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Vroom, Inc. (VRM)
55.56 -13.45 (-19.49%)
After hours: 7:59PM EDT
Chart Events
Performance Outlook
| Previous Close | 64.76 |
| Open | 65.83 |
| Bid | 55.55 x 1000 |
| Ask | 56.24 x 800 |
| Day's Range | 64.74 - 71.09 |
| 52 Week Range | 38.46 - 72.68 |
| Volume | 2,023,709 |
| Avg. Volume | 1,829,180 |
| Market Cap | 7.953B |
| Beta (5Y Monthly) | N/A |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings Date | Aug 12, 2020 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | 62.50 |
- Reuters
Vroom shares tumble as COVID-19 hits first post-IPO results
Vroom's Chief Executive Paul Hennessy said the drop in demand and uncertainty around vehicle pricing early on in the pandemic led the company to significantly reduce its inventory during the first half of the quarter. Excluding items, the company posted a net loss of 34 cents per share, compared with analysts' expectation of a 7 cent loss.
- MarketWatch
Vroom stock drops as outlook misses Street view
Vroom Inc. shares fell in the extended session Wednesday after the online used-car sales site's outlook missed Wall Street estimates. Vroom shares dropped 16% after hours, following a 6.6% surge in the regular session to close at $69.01. Vroom expects a loss of 42 cents to 37 cents a share on revenue of $268 million to $290 million in the third quarter, while analysts had forecast a loss of 36 cents a share on revenue of $344.6 million. The company reported a second-quarter loss of $63.2 million, or $2 a share, compared with $59.2 million, or $6.90 a share, in the year-ago period. The adjusted loss, excluding stock-based compensation and other items, was 34 cents a share. Revenue declined to $253.1 million from $260.9 million in the year-ago quarter. Analysts surveyed by FactSet had forecast a loss of 55 cents a share on revenue of $234.9 million. Shares of Vroom more than doubled on their first day of trading back in June.
- GlobeNewswire
Vroom Reports Second Quarter 2020 Results
Vroom Delivers Ahead of Growth Plan Ecommerce Unit Sales Up 74%NEW YORK, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Vroom, Inc. (NASDAQ:VRM), a leading e-commerce platform for buying and selling used vehicles, today announced financial results for the second quarter ended June 30, 2020 (“Q2 2020”).HIGHLIGHTS OF SECOND QUARTER 2020 * 6,713 Ecommerce units sold, 1,110 TDA units sold, 3,259 Wholesale units sold * Revenue of $253.1 million * Gross profit of $7.6 million * Adjusted EBITDA of $(39.0) million(a) * Loss from operations of $(41.4) million * Adjusted loss from operations of $(40.1) million(a) * Net loss of $(63.2) million * Non-GAAP net loss of $(40.7) million(a) * Net loss per share of $(2.00) * Non-GAAP net loss per share, as adjusted of $(0.34)(a) (a) See section entitled “Non-GAAP Measures” for adjustment details and reconciliations of these non-GAAP financial measures to the most directly comparable financial measure calculated in accordance with GAAP.Paul Hennessy, Chief Executive Officer of Vroom, commented: “I am pleased with our results for the second quarter, in which we performed substantially ahead of our growth plan, and I am encouraged by both the continued validation of the Vroom model and the performance of our employees in a tough environment. During the course of this single quarter, we managed through significant swings in demand and numerous operational challenges brought on by the COVID-19 pandemic. In response to the drop in demand and uncertainty around vehicle pricing early in the pandemic, we chose to de-risk the business by significantly reducing our inventory during the first half of the quarter. As demand increased and pricing became more stable through the second half of the quarter, we pivoted to start rebuilding inventory and continue to do so. These lower inventory levels prevented us from fulfilling all of the demand that materialized in the second half of the quarter. We believe we continue to be well positioned to navigate the challenges presented by the COVID-19 crisis and take advantage of shifting consumer buying and selling patterns in favor of ecommerce.” SECOND QUARTER 2020 FINANCIAL DISCUSSIONAll financial comparisons are on a year-over-year