Exhibit 99.1
Vroom Reports Strong Fourth Quarter and Full Year 2021 Growth
Vroom Delivers Record Ecommerce Units
Quarterly and FY 2021 Ecommerce Unit Sales Up 93% and 117% YoY, respectively
Quarterly and FY 2021 Ecommerce Gross Profit Up 64% and 171% YoY, respectively
NEW YORK – February 28, 2022 – Vroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the fourth quarter and fiscal year ended December 31, 2021.
HIGHLIGHTS OF FOURTH QUARTER 2021
HIGHLIGHTS OF FISCAL YEAR 2021
“I am proud of what we accomplished in 2021” commented Mr. Paul Hennessy, Chief Executive Officer of Vroom. “We achieved record unit sales and revenues, record ecommerce gross profit per unit and a record number of vehicle acquisitions from consumers. At the same time, we expanded both our reconditioning capacity and last mile delivery operations. We look forward to the continued evolution of our business in 2022 as we welcome our new Chief Operating Officer, Tom Shortt, to lead our efforts to achieve operational excellence and deliver an outstanding customer experience, as well as the team from UACC, as we build out our captive financing arm and improve our unit economics. I have never been more optimistic about the future for Vroom.”
Mr. Robert Krakowiak, Vroom’s Chief Financial Officer, commented: “we are pleased with our full year progress on ecommerce gross profit per unit, expanding by 25% for the full year despite fourth quarter headwinds. Additionally, we continue to leverage SG&A per ecommerce transaction, which reduced by 18% on a year-over-year basis. For 2022, we expect a further increase in ecommerce GPPU and continued leverage of our SG&A spend as we begin to capture the benefits of captive financing and sharpen our focus on incremental unit economics throughout our business.”
FOURTH QUARTER 2021 FINANCIAL DISCUSSION
All financial comparisons for the fourth quarter are on a year-over-year basis unless otherwise noted.
Ecommerce Results
|
| Three Months Ended |
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|
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|
|
| Year Ended |
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| ||||||||||||||||||
|
| 2021 |
|
| 2020 |
|
|
| Change |
|
| % Change |
|
| 2021 |
|
| 2020 |
|
|
| Change |
|
| % Change |
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| ||||||||
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| (in thousands, except unit |
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| (in thousands, except unit |
|
|
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| ||||||||||||||||||
Ecommerce units sold |
|
|
| 21,243 |
|
|
|
| 11,022 |
|
|
|
| 10,221 |
|
|
| 92.7 | % |
|
|
| 74,698 |
|
|
|
| 34,488 |
|
|
|
| 40,210 |
|
|
| 116.6 | % |
Ecommerce revenue: |
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
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| ||||||||
Vehicle revenue |
| $ |
| 715,874 |
|
| $ |
| 274,552 |
|
| $ |
| 441,322 |
|
|
| 160.7 | % |
| $ |
