UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported):
(Exact name of registrant as specified in its charter)
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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.) |
(Address of principal executive offices) (Zip Code)
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(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 |
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 8, 2024, Vroom, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. 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 August 8, 2024, the Company posted a corporate slide presentation with financial results for the quarter ended June 30, 2024 on its investor relations website, https://ir.vroom.com/news-events/events-and-presentations. The presentation is 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 Exhibits 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. |
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Description |
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99.1 |
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99.2 |
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104 |
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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.
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VROOM, INC. |
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Date: August 8, 2024 |
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By: |
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/s/ Agnieszka Zakowicz |
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Agnieszka Zakowicz |
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Chief Financial Officer |
Exhibit 99.1
Vroom Announces Second Quarter 2024 Results
Continued Progress on Operational Initiatives and Improved Portfolio Performance at UACC
NEW YORK – August 8, 2024 – Vroom, Inc. (Nasdaq:VRM) today announced financial results for the second quarter ended June 30, 2024.
HIGHLIGHTS OF SECOND QUARTER 2024
Tom Shortt, the Company’s Chief Executive Officer, said “Overall, I am pleased with our second quarter 2024 results. We grew origination volume and our serviced loan portfolio year over year, while continuing to focus on portfolio performance. We currently expect originations since early 2023 to perform at pre-pandemic levels, and are beginning to see positive impacts of our prior decision to tighten credit, resulting in improvements in credit losses compared to the prior quarter. We are focused on improving processes and technology, digitization and automation, and reducing costs across the business."
SECOND QUARTER 2024 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted. The following financial information is unaudited.
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Three Months Ended |
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Six Months Ended |
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2024 |
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2023 |
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$ Change |
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2024 |
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2023 |
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$ Change |
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Interest income |
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$ |
51,862 |
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$ |
46,995 |
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$ |
4,867 |
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$ |
102,939 |
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$ |
81,363 |
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$ |
21,576 |
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Interest expense: |
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Warehouse credit facility |
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6,986 |
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3,658 |
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3,328 |
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16,457 |
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6,757 |
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9,700 |
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Securitization debt |
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7,995 |
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5,981 |
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2,014 |
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12,864 |
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10,326 |
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2,538 |
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Total interest expense |
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14,981 |
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9,639 |
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5,342 |
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29,321 |
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17,083 |
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12,238 |
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Net interest income |
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36,881 |
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37,356 |
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(475 |
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73,618 |
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64,280 |
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9,338 |
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Realized and unrealized losses, net of recoveries |
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18,729 |
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23,187 |
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(4,458 |
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49,548 |