basis unless otherwise noted.Ecommerce Results Three Months Ended June 30, Six Months Ended June 30, 2019 2020 Change % Change 2019 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 3,856 6,713 2,857 74.1% 7,043 14,643 7,600 107.9% Ecommerce revenue: Vehicle revenue $118,569 $170,460 $51,891 43.8% $207,199 $396,065 $188,866 91.2% Product revenue 2,384 5,108 2,724 114.3% 3,609 12,675 9,066 251.2% Total ecommerce revenue $120,953 $175,568 $54,615 45.2% $210,808 $408,740 $197,932 93.9% Ecommerce gross profit: Vehicle gross profit $4,911 $2,111 $(2,800) (57.0)% $9,440 $8,811 $(629) (6.7)% Product gross profit 2,384 5,108 2,724 114.3% 3,609 12,675 9,066 251.2% Total ecommerce gross profit $7,295 $7,219 $(76) (1.0)% $13,049 $21,486 $8,437 64.7% Average vehicle selling price per ecommerce unit $30,749 $25,393 $(5,356) (17.4)% $29,419 $27,048 $(2,371) (8.1)% Gross profit per ecommerce unit: Vehicle gross profit per ecommerce unit $1,274 $314 $(960) (75.4)% $1,340 $602 $(738) (55.1)% Product gross profit per ecommerce unit 618 761 143 23.1% 512 866 354 69.1% Total gross profit per ecommerce unit $1,892 $1,075 $(817) (43.2)% $1,852 $1,468 $(384) (20.7)% Ecommerce average days to sale 64 66 2 3.1% 64 67 3 4.7% Ecommerce UnitsEcommerce units sold increased 74.1% to 6,713. Average monthly unique visitors to our website increased 59.1% to 999,899. Ecommerce RevenueEcommerce revenue increased 45.2% to $175.6 million. * Ecommerce Vehicle revenue increased 43.8% to $170.5 million. The increase in ecommerce Vehicle revenue was primarily attributable to the increase in ecommerce units sold, partially offset by a decrease in the average selling price per unit, which decreased from $30,749 to $25,393. * Ecommerce Product revenue increased 114.3% to $5.1 million. The increase in ecommerce Product revenue was primarily attributable to the increase in ecommerce units sold, and further increased by an improvement in ecommerce Product revenue per unit, which increased from $618 to $761 per unit.Ecommerce Gross ProfitEcommerce gross profit was flat year-over-year at $7.2 million. * Ecommerce Vehicle gross profit decreased 57.0% to $2.1 million. The decrease in ecommerce Vehicle gross profit was primarily attributable to a $960 decrease in ecommerce Vehicle gross profit per unit as a result of pricing actions taken in the beginning of the quarter in response to declines in demand related to COVID-19. * Ecommerce Product gross profit increased 114.3% to $5.1 million. The increase in ecommerce Product gross profit was primarily attributable to the increase in ecommerce units sold, and further increased by an improvement in ecommerce Product gross profit per unit, which increased from $618 to $761 per unit.Ecommerce Gross Profit per UnitEcommerce gross profit per unit decreased 43.2% to $1,075. * Ecommerce Vehicle gross profit per unit decreased 75.4% to $314. * Ecommerce Product gross profit per unit increased 23.1% to $761.Results by Segment For the Three Months Ended June 30, For the Six Months Ended June 30, 2019 2020 Change % Change 2019 2020 Change % Change (in thousands) (in thousands) Units: Ecommerce 3,856 6,713 2,857 74.1% 7,043 14,643 7,600 107.9% TDA 2,792 1,110 (1,682) (60.2)% 6,162 4,145 (2,017) (32.7)% Wholesale 5,396 3,259 (2,137) (39.6)% 10,626 7,944 (2,682) (25.2)% Total units 12,044 11,082 (962) (8.0)% 23,831 26,732 2,901 12.2% Revenue: Ecommerce $120,953 $175,568 $54,615 45.2% $210,808 $408,740 $197,932 93.9% TDA 85,413 26,604 (58,809) (68.9)% 178,497 113,628 (64,869) (36.3)% Wholesale 54,531 50,921 (3,610) (6.6)% 106,651 106,497 (154) (0.1)% Total revenue $260,897 $253,093 $(7,804) (3.0)% $495,956 $628,865 $132,909 26.8% Gross profit: Ecommerce $7,295 $7,219 $(76) (1.0)% $13,049 $21,486 $8,437 64.7% TDA 6,101 931 (5,170) (84.7)% 12,179 6,346 (5,833) (47.9)% Wholesale 449 (543) (992) (220.9)% 629 (1,838) (2,467) (392.2)% Total gross profit $13,845 $7,607 $(6,238) (45.1)% $25,857 $25,994 $137 0.5% Gross profit per unit: Ecommerce $1,892 $1,075 $(817) (43.2)% $1,852$ 1,468 $ (384) (20.7)% TDA $2,088 $778 $(1,310) (62.7)% $1,907$ 1,477 $ (430) (22.5)% Wholesale $83 $(167) $(250) (301.2)% $59$ (231)$ (290) (491.5)% Total gross profit per unit $1,150 $686 $(464) (40.3)% $1,085$ 