| 2,360,368 |
|
| $ |
| 884,560 |
|
| $ |
| 1,475,808 |
|
|
| 166.8 | % |
Product revenue |
|
|
| 22,846 |
|
|
|
| 10,398 |
|
|
|
| 12,448 |
|
|
| 119.7 | % |
|
|
| 82,001 |
|
|
|
| 30,891 |
|
|
|
| 51,110 |
|
|
| 165.5 | % |
Total ecommerce revenue |
| $ |
| 738,720 |
|
| $ |
| 284,950 |
|
| $ |
| 453,770 |
|
|
| 159.2 | % |
| $ |
| 2,442,369 |
|
| $ |
| 915,451 |
|
| $ |
| 1,526,918 |
|
|
| 166.8 | % |
Ecommerce gross profit: |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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| ||||||||
Vehicle gross profit |
| $ |
| 10,042 |
|
| $ |
| 9,674 |
|
| $ |
| 368 |
|
|
| 3.8 | % |
| $ |
| 82,745 |
|
| $ |
| 29,970 |
|
| $ |
| 52,775 |
|
|
| 176.1 | % |
Product gross profit |
|
|
| 22,846 |
|
|
|
| 10,398 |
|
|
|
| 12,448 |
|
|
| 119.7 | % |
|
|
| 82,001 |
|
|
|
| 30,891 |
|
|
|
| 51,110 |
|
|
| 165.5 | % |
Total ecommerce gross profit |
| $ |
| 32,888 |
|
| $ |
| 20,072 |
|
| $ |
| 12,816 |
|
|
| 63.9 | % |
| $ |
| 164,746 |
|
| $ |
| 60,861 |
|
| $ |
| 103,885 |
|
|
| 170.7 | % |
Average vehicle selling price per ecommerce unit |
| $ |
| 33,699 |
|
| $ |
| 24,909 |
|
| $ |
| 8,790 |
|
|
| 35.3 | % |
| $ |
| 31,599 |
|
| $ |
| 25,648 |
|
| $ |
| 5,951 |
|
|
| 23.2 | % |
Gross profit per ecommerce unit: |
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|
|
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|
|
|
|
|
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|
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|
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| ||||||||
Vehicle gross profit per ecommerce unit |
| $ |
| 473 |
|
| $ |
| 878 |
|
| $ |
| (405 | ) |
|
| (46.1 | )% |
| $ |
| 1,108 |
|
| $ |
| 869 |
|
| $ |
| 239 |
|
|
| 27.5 | % |
Product gross profit per ecommerce unit |
|
|
| 1,075 |
|
|
|
| 943 |
|
|
|
| 132 |
|
|
| 14.0 | % |
|
|
| 1,098 |
|
|
|
| 896 |
|
|
|
| 202 |
|
|
| 22.5 | % |
Total gross profit per ecommerce unit |
| $ |
| 1,548 |
|
| $ |
| 1,821 |
|
| $ |
| (273 | ) |
|
| (15.0 | )% |
| $ |
| 2,206 |
|
| $ |
| 1,765 |
|
| $ |
| 441 |
|
|
| 25.0 | % |
Ecommerce average days to sale |
|
|
| 76 |
|
|
|
| 77 |
|
|
|
| (1 | ) |
|
| (1.3 | )% |
|
|
| 74 |
|
|
|
| 66 |
|
|
|
| 8 |
|
|
| 12.1 | % |
2
Fourth Quarter 2021
Ecommerce Units
Ecommerce units sold increased 92.7% to 21,243 as a result of higher inventory levels, strong national brand recognition driven by our national advertising campaign and higher marketing spend, as well as growing consumer acceptance of our business model. The increase was also attributable to strong market demand for used vehicles, caused in part by the shortage of microchips and delays in new car manufacturing. Average monthly unique visitors to our platform increased 132.9% to 2,338,718.
Ecommerce Revenue
Ecommerce revenue increased 159.2% to $738.7 million.
Ecommerce Gross Profit
Ecommerce gross profit increased 63.9% to $32.9 million.
Ecommerce Gross Profit per Unit
Ecommerce gross profit per unit decreased 15.0% to $1,548.
