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): May 12, 2021
VROOM, INC.
(Exact name of registrant as specified in its charter)
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Delaware |
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001-39315 |
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901112566 |
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(State or other jurisdiction of incorporation or organization) |
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(Commission File Number) |
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(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:
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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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:
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Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
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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 May 12, 2021, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2021. 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:
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Exhibit No. |
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Description |
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99.1 |
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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.
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VROOM, INC. |
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Date: May 12, 2021 |
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By: |
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/s/ David K. Jones |
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David K. Jones |
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Chief Financial Officer |
Exhibit 99.1
Vroom Reports First Quarter 2021 Results
Vroom Delivers Record Ecommerce Units and Gross Profit
Ecommerce Unit Sales Up 96% YoY
Ecommerce Gross Profit Up 123% YoY
NEW YORK – May 12, 2021 – Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the first quarter ended March 31, 2021.
HIGHLIGHTS OF FIRST QUARTER 2021
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15,504 ecommerce units sold, up 96% YoY |
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Ecommerce revenue of $422.3 million, up 81% YoY |
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Ecommerce gross profit of $31.8 million, up 123% YoY |
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Completed the acquisition of CarStory business |
Paul Hennessy, Chief Executive Officer of Vroom, commented:
“Vroom delivered record results in the first quarter of 2021, with total gross profit nearly doubling versus the same period in the prior year as we delivered exceptional growth and improving unit economics. Our strong results were led by robust Ecommerce unit growth of 96%, coupled with accelerating Ecommerce Gross Profit Per Unit through the quarter. Demand for our convenient, online used vehicle shopping experience remains strong in a dynamic environment, and we continue to reap benefits from scaling our hybrid, asset-light model. As we look ahead, we will continue to execute against our plan to increase the velocity of our flywheel by growing inventory, expanding reconditioning capacity, and investing in logistics and our end-to-end ecommerce experience, among other initiatives, to deliver an attractive offering for our customers and demonstrate improvement in our unit economics over time.”
FIRST QUARTER 2021 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted.
Ecommerce Results
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Three Months Ended March 31, |
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2021 |
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2020 |
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Change |
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% Change |
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(in thousands, except unit data and average days to sale) |
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Ecommerce units sold |
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15,504 |
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7,930 |
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7,574 |
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95.5 |
% |
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Ecommerce revenue: |
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Vehicle revenue |
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$ |
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408,314 |
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$ |
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225,606 |
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$ |
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182,708 |
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81.0 |
% |
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Product revenue |
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13,994 |
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7,566 |
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6,428 |
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85.0 |
% |
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Total ecommerce revenue |
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$ |
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422,308 |
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$ |
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233,172 |
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$ |
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189,136 |
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81.1 |
% |
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Ecommerce gross profit: |
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Vehicle gross profit |
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$ |
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17,843 |
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$ |
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6,701 |
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$ |
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11,142 |
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166.3 |
% |
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Product gross profit |
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13,994 |
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7,566 |
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6,428 |
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85.0 |
% |
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Total ecommerce gross profit |
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$ |
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31,837 |
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$ |
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14,267 |
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$ |
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17,570 |
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123.2 |
% |
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Average vehicle selling price per ecommerce unit |
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$ |
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26,336 |
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$ |
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28,450 |
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$ |
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(2,114 |
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(7.4 |
)% |
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Gross profit per ecommerce unit: |
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Vehicle gross profit per ecommerce unit |
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$ |
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1,151 |
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$ |
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845 |
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$ |
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306 |
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36.2 |
% |
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Product gross profit per ecommerce unit |
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903 |
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954 |
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(51 |
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(5.3 |
)% |
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Total gross profit per ecommerce unit |
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$ |
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2,054 |
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$ |
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1,799 |
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$ |
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255 |
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14.2 |
% |
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Ecommerce average days to sale |
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83 |
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68 |
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15 |
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22.1 |
% |
Ecommerce Units
Ecommerce units sold increased 95.5% to 15,504 driven by increased consumer demand, higher inventory levels and increased marketing spend. Average monthly unique visitors to our platform increased 63.7% to 1,550,258.
Ecommerce Revenue
Ecommerce revenue increased 81.1% to $422.3 million.