972 $ (113) (10.4)% Total UnitsTotal units sold decreased 8.0% to 11,082. * Ecommerce units sold increased 74.1% to 6,713. * TDA units sold decreased 60.2% to 1,110 due to government mandated “stay at home” orders and other disruptions related to the COVID-19 pandemic in the Houston area. * Wholesale units sold decreased 39.6% to 3,259 primarily due to a reduction of wholesale grade units purchased from consumers during the early stage of the COVID-19 pandemic.Total RevenueTotal revenue decreased 3.0% to $253.1 million. * Ecommerce revenue increased 45.2% to $175.6 million as discussed above. * TDA revenue decreased 68.9% to $26.6 million. TDA revenue decreased primarily due to the decrease in TDA units sold and a lower average selling price per unit, which decreased from $29,310 to $23,114. * Wholesale revenue decreased 6.6% to $50.9 million. The decrease in wholesale revenue was primarily attributable to the decrease in wholesale units sold, partially offset by a higher average selling price per wholesale unit, which increased from $10,106 to $15,625, primarily driven by the sale of un-reconditioned retail vehicles through wholesale auctions in the early stage of the COVID-19 pandemic.Total Gross ProfitTotal gross profit decreased 45.1% to $7.6 million. * Ecommerce gross profit was flat year-over-year at $7.2 million, as discussed above. * TDA gross profit decreased 84.7% to $0.9 million. TDA gross profit decreased in part due to a decrease in TDA gross profit per unit of $1,310, primarily as a result of pricing actions taken in the beginning of the quarter in response to declines in demand related to COVID-19 and due to the decrease in TDA units sold. * Wholesale gross profit decreased 220.9% to a loss of $0.5 million. Wholesale gross profit decreased primarily due to a decrease in wholesale gross profit per unit of $250 and the decrease in wholesale units sold.Total Gross Profit per UnitTotal gross profit per unit decreased 40.3% to $686. * Ecommerce gross profit per unit decreased 43.2% to $1,075. * TDA gross profit per unit decreased 62.7% to $778. * Wholesale gross profit per unit decreased 301.2% to a loss of $167. SG&A Three Months Ended June 30, Six Months Ended June 30, 2019 2020 Change % Change 2019 2020 Change % Change (in thousands) (in thousands) Compensation & benefits $17,476 $20,618 $3,142 18.0% $32,968 $40,940 $7,972 24.2% Marketing expense 12,736 11,573 (1,163) (9.1)% 19,836 29,488 9,652 48.7% Outbound logistics 2,650 5,470 2,820 106.4% 4,944 11,261 6,317 127.8% Occupancy and related costs 2,985 2,267 (718) (24.1)% 5,271 4,964 (307) (5.8)% Professional fees 3,227 1,465 (1,762) (54.6)% 5,880 3,924 (1,956) (33.3)% Other 4,618 6,518 1,900 41.1% 11,376 15,714 4,338 38.1% Total selling, general & administrative expenses $43,692 $47,911 $4,219 9.7% $80,275 $106,291 $26,016 32.4% Selling, general and administrative expenses increased 9.7% to $47.9 million. The increase was primarily due to a $3.1 million increase in compensation and benefits and a $2.8 million increase in outbound logistics costs. These increases were offset by a $1.8 million decrease in professional fees and a $1.2 million decrease in marketing expense.Loss from Operations and Net LossLoss from operations increased 32.0% to $41.4 million and includes $4.1 million of stock-based compensation expense, of which $1.3 million is one-time expense accelerated by our IPO.Net loss increased 89.6% to $63.2 million, and includes $1.3 million of a one-time, IPO-related acceleration of non-cash stock-based compensation expense and a $21.3 million one-time, IPO-related non-cash revaluation of a preferred stock warrant.Non-GAAP MeasuresIn addition to our results determined in accordance with accounting principles generally accepted in the United States, or 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 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 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 GAAP. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.