3
Results by Segment
|
| Three Months Ended |
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| Year Ended |
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| ||||||||||||||
|
| 2021 |
|
| 2020 (1) |
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| Change |
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| % Change |
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| 2021 |
|
| 2020 (1) |
|
| Change |
|
| % Change |
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| (in thousands, except unit data) |
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| (in thousands, except unit data) |
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Units: |
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Ecommerce |
|
| 21,243 |
|
|
| 11,022 |
|
|
| 10,221 |
|
|
| 92.7 | % |
|
| 74,698 |
|
|
| 34,488 |
|
|
| 40,210 |
|
|
| 116.6 | % |
Wholesale |
|
| 8,742 |
|
|
| 6,998 |
|
|
| 1,744 |
|
|
| 24.9 | % |
|
| 37,163 |
|
|
| 21,108 |
|
|
| 16,055 |
|
|
| 76.1 | % |
TDA |
|
| 2,105 |
|
|
| 1,777 |
|
|
| 328 |
|
|
| 18.5 | % |
|
| 7,212 |
|
|
| 7,385 |
|
|
| (173 | ) |
|
| (2.3 | )% |
Total units |
|
| 32,090 |
|
|
| 19,797 |
|
|
| 12,293 |
|
|
| 62.1 | % |
|
| 119,073 |
|
|
| 62,981 |
|
|
| 56,092 |
|
|
| 89.1 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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| ||||||||
Revenue: |
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|
|
|
|
|
|
|
|
|
|
|
|
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| ||||||||
Ecommerce |
| $ | 738,720 |
|
| $ | 284,950 |
|
| $ | 453,770 |
|
|
| 159.2 | % |
| $ | 2,442,369 |
|
| $ | 915,451 |
|
| $ | 1,526,918 |
|
|
| 166.8 | % |
Wholesale |
|
| 121,543 |
|
|
| 75,111 |
|
|
| 46,432 |
|
|
| 61.8 | % |
|
| 498,981 |
|
|
| 245,580 |
|
|
| 253,401 |
|
|
| 103.2 | % |
TDA |
|
| 70,944 |
|
|
| 45,437 |
|
|
| 25,507 |
|
|
| 56.1 | % |
|
| 229,872 |
|
|
| 195,295 |
|
|
| 34,577 |
|
|
| 17.7 | % |
All Other (2) |
|
| 3,284 |
|
|
| 331 |
|
|
| 2,953 |
|
|
| 892.1 | % |
|
| 13,033 |
|
|
| 1,374 |
|
|
| 11,659 |
|
|
| 848.5 | % |
Total revenue |
| $ | 934,491 |
|
| $ | 405,829 |
|
| $ | 528,662 |
|
|
| 130.3 | % |
| $ | 3,184,255 |
|
| $ | 1,357,700 |
|
| $ | 1,826,555 |
|
|
| 134.5 | % |
Gross profit (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| ||||||||
Ecommerce |
| $ | 32,888 |
|
| $ | 20,072 |
|
| $ | 12,816 |
|
|
| 63.9 | % |
| $ | 164,746 |
|
| $ | 60,861 |
|
| $ | 103,885 |
|
|
| 170.7 | % |
Wholesale |
|
| 7,783 |
|
|
| (2,938 | ) |
|
| 10,721 |
|
|
| 364.9 | % |
|
| 18,120 |
|
|
| (1,432 | ) |
|
| 19,552 |
|
|
| 1,365.4 | % |
TDA |
|
| 2,163 |
|
|
| 2,878 |
|
|
| (715 | ) |
|
| (24.8 | )% |
|
| 11,907 |
|
|
| 11,677 |
|
|
| 230 |
|
|
| 2.0 | % |
All Other (2) |
|
| 1,872 |
|
|
| 94 |
|
|
| 1,778 |
|
|
| 1,891.5 | % |
|
| 7,326 |
|
|
| 439 |
|
|
| 6,887 |
|
|
| 1,568.8 | % |
Total gross profit |
| $ | 44,706 |
|
| $ | 20,106 |
|
| $ | 24,600 |
|
|
| 122.4 | % |
| $ | 202,099 |
|
| $ | 71,545 |
|
| $ | 130,554 |
|
|
| 182.5 | % |
Gross profit (loss) per unit (3): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||
Ecommerce |
| $ | 1,548 |
|
| $ | 1,821 |
|
| $ | (273 | ) |
|
| (15.0 | )% |
| $ | 2,206 |
|
| $ | 1,765 |
|
| $ | 441 |
|
|
| 25.0 | % |
Wholesale |
| $ | 890 |
|
| $ | (420 | ) |
| $ | 1,310 |
|
|
| 311.9 | % |
| $ | 488 |
|
| $ | (68 | ) |
| $ | 556 |
|
|
| 817.6 | % |
TDA |
| $ | 1,028 |
|
| $ | 1,620 |
|
| $ | (592 | ) |
|
| (36.5 | )% |
| $ | 1,651 |
|
| $ | 1,581 |
|
| $ | 70 |
|
|
| 4.4 | % |
Total Units
Total units sold increased 62.1% to 32,090.