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38,915 |
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10,633 |
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Net interest income after losses and recoveries |
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18,152 |
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14,169 |
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3,983 |
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24,070 |
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25,365 |
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(1,295 |
) |
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Noninterest income: |
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Servicing income |
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1,587 |
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2,551 |
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(964 |
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3,606 |
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5,405 |
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(1,799 |
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Warranties and GAP income (loss), net |
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1,378 |
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751 |
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627 |
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(8,264 |
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3,586 |
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(11,850 |
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CarStory revenue |
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2,913 |
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3,224 |
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(311 |
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5,892 |
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6,394 |
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(502 |
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Gain on debt extinguishment |
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— |
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10,931 |
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(10,931 |
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— |
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19,640 |
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(19,640 |
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Other income |
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3,141 |
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3,071 |
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70 |
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5,925 |
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6,103 |
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(178 |
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Total noninterest income |
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9,019 |
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20,528 |
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(11,509 |
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7,159 |
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41,128 |
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(33,969 |
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Expenses: |
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Compensation and benefits |
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27,176 |
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21,341 |
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5,835 |
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51,286 |
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44,562 |
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6,724 |
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Professional fees |
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1,488 |
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2,444 |
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(956 |
) |
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4,831 |
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7,417 |
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(2,586 |
) |
Software and IT costs |
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4,036 |
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4,804 |
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(768 |
) |
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8,658 |
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10,050 |
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(1,392 |
) |
Depreciation and amortization |
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7,232 |
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7,190 |
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42 |
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14,858 |
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14,422 |
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|
436 |
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Interest expense on corporate debt |
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1,549 |
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1,527 |
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22 |
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2,940 |
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2,867 |
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73 |
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Impairment charges |
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— |
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— |
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— |
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2,752 |
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— |
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2,752 |
