8-K
false000158086400015808642023-11-072023-11-07

 

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 7, 2023

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.)

3600 W Sam Houston Pkwy S, Floor 4
Houston, Texas 77042

(Address of principal executive offices) (Zip Code)

 

(518) 535-9125

(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 7, 2023, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended September 30, 2023. 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 8, 2023, 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, 2023, 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 7, 2023.

99.2

 

Earnings Conference Call Presentation for the Quarter Ended September 30, 2023.

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 7, 2023

By:

/s/ Robert R. Krakowiak

 

 

Robert R. Krakowiak

 

 

Chief Financial Officer

 

 


EX-99.1

https://cdn.kscope.io/926cf31b3ec4a4646ddf04b5382cc81b-img63169428_0.jpg

Exhibit 99.1

 

Vroom Announces Third Quarter 2023 Results

Continued Progress on Long-Term Roadmap Driving Unit Growth, GPPU Improvement and Cost Reductions

 

NEW YORK – November 7, 2023 – 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, 2023.

 

HIGHLIGHTS OF THIRD QUARTER 2023 VERSUS SECOND QUARTER 2023

 

11% sequential growth in Ecommerce units
$3,144 Ecommerce gross profit per unit (GPPU) as compared to $2,954
Continued reductions in fixed costs per unit as well as per unit costs across marketing, logistics, and titling and registrations and support
$(82.9) million net loss as compared to $(66.3) million
$(64.5) million Adjusted EBITDA as compared to $(56.3) million

 

Tom Shortt, Chief Executive Officer of Vroom, said, “In the third quarter of 2023, consistent with our Long-Term Roadmap, we continued to make progress on our three key objectives and four strategic initiatives. Our ecommerce unit growth rate doubled sequentially to 11%, while we also sequentially improved GPPU and reduced SG&A spend. Ecommerce GPPU increased to $3,144 in Q3 2023 from $2,954 in Q2 2023, benefiting from an improved mix of unaged vehicles sold within the quarter. During the third quarter of 2023, 34% of our units sold were aged units, or units held greater than 180 days. Adjusted EBITDA declined sequentially, driven by headwinds in the loan portfolio performance at UACC due to higher delinquencies and realized net losses, partially offset by improved unit economics. We continue to drive process improvements across titling and registration, pricing, marketing, sales, reconditioning and logistics.”

 

Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We succeeded in reducing per-unit costs across 1) marketing, 2) logistics, 3) titling, registration and support, and 4) fixed costs. We further strengthened our balance sheet by recovering $48 million of cash trapped on the balance sheet as we sold through aged inventory, and ended the quarter with cash and cash equivalents of approximately $209 million. We will continue to pursue opportunities to reduce costs, strengthen our balance sheet and enhance our liquidity and intend to seek additional capital through equity or debt financing.”


 

 

 


 

THIRD QUARTER 2023 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,

 

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

 

Change

 

 

% Change

 

 

2023

 

 

2022

 

 

 

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

 

 

 

4,561

 

 

 

 

6,428

 

 

 

 

(1,867

)

 

 

(29.0

)%

 

 

 

12,621

 

 

 

 

35,134

 

 

 

 

(22,513

)

 

 

(64.1

)%

Ecommerce revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle revenue

 

$

 

136,949

 

 

$

 

212,980

 

 

$

 

(76,031

)

 

 

(35.7

)%

 

$

 

387,585

 

 

$

 

1,173,727

 

 

$

 

(786,142

)

 

 

(67.0

)%

Product revenue

 

 

 

12,902

 

 

 

 

12,461

 

 

 

 

441

 

 

 

3.5

%

 

 

 

36,128

 

 

 

 

48,709

 

 

 

 

(12,581

)

 

 

(25.8

)%

Total ecommerce revenue

 

$

 

149,851

 

 

$

 

225,441

 

 

$

 

(75,590

)

 

 

(33.5

)%

 

$

 

423,713

 

 

$

 

1,222,436

 

 

$

 

(798,723

)

 

 

(65.3

)%

Ecommerce gross profit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit

 

$

 

2,354

 

 

$

 

14,573

 

 

$

 

(12,219

)

 

 

(83.8

)%

 

$

 

2,956

 

 

$

 

46,153

 

 

$

 

(43,197

)

 

 

(93.6

)%

Product gross profit

 

 

 

11,985

 

 

 

 

12,461

 

 

 

 

(476

)

 

 

(3.8

)%

 

 

 

33,610

 