Total Revenue
Total revenue increased 130.3% to $934.5 million.
4
Total Gross Profit
Total gross profit increased 122.4% to $44.7 million.
Gross Profit per Unit
SG&A
|
| Three Months Ended |
|
|
|
|
|
|
|
| Year Ended |
|
|
|
|
|
|
| ||||||||||||||||||
|
|
| 2021 |
|
|
| 2020 |
|
| Change |
|
| % Change |
|
|
| 2021 |
|
|
| 2020 |
|
| Change |
|
| % Change |
| ||||||||
|
|
|
|
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|
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|
|
|
|
|
|
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| ||||||||
|
| (in thousands) |
|
|
|
|
|
|
|
| (in thousands) |
|
|
|
|
|
|
| ||||||||||||||||||
Compensation & benefits |
| $ |
| 59,332 |
|
| $ |
| 28,384 |
|
| $ | 30,948 |
|
|
| 109.0 | % |
| $ |
| 204,913 |
|
| $ |
| 92,205 |
|
| $ | 112,708 |
|
|
| 122.2 | % |
Marketing expense |
|
|
| 37,214 |
|
|
|
| 17,564 |
|
|
| 19,650 |
|
|
| 111.9 | % |
|
|
| 125,481 |
|
|
|
| 62,393 |
|
|
| 63,088 |
|
|
| 101.1 | % |
Outbound logistics |
|
|
| 27,800 |
|
|
|
| 10,500 |
|
|
| 17,300 |
|
|
| 164.8 | % |
|
|
| 85,788 |
|
|
|
| 30,262 |
|
|
| 55,526 |
|
|
| 183.5 | % |
Occupancy and related costs |
|
|
| 4,849 |
|
|
|
| 3,210 |
|
|
| 1,639 |
|
|
| 51.1 | % |
|
|
| 17,448 |
|
|
|
| 10,784 |
|
|
| 6,664 |
|
|
| 61.8 | % |
Professional fees |
|
|
| 8,435 |
|
|
|
| 4,863 |
|
|
| 3,572 |
|
|
| 73.5 | % |
|
|
| 24,386 |
|
|
|
| 10,560 |
|
|
| 13,826 |
|
|
| 130.9 | % |
Other |
|
|
| 28,711 |
|
|
|
| 13,607 |
|
|
| 15,104 |
|
|
| 111.0 | % |
|
|
| 89,807 |
|
|
|
| 39,342 |
|
|
| 50,465 |
|
|
| 128.3 | % |
Total selling, general & administrative expenses |
| $ |
| 166,341 |
|
| $ |
| 78,128 |
|
| $ | 88,213 |
|
|
| 112.9 | % |
| $ |
| 547,823 |
|
| $ |
| 245,546 |
|
| $ | 302,277 |
|
|
| 123.1 | % |
5
Selling, general and administrative expenses increased 112.9% to $166.3 million. The increase was primarily due to:
We expect selling, general and administrative expenses to continue to increase in the future as we continue to scale our business, integrate and invest in UACC, invest in and improve our customer experience, and continue expanding our proprietary logistics and reconditioning networks. However, we believe these increases will be partially offset by operating leverage as our business continues to scale and we gain efficiencies from our investments in technology and process improvements.
Loss from Operations and Net Loss
Loss from operations increased 110.9% to $125.3 million. Net loss increased 114.0% to $129.8 million.