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Other expenses |
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4,961 |
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4,571 |
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390 |
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9,416 |
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9,773 |
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(357 |
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Total expenses |
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46,442 |
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41,877 |
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4,565 |
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94,741 |
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89,091 |
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5,650 |
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Loss from continuing operations before provision for income taxes |
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(19,271 |
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(7,180 |
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(12,091 |
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(63,512 |
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(22,598 |
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(40,914 |
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(Benefit) provision for income taxes from continuing operations |
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(167 |
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286 |
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(453 |
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269 |
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337 |
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(68 |
) |
Net loss from continuing operations |
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$ |
(19,104 |
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$ |
(7,466 |
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$ |
(11,638 |
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$ |
(63,781 |
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$ |
(22,935 |
) |
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$ |
(40,846 |
) |
Net loss from discontinued operations |
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$ |
(2,084 |
) |
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$ |
(58,573 |
) |
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$ |
56,489 |
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$ |
(25,025 |
) |
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$ |
(117,844 |
) |
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$ |
92,819 |
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Net loss |
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$ |
(21,188 |
) |
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$ |
(66,039 |
) |
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$ |
44,851 |
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$ |
(88,806 |
) |
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$ |
(140,779 |
) |
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$ |
51,973 |
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2
Results by Segment
UACC
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Three Months Ended |
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2024 |
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2023 |
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Change |
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% Change |
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(in thousands) |
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Interest income |
$ |
52,389 |
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$ |
47,531 |
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$ |
4,858 |
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10.2 |
% |
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Interest expense: |
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Warehouse credit facility |
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6,986 |
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3,658 |
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3,328 |
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91.0 |
% |
Securitization debt |
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7,995 |
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|
5,981 |
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|
2,014 |
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33.7 |
% |
Total interest expense |
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14,981 |
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|
9,639 |
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|
5,342 |
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|
55.4 |
% |
Net interest income |
|
37,408 |
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|
37,892 |
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(484 |
) |
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(1.3 |
)% |
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Realized and unrealized losses, net of recoveries |
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19,582 |
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|
20,386 |
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(804 |
) |
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(3.9 |
)% |
Net interest income after losses and recoveries |
|
17,826 |
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|
17,506 |
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|
320 |
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1.8 |
% |
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Noninterest income: |
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Servicing income |
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1,587 |