 

 

 

48,709

 

 

 

 

(15,099

)

 

 

(31.0

)%

Total ecommerce gross profit

 

$

 

14,339

 

 

$

 

27,034

 

 

$

 

(12,695

)

 

 

(47.0

)%

 

$

 

36,566

 

 

$

 

94,862

 

 

$

 

(58,296

)

 

 

(61.5

)%

Average vehicle selling price per ecommerce unit

 

$

 

30,026

 

 

$

 

33,133

 

 

$

 

(3,107

)

 

 

(9.4

)%

 

$

 

30,710

 

 

$

 

33,407

 

 

$

 

(2,697

)

 

 

(8.1

)%

Product revenue per ecommerce unit

 

 

 

2,829

 

 

 

 

1,939

 

 

 

 

890

 

 

 

45.9

%

 

 

 

2,863

 

 

 

 

1,386

 

 

 

 

1,477

 

 

 

106.5

%

Gross profit per ecommerce unit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Vehicle gross profit per ecommerce unit

 

$

 

516

 

 

$

 

2,267

 

 

$

 

(1,751

)

 

 

(77.2

)%

 

$

 

234

 

 

$

 

1,314

 

 

$

 

(1,080

)

 

 

(82.2

)%

Product gross profit per ecommerce unit

 

 

 

2,628

 

 

 

 

1,939

 

 

 

 

689

 

 

 

35.5

%

 

 

 

2,663

 

 

 

 

1,386

 

 

 

 

1,277

 

 

 

92.1

%

Total gross profit per ecommerce unit

 

$

 

3,144

 

 

$

 

4,206

 

 

$

 

(1,062

)

 

 

(25.2

)%

 

$

 

2,897

 

 

$

 

2,700

 

 

$

 

197

 

 

 

7.3

%

Ecommerce average days to sale

 

 

 

202

 

 

 

 

186

 

 

 

 

16

 

 

 

8.6

%

 

 

 

266

 

 

 

 

118

 

 

 

 

148

 

 

 

125.4

%

 

 

2

 


 

Results by Segment

 

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

2023

 

 

2022

 

 

Change

 

 

% Change

 

 

2023

 

 

2022

 

 

Change

 

 

% Change

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

Units:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

 

4,561

 

 

 

6,428

 

 

 

(1,867

)

 

 

(29.0

)%

 

 

12,621

 

 

 

35,134

 

 

 

(22,513

)

 

 

(64.1

)%

Wholesale

 

 

2,270

 

 

 

3,128

 

 

 

(858

)

 

 

(27.4

)%

 

 

5,273

 

 

 

19,108

 

 

 

(13,835

)

 

 

(72.4

)%

All Other (1)

 

 

357

 

 

 

662

 

 

 

(305

)

 

 

(46.1

)%

 

 

1,022

 

 

 

3,408

 

 

 

(2,386

)

 

 

(70.0

)%

Total units

 

 

7,188

 

 

 

10,218

 

 

 

(3,030

)

 

 

(29.7

)%

 

 

18,916

 

 

 

57,650

 

 

 

(38,734

)

 

 

(67.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

149,851

 

 

$

225,441

 

 

$

(75,590

)

 

 

(33.5

)%

 

$

423,713

 

 

$

1,222,436

 

 

$

(798,723

)

 

 

(65.3

)%

Wholesale

 

 

30,898

 

 

 

47,604

 

 

 

(16,706

)

 

 

(35.1

)%

 

 

75,593

 

 

 

270,489

 

 

 

(194,896

)

 

 

(72.1

)%

Retail Financing (2)

 

 

40,823

 

 

 

40,654

 

 

 

169

 

 

 

0.4

%

 

 

114,939

 

 

 

120,005

 

 

 

(5,066

)

 

 

(4.2

)%

All Other (3)

 

 

14,062

 

 

 

27,098

 

 

 

(13,036

)

 

 

(48.1

)%

 

 

43,034

 

 

 

126,622

 

 

 

(83,588

)

 

 

(66.0

)%

Total revenue

 

$

235,634

 

 

$

340,797

 

 

$

(105,163

)

 

 

(30.9

)%

 

$

657,279

 

 

$

1,739,552

 

 

$

(1,082,273

)

 

 

(62.2

)%

Gross profit (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

14,339

 

 

$

27,034

 

 

$

(12,695

)

 

 

(47.0

)%

 

$

36,566

 

 

$

94,862

 

 

$

(58,296

)

 