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, 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 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, 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 are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because 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, facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
6
EBITDA and Adjusted EBITDA
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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and acquisition related costs. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure:
|
| Three Months Ended |
|
| Year Ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
| (in thousands) |
|
| (in thousands) |
| ||||||||||
Net loss |
| $ | (129,793 | ) |
| $ | (60,662 | ) |
| $ | (370,911 | ) |
| $ | (202,799 | ) |
Adjusted to exclude the following: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Interest expense |
|
| 7,228 |
|
|
| 3,274 |
|
|
| 21,948 |
|
|
| 9,656 |
|
Interest income |
|
| (3,053 | ) |
|
| (1,936 | ) |
|
| (10,341 | ) |
|
| (5,896 | ) |
Provision for income taxes |
|
| 375 |
|
|
| (54 | ) |
|
| 754 |
|
|
| 84 |
|
Depreciation and amortization expense |
|
| 3,718 |
|
|
| 1,399 |
|
|
| 13,215 |
|
|
| 4,654 |
|
EBITDA |
| $ | (121,525 | ) |
| $ | (57,979 | ) |
| $ | (345,335 | ) |
| $ | (194,301 | ) |
One-time IPO related acceleration of non-cash stock-based compensation |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,262 |
|
One-time IPO related non-cash revaluation of preferred stock warrant |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 20,470 |
|
Acquisition related costs |
|
| 1,678 |
|
|
| 2,080 |
|
|
| 5,090 |
|
|
| 2,080 |
|
Adjusted EBITDA |
| $ | (119,847 | ) |
| $ | (55,899 | ) |
| $ | (340,245 | ) |
| $ | (170,489 | ) |
Adjusted loss from Operations
We calculate Adjusted loss from operations as loss from operations adjusted to exclude the one-time, IPO related acceleration of non-cash stock-based compensation expense and acquisition related costs. The following table presents a reconciliation of Adjusted loss from operations to loss from operations, which is the most directly comparable U.S. GAAP measure:
|
| Three Months Ended |
|
| Year Ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
|
| (in thousands) |
|
| (in thousands) |
| ||||||||||
Loss from operations |
| $ | (125,250 | ) |
| $ | (59,381 | ) |
| $ | (358,615 | ) |
| $ | (178,599 | ) |
Add: One-time IPO related acceleration of non-cash stock based compensation |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,262 |
|
Add: Acquisition related costs |
|
| 1,678 |
|
|
| 2,080 |
|
|
| 5,090 |
|
|
| 2,080 |
|
Adjusted loss from operations |
| $ | (123,572 | ) |
| $ | (57,301 | ) |
| $ | (353,525 | ) |
| $ | (175,257 | ) |
Non-GAAP net loss, Non-GAAP net loss per share and Non-GAAP net loss per share, as adjusted
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, the one-time, IPO related non-cash revaluation of a preferred stock warrant and acquisition related costs. We calculate Non-GAAP net loss per share as Non-GAAP net loss divided by weighted average number of shares outstanding. The following table presents a reconciliation of Non-GAAP net loss and Non-GAAP net loss per share to net loss and net loss per share, which are the most directly comparable U.S. GAAP measures:
7
|
| Three Months Ended |
|
| Year Ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
| (in thousands, except share and per share amounts) |
| (in thousands, except share and per share amounts) |
| ||||||||||||
Net loss |
| $ | (129,793 | ) |
| $ | (60,662 | ) |
| $ | (370,911 | ) |
| $ | (202,799 | ) |
Net loss attributable to common stockholders |
| $ | (129,793 | ) |
| $ | (60,662 | ) |
| $ | (370,911 | ) |
| $ | (202,799 | ) |
Add: One-time IPO related acceleration of non-cash stock based compensation |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 1,262 |
