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0001580864false00015808642021-11-092021-11-09

 

 

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): November 9, 2021

 

 

VROOM, INC.

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Delaware

 

001-39315

 

90-1112566

(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 November 9, 2021, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2021. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

 

Item 7.01. Regulation FD Disclosure.

On November 10, 2021, members of the Company’s management will hold an earnings conference call to discuss the Company’s financial results for the quarter ended September 30, 2021, and the presentation furnished as Exhibit 99.2 to this Current Report on Form 8-K will accompany management’s comments.

 

The information contained in Item 2.02, including Exhibit 99.1 hereto and in Item 7.01, including Exhibit 99.2 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 exhibits relating to Item 2.02 and Item 7.01 shall be deemed to be furnished, and not filed:

 

Exhibit No.

 

Description

 

 

99.1

 

Press Release dated November 9, 2021.

99.2

 

Earnings Conference Call Presentation for the Quarter Ended September 30, 2021.

104

 

Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

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: November 9, 2021

 

By:

 

/s/ Robert R. Krakowiak

 

 

 

 

Robert R. Krakowiak

 

 

 

 

Chief Financial Officer

 

 
EX-99.1

https://cdn.kscope.io/cf9df6e84cfa999665f4a24c4ac27b25-img63169428_0.jpg  

Exhibit 99.1

 

Vroom Reports Strong Third Quarter 2021 Results

 

Vroom Delivers Record Ecommerce Units and Gross Profit

 

Ecommerce Unit Sales Up 123% YoY

 

Ecommerce Gross Profit Up 161% YoY

 

NEW YORK – November 9, 2021 – Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the third quarter ended September 30, 2021 (“Q3 2021”).

 

HIGHLIGHTS OF THIRD QUARTER 2021

 

19,683 ecommerce units sold, up 123% YoY

 

Ecommerce revenue of $701.7 million, up 216% YoY

 

Ecommerce gross profit of $50.4 million, up 161% YoY

 

Vroom enters into definitive agreement to acquire United Auto Credit Corporation ("UACC")

 

Vroom appoints new Chief Financial Officer

 

Paul Hennessy, Chief Executive Officer of Vroom, commented:

 

“Vroom had yet another strong quarter that continued the momentum that has been building all year. By executing well across our organization, we delivered triple digit year-over-year growth in both ecommerce units and gross profit, as well as improvement in unit economics. We also continued to optimize our mix of inventory sources throughout the quarter, with approximately 81% of our retail inventory sold sourced from consumers, enabling us to scale our inventory while maintaining strong unit economics. Looking ahead, we intend to continue to focus on strong execution and maintain the momentum in our business to drive continued growth in unit sales and on improving unit economics. We also are excited to move forward with our acquisition of United Auto Credit Corporation, which will accelerate our strategic objective to establish a captive financing arm.”

 

 

 

 

THIRD QUARTER 2021 FINANCIAL DISCUSSION

 

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

 

Ecommerce Results

 

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

 

 

 

Nine Months Ended
September 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

 

 

 

19,683

 

 

 

 

8,823

 

 

 

 

10,860

 

 

 

123.1

%

 

 

 

53,455

 

 

 

 

23,466

 

 

 

 

29,989

 

 

 

127.8

%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

677,170

 

 

$

 

213,943

 

 

$

 

463,227

 

 

 

216.5

%

 

$

 

1,644,494

 

 

$

 

610,008

 

 

$

 

1,034,486

 

 

 

169.6

%

Product revenue

 

 

 

24,508

 

 

 

 

7,818

 

 

 

 

16,690

 

 

 

213.5

%

 

 

 

59,155

 

 

 

 

20,493

 

 

 

 

38,662

 

 

 

188.7

%

Total ecommerce revenue

 

$

 

701,678

 

 

$

 

221,761

 

 

$

 

479,917

 

 

 

216.4

%

 

$

 

1,703,649

 

