vrm-8k_20210630.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): August 11, 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 August 11, 2021, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 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:

 

Exhibit No.

 

Description

 

 

99.1

 

Press Release dated August 11, 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: August 11, 2021

 

By:

 

/s/ David K. Jones

 

 

 

 

David K. Jones

 

 

 

 

Chief Financial Officer

 

 

vrm-ex991_6.htm

      

Exhibit 99.1

 

Vroom Reports Second Quarter 2021 Results

 

Vroom Delivers Record Ecommerce Units and Gross Profit

 

Ecommerce Unit Sales Up 172% YoY

 

Ecommerce Gross Profit Up 588% YoY

 

NEW YORK – August 11, 2021 – 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

%

 

2

 


 

 

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.

 

3

 


 

 

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.

 

4

 


 

 

 

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.

 

5

 


 

 

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.

 

6

 


 

 

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:

 

7

 


 

 

 

 

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