|
Add: One-time IPO related non-cash revaluation of preferred stock warrant |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 20,470 |
|
Add: Acquisition related costs |
|
| 1,678 |
|
|
| 2,080 |
|
|
| 5,090 |
|
|
| 2,080 |
|
Non-GAAP net loss |
| $ | (128,115 | ) |
| $ | (58,582 | ) |
| $ | (365,821 | ) |
| $ | (178,987 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted |
|
| 136,948,461 |
|
|
| 132,187,850 |
|
|
| 136,429,791 |
|
|
| 73,345,569 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net loss per share, basic and diluted |
| $ | (0.95 | ) |
| $ | (0.46 | ) |
| $ | (2.72 | ) |
| $ | (2.76 | ) |
Impact of one-time IPO related acceleration of non-cash stock based compensation |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.02 |
|
Impact of one-time IPO related non-cash revaluation of preferred stock warrant |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 0.28 |
|
Impact of acquisition related costs |
|
| 0.01 |
|
|
| 0.02 |
|
|
| 0.04 |
|
|
| 0.03 |
|
Non-GAAP net loss per share, basic and diluted |
| $ | (0.94 | ) |
| $ | (0.44 | ) |
| $ | (2.68 | ) |
| $ | (2.43 | ) |
Non-GAAP net loss per share, as adjusted, basic and diluted(a) |
| $ | (0.94 | ) |
| $ | (0.44 | ) |
| $ | (2.68 | ) |
| $ | (1.37 | ) |
(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, (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 and (iii) the shares of common stock issued with our follow-on public offering. The computation of Non-GAAP net loss per share, as adjusted is as follows:
|
| Three Months Ended |
|
| Year Ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
| (in thousands, except share and per share amounts) |
| (in thousands, except share and per share amounts) |
| ||||||||||||
Non-GAAP net loss |
| $ | (128,115 | ) |
| $ | (58,582 | ) |
| $ | (365,821 | ) |
| $ | (178,987 | ) |
Non-GAAP net loss, as adjusted |
| $ | (128,115 | ) |
| $ | (58,582 | ) |
| $ | (365,821 | ) |
| $ | (178,987 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted-average number of shares outstanding used to compute net loss per share, basic and diluted |
|
| 136,948,461 |
|
|
| 132,187,850 |
|
|
| 136,429,791 |
|
|
| 73,345,569 |
|
Add: unweighted adjustment for common stock issued in connection with IPO |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 24,437,500 |
|
Add: unweighted adjustment for conversion of redeemable convertible preferred stock in connection with IPO |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 85,533,394 |
|
Add: unweighted adjustment for common stock issued in connection with follow-on public offering |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 10,800,000 |
|
Less: Adjustment for the impact of the above items already included in weighted-average number of shares outstanding for the periods presented |
|
| — |
|
|
| — |
|
|
| — |
|
|
| (63,865,903 | ) |
Weighted-average number of shares outstanding used to compute net loss per share, as adjusted, basic and diluted |
|
| 136,948,461 |
|
|
| 132,187,850 |
|
|
| 136,429,791 |
|
|
| 130,250,560 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Non-GAAP net loss per share, as adjusted, basic and diluted |
| $ | (0.94 | ) |
| $ | (0.44 | ) |
| $ | (2.68 | ) |
| $ | (1.37 | ) |
8
Financial Outlook
For the first quarter 2022, we expect the following results:
The foregoing estimates are forward-looking statements that reflect the Company’s expectations as of February 28, 2022 and are subject to substantial uncertainty. See “Forward-Looking Statements” below.
Conference Call & Webcast Information
Vroom management will discuss these results and other information regarding the Company during a conference call and audio webcast Tuesday, March 1, 2022 at 8:30 a.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 9567145. 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.