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Ecommerce Vehicle revenue increased 81.0% to $408.3 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 $28,450 to $26,336. |
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Ecommerce Product revenue increased 85.0% to $14.0 million. The increase in ecommerce Product revenue was primarily attributable to the increase in ecommerce units sold, partially offset by a decrease in ecommerce Product revenue per unit, which decreased from $954 to $903 per unit. |
Ecommerce Gross Profit
Ecommerce gross profit increased 123.2% to $31.8 million.
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Ecommerce Vehicle gross profit increased 166.3% to $17.8 million. The increase in ecommerce Vehicle gross profit was primarily due to the increase in units sold as well as a $306 increase in ecommerce Vehicle gross profit per unit to $1,151. |
2
Ecommerce Gross Profit per Unit
Ecommerce gross profit per unit increased 14.2% to $2,054.
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Ecommerce Vehicle gross profit per unit increased 36.2% to $1,151, driven primarily by improvements in reconditioning costs as well as a higher inventory reserve in the first quarter of 2020 due to the start of the COVID-19 pandemic. |
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Ecommerce Product gross profit per unit decreased slightly to $903. |
Results by Segment
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Three Months Ended March 31, |
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2021 |
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2020 (1) |
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Change |
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% Change |
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(in thousands) |
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Units: |
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Ecommerce |
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15,504 |
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7,930 |
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7,574 |
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95.5 |
% |
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Wholesale |
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8,641 |
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4,685 |
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3,956 |
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84.4 |
% |
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TDA |
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1,775 |
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3,035 |
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(1,260 |
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(41.5 |
)% |
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Total units |
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25,920 |
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15,650 |
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10,270 |
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65.6 |
% |
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Revenue: |
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Ecommerce |
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$ |
422,308 |
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$ |
233,172 |
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$ |
189,136 |
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81.1 |
% |
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Wholesale |
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118,024 |
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55,578 |
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62,446 |
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112.4 |
% |
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TDA |
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47,587 |
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86,582 |
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(38,995 |
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(45.0 |
)% |
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All Other (2) |
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3,199 |
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440 |
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2,759 |
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627.0 |
% |
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Total revenue |
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$ |
591,118 |
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$ |
375,772 |
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$ |
215,346 |
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57.3 |
% |
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Gross profit (loss): |
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Ecommerce |
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$ |
31,837 |
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$ |
14,267 |
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$ |
17,570 |
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123.2 |
% |
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Wholesale |
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(282 |
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(1,292 |
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1,010 |
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(78.2 |
)% |
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TDA |
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2,791 |
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5,258 |
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(2,467 |
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(46.9 |
)% |
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All Other (2) |
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1,830 |
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154 |
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1,676 |
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1,088.3 |
% |
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Total gross profit |
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$ |
36,176 |
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$ |
18,387 |
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$ |
17,789 |
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96.7 |
% |
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Gross profit (loss) per unit (3): |
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Ecommerce |
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$ |
2,054 |
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$ |
1,799 |
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$ |
255 |
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14.2 |
% |
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Wholesale |
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$ |
(33 |
) |
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$ |
(276 |
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$ |
243 |
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(88.0 |
)% |
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TDA |
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$ |
1,572 |
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$ |
1,732 |
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$ |
(160 |
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(9.2 |
)% |
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(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. |
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(2) |
All Other revenues and gross profit consist of the CarStory business and vehicle repair services at TDA. |
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(3) |
Gross profit per unit metrics exclude the CarStory business and vehicle repair services at TDA. |
Total Units
Total units sold increased 65.6% to 25,920.
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TDA units sold decreased 41.5% to 1,775, primarily due to reduced inventory at the TDA location as our ecommerce business continues to scale. |
Total Revenue
Total revenue increased 57.3% to $591.1 million.
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Ecommerce revenue increased 81.1% to 422.3 million, as discussed above. |
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Wholesale revenue increased 112.4% to $118.0 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold as well as an increase in wholesale average selling price per unit, which increased from $11,863 to $13,659. |
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TDA revenue decreased 45.0% to $47.6 million, primarily due to the decrease in TDA units sold and a lower average selling price per unit, which decreased from $27,382 to $25,921. |
Total Gross Profit (Loss)
Total gross profit increased 96.7% to $36.2 million.