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2,551 |
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(964 |
) |
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(37.8 |
)% |
Warranties and GAP income, net |
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1,640 |
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|
1,478 |
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|
162 |
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11.0 |
% |
Other income |
|
2,098 |
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|
977 |
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|
1,121 |
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|
114.7 |
% |
Total noninterest income |
|
5,325 |
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|
|
5,006 |
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|
319 |
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|
6.4 |
% |
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Expenses: |
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|
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|
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Compensation and benefits |
|
20,539 |
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|
16,392 |
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|
|
4,147 |
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|
25.3 |
% |
Professional fees |
|
575 |
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|
1,028 |
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(453 |
) |
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(44.1 |
)% |
Software and IT costs |
|
2,605 |
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|
|
2,974 |
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(369 |
) |
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|
(12.4 |
)% |
Depreciation and amortization |
|
5,630 |
|
|
|
5,582 |
|
|
|
48 |
|
|
|
0.9 |
% |
Interest expense on corporate debt |
|
629 |
|
|
|
436 |
|
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|
193 |
|
|
|
44.2 |
% |
Other expenses |
|
3,054 |
|
|
|
1,841 |
|
|
|
1,213 |
|
|
|
65.9 |
% |
Total expenses |
|
33,032 |
|
|
|
28,253 |
|
|
|
4,779 |
|
|
|
16.9 |
% |
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Adjusted EBITDA |
$ |
(2,824 |
) |
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$ |
291 |
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$ |
(3,115 |
) |
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|
(1,070.4 |
)% |
|
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|
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Interest income on cash and cash equivalents |
$ |
(560 |
) |
|
$ |
(506 |
) |
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|
(54 |
) |
|
|
10.7 |
% |
Stock compensation expense |
$ |
865 |
|
|
$ |
519 |
|
|
|
346 |
|
|
|
66.8 |
% |
3
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Six Months Ended |
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|
|
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|
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|
2024 |
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|
2023 |
|
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Change |
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% Change |
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(in thousands) |
|
|
|
|
|
|
|
|||||||
Interest income |
$ |
103,930 |
|
|
$ |
82,830 |
|
|
$ |
21,100 |
|
|
|
25.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense: |
|
|
|
|
|
|
|
|
|
|
|
||||
Warehouse credit facility |
|
16,457 |
|
|
|
6,757 |
|
|
|
9,700 |
|
|
|
143.6 |
% |
Securitization debt |
|
12,864 |
|
|
|
10,326 |
|
|
|
2,538 |
|
|
|
24.6 |
% |
Total interest expense |
|
29,321 |
|
|
|
17,083 |
|
|
|
12,238 |
|
|
|
71.6 |
% |
Net interest income |
|
74,609 |
|
|
|
65,747 |
|
|
|
8,862 |
|
|
|
13.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized losses, net of recoveries |
|
47,343 |
|
|
|
32,658 |
|
|
|
14,685 |
|
|
|
45.0 |
% |
Net interest income after losses and recoveries |
|
27,266 |
|
|
|
33,089 |
|
|
|
(5,823 |
) |
|
|
(17.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Servicing income |
|
3,606 |
|
|
|
5,405 |
|
|
|
(1,799 |
) |
|
|
(33.3 |
)% |
Warranties and GAP income, net |
|
3,250 |
|
|
|
3,681 |
|
|
|
(431 |
) |
|
|
(11.7 |
)% |
Other income |
|
4,568 |
|
|
|
2,031 |
|
|
|
2,537 |
|
|
|
124.9 |
% |
Total noninterest income |
|
11,424 |
|
|
|
11,117 |
|
|
|
307 |
|
|
|
2.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
39,327 |
|
|
|
34,928 |
|
|
|
4,399 |
|
|
|
12.6 |
% |
Professional fees |
|
1,451 |
|
|
|
3,569 |
|
|
|
(2,118 |
) |
|
|
(59.3 |
)% |
Software and IT costs |
|
5,702 |
|
|
|
5,679 |
|
|
|
23 |
|
|
|
0.4 |
% |
Depreciation and amortization |
|
11,651 |
|
|
|
11,209 |
|
|
|
442 |
|
|
|
3.9 |
% |
Interest expense on corporate debt |
|
1,100 |
|
|
|
633 |
|
|
|
467 |
|
|
|
73.7 |
% |
Impairment charges |
|
2,752 |
|
|
|
— |
|
|
|
2,752 |
|
|
|
100.0 |
% |
Other expenses |
|
5,577 |
|
|
|
4,261 |
|
|
|
1,316 |
|
|
|
30.9 |
% |
Total expenses |
|
67,561 |
|
|
|
60,279 |
|
|
|
7,282 |
|
|
|
12.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
(12,970 |
) |
|
$ |
(4,177 |
) |
|
$ |
(8,793 |
) |
|
|
210.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income on cash and cash equivalents |
$ |
(1,128 |
) |
|
$ |
(954 |
) |
|
|
(174 |
) |
|
|
18.2 |
% |
Stock compensation expense |
$ |
1,033 |
|
|
$ |
1,008 |
|
|
|
24 |
|
|
|
2.4 |
% |
4
CarStory
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
|
(in thousands) |
|
|
|
|
|
|
|
|||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
||||
CarStory revenue |
$ |
2,913 |
|
|
$ |
3,224 |
|
|
$ |
(311 |
) |
|
|
(9.6 |
)% |
Other income |
|
190 |
|
|
|
93 |
|
|
|
97 |
|
|
|
104.3 |
% |
Total noninterest income |
|
3,103 |
|
|
|
3,317 |
|
|
|
(214 |
) |
|
|
(6.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
2,461 |
|
|
|
2,420 |
|
|
|
41 |
|
|
|
1.7 |
% |