 

$

 

630,501

 

 

$

 

1,073,148

 

 

 

170.2

%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

25,875

 

 

$

 

11,486

 

 

$

 

14,389

 

 

 

125.3

%

 

$

 

72,704

 

 

$

 

20,296

 

 

$

 

52,408

 

 

 

258.2

%

Product gross profit

 

 

 

24,508

 

 

 

 

7,818

 

 

 

 

16,690

 

 

 

213.5

%

 

 

 

59,155

 

 

 

 

20,493

 

 

 

 

38,662

 

 

 

188.7

%

Total ecommerce gross profit

 

$

 

50,383

 

 

$

 

19,304

 

 

$

 

31,079

 

 

 

161.0

%

 

$

 

131,859

 

 

$

 

40,789

 

 

$

 

91,070

 

 

 

223.3

%

Average vehicle selling price per ecommerce unit

 

$

 

34,404

 

 

$

 

24,248

 

 

$

 

10,156

 

 

 

41.9

%

 

$

 

30,764

 

 

$

 

25,995

 

 

$

 

4,769

 

 

 

18.3

%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

1,315

 

 

$

 

1,302

 

 

$

 

13

 

 

 

1.0

%

 

$

 

1,360

 

 

$

 

865

 

 

$

 

495

 

 

 

57.2

%

Product gross profit per ecommerce unit

 

 

 

1,245

 

 

 

 

886

 

 

 

 

359

 

 

 

40.5

%

 

 

 

1,107

 

 

 

 

873

 

 

 

 

234

 

 

 

26.8

%

Total gross profit per ecommerce unit

 

$

 

2,560

 

 

$

 

2,188

 

 

$

 

372

 

 

 

17.0

%

 

$

 

2,467

 

 

$

 

1,738

 

 

$

 

729

 

 

 

41.9

%

Ecommerce average days to sale

 

 

 

68

 

 

 

 

52

 

 

 

 

16

 

 

 

30.8

%

 

 

 

73

 

 

 

 

62

 

 

 

 

11

 

 

 

17.7

%

 

 

2

 

 

Ecommerce Units

 

Ecommerce units sold increased 123.1% to 19,683 driven by higher inventory levels, strong national brand recognition driven by our national advertising campaign and increased marketing spend, and increased demand due to growing consumer acceptance of our business model. The increase was also attributable to strong market demand generally for used vehicles, caused in part by the shortage of microchips and delays in new car manufacturing. Average monthly unique visitors to our platform increased 140.9% to 2,236,168.

 

Ecommerce Revenue

 

Ecommerce revenue increased 216.4% to $701.7 million.

 

Ecommerce Vehicle revenue increased 216.5% to $677.2 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 $24,248 to $34,404, primarily attributable to market appreciation.

 

Ecommerce Product revenue increased 213.5% to $24.5 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 $886 to $1,245 per unit.

 

Ecommerce Gross Profit

 

Ecommerce gross profit increased 161.0% to $50.4 million.

 

Ecommerce Vehicle gross profit increased 125.3% to $25.9 million. The increase in ecommerce Vehicle gross profit was primarily due to an increase in ecommerce units sold.

 

Ecommerce Product gross profit increased 213.5% to $ 24.5 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 $886 to $1,245 per unit.

 

Ecommerce Gross Profit per Unit

 

Ecommerce gross profit per unit increased 17.0% to $2,560.

 

Ecommerce Vehicle gross profit per unit increased slightly to $1,315, primarily driven by improvements in reconditioning costs, partially offset by lower sales margins as a result of higher purchase prices of vehicle acquisitions.

 

Ecommerce Product gross profit per unit increased 40.5% to $1,245, primarily driven by higher attachment rates and an increase in the average loan size as a result of a higher average selling price per unit.