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Ecommerce gross profit increased 123.2% to $31.8 million, as discussed above. |
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Wholesale gross loss decreased 78.2% to $(0.3) million. Wholesale gross loss decreased primarily due a lower gross loss per unit, partially offset by the increase in wholesale units sold. |
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TDA gross profit decreased 46.9% to $2.8 million. TDA gross profit decreased primarily due to the decrease in TDA units sold and a decrease in TDA gross profit per unit of $160. |
Gross Profit (Loss) per Unit
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Ecommerce gross profit per unit increased 14.2% to $2,054, as discussed above. |
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Wholesale gross loss per unit decreased 88.0% to $(33) as a result of improved wholesale market conditions. |
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TDA gross profit per unit decreased 9.2% to $1,572. |
SG&A
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Three Months Ended March 31, |
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2021 |
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2020 |
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Change |
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% Change |
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(in thousands) |
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Compensation & benefits |
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$ |
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39,870 |
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$ |
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20,321 |
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$ |
19,549 |
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96.2 |
% |
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Marketing expense |
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29,558 |
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17,915 |
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11,643 |
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65.0 |
% |
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Outbound logistics |
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15,366 |
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5,792 |
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9,574 |
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165.3 |
% |
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Occupancy and related costs |
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3,922 |
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2,697 |
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1,225 |
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45.4 |
% |
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Professional fees |
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3,998 |
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2,459 |
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1,539 |
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62.6 |
% |
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Other |
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16,400 |
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9,196 |
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7,204 |
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78.3 |
% |
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Total selling, general & administrative expenses |
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$ |
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109,114 |
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$ |
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58,380 |
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$ |
50,734 |
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86.9 |
% |
4
Selling, general and administrative expenses increased 86.9% to $109.1 million. The increase was primarily due to:
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$19.5 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 well as a $2.2 million increase in stock-based compensation to $2.8 million as a result of our initial public offering (the “IPO”); |
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$11.6 million increase in marketing expense as we expanded our national broad-reach advertising and aired our first Super Bowl commercial; |
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$9.6 million increase in outbound logistics costs partially attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $5.5 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $4.1 million; and |
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$7.2 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 fees for software licenses as our business continues to scale. |
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 and invest in expanding our proprietary logistics network, including our last-mile delivery operations.
Loss from Operations and Net Loss
Loss from operations increased 84.4% to $75.5 million. Net loss increased 88.0% to $77.2 million.
Non-GAAP Financial Measures
In addition to our results determined in accordance with U.S. GAAP, we believe EBITDA and Non-GAAP net loss per share, as adjusted, which are non-GAAP financial measures, are useful in evaluating our operating performance. 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 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 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.
We are not presenting Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, and Non-GAAP net loss per share as there were no relevant adjustments for the three months ended March 31, 2021 and 2020.
5
We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense. The following table presents a reconciliation of EBITDA to net loss, which is the most directly comparable U.S. GAAP measure:
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Three Months Ended March 31, |
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2021 |
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2020 |
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(in thousands) |
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Net loss |
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$ |
(77,189 |
) |
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$ |
(41,059 |
) |
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Adjusted to exclude the following: |
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Interest expense |
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3,812 |
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2,826 |
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Interest income |
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(2,296 |
) |
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(1,956 |
) |
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Provision for income taxes |
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156 |
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53 |
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Depreciation and amortization expense |
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2,906 |
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|
970 |
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EBITDA |
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$ |
(72,611 |
) |
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$ |
(39,166 |
) |
Non-GAAP net loss per share, as adjusted
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 (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 and (iii) the shares of common stock issued in connection with our follow-on public offering, all of which occurred in 2020. The following table presents a reconciliation of Non-GAAP net loss per share, as adjusted to net loss per share, which is the most directly comparable U.S. GAAP measure:
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Three Months Ended March 31, |
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2021 |
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2020 |
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Net loss |
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$ |
(77,189 |
) |
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$ |
(41,059 |
) |
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Net loss per share, basic and diluted |
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$ |
(0.57 |
) |
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$ |
(4.85 |
) |
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Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted |
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135,497,511 |
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|
8,471,456 |
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Add: unweighted adjustment for common stock issued in connection with IPO |
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— |
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24,437,500 |
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|
Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO |
|
|
— |
|
|
|
85,533,394 |
|
|
Add: unweighted adjustment for common stock issued in connection with follow-on public offering |
|
|
— |
|
|
|
10,800,000 |
|
|
Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented |
|
|
— |
|
|
|
— |
|
|
Weighted-average number of shares outstanding used to compute net loss per share, as adjusted, basic and diluted |
|
|
135,497,511 |
|
|
|
129,242,350 |
|
|
Non-GAAP net loss per share, as adjusted, basic and diluted |
|
$ |
(0.57 |
) |
|
$ |
(0.32 |
) |
6
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 second quarter 2021, we expect the following results:
•Ecommerce unit sales of 17,500 to 18,000, implying year over year growth of 164% at the middle of the guidance range.