Professional fees |
|
80 |
|
|
|
113 |
|
|
|
(33 |
) |
|
|
(29.3 |
)% |
Software and IT costs |
|
21 |
|
|
|
171 |
|
|
|
(150 |
) |
|
|
(87.7 |
)% |
Depreciation and amortization |
|
1,602 |
|
|
|
1,608 |
|
|
|
(6 |
) |
|
|
(0.4 |
)% |
Other expenses |
|
55 |
|
|
|
152 |
|
|
|
(97 |
) |
|
|
(63.8 |
)% |
Total expenses |
|
4,219 |
|
|
|
4,464 |
|
|
|
(245 |
) |
|
|
(5.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
372 |
|
|
$ |
634 |
|
|
$ |
(262 |
) |
|
|
(41.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income on cash and cash equivalents |
$ |
(190 |
) |
|
$ |
(88 |
) |
|
|
(102 |
) |
|
|
116.9 |
% |
Stock compensation expense |
$ |
76 |
|
|
$ |
261 |
|
|
|
(185 |
) |
|
|
(71.0 |
)% |
|
Six Months Ended |
|
|
|
|
|
|
|
|||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
|
(in thousands) |
|
|
|
|
|
|
|
|||||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
||||
CarStory revenue |
$ |
5,892 |
|
|
$ |
6,394 |
|
|
$ |
(502 |
) |
|
|
(7.9 |
)% |
Other income |
|
363 |
|
|
|
141 |
|
|
|
222 |
|
|
|
157.4 |
% |
Total noninterest income |
|
6,255 |
|
|
|
6,535 |
|
|
|
(280 |
) |
|
|
(4.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
4,675 |
|
|
|
4,821 |
|
|
|
(146 |
) |
|
|
(3.0 |
)% |
Professional fees |
|
202 |
|
|
|
290 |
|
|
|
(88 |
) |
|
|
(30.4 |
)% |
Software and IT costs |
|
188 |
|
|
|
345 |
|
|
|
(157 |
) |
|
|
(45.5 |
)% |
Depreciation and amortization |
|
3,207 |
|
|
|
3,213 |
|
|
|
(6 |
) |
|
|
(0.2 |
)% |
Other expenses |
|
173 |
|
|
|
301 |
|
|
|
(128 |
) |
|
|
(42.5 |
)% |
Total expenses |
|
8,444 |
|
|
|
8,969 |
|
|
|
(525 |
) |
|
|
(5.9 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
930 |
|
|
$ |
1,201 |
|
|
$ |
(271 |
) |
|
|
(22.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income on cash and cash equivalents |
$ |
(363 |
) |
|
$ |
(134 |
) |
|
|
(229 |
) |
|
|
170.7 |
% |
Stock compensation expense |
$ |
276 |
|
|
$ |
556 |
|
|
|
(281 |
) |
|
|
(50.4 |
)% |
5
Corporate
|
Three Months Ended |
|
|
|
|
|
|
|
|||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
|
(in thousands) |
|
|
|
|
|
|
|
|||||||
Interest income |
$ |
(527 |
) |
|
$ |
(536 |
) |
|
$ |
9 |
|
|
|
1.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized losses, net of recoveries |
|
(853 |
) |
|
|
2,801 |
|
|
|
(3,654 |
) |
|
|
(130.4 |
)% |
Net interest income after losses and recoveries |
|
325 |
|
|
|
(3,337 |
) |
|
|
3,663 |
|
|
|
109.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Warranties and GAP loss, net |
$ |
(262 |
) |
|
$ |
(727 |
) |
|
$ |
465 |
|
|
|
64.0 |
% |
Gain on debt extinguishment |
|
— |
|
|
|
10,931 |
|
|
|
(10,931 |
) |
|
|
(100.0 |
)% |
Other income |
|
853 |
|
|
|
2,001 |
|
|
|
(1,148 |
) |
|
|
(57.4 |
)% |
Total noninterest income |
|
591 |
|
|
|
12,205 |
|
|
|
(11,614 |
) |
|
|
(95.2 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
4,176 |
|
|
|
2,529 |
|
|
|
1,647 |
|
|
|
65.1 |
% |
Professional fees |
|
833 |
|
|
|
1,303 |
|
|
|
(470 |
) |
|
|
(36.0 |
)% |
Software and IT costs |
|
1,410 |
|
|
|
1,659 |
|
|
|
(249 |
) |
|
|
(15.0 |
)% |
Interest expense on corporate debt |
|
920 |
|
|
|
1,091 |
|
|
|
(171 |
) |
|
|
(15.7 |
)% |
Other expenses |
|
1,852 |
|
|
|
2,578 |
|
|
|
(726 |
) |
|
|
(28.2 |
)% |
Total expenses |
|
9,191 |
|
|
|
9,160 |
|
|
|
31 |
|
|
|
0.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
(5,089 |
) |
|
$ |
(11,244 |
) |
|
$ |
6,155 |
|
|
|
54.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income on cash and cash equivalents |
$ |
(432 |
) |
|
$ |
(2,000 |
) |
|
|
1,568 |
|
|
|
78.4 |
% |
Stock compensation expense |
$ |
1,505 |
|
|
$ |
889 |
|
|
|
615 |
|
|
|
69.2 |
% |
|
Six Months Ended |
|
|
|
|
|
|
|
|||||||
|
2024 |
|
|
2023 |
|
|
Change |
|
|
% Change |
|
||||
|
(in thousands) |
|
|
|
|
|
|
|
|||||||
Interest income |
$ |
(991 |
) |
|
$ |
(1,467 |
) |
|
$ |
476 |
|
|
|
32.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Realized and unrealized losses, net of recoveries |
|
2,205 |
|
|
|
6,257 |
|
|
|
(4,052 |
) |
|
|
(64.8 |
)% |
Net interest income after losses and recoveries |
|
(3,196 |
) |
|
|
(7,724 |
) |
|
|
4,528 |
|
|
|
58.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Noninterest (loss) income: |
|
|
|
|
|
|
|
|
|
|
|
||||
Warranties and GAP loss, net |
|
(11,514 |
) |
|
|
(95 |
) |
|
$ |
(11,419 |
) |
|
|
12,020.0 |
% |
Gain on debt extinguishment |
|
— |
|
|
|
19,640 |
|
|
|
(19,640 |
) |
|
|
(100.0 |
)% |
Other income |
|
994 |
|
|
|
3,931 |
|
|
|
(2,937 |
) |
|
|
(74.7 |
)% |
Total noninterest (loss) income |
|
(10,520 |
) |
|
|
23,476 |
|
|
|
(33,996 |
) |
|
|
(144.8 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation and benefits |
|
7,284 |
|
|
|
4,813 |
|
|
|
2,470 |
|
|
|
51.3 |
% |
Professional fees |
|
3,178 |
|
|
|
3,559 |
|
|
|
(381 |
) |
|
|
(10.7 |
)% |
Software and IT costs |
|
2,768 |
|
|
|
4,025 |
|
|
|
(1,258 |
) |
|
|
(31.2 |
)% |
Interest expense on corporate debt |
|
1,840 |
|
|
|
2,234 |
|
|
|
(394 |
) |
|
|
(17.6 |
)% |
Other expenses |
|
3,666 |
|
|
|
5,211 |
|
|
|
(1,546 |
) |
|
|
(29.7 |
)% |
Total expenses |
|
18,735 |
|
|
|
19,842 |
|
|
|
(1,108 |
) |
|
|
(5.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Adjusted EBITDA |
$ |
(27,654 |
) |
|
$ |
(23,644 |
) |
|
$ |
(4,010 |
) |
|
|
17.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income on cash and cash equivalents |
$ |
(695 |
) |
|
$ |
(3,930 |
) |
|
|
3,235 |
|
|
|
82.3 |
% |
Stock compensation expense |
$ |
2,461 |
|
|
$ |
1,783 |
|
|
|
678 |
|
|
|
38.0 |
% |
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 and Adjusted EBITDA. 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 Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA 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 on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense.
We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, severance expense related to the continuing operations, gain on debt extinguishment and long-lived asset impairment charges.