 

3

 

 

Results by Segment

 

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

2021

 

 

2020 (1)

 

 

Change

 

 

% Change

 

 

2021

 

 

2020 (1)

 

 

Change

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

 

19,683

 

 

 

8,823

 

 

 

10,860

 

 

 

123.1

%

 

 

53,455

 

 

 

23,466

 

 

 

29,989

 

 

 

127.8

%

Wholesale

 

 

9,760

 

 

 

6,166

 

 

 

3,594

 

 

 

58.3

%

 

 

28,421

 

 

 

14,110

 

 

 

14,311

 

 

 

101.4

%

TDA

 

 

1,749

 

 

 

1,463

 

 

 

286

 

 

 

19.5

%

 

 

5,107

 

 

 

5,608

 

 

 

(501

)

 

 

(8.9

)%

Total units

 

 

31,192

 

 

 

16,452

 

 

 

14,740

 

 

 

89.6

%

 

 

86,983

 

 

 

43,184

 

 

 

43,799

 

 

 

101.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

701,678

 

 

$

221,761

 

 

$

479,917

 

 

 

216.4

%

 

$

1,703,649

 

 

$

630,501

 

 

$

1,073,148

 

 

 

170.2

%

Wholesale

 

 

131,306

 

 

 

63,972

 

 

 

67,334

 

 

 

105.3

%

 

 

377,438

 

 

 

170,469

 

 

 

206,969

 

 

 

121.4

%

TDA

 

 

60,582

 

 

 

36,955

 

 

 

23,627

 

 

 

63.9

%

 

 

158,928

 

 

 

149,858

 

 

 

9,070

 

 

 

6.1

%

All Other (2)

 

 

3,190

 

 

 

317

 

 

 

2,873

 

 

 

906.3

%

 

 

9,749

 

 

 

1,043

 

 

 

8,706

 

 

 

834.7

%

Total revenue

 

$

896,756

 

 

$

323,005

 

 

$

573,751

 

 

 

177.6

%

 

$

2,249,764

 

 

$

951,871

 

 

$

1,297,893

 

 

 

136.4

%

Gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

50,383

 

 

$

19,304

 

 

$

31,079

 

 

 

161.0

%

 

$

131,859

 

 

$

40,789

 

 

$

91,070

 

 

 

223.3

%

Wholesale

 

 

2,103

 

 

 

3,343

 

 

 

(1,240

)

 

 

(37.1

)%

 

 

10,337

 

 

 

1,506

 

 

 

8,831

 

 

 

586.4

%

TDA

 

 

3,805

 

 

 

2,675

 

 

 

1,130

 

 

 

42.2

%

 

 

9,743

 

 

 

8,799

 

 

 

944

 

 

 

10.7

%

All Other (2)

 

 

1,798

 

 

 

123

 

 

 

1,675

 

 

 

1,361.8

%

 

 

5,454

 

 

 

345

 

 

 

5,109

 

 

 

1,480.9

%

Total gross profit

 

$

58,089

 

 

$

25,445

 

 

$

32,644

 

 

 

128.3

%

 

$

157,393

 

 

$

51,439

 

 

$

105,954

 

 

 

206.0

%

Gross profit per unit (3):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

2,560

 

 

$

2,188

 

 

$

372

 

 

 

17.0

%

 

$

2,467

 

 

$

1,738

 

 

$

729

 

 

 

41.9

%

Wholesale

 

$

215

 

 

$

542

 

 

$

(327

)

 

 

(60.3

)%

 

$

364

 

 

$

107

 

 

$

257

 

 

 

240.2

%

TDA

 

$

2,175

 

 

$

1,828

 

 

$

347

 

 

 

19.0

%

 

$

1,907

 

 

$

1,569

 

 

$

338

 

 

 

21.5

%

 

(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 89.6% to 31,192.

 

Ecommerce units sold increased 123.1% to 19,683, as discussed above.