•Average ecommerce selling price per unit of $27,000 to $28,000 and average ecommerce gross profit per unit of $2,500 to $2,600.
•Wholesale unit sales of 7,500 to 8,000, average selling price per unit of $10,000 to $11,000 and average gross profit per unit of $800 to $900.
•TDA unit sales of 1,400 to 1,500, average selling price per unit of $27,000 to 28,000 and average gross profit per unit of $2,000 to $2,100.
•Total revenue of $618 to $640 million.
•Total gross profit of $54 to $59 million.
•EBITDA* of $(70) to $(61) million.
•Stock-based compensation expense of $4.4 million.
•Net loss per share of $(0.58) to $(0.51).
*A reconciliation of non-GAAP guidance measures to corresponding GAAP measures for our second 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 first 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 second quarter and the full year 2021:
|
|
|
Quarter |
|
YTD |
|
|
2021 |
|
136,303,300 |
|
136,101,850 |
|
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 May 12, 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, May 12, 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 2662706. 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.
7
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 second quarter ended June 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 March 31, 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.
Investor Relations:
Vroom
Allen Miller
investors@vroom.com
Media Contact:
Moxie Communications Group
Alyssa Galella
vroom@moxiegrouppr.com
(562) 294-6261
8
VROOM, INC.
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
As of |
|
|
As of |
|
||
|
|
|
March 31, |
|
|
December 31, |
|
||
|
|
|
2021 |
|
|
2020 |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
940,287 |
|
|
$ |
1,056,213 |
|
|
Restricted cash |
|
|
26,550 |
|
|
|
33,826 |
|
|
Accounts receivable, net of allowance of $4,380 and $2,803, respectively |
|
|
93,215 |
|
|
|
60,576 |
|
|
Inventory |
|
|
337,696 |
|
|
|
423,647 |
|
|
Prepaid expenses and other current assets |
|
|
24,724 |
|
|
|
23,617 |
|
|
Total current assets |
|
|
1,422,472 |
|
|
|
1,597,879 |
|
|
Property and equipment, net |
|
|
16,937 |
|
|
|
15,092 |
|
|
Intangible assets, net |
|
|
32,912 |
|
|
|
34 |
|
|
Goodwill |
|
|
159,306 |
|
|
|
78,172 |
|
|
Operating lease right-of-use assets |
|
|
18,569 |
|
|
|
17,137 |
|
|
Other assets |
|
|
16,511 |
|
|
|
15,742 |
|
|
Total assets |
|
$ |
1,666,707 |
|
|
$ |
1,724,056 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
42,840 |
|
|
$ |
32,925 |
|
|
Accrued expenses |
|
|
71,966 |
|
|
|
59,405 |
|
|
Vehicle floorplan |
|
|
253,038 |
|
|
|
329,231 |
|
|
Deferred revenue |
|
|
48,236 |
|
|
|
24,822 |
|
|
Operating lease liabilities, current |
|
|
6,365 |
|
|
|
6,052 |
|
|
Other current liabilities |
|
|
32,700 |
|
|
|
30,275 |
|
|
Total current liabilities |
|
|
455,145 |
|
|
|
482,710 |
|
|
Operating lease liabilities, excluding current portion |
|
|
13,457 |
|
|
|
12,093 |
|
|
Other long-term liabilities |
|
|
2,504 |
|
|
|
2,151 |
|
|
Total liabilities |
|
|
471,106 |
|
|
|
496,954 |
|
|
Commitments and contingencies (Note 10) |
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value; 500,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 136,303,301 and 134,043,969 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively |
|
|
134 |
|
|
|
132 |
|
|
Additional paid-in-capital |
|
|
2,050,527 |
|
|
|
2,004,841 |
|
|
Accumulated deficit |
|
|
(855,060 |
) |
|
|
(777,871 |
) |
|
Total stockholders’ equity |
|
|
1,195,601 |
|
|
|
