Vroom Inc
NASDAQ:VRM
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Vroom Inc
Vroom, Inc. engages in providing an ecommerce platform for the buying and selling of used vehicles. The company is headquartered in New York City, New York and currently employs 1,807 full-time employees. The company went IPO on 2020-06-09. The firm offers a range of selection of vehicles as well as provides at-home pick-up and delivery services. The company operates through three segments: E-commerce, Wholesale and Texas Direct Auto (TDA). The E-commerce segment represents retail sales of used vehicles through the Company's ecommerce platform and fees earned on sales of value-added products associated with those vehicle sales. The Wholesale segment represents sales of used vehicles through wholesale channels. The TDA segment represents retail sales of used vehicles from TDA, and fees earned on sales of value-added products associated with those vehicle sales. Its platform is engaged in buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company is also engaged in offering automotive finance through its subsidiary United Auto Credit Corporation.
Vroom, Inc. engages in providing an ecommerce platform for the buying and selling of used vehicles. The company is headquartered in New York City, New York and currently employs 1,807 full-time employees. The company went IPO on 2020-06-09. The firm offers a range of selection of vehicles as well as provides at-home pick-up and delivery services. The company operates through three segments: E-commerce, Wholesale and Texas Direct Auto (TDA). The E-commerce segment represents retail sales of used vehicles through the Company's ecommerce platform and fees earned on sales of value-added products associated with those vehicle sales. The Wholesale segment represents sales of used vehicles through wholesale channels. The TDA segment represents retail sales of used vehicles from TDA, and fees earned on sales of value-added products associated with those vehicle sales. Its platform is engaged in buying, selling, transporting, reconditioning, pricing, financing, registering, and delivering vehicles. The company is also engaged in offering automotive finance through its subsidiary United Auto Credit Corporation.
Revenue Growth: Vroom reported third quarter revenue of $236 million, up 5% sequentially, driven by an 11% increase in e-commerce units sold.
Profitability Pressures: Adjusted EBITDA loss increased to $64.5 million, a $8.2 million sequential increase, mainly due to higher realized net losses and negative mark-to-market on finance receivables at UACC.
Operational Improvements: E-commerce gross profit per unit (GPPU) rose to $3,144, up 6% sequentially, aided by a greater mix of unaged units and cost reductions.
Cost Reductions: Fixed and variable operating costs, including logistics, titling, registration, support, and marketing, were reduced, with fixed cost per unit down 15% sequentially.
Liquidity Update: Year-end cash and cash equivalents guidance was updated to $137–162 million, with potential additional liquidity from UACC and asset sales.
Capital Raise: Management announced plans to pursue raising capital to support business scaling and future growth.
Aged Inventory Nearly Cleared: The company expects less than 20% of sales in Q4 from aged inventory, with aged units becoming immaterial by 2024.