 

Wholesale units sold increased 58.3% to 9,760, primarily driven by an increase in wholesale units purchased from consumers, a higher number of trade-in vehicles associated with the increase in the number of ecommerce units sold and strong wholesale market demand for used vehicles.

 

TDA units sold increased 19.5% to 1,749, primarily due to strong market demand generally for used vehicles and higher inventory levels.

 

Total Revenue

 

Total revenue increased 177.6% to $896.8 million.

 

Ecommerce revenue increased 216.4% to $701.7 million, as discussed above.

 

4

 

 

Wholesale revenue increased 105.3% to $131.3 million. The increase in wholesale revenue was primarily attributable to the increase in wholesale units sold as well as a higher average selling price per unit, which increased from $10,375 to $13,453, primarily attributable to market appreciation.

 

TDA revenue increased 63.9% to $60.6 million, primarily due to a higher average selling price per unit, which increased from $24,316 to $33,474 as well as the increase in TDA units sold.

 

Total Gross Profit

 

Total gross profit increased 128.3% to $58.1 million.

 

Ecommerce gross profit increased 161.0% to $50.4 million, as discussed above.

 

Wholesale gross profit decreased 37.1% to $2.1 million. Wholesale gross profit decreased primarily due to a lower Wholesale gross profit per unit of $327, partially offset by an increase in wholesale units sold.

 

TDA gross profit increased 42.2% to $3.8 million. TDA gross profit increased primarily due to an increase in TDA gross profit per unit of $347 as well as an increase in TDA units sold.

 

Gross Profit per Unit

 

Ecommerce gross profit per unit increased 17.0% to $2,560, as discussed above.

 

Wholesale gross profit per unit decreased 60.3% to $215 as a result sales margin compression due to unfavorable wholesale price movements, which declined during the first half of the third quarter of 2021.

 

TDA gross profit per unit increased 19.0% to $2,175 driven by increased TDA product gross profit per unit of $221, primarily due to improvements in inbound logistics costs and increased TDA vehicle gross profit per unit of $126, primarily due to an increase in the average loan size as a result of a higher average selling price per unit.

 

SG&A

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

 

2021

 

 

 

2020

 

 

Change

 

 

% Change

 

 

 

2021

 

 

 

2020

 

 

Change

 

 

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

Compensation & benefits

 

$

 

53,900

 

 

$

 

22,881

 

 

$

31,019

 

 

 

135.6

%

 

$

 

145,580

 

 

$

 

63,821

 

 

$

81,759

 

 

 

128.1

%

Marketing expense

 

 

 

35,214

 

 

 

 

15,341

 

 

 

19,873

 

 

 

129.5

%

 

 

 

88,267

 

 

 

 

44,829

 

 

 

43,438

 

 

 

96.9

%

Outbound logistics

 

 

 

22,717

 

 

 

 

8,500

 

 

 

14,217

 

 

 

167.3

%

 

 

 

57,987

 

 

 

 

19,762

 

 

 

38,225

 

 

 

193.4

%

Occupancy and related costs

 

 

 

4,635

 

 

 

 

2,610

 

 

 

2,025

 

 

 

77.6

%

 

 

 

12,599

 

 

 

 

7,574

 

 

 

5,025

 

 

 

66.3

%

Professional fees

 

 

 

7,694

 

 

 

 

1,773

 

 

 

5,921

 

 

 

334.0

%

 

 

 

15,951

 

 

 

 

5,697

 

 

 

10,254

 

 

 

180.0

%

Other

 

 

 

24,558

 

 

 

 

10,022

 

 

 

14,536

 

 

 

145.0

%

 

 

 

61,098

 

 

 

 

25,735

 

 

 

35,363

 

 

 

137.4

%

Total selling, general & administrative expenses

 

$

 

148,718

 

 

$

 

61,127

 

 

$

87,591

 

 

 

143.3

%

 

$

 

381,482

 

 

$

 

167,418

 

 

$

214,064

 

 

 

127.9

%

 

5

 