 

(61.5

)%

Wholesale

 

 

(1,495

)

 

 

(1,574

)

 

 

79

 

 

 

5.0

%

 

 

(5,426

)

 

 

(6,260

)

 

 

834

 

 

 

13.3

%

Retail Financing (2)

 

 

32,341

 

 

 

35,954

 

 

 

(3,613

)

 

 

(10.0

)%

 

 

92,184

 

 

 

109,637

 

 

 

(17,453

)

 

 

(15.9

)%

All Other (3)

 

 

2,909

 

 

 

5,917

 

 

 

(3,008

)

 

 

(50.8

)%

 

 

9,576

 

 

 

17,089

 

 

 

(7,513

)

 

 

(44.0

)%

Total gross profit

 

$

48,094

 

 

$

67,331

 

 

$

(19,237

)

 

 

(28.6

)%

 

$

132,900

 

 

$

215,328

 

 

$

(82,428

)

 

 

(38.3

)%

Gross profit (loss) per unit (4):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ecommerce

 

$

3,144

 

 

$

4,206

 

 

$

(1,062

)

 

 

(25.2

)%

 

$

2,897

 

 

$

2,700

 

 

$

197

 

 

 

7.3

%

Wholesale

 

$

(659

)

 

$

(503

)

 

$

(156

)

 

 

31.0

%

 

$

(1,029

)

 

$

(328

)

 

$

(701

)

 

 

213.7

%

 

(1)
All Other units consist of retail sales of used vehicles from TDA.
(2)
The Retail Financing segment represents UACC’s operations with its network of third-party dealership customers as of the closing of the UACC acquisition in February 2022.
(3)
All Other revenues and gross profit consist of retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicles sales and the CarStory business.
(4)
Gross profit per unit metrics exclude the Retail Financing gross profit and All Other gross profit.

 

SG&A

 

 

 

Three Months Ended
September 30,

 

 

 

 

 

 

 

 

Nine Months Ended
September 30,

 

 

 

 

 

 

 

 

 

 

2023

 

 

 

2022

 

 

Change

 

 

% Change

 

 

 

2023

 

 

 

2022

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

 

 

 

 

(in thousands)

 

 

 

 

 

 

 

Compensation & benefits

 

$

 

37,695

 

 

$

 

55,694

 

 

$

(17,999

)

 

 

(32.3

)%

 

$

 

130,318

 

 

$

 

199,111

 

 

$

(68,793

)

 

 

(34.6

)%

Marketing expense

 

 

 

13,429

 

 

 

 

14,945

 

 

 

(1,516

)

 

 

(10.1

)%

 

 

 

39,871

 

 

 

 

69,818

 

 

 

(29,947

)

 

 

(42.9

)%

Outbound logistics

 

 

 

2,209

 

 

 

 

4,945

 

 

 

(2,736

)

 

 

(55.3

)%

 

 

 

6,251

 

 

 

 

39,925

 

 

 

(33,674

)

 

 

(84.3

)%

Occupancy and related costs

 

 

 

4,575

 

 

 

 

6,041

 

 

 

(1,466

)

 

 

(24.3

)%

 

 

 

13,600

 

 

 

 

17,408

 

 

 

(3,808

)

 

 

(21.9

)%

Professional fees

 

 

 

5,277

 

 

 

 

6,459

 

 

 

(1,182

)

 

 

(18.3

)%

 

 

 

15,504

 

 

 

 

26,585

 

 

 

(11,081

)

 

 

(41.7

)%

Software and IT costs

 

 

 

9,227

 

 

 

 

11,277

 

 

 

(2,050

)

 

 

(18.2

)%

 

 

 

27,555

 

 

 

 

33,406

 

 

 

(5,851

)

 

 

(17.5

)%

Other

 

 

 

7,174

 

 

 

 

35,282

 

 

 

(28,108

)

 

 

(79.7

)%

 

 

 

29,979

 

 

 

 

89,374

 

 

 

(59,395

)

 

 

(66.5

)%

Total selling, general & administrative expenses

 

$

 

79,586

 

 

$

 

134,643

 

 

$

(55,057

)

 

 

(40.9

)%

 

$

 

263,078

 

 

$

 

475,627

 

 

$

(212,549

)

 

 

(44.7

)%

 

3

 


 

 

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 EBITDA excluding non-recurring costs to address operational and customer experience issues;
Adjusted EBITDA excluding securitization gain;
Adjusted EBITDA excluding securitization gain and non-recurring costs to address operational and customer experience issues;

 

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 EBITDA excluding non-recurring costs to address operational and customer experience issues, Adjusted EBITDA excluding securitization gain, and Adjusted EBITDA excluding securitization gain and non-recurring costs to address operational and customer experience issues are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because each of these non-GAAP financial measures facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.

