Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the second quarter ended June 30, 2023.
HIGHLIGHTS OF SECOND QUARTER 2023 VERSUS FIRST QUARTER 2023
- 5% sequential growth in Ecommerce units - first quarter with sequential growth since the introduction of the Long-Term Roadmap in Q2 2022
- $2,954 Ecommerce gross profit per unit (GPPU) as compared to $2,552
- $(66.3) million net loss as compared to $(75.0) million
- $(56.3) million Adjusted EBITDA as compared to $(64.8) million
- Continued to reduce sequential cost per unit in 4 out of 5 SG&A financial levers outlined in our Long-Term Roadmap
- Improving Adjusted EBITDA mid-point guidance for the full year 2023
Tom Shortt, Chief Executive Officer of Vroom, said, “In the second quarter of 2023, consistent with our Long-Term Roadmap, we continued to make progress on our three key objectives and four strategic initiatives, improving Adjusted EBITDA by $8.5 million sequentially. Ecommerce GPPU increased from $2,552 in Q1 2023 to $2,954 in Q2 2023, benefiting from GPPU on unaged units, which exceeded $5,000, as well as vehicle inventory reserves taken in prior periods. During the second quarter of 2023, 80% of our units sold were aged units, or units held greater than 180 days. We continue to drive process improvements across titling and registration, pricing, marketing, sales, reconditioning and logistics. Looking forward to Q3 2023, we expect <40% of our mix to be aged units. We expect to deliver sequential Adjusted EBITDA improvements through the balance of the year.”
Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We succeeded in reducing per-unit costs across 1) logistics, 2) sales, 3) titling, registration and support, and 4) fixed costs. We further strengthened our balance sheet by repurchasing $18 million of our convertible notes and enhanced our liquidity by selling our non-investment grade notes from UACC’s 2023-1 securitization. During the second half of 2023, we will continue to pursue opportunities to reduce costs, strengthen our balance sheet and enhance our liquidity.”
SECOND QUARTER 2023 FINANCIAL DISCUSSION
All financial comparisons are on a year-over-year basis unless otherwise noted.
Ecommerce Results | ||||||||||||||||||||||||||||||||||||||
Three Months Ended
| Six Months Ended
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2023 | 2022 | Change | % Change | 2023 | 2022 | Change | % Change | |||||||||||||||||||||||||||||||
(in thousands, except unit
| (in thousands, except unit
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Ecommerce units sold | 4,127 | 9,233 | (5,106 | ) | (55.3 | )% | 8,060 | 28,706 | (20,646 | ) | (71.9 | )% | ||||||||||||||||||||||||||
Ecommerce revenue: | ||||||||||||||||||||||||||||||||||||||
Vehicle revenue | $ | 126,529 | $ | 308,123 | $ | (181,594 | ) | (58.9 | )% | $ | 250,636 | $ | 960,747 | $ | (710,111 | ) | (73.9 | )% | ||||||||||||||||||||
Product revenue | 11,696 | 13,509 | (1,813 | ) | (13.4 | )% | 23,222 | 36,248 | (13,026 | ) | (35.9 | )% | ||||||||||||||||||||||||||
Total ecommerce revenue | $ | 138,225 | $ | 321,632 | $ | (183,407 | ) | (57.0 | )% | $ | 273,858 | $ | 996,995 | $ | (723,137 | ) | (72.5 | )% | ||||||||||||||||||||
Ecommerce gross profit: | ||||||||||||||||||||||||||||||||||||||
Vehicle gross profit | $ | 1,196 | $ | 20,000 | $ | (18,804 | ) | (94.0 | )% | $ | 602 | $ | 31,580 | $ | (30,978 | ) | (98.1 | )% | ||||||||||||||||||||
Product gross profit | 10,993 | 13,509 | (2,516 | ) | (18.6 | )% | 21,621 | 36,248 | (14,627 | ) | (40.4 | )% | ||||||||||||||||||||||||||
Total ecommerce gross profit | $ | 12,189 | $ | 33,509 | $ | (21,320 | ) | (63.6 | )% | $ | 22,223 | $ | 67,828 | $ | (45,605 | ) | (67.2 | )% | ||||||||||||||||||||
Average vehicle selling price per ecommerce unit | $ | 30,659 | $ | 33,372 | $ | (2,713 | ) | (8.1 | )% | $ | 31,096 | $ | 33,469 | $ | (2,373 | ) | (7.1 | )% | ||||||||||||||||||||
Product revenue per ecommerce unit | 2,834 | 1,463 | 1,371 | 93.7 | % | 2,881 | 1,263 | 1,618 | 128.1 | % | ||||||||||||||||||||||||||||
Gross profit per ecommerce unit: | ||||||||||||||||||||||||||||||||||||||
Vehicle gross profit per ecommerce unit | $ | 290 | $ | 2,166 | $ | (1,876 | ) | (86.6 | )% | $ | 75 | $ | 1,100 | $ | (1,025 | ) | (93.2 | )% | ||||||||||||||||||||
Product gross profit per ecommerce unit | 2,664 | 1,463 | 1,201 | 82.1 | % | 2,683 | 1,263 | 1,420 | 112.4 | % | ||||||||||||||||||||||||||||
Total gross profit per ecommerce unit | $ | 2,954 | $ | 3,629 | $ | (675 | ) | (18.6 | )% | $ | 2,758 | $ | 2,363 | $ | 395 | 16.7 | % | |||||||||||||||||||||
Ecommerce average days to sale | 327 | 128 | 199 | 155.4 | % | 304 | 110 | 194 | 175.9 | % | ||||||||||||||||||||||||||||
Results by Segment | ||||||||||||||||||||||||||||||||
Three Months Ended
| Six Months Ended
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