 

 

Selling, general and administrative expenses increased 143.3% to $148.7 million. The increase was primarily due to:

 

$31.0 million increase in compensation and benefits due to an increase in headcount and an increase in variable fees for third-party sales and sales support providers as a result of an increase in units sold;

 

$19.9 million increase in marketing expense as we expanded our national broad-reach brand advertising, produced new commercials, and increased performance and online marketing as we continue to grow our listed inventory;

 

$14.2 million increase in outbound logistics costs primarily attributable to the growth in ecommerce units sold, which increased outbound logistics costs by $10.5 million, and increases in market rates of logistics providers, which increased outbound logistics costs by $3.7 million;

 

$5.9 million increase in professional fees primarily related to acquisition related costs incurred in connection with the definitive agreement to acquire UACC, as well as increased consulting expenses in the marketing and engineering departments; and

 

$14.5 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.

 

We expect selling, general and administrative expenses to increase in the future as we continue to scale our business, integrate and invest in UACC, invest in and improve our customer experience, and continue expanding our proprietary logistics and reconditioning networks.

 

Loss from Operations and Net Loss

 

Loss from operations increased 154.9% to $94.0 million. Net loss increased 159.2% to $98.1 million.

 

Non-GAAP Financial Measures

 

In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures.

 

EBITDA, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA, Adjusted EBITDA, Adjusted loss from operations, Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted, facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.

 

6

 

 

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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and costs related to our acquisition of UACC. 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
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

 

 

(in thousands)

 

Net loss

 

$

(98,122

)

 

$

(37,850

)

 

$

(241,118

)

 

$

(142,137

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

7,028

 

 

 

2,259

 

 

 

14,720

 

 

 

6,382

 

Interest income

 

 

(2,930

)

 

 

(1,289

)

 

 

(7,288

)

 

 

(3,960

)

Provision for income taxes

 

 

29

 

 

 

33

 

 

 

379

 

 

 

138

 

Depreciation and amortization expense

 

 

3,469

 

 

 

1,196

 

 

 

9,497

 

 

 

3,255

 

EBITDA

 

$

(90,526

)

 

$

(35,651

)

 

$

(223,810

)

 

$

(136,322

)

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

 

 

3,412

 

 

 

—

 

 

 

3,412

 

 

 

—

 

Adjusted EBITDA

 

$

(87,114

)

 

$

(35,651

)

 

$

(220,398

)

 

$

(114,590

)

 

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 and costs related to our acquisition of UACC. The following table presents a reconciliation of Adjusted loss from operations to loss from operations, which is the most directly comparable U.S. GAAP measure:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

(in thousands)

 

 

(in thousands)

 

Loss from operations

 

$

(94,005

)

 

$

(36,873

)

 

$

(233,365

)

 

$

(119,218

)

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

 

 

—

 

 

 

—

 

 

 

—

 

 

 

1,262

 

Add: Acquisition related costs

 

 

3,412

 

 

 

—

 

 

 

3,412

 

 

 

—

 

Adjusted loss from operations

 

$

(90,593

)

 

$

(36,873

)

 

$

(229,953

)

 

$

(117,956

)

 

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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and costs related to our acquisition of UACC. 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:

 

7

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

(in thousands, except share and per share amounts)

 

Net loss

 

$

(98,122

)

 

$

(37,850

)

 

$

(241,118

)

 

$

(142,137

)

Net loss attributable to common stockholders

 

$

(98,122

)

 

$

(37,850

)

 

$

(241,118

)

 

$

(142,137

)

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

 

 

3,412

 

 

 

—

 

 

 

3,412

 

 

 

—

 

Non-GAAP net loss

 

$

(94,710

)

 

$

(37,850

)

 

$

(237,706

)

 

$

(120,405

)

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

136,766,015

 

 

 

121,123,472

 

 

 

136,256,901

 

 

 

53,731,475

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted