Content analysis
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New words:
altogether, apportioned, Ayman, broader, COBRA, consent, constant, disagreement, disgorged, eighteen, enforceable, Foy, hold, Jeff, Kellyn, Kenny, lesser, lieu, lump, Moussa, prorated, rapid, resign, resignation, resigned, retired, revoked, role, Sean, slightly, Smith, thirty, vacant, writing
Removed:
happy, joining, promised
Financial report summary
?Competition
Truecar • Vroom • Carvana Co. - Ordinary Shares • Nextdoor Holdings Inc - Ordinary SharesRisks
- General business and economic conditions, and risks related to the larger automotive ecosystem, including consumer demand, could adversely affect the market for used cars, which could reduce our sales and profitability.
- We participate in a highly competitive industry, and pressure from existing and new companies may adversely affect our business and results of operations.
- We face significant challenges in establishing our software as a platform to be used by automotive dealers.
- We face a variety of risks associated with the operation of our inspection, reconditioning and storage facilities.
- We rely on third-party carriers to transport our vehicle inventory throughout the United States. Thus, we are subject to business risks and costs associated with such carriers and with the transportation industry, many of which are out of our control.
- The current geographic concentration where we provide reconditioning services and store inventory creates an exposure to local and regional downturns or severe weather or catastrophic occurrences that may materially and adversely affect our business, financial condition, and results of operations.
- If we sustain cyber-attacks or other privacy or data security incidents that result in security breaches, we could suffer a loss of sales and increased costs, exposure to significant liability, reputational harm and other negative consequences.
- We may be subject to adverse impacts from the existence of copycat websites that attempt to defraud our potential customers.
- Failure to adequately protect our intellectual property, technology and confidential information could harm our business, financial condition and results of operations.
- We rely on third-party service providers to provide financing, as well as value-added products, to our customers, and we cannot control the quality or fulfillment of these products and services.
- Certain of our third-party service providers are highly regulated financial institutions, and the federal and state laws related to financial services could have a direct or indirect materially adverse effect on our business.
- If the quality of our customer experience, our reputation, or our brand were negatively affected, our business, sales, and results of operations could be materially adversely affected.
- Our business is sensitive to changes in the prices of new vehicles as compared to the price of used vehicles.
- Our business and inventory are dependent on our ability to correctly appraise and price vehicles we buy and sell.
- Our business is dependent upon access to desirable vehicle inventory. Obstacles to acquiring attractive inventory, whether because of supply, competition or other factors, may have a material adverse effect on our business, financial condition, and results of operations.
- Our business is dependent upon our ability to expeditiously sell inventory. Failure to expeditiously sell our inventory could have a material adverse effect on our business, financial condition, and results of operations.
- Our ability to expand value-added product offerings and introduce additional products and services may be limited, which could have a material adverse effect on our business, financial condition, and results of operations.
- Vehicle retail sales depend heavily on affordable interest rates and availability of credit for vehicle financing and a substantial increase in interest rates could materially and adversely affect our business, prospects, financial condition, results of operations, and cash flows.
- Failure to comply with federal, state and local laws and regulations relating to privacy, data protection and consumer protection, or the expansion of current or the enactment of new laws or regulations relating to privacy, data protection and consumer protection, as well as our actual or perceived failure to protect such information, could harm our reputation and could adversely affect our business, financial condition and results of operations.
- We operate in a highly regulated industry and are subject to a wide range of federal, state and local laws and regulations. Failure to comply with these laws and regulations could have a material adverse effect on our business, financial condition and results of operations. In addition, some of these laws establish either a private right of action or permit private individuals and entities to enforce the same in the name of the relevant government entity.
- Unanticipated changes in effective tax rates or adverse outcomes resulting from examination of our income or other tax returns could adversely affect our operating results and financial condition.
- We may require additional debt and equity capital to pursue our business objectives and respond to business opportunities, challenges or unforeseen circumstances. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.
- Future sales or issuances of equity securities could decrease the value of our common stock, dilute investors’ voting power and reduce our earnings per share.
- There is no assurance we will continue to meet the Nasdaq listing standards.
- If we fail to comply with the Telephone Consumer Protection Act, we may face significant damages, which could harm our business, financial condition, and results of operations.
- Government regulation of the internet and ecommerce is evolving, and unfavorable changes or failure by us to comply with these regulations could substantially harm our business, financial condition and results of operations.
- We are subject to risks related to online payment methods.
- Our future growth and profitability rely heavily on the effectiveness and efficiency of our marketing and branding efforts, and these efforts may not be successful.
- We rely on internet search engines, vehicle listing sites and social networking sites to help drive traffic to our website, and if we fail to appear prominently in the search results or fail to drive traffic through paid advertising, our traffic would decline and our business, financial condition and results of operations could be materially and adversely affected.
- Our business relies on email and other messaging services, and any restrictions on the sending of emails or messages or an inability to timely deliver such communications could materially and adversely affect our business, financial condition and results of operations.
- Seasonal and other fluctuations in our quarterly results of operations are likely and may not fully reflect the underlying performance of our business.
- Changes in the auto industry may threaten our business model if we are unable to adapt.
- Our business is sensitive to conditions affecting automotive manufacturers, including manufacturer recalls.
- Prospective purchasers of vehicles may choose not to shop online, which would prevent us from growing our business.
- Our business is subject to the risk of natural disasters, adverse weather events and other catastrophic events, and to interruption by man-made problems such as terrorism.
- We could be negatively affected if losses for which we do not have third-party insurance coverage increase or our insurance coverages prove to be inadequate.
- We depend on key personnel to operate our business, and if we are unable to retain, attract and integrate qualified personnel, our ability to develop and successfully grow our business could be harmed.
- Increases in labor costs, including wages, could adversely affect our business, financial condition and results of operations.
- Our failure to comply with various applicable federal and state employment and labor laws and regulations could have a material, adverse impact on our business, financial condition and results of operations.
- We rely on third-party technology and information systems to complete critical business functions. If that technology fails to adequately serve our needs, and we cannot find alternatives, it may negatively impact our business, financial condition and results of operations.
- Our platform utilizes open-source software, and any defects or security vulnerabilities in the open-source software could negatively affect our business.
- We may be subject to claims asserting that our employees, consultants or advisors have wrongfully used or disclosed alleged trade secrets of their current or former employers or claims asserting ownership of what we regard as our own intellectual property.
- We may be accused of infringing intellectual property rights of third parties.
- A significant disruption in service on our platform could damage our reputation and result in a loss of customers, which could harm our brand or our business, financial condition and results of operations.
- We have recognized impairment charges related to long-lived assets.
- Our level of indebtedness could have a material adverse effect on our ability to generate sufficient cash to fulfill our obligations under such indebtedness, to react to changes in our business and to incur additional indebtedness to fund future needs.
- We currently rely on an agreement with Ally Bank to finance our vehicle inventory purchases under our Flooring Line of Credit. If our relationship with this lender were to terminate, and we fail to acquire alternative sources of funding to finance our vehicle inventory purchases, we may be unable to maintain sufficient inventory, which would adversely affect our business, financial condition and results of operations.
- Our common stock price may be volatile and the value of our common stock may decline regardless of our operating performance.
- We do not intend to pay dividends on our common stock for the foreseeable future.
- We may issue shares of preferred stock in the future, which could make it difficult for another company to acquire us or could otherwise adversely affect holders of our common stock, which could depress the price of our common stock.
- The issuance by us of additional shares of common stock or convertible securities may dilute your ownership of us and could adversely affect our stock price.
- Future sales, or the perception of future sales, by us or our existing stockholders in the public market could cause the market price for our common stock to decline.
- If our operating and financial performance in any given period does not meet the guidance that we provide to the public, the market price of our common stock may decline.
- If securities analysts do not publish research or reports about our company, or if they issue unfavorable commentary about us or our industry or downgrade our common stock, the price of our common stock could decline.
- As a public reporting company, we are subject to rules and regulations established from time to time by the SEC regarding our internal control over financial reporting. If we continue to fail to establish and maintain effective internal control over financial reporting and disclosure controls and procedures, we may not be able to accurately report our financial results, or report them in a timely manner.
- The Company’s losses and negative cash flows from operations since inception, its current cash and working capital position, and the upcoming expiration of the floorplan financing arrangement raise substantial doubt about the Company’s ability to continue as a going concern.
- Acquisitions such as the Fair acquisition, CarLotz merger, joint ventures and other strategic alliances may have an adverse effect on our business; we may fail to realize the anticipated benefits of such transactions.
Management Discussion
- Retail Vehicles, Net: The retail channel within our Retail segment represents sales of used vehicles directly to our customers through our website.
- Other, Net: The other channel within our Retail segment represents fees earned on sales of value-added products associated with the sale of retail vehicles.
- Wholesale Vehicles: The Wholesale channel is the only component of our Wholesale segment and represents sales of used vehicles through wholesale auctions.