 

EBITDA

We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense.

Adjusted EBITDA

We calculate Adjusted EBITDA as EBITDA adjusted to exclude severance costs, gain on debt extinguishment, severe weather-related costs, goodwill impairment charge, realignment costs, acquisition related costs, and other costs which relate to impairment of long-lived assets. Changes in fair value of financial instruments can fluctuate significantly from period to period and previously related primarily to historical loans and debt which have been securitized, and acquired on February 1, 2022 from UACC. Our ongoing business model is to originate or purchase finance receivables with the intent to sell which we recognize at the lower of cost or fair value. As a result of current market conditions, the financial instruments related to the 2022-2 and 2023-1 securitization transactions are recognized on balance-sheet and accounted for under the fair value option. See Note 16 — Financial Instruments and Fair Value Measurements to our condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended September 30, 2023. As a result, the majority of our finance receivables are now carried at fair value and a significant portion of the risk of loss associated with these finance receivables have been retained by UACC. We therefore have determined we will no longer make any adjustments for such fluctuations in fair value to our Adjusted EBITDA results. We have recast the prior period presented to conform to current period presentation. We may account for future securitizations as on balance sheet transactions depending on the market conditions.

4

 


 

Adjusted EBITDA excluding non-recurring costs to address operational and customer experience issues

We calculate Adjusted EBITDA excluding non-recurring costs to address operational and customer

experience issues as Adjusted EBITDA adjusted to exclude the non-recurring costs incurred to address operational and customer experience issues, including rental cars for our customers and legal settlements with customers and state DMVs. While we expect to continue to incur these costs over the next few quarterly periods, we expect such costs to continue to decline due to the improvements across our operations.

Adjusted EBITDA excluding securitization gain

We calculate Adjusted EBITDA excluding securitization gain as Adjusted EBITDA adjusted to exclude the securitization gain from the sale of UACC's finance receivables, and believe that it provides a useful perspective on the underlying operating results and trends and a means to compare our period-over-period results.

Adjusted EBITDA excluding securitization gain and non-recurring costs to address operational and customer experience issues

We calculate Adjusted EBITDA excluding securitization gain and non-recurring costs to address operational and customer experience issues as Adjusted EBITDA adjusted to exclude the securitization gain from the sale of UACC’s finance receivables and the non-recurring costs incurred to address operational and customer experience issues.

 

The following table presents a reconciliation of the foregoing non-GAAP financial measures to net loss, which is the most directly comparable U.S. GAAP measure:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

 

(in thousands)

 

Net loss

 

$

(82,857

)

 

$

(51,127

)

 

$

(224,219

)

 

$

(476,675

)

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

12,058

 

 

 

9,704

 

 

 

30,915

 

 

 

28,617

 

Interest income

 

 

(5,506

)

 

 

(5,104

)

 

 

(16,369

)

 

 

(12,991

)

Provision (benefit) for income taxes

 

 

260

 

 

 

899

 

 

 

918

 

 

 

(22,085

)

Depreciation and amortization

 

 

11,248

 

 

 

9,995

 

 

 

32,421

 

 

 

28,005

 

EBITDA

 

$

(64,797

)

 

$

(35,633

)

 

$

(176,334

)

 

$

(455,129

)

Severance costs

 

$

274

 

 

$

 

 

$

6,655

 

 

$

 

Gain on debt extinguishment

 

 

 

 

 

(37,917

)

 

 

(19,640

)

 

 

(37,917

)

Hail storm costs

 

 

 

 

 

 

 

 

2,353

 

 

 

 

Goodwill impairment charge

 

 

 

 

 

 

 

 

 

 

 

201,703

 

Realignment costs

 

 

 

 

 

3,243

 

 

 

 

 

 

12,772

 

Acquisition related costs

 

 

 

 

 

 

 

 

 

 

 

5,653

 

Other

 

 

 

 

 

 

 

 

1,352

 

 

 

2,127

 

Adjusted EBITDA

 

$

(64,523

)

 

$

(70,307

)

 

$

(185,614

)

 

$

(270,791

)

Non-recurring costs to address operational and customer experience issues

 

 

32

 

 

 

15,785

 

 

 

818

 

 

 

25,059

 

Adjusted EBITDA excluding non-recurring costs to address operational and customer experience issues

 

$

(64,491

)

 

$

(54,522

)

 

$

(184,796

)

 

$

(245,732

)

Securitization gain

 

 

 

 

 

(15,972

)

 

 

 

 

 

(45,589

)

Adjusted EBITDA excluding securitization gain

 

$

(64,523

)

 

$

(86,279

)

 

$

(185,614

)

 

$

(316,380

)

Adjusted EBITDA excluding securitization gain and non-recurring costs to address operational and customer experience issues

 

$

(64,491

)

 

$

(70,494

)

 

$

(184,796

)

 

$

(291,321

)

 

5

 


 

THIRD QUARTER 2023 AS COMPARED TO SECOND QUARTER 2023

 

 

 

Three Months Ended
September 30,

 

 

Three Months Ended
June 30,

 

 

 

 

 

 

 

 

 

2023

 

 

2023

 

 

Change

 

 

% Change

 

 

(in thousands, except unit data)

 

 

 

 

 

 

 

Total revenues

 

$

235,634

 

 

$

225,178

 

 

$

10,456

 

 

 

4.6

%

Total gross profit

 

$

48,094

 

 

$

46,001

 

 

$

2,093

 

 

 

4.5

%

Ecommerce units sold

 

 

4,561

 

 

 

4,127

 

 

 

434

 

 

 

10.5

%

Ecommerce revenue

 

$

149,851

 

 

$

138,225

 

 

$

11,626

 

 

 

8.4

%

Ecommerce gross profit

 

$

14,339

 

 

$

12,189

 

 

$

2,150

 

 

 

17.6

%

Vehicle gross profit (loss) per ecommerce unit

 

$

516

 

 

$

290

 

 

$

226

 

 

 

77.9

%

Product gross profit per ecommerce unit

 

 

2,628

 

 

 

2,664

 

 

 

(36

)

 

 

(1.4

)%

Total gross profit per ecommerce unit

 

$

3,144

 

 

$

2,954

 

 

$

190

 

 

 

6.4

%

Wholesale units sold

 

 

2,270

 

 

 

1,834

 

 

 

436

 

 

 

23.8

%

Wholesale revenue

 

$

30,898

 

 

$

30,800

 

 

$

98

 

 

 

0.3

%

Wholesale gross (loss) profit

 

$

(1,495

)

 

$

(3,993

)

 

$

2,498

 

 

 

62.6

%

Wholesale gross (loss) profit per unit

 

$

(659

)

 

$

(2,177

)

 

$

1,518

 

 

 

69.7

%

Retail Financing revenue

 

$

40,823

 

 

$

42,128

 

 

$

(1,305

)

 

 

(3.1

)%

Retail Financing gross profit

 

$

32,341

 

 

$

34,068

 

 

$

(1,727

)

 

 

(5.1

)%

Total selling, general, and administrative expenses

 

$

79,586

 

 

$

86,955

 

 

$

(7,369

)

 

 

(8.5

)%

 

 

 

Three Months Ended
September 30,

 

 

Three Months Ended
June 30,

 

 

 

 

 

 

 

 

 

2023

 

 

2023

 

 

Change

 

 

% Change

 

 

 

(in thousands)

 

 

 

 

Net loss

 

$

(82,857

)

 

$

(66,318

)

 

$

(16,539

)

 

 

24.9

%

Adjusted to exclude the following:

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

12,058

 

 

 

8,938

 

 

 

3,120

 

 

 

34.9

%

Interest income

 

 

(5,506

)

 

 

(4,921

)

 

 

(585

)

 

 

11.9

%

Provision for income taxes

 

 

260

 

 

 

385

 

 

 

(125

)

 

 

(32.5

)%

Depreciation and amortization

 

 

11,248

 

 

 

10,536

 

 

 

712

 

 

 

6.8

%

EBITDA

 

$

(64,797

)

 

$

(51,380

)

 

$

(13,417

)

 

 

26.1

%

Severance costs

 

$

274

 

 

$

2,277

 

 

$

(2,003

)

 

 

(88.0

)%

Gain on debt extinguishment

 

 

 

 

 

(10,931

)

 

 

10,931

 

 

 

100.0

%

Hail storm costs

 

 

 

 

 

2,353

 

 

 

(2,353

)

 

 

(100.0

)%

Other

 

 

 

 

 

1,352