1,227,102 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
1,666,707 |
|
|
$ |
1,724,056 |
|
9
VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Revenue: |
|
|
|
|
|
|
|
|
|
Retail vehicle, net |
|
$ |
454,323 |
|
|
$ |
308,710 |
|
|
Wholesale vehicle |
|
|
118,024 |
|
|
|
55,578 |
|
|
Product, net |
|
|
15,572 |
|
|
|
11,044 |
|
|
Other |
|
|
3,199 |
|
|
|
440 |
|
|
Total revenue |
|
|
591,118 |
|
|
|
375,772 |
|
|
Cost of sales |
|
|
554,942 |
|
|
|
357,385 |
|
|
Total gross profit |
|
|
36,176 |
|
|
|
18,387 |
|
|
Selling, general and administrative expenses |
|
|
109,114 |
|
|
|
58,380 |
|
|
Depreciation and amortization |
|
|
2,594 |
|
|
|
966 |
|
|
Loss from operations |
|
|
(75,532 |
) |
|
|
(40,959 |
) |
|
Interest expense |
|
|
3,812 |
|
|
|
2,826 |
|
|
Interest income |
|
|
(2,296 |
) |
|
|
(1,956 |
) |
|
Revaluation of preferred stock warrant |
|
|
— |
|
|
|
(790 |
) |
|
Other income, net |
|
|
(15 |
) |
|
|
(33 |
) |
|
Loss before provision for income taxes |
|
|
(77,033 |
) |
|
|
(41,006 |
) |
|
Provision for income taxes |
|
|
156 |
|
|
|
53 |
|
|
Net loss |
|
$ |
(77,189 |
) |
|
$ |
(41,059 |
) |
|
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(0.57 |
) |
|
$ |
(4.85 |
) |
|
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
|
135,497,511 |
|
|
|
8,471,456 |
|
10
VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Operating activities |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(77,189 |
) |
|
$ |
(41,059 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
2,906 |
|
|
|
970 |
|
|
Amortization of debt issuance costs |
|
|
281 |
|
|
|
94 |
|
|
Stock-based compensation expense |
|
|
2,820 |
|
|
|
600 |
|
|
Provision for inventory obsolescence |
|
|
(2,551 |
) |
|
|
4,427 |
|
|
Revaluation of preferred stock warrant |
|
|
— |
|
|
|
(790 |
) |
|
Other |
|
|
1,813 |
|
|
|
306 |
|
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(33,140 |
) |
|
|
(4,530 |
) |
|
Inventory |
|
|
88,502 |
|
|
|
21,702 |
|
|
Prepaid expenses and other current assets |
|
|
(1,127 |
) |
|
|
(2,084 |
) |
|
Other assets |
|
|
(650 |
) |
|
|
(807 |
) |
|
Accounts payable |
|
|
9,568 |
|
|
|
(2,937 |
) |
|
Accrued expenses |
|
|
12,194 |
|
|
|
(847 |
) |
|
Deferred revenue |
|
|
23,376 |
|
|
|
(4,499 |
) |
|
Other liabilities |
|
|
2,751 |
|
|
|
4,309 |
|
|
Net cash provided by (used in) operating activities |
|
|
29,554 |
|
|
|
(25,145 |
) |
|
Investing activities |
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(3,239 |
) |
|
|
(1,699 |
) |
|
Acquisition of business, net of cash acquired |
|
|
(76,145 |
) |
|
|
— |
|
|
Net cash used in investing activities |
|
|
(79,384 |
) |
|
|
(1,699 |
) |
|
Financing activities |
|
|
|
|
|
|
|
|
|
Proceeds from vehicle floorplan |
|
|
396,849 |
|
|
|
293,854 |
|
|
Repayments of vehicle floorplan |
|
|
(473,042 |
) |
|
|
(302,149 |
) |
|
Payment of vehicle floorplan upfront commitment fees |
|
|
— |
|
|
|
(1,125 |
) |
|
Proceeds from the issuance of redeemable convertible preferred stock, net |
|
|
— |
|
|
|
21,694 |
|
|
Repurchase of common stock |
|
|
— |
|
|
|
(1,818 |
) |
|
Payments of costs related to IPO |
|
|
— |
|
|
|
(828 |
) |
|
Proceeds from exercise of stock options |
|
|
2,821 |
|
|
|
6 |
|
|
Other financing activities |
|
|
— |
|
|
|
(34 |
) |
|
Net cash (used in) provided by financing activities |
|
|
(73,372 |
) |
|
|
9,600 |
|
|
Net decrease in cash, cash equivalents and restricted cash |
|
|
(123,202 |
) |
|
|
(17,244 |
) |
|
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 |
|
$ |
966,837 |
|
|
$ |
202,343 |
|
11