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 and the one-time, IPO related non-cash revaluation of a preferred stock warrant. We calculate Adjusted loss from operations as operating loss adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and 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 and the one-time, IPO related non-cash revaluation of a preferred stock warrant. The following table presents a reconciliation of the Non-GAAP measures to the most directly comparable financial measures prepared in accordance with GAAP, for each of the periods presented.EBITDA and Adjusted EBITDAEBITDA 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. Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 (in thousands) (in thousands) Net loss $(33,340) $(63,228) $(60,479) $(104,287) Adjusted to exclude the following: Interest expense 3,388 1,297 6,106 4,123 Interest income (1,415) (715) (3,264) (2,671) Provision (benefit) for income taxes (29) 52 74 105 Depreciation and amortization expense 1,557 1,089 3,146 2,059 EBITDA $(29,839) $(61,505) $(54,417) $(100,671) One-time IPO related acceleration of non-cash stock-based compensation — 1,262 — 1,262 One-time IPO related non-cash revaluation of preferred stock warrant — 21,260 — 20,470 Adjusted EBITDA $(29,839) $(38,983) $(54,417) $(78,939) Adjusted loss from operations Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 (in thousands) (in thousands) Loss from operations $(31,348) $(41,387) $(57,452) $(82,346) Add: One-time IPO related acceleration of non-cash stock based compensation — 1,262 — 1,262 Adjusted loss from operations $(31,348) $(40,125) $(57,452) $(81,084) Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 (in thousands, except share and per share amounts) Net loss $(33,340) $(63,228) $(60,479) $(104,287) Accretion of redeemable convertible preferred stock (25,879) — (43,843) — Net loss attributable to common stockholders $(59,219) $(63,228) $(104,322) $(104,287) Add: One-time IPO related acceleration of non-cash stock based compensation — 1,262 — 1,262 Add: One-time IPO related non-cash revaluation of preferred stock warrant — 21,260 — 20,470 Non-GAAP net loss $(59,219) $(40,706) $(104,322) $(82,555) Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted 8,580,150 31,599,497 8,579,539 20,035,476 Net loss per share, basic and diluted $(6.90) $(2.00) $(12.16) $(5.21) Impact of one-time IPO related acceleration of non-cash stock based compensation - 0.04 - 0.07 Impact of one-time IPO related non-cash revaluation of preferred stock warrant - 0.67 - 1.02 Non-GAAP net loss per share, basic and diluted $(6.90) $(1.29) $(12.16) $(4.12) Non-GAAP net loss per share, as adjusted, basic and diluted(a) $(0.28) $(0.34) $(0.51) $(0.70) (a)Non-GAAP net loss per share, as adjusted, has been computed to give effect to, as of the beginning of each period presented (i) the shares of common stock issued in connection with our IPO and (ii) the automatic conversion of all outstanding shares of redeemable convertible preferred stock into shares of common stock that occurred upon the consummation of our IPO. The computation of Non-GAAP net loss per share, as adjusted, is as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 (in thousands, except share and per share amounts) Non-GAAP net loss $(59,219) $(40,706) $(104,322) $(82,555) Add: Accretion of redeemable convertible preferred stock 25,879 — 43,843 — Non-GAAP net loss, as adjusted $(33,340) $(40,706) $(60,479) $(82,555) Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted 8,580,150 31,599,497 8,579,539 20,035,476 Add: unweighted adjustment for common stock issued in connection with IPO 24,437,500 24,437,500 24,437,500 24,437,500 Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO 85,533,394 85,533,394 85,533,394 85,533,394 Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented — (22,960,956) — (11,480,478) Weighted-average number of shares outstanding used to compute net loss per share, as adjusted, basic and diluted 118,551,044 118,609,435 118,550,433 118,525,892 Non-GAAP net loss per share, as adjusted, basic and diluted $(0.28) $(0.34) $(0.51) $(0.70) Financial OutlookWe expect another quarter of significant year-over-year growth in ecommerce unit sales and revenue for Q3 2020 and improvement in total ecommerce gross profit per unit. For Q3 2020, we expect the following results and comparisons on a year-over-year basis: * Ecommerce unit sales of 8,500-8,800, average total revenue per unit of $23,500 and average gross profit per unit of $1,600-$1,700. * TDA unit sales of 1,400-1,600, average total revenue per unit of $23,500 and average gross profit per unit of $1,000-$1,100. * Wholesale unit sales of 3,500-4,500, average revenue per unit of $10,000 and average gross profit per unit of $100-$200. * Total revenue of $268 million -$290 million. * Total gross profit of $16 million-$18 million. * Net loss per share of $(0.42)-$(0.37).Prior to our IPO, our shares outstanding primarily consisted of shares of redeemable convertible preferred stock, which automatically converted to shares of common stock upon the consummation of our IPO. In addition, all warrants outstanding were exercised upon the IPO or shortly thereafter, and certain stock-based compensation shares were issued or vested upon the IPO. We expect the following number of GAAP weighted average shares outstanding for the remainder of 2020: Quarter YTD Q3 2020119,342,00053,138,000 Q4 2020 119,441,000 69,713,000 These estimates exclude any shares potentially issuable under stock-based compensation plans. The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of August 12, 2020 and are subject to substantial uncertainty. See “Forward-Looking Statements” below.Conference Call & Webcast InformationVroom management will discuss these results and other information regarding the Company during a conference call and audio webcast Wednesday, August 12, 2020 at 5:00 p.m. ET.The conference call can be accessed via telephone by dialing 1-833-519-1297 (or 914-800-3868 for international access) and entering the conference ID 8738028. A live audio webcast will also be available at ir.vroom.com. An archived webcast of the conference call will be accessible on the website within 48 hours of its completion. About Vroom (NASDAQ: VRM)Vroom is an innovative, end-to-end ecommerce platform that offers a better way to buy and a better way to sell used vehicles. The Company's scalable, data-driven technology brings all phases of the vehicle buying and selling process to consumers wherever they are and offers an extensive selection of vehicles, transparent pricing, competitive financing, and contact-free, at-home pick-up and delivery. For more information visit www.vroom.com.Investor Relations: Vroom Allen Miller investors@vroom.com Media Contact: Moxie Communications Group Alyssa Galella vroom@moxiegrouppr.com (562) 294-6261Forward-Looking StatementsThis 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 our expectations for future results of operations. 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 Quarterly report on Form 10-Q for the quarter ended June 30, 2020 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. VROOM, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) As of December 31, As of June 30, 2019 2020 ASSETS Current Assets: Cash and cash equivalents $217,734 $651,035 Restricted cash 1,853 21,853 Accounts receivable, net of allowance of $789 and $1,135, respectively 30,848 15,287 Inventory 205,746 141,063 Prepaid expenses and other current assets 9,149 17,808 Total current assets 465,330 847,046 Property and equipment, net 7,828 9,783 Intangible assets, net 572 297 Goodwill 78,172 78,172 Operating lease right-of-use assets — 15,437 Other assets 11,485 12,472 Total assets $563,387 $963,207 LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ (DEFICIT) EQUITY Current Liabilities: Accounts payable $18,987 $20,133 Accrued expenses 38,491 40,898 Vehicle floorplan 173,461 109,783 Deferred revenue 17,323 15,488 Operating lease liabilities, current — 4,640 Other current liabilities 11,572 13,115 Total current liabilities 259,834 204,057 Operating lease liabilities, excluding current portion — 11,750 Other long-term liabilities 3,073 1,965 Total liabilities 262,907 217,772 Commitments and contingencies (Note 8) Redeemable convertible preferred stock, $0.001 par value; 86,123,364 and 10,000,000 shares authorized as of December 31, 2019 and June 30, 2020, respectively; 83,568,628 and zero shares issued and outstanding as of December 31, 2019 and June 30, 2020, respectively 874,332 — Stockholders’ (deficit) equity: Common stock, $0.001 par value; 113,443,854 and 500,000,000 shares authorized as of December 31, 