The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss from continuing operations, which is the most directly comparable U.S. GAAP measure:
|
|
Three Months Ended |
|
|
Six Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
|
|
(in thousands) |
|
|
(in thousands) |
|
||||||||||
Net loss from continuing operations |
|
$ |
(19,104 |
) |
|
$ |
(7,466 |
) |
|
$ |
(63,781 |
) |
|
$ |
(22,935 |
) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense on corporate debt |
|
|
1,549 |
|
|
|
1,527 |
|
|
|
2,940 |
|
|
|
2,867 |
|
Interest income on cash and cash equivalents |
|
|
(1,182 |
) |
|
|
(2,594 |
) |
|
|
(2,187 |
) |
|
|
(5,019 |
) |
Provision for income taxes |
|
|
(167 |
) |
|
|
286 |
|
|
|
269 |
|
|
|
337 |
|
Depreciation and amortization |
|
|
7,232 |
|
|
|
7,190 |
|
|
|
14,858 |
|
|
|
14,422 |
|
EBITDA |
|
$ |
(11,672 |
) |
|
$ |
(1,057 |
) |
|
$ |
(47,901 |
) |
|
$ |
(10,328 |
) |
Stock compensation expense |
|
|
2,446 |
|
|
|
1,669 |
|
|
$ |
3,770 |
|
|
$ |
3,348 |
|
Severance |
|
|
1,685 |
|
|
|
— |
|
|
$ |
1,685 |
|
|
|
— |
|
Gain on debt extinguishment |
|
|
— |
|
|
|
(10,931 |
) |
|
|
— |
|
|
|
(19,640 |
) |
Impairment charges |
|
|
— |
|
|
|
— |
|
|
|
2,752 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
(7,541 |
) |
|
$ |
(10,319 |
) |
|
$ |
(39,694 |
) |
|
$ |
(26,620 |
) |
7
About Vroom (Nasdaq: VRM)
Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. During fiscal 2023, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business.
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 cost-savings and their expected benefits, our expectations regarding UACC's business, including with respect to originations and the impact of credit tightening, future results of operations and financial position, including profitability and our available liquidity under the warehouse credit facilities, and the timing of any of the foregoing. 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, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30, 2024, 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
Jon Sandison
investors@vroom.com
8
VROOM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
|
|
As of |
|
|
As of |
|
||
|
|
2024 |
|
|
2023 |
|
||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
63,393 |
|
|
$ |
135,585 |
|
Restricted cash (including restricted cash of consolidated VIEs of $47.3 million and $49.1 million, respectively) |
|
|
48,205 |
|
|
|
73,234 |
|
Finance receivables at fair value (including finance receivables of consolidated VIEs of $429.3 million and $341.4 million, respectively) |
|
|
466,905 |
|
|
|
348,670 |
|
Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $399.3 million and $457.2 million, respectively) |
|
|
413,670 |
|
|
|
503,546 |
|
Interest receivable (including interest receivables of consolidated VIEs of $13.9 million and $13.7 million, respectively) |
|
|
14,973 |
|
|
|
14,484 |
|
Property and equipment, net |
|
|
2,219 |
|
|
|
4,982 |
|
Intangible assets, net |
|
|
118,381 |
|
|
|
131,892 |
|
Operating lease right-of-use assets |
|
|
8,918 |
|
|
|
7,063 |
|
Other assets (including other assets of consolidated VIEs of $9.6 million and $13.3 million, respectively) |
|
|
33,908 |
|
|
|
59,429 |
|
Assets from discontinued operations |
|
|
10,137 |
|
|
|
196,537 |
|
Total assets |
|
$ |
1,180,709 |
|
|
$ |
1,475,422 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Warehouse credit facilities of consolidated VIEs |
|
$ |
270,784 |
|
|
$ |
421,268 |
|
Long-term debt (including securitization debt of consolidated VIEs of $272.4 million at amortized cost and $199.8 million at fair value as of June 30, 2024 and $314.1 million at fair value as of December 31, 2023) |
|
|
794,734 |
|
|
|
626,583 |
|
Operating lease liabilities |
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