84

)

 

 

(2.6

)%

 

 

 

10,784

 

 

 

 

11,335

 

 

 

(551

)

 

 

(4.9

)%

Professional fees

 

 

 

4,863

 

 

 

 

2,182

 

 

 

2,681

 

 

 

122.9

%

 

 

 

10,560

 

 

 

 

11,560

 

 

 

(1,000

)

 

 

(8.7

)%

Other

 

 

 

13,607

 

 

 

 

7,673

 

 

 

5,934

 

 

 

77.3

%

 

 

 

39,342

 

 

 

 

25,804

 

 

 

13,538

 

 

 

52.5

%

Total selling, general & administrative expenses

 

$

 

78,128

 

 

$

 

53,779

 

 

$

24,349

 

 

 

45.3

%

 

$

 

245,546

 

 

$

 

184,988

 

 

$

60,558

 

 

 

32.7

%

Fourth Quarter 2020

 

Selling, general and administrative expenses increased 45.3% to $78.1 million. The increase was primarily due to:

 

$7.9 million increase in compensation and benefits due to an increase in headcount, as well as a $3.7 million increase in stock-based compensation to $4.3 million;

 

$5.9 million increase in other selling, general and administrative expenses primarily related to additional insurance costs associated with being a publicly traded company and volume-based subscription fees as our business continues to scale;

 

$5.7 million increase in outbound logistics costs partially attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $3.5 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $2.2 million;

 

$2.7 million increase in professional fees primarily related to $2.1 million in costs related to the CarStory acquisition; and

 

$2.1 million increase in marketing expense as we expanded our national broad-reach advertising.

 

5

 


 

We expect selling, general and administrative expenses to increase in the future as we scale our business and sell more ecommerce units. We also will incur increased selling, general and administrative expenses as we continue to invest in and improve our customer experience and invest in expanding our proprietary logistics network, including our last-mile delivery operations.

Loss from Operations and Net Loss

Fourth Quarter 2020

Loss from operations increased 52.6% to $59.4 million. Net loss increased 41.9% to $60.7 million.

 

Non-GAAP Financial Measures

In addition to our results determined in accordance with accounting principles generally accepted in the United States, or 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 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 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 GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.

 

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, the one-time, IPO related non-cash revaluation of a preferred stock warrant, and acquisition related costs. We calculate Adjusted loss from operations as operating loss adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and acquisition related costs and 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, the one-time, IPO related non-cash revaluation of a preferred stock warrant, and acquisition related costs. We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding.

 

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. The following table presents a reconciliation of the Non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP, for each of the periods presented.

 

 

 

6

 


 

EBITDA and Adjusted EBITDA

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

 

(in thousands)

 

Net loss

 

$

(60,662

)

 

$

(42,735

)

 

$

(202,799

)

 

$

(142,978

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

3,274

 

 

 

4,693

 

 

 

9,656

 

 

 

14,596

 

Interest income

 

 

(1,936

)

 

 

(1,153

)

 

 

(5,896

)

 

 

(5,607

)

Provision for income taxes

 

 

(54

)

 

 

46

 

 

 

84

 

 

 

168

 

Depreciation and amortization expense

 

 

1,399

 

 

 

1,474

 

 

 

4,654

 

 

 

6,157

 

EBITDA

 

$

(57,979

)

 

$

(37,675

)

 

$

(194,301

)

 

$

(127,664

)

One-time IPO related acceleration of non-cash stock-based compensation

 

 

 

 

 

 

 

 

1,262

 

 

 

 

One-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

 

 

 

20,470

 

 

 

 

Acquisition related costs

 

 

2,080

 

 

 

 

 

 

2,080

 

 

 

 

Adjusted EBITDA

 

$

(55,899

)

 

$

(37,675

)

 

$

(170,489

)

 

$

(127,664

)

 

Adjusted loss from operations

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(in thousands)

 

 

(in thousands)

 

Loss from operations

 

$

(59,381

)

 

$

(38,916

)

 

$

(178,599

)

 

$

(133,148

)

Add: One-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

 

 

 

1,262

 

 

 

 

Add: Acquisition related costs

 

 

2,080

 

 

 

 

 

 

2,080

 

 

 

 

Adjusted loss from operations

 

$

(57,301

)

 

$

(38,916

)

 

$

(175,257

)

 

$

(133,148

)

 

7

 


 

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

 

 

 

Three Months Ended

December 31,

 

 

Year Ended

December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(in thousands, except share and

per share amounts)

 

 

(in thousands, except share and

per share amounts)

 

Net loss

 

$

(60,662

)

 

$

(42,735

)

 

$

(202,799

)

 

$

(142,978

)

Accretion of redeemable convertible preferred stock

 

 

 

 

 

(23,221

)

 

 

 

 

 

(132,750

)

Net loss attributable to common stockholders

 

$

(60,662

)

 

$

(65,956

)

 

$

(202,799

)

 

$

(275,728

)

Add: One-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

 

 

 

1,262

 

 

 

 

Add: One-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

 

 

 

20,470

 

 

 

 

Add: Acquisition related costs

 

 

2,080

 

 

 

 

 

 

2,080

 

 

 

 

Non-GAAP net loss

 

$

(58,582

)

 

$

(65,956

)

 

$

(178,987

)

 

$

(275,728

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of shares outstanding used to compute net loss per share,

basic and diluted

 

 

132,187,850

 

 

 

8,648,313

 

 

 

73,345,569

 

 

 

8,605,962

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(0.46

)

 

$

(7.63

)

 

$

(2.76

)

 

$

(32.04

)

Impact of one-time IPO related acceleration of non-cash stock based compensation

 

 

 

 

 

 

 

 

0.02

 

 

 

 

Impact of one-time IPO related non-cash revaluation of preferred stock warrant

 

 

 

 

 

 

 

 

0.28

 

 

 

 

Impact of acquisition related costs

 

 

0.02

 

 

 

 

 

 

0.03

 

 

 

 

Non-GAAP net loss per share, basic and diluted

 

$

(0.44

)

 

$

(7.63

)

 

$

(2.44

)

 

$

(32.04