2019 and June 30, 2020, respectively; 8,650,922 and 119,336,588 shares issued and outstanding as of December 31, 2019 and June 30, 2020, respectively 8 119 Additional paid-in-capital — 1,424,675 Accumulated deficit (573,860) (679,359) Total stockholders’ (deficit) equity (573,852) 745,435 Total liabilities, redeemable convertible preferred stock and stockholders’ (deficit) equity $563,387 $963,207 VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2019 2020 2019 2020 Revenue: Retail vehicle, net$200,402 $196,150 $379,152 $504,862 Wholesale vehicle 54,531 50,921 106,651 106,497 Product, net 5,491 5,736 9,236 16,780 Other 473 286 917 726 Total revenue 260,897 253,093 495,956 628,865 Cost of sales 247,052 245,486 470,099 602,871 Total gross profit 13,845 7,607 25,857 25,994 Selling, general and administrative expenses 43,692 47,911 80,275 106,291 Depreciation and amortization 1,501 1,083 3,034 2,049 Loss from operations (31,348) (41,387) (57,452) (82,346) Interest expense 3,388 1,297 6,106 4,123 Interest income (1,415) (715) (3,264) (2,671) Revaluation of preferred stock warrant 60 21,260 142 20,470 Other income, net (12) (53) (31) (86) Loss before provision (benefit) for income taxes (33,369) (63,176) (60,405) (104,182) Provision (benefit) for income taxes (29) 52 74 105 Net loss$(33,340) $(63,228) $(60,479) $(104,287) Accretion of redeemable convertible preferred stock (25,879) — (43,843) — Net loss attributable to common stockholders$(59,219) $(63,228) $(104,322) $(104,287) Net loss per share attributable to common stockholders, basic and diluted$(6.90) $(2.00) $(12.16) $(5.21) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 8,580,150 31,599,497 8,579,539 20,035,476 VROOM, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended June 30, 2019 2020 Operating activities Net loss $(60,479) $(104,287) Adjustments to reconcile net loss to net cash (used in) provided by operating activities: Depreciation and amortization 3,146 2,059 Amortization of debt issuance costs 179 375 Stock-based compensation expense 1,536 4,700 Loss on disposal of property and equipment 764 — Provision for inventory obsolescence 1,889 (1,564) Revaluation of preferred stock warrant 142 20,470 Other — 632 Changes in operating assets and liabilities: Accounts receivable (14,544) 14,863 Inventory (76,209) 66,247 Prepaid expenses and other current assets (1,814) (7,909) Other assets (1,488) (1,285) Accounts payable 6,501 919 Accrued expenses 7,224 4,714 Deferred revenue 2,664 (1,835) Other liabilities 2,592 1,905 Net cash (used in) provided by operating activities (127,897) 4 Investing activities Purchase of property and equipment (794) (3,128) Net cash used in investing activities (794) (3,128) Financing activities Repayments of long-term debt (3,340) — Proceeds from vehicle floorplan 420,518 465,663 Repayments of vehicle floorplan (349,545) (529,341) Payment of vehicle floorplan upfront commitment fees — (1,125) Proceeds from the issuance of redeemable convertible preferred stock, net — 21,694 Repurchase of common stock (542) (1,818) Common stock shares withheld to satisfy employee tax withholding obligations — (878) Proceeds from the issuance of common stock in connection with IPO, net of underwriting discount — 504,023 Payments of costs related to IPO — (1,740) Proceeds from exercise of stock options 347 13 Other financing activities 268 (66) Net cash provided by financing activities 67,706 456,425 Net (decrease) increase in cash, cash equivalents and restricted cash (60,985) 453,301 Cash, cash equivalents and restricted cash at the beginning of period 163,509 219,587 Cash, cash equivalents and restricted cash at the end of period $102,524 $672,888 Supplemental disclosure of cash flow information: Cash paid for interest $5,176 $2,743 Cash paid for income taxes $209 $— Supplemental disclosure of non-cash investing and financing activities: Accretion of redeemable convertible preferred stock $43,843 $— Costs related to IPO included in accrued expenses and accounts payable $— $5,051 Conversion of redeemable convertible preferred stock warrant to common stock warrant $— $21,873 Issuance of common stock as upfront payment to nonemployee $— $2,127 Accrued property and equipment expenditures $101 $611