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 our expectations regarding our business strategy and plans, including our ability to integrate and develop United Auto Credit Corporation into a captive finance operation, as well as our ability to scale our business, grow inventory, expand reconditioning capacity, invest in logistics and improve our end-to-end customer experience, and for future results of operations and financial position, including our ability to improve our unit economics and our outlook for the first quarter ended March 31, 2022. 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
9
year ended December 31, 2021, 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
Allen Miller
investors@vroom.com
Media Contact:
Moxie Communications Group
Alyssa Galella
vroom@moxiegrouppr.com
(562) 294-6261
10
VROOM, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(unaudited)
|
| As of |
| |||||
|
| December 31, |
| |||||
|
| 2021 |
|
| 2020 |
| ||
ASSETS |
|
|
|
|
|
| ||
Current Assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 1,132,325 |
|
| $ | 1,056,213 |
|
Restricted cash |
|
| 82,450 |
|
|
| 33,826 |
|
Accounts receivable, net of allowance of $8,889 and $2,803, respectively |
|
| 105,433 |
|
|
| 60,576 |
|
Inventory |
|
| 726,384 |
|
|
| 423,647 |
|
Prepaid expenses and other current assets |
|
| 55,700 |
|
|
| 23,617 |
|
Total current assets |
|
| 2,102,292 |
|
|
| 1,597,879 |
|
Property and equipment, net |
|
| 37,042 |
|
|
| 15,092 |
|
Intangible assets, net |
|
| 28,207 |
|
|
| 34 |
|
Goodwill |
|
| 158,817 |
|
|
| 78,172 |
|
Operating lease right-of-use assets |
|
| 15,359 |
|
|
| 17,137 |
|
Other assets |
|
| 25,033 |
|
|
| 15,742 |
|
Total assets |
| $ | 2,366,750 |
|
| $ | 1,724,056 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
| ||
Current Liabilities: |
|
|
|
|
|
| ||
Accounts payable |
| $ | 52,651 |
|
| $ | 32,925 |
|
Accrued expenses |
|
| 121,508 |
|
|
| 59,405 |
|
Vehicle floorplan |
|
| 512,801 |
|
|
| 329,231 |
|
Deferred revenue |
|
| 75,803 |
|
|
| 24,822 |
|
Operating lease liabilities, current |
|
| 6,889 |
|
|
| 6,052 |
|
Other current liabilities |
|
| 57,604 |
|
|
| 30,275 |
|
Total current liabilities |
|
| 827,256 |
|
|
| 482,710 |
|
Convertible senior notes |
|
| 610,618 |
|
|
| — |
|
Operating lease liabilities, excluding current portion |
|
| 9,592 |
|
|
| 12,093 |
|
Other long-term liabilities |
|
| 4,090 |
|
|
| 2,151 |
|
Total liabilities |
|
| 1,451,556 |
|
|
| 496,954 |
|
Commitments and contingencies (Note 11) |
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
|
| ||
Common stock, $0.001 par value; 500,000,000 shares authorized as of December 31, 2021 and December 31, 2020; 137,092,891 and 134,043,969 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively |
|
| 135 |
|
|
| 132 |
|
Additional paid-in-capital |
|
| 2,063,841 |
|
|
| 2,004,841 |
|
Accumulated deficit |
|
| (1,148,782 | ) |
|
| (777,871 | ) |
Total stockholders’ equity |
|
| 915,194 |
|
|
| 1,227,102 |
|
Total liabilities and stockholders’ equity |
| $ | 2,366,750 |
|
| $ | 1,724,056 |
|
11
VROOM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
|
| Three Months Ended |
|
| Year Ended |
| ||||||||||
|
| 2021 |
|
| 2020 |
|
| 2021 |
|
| 2020 |
| ||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Retail vehicle, net |
| $ | 785,262 |
|
| $ | 318,171 |
|
| $ | 2,583,417 |
|
| $ | 1,072,551 |
|
Wholesale vehicle |
|
| 121,543 |
|
|
| 75,111 |
|
|
| 498,981 |
|
|
| 245,580 |
|
Product, net |
|
| 24,402 |
|
|
| 12,216 |
|
|
| 88,824 |
|
|
| 38,195 |
|
Other |
|
| 3,284 |
|
|
| 331 |
|
|
| 13,033 |
|
|
| 1,374 |
|
Total revenue |
|
| 934,491 |
|
|
| 405,829 |
|
|
| 3,184,255 |
|
|
| 1,357,700 |
|
Cost of sales |
|
| 889,785 |
|
|
| 385,723 |
|
|
| 2,982,156 |
|
|
| 1,286,155 |
|
Total gross profit |
|
| 44,706 |
|
|
| 20,106 |
|
|
| 202,099 |
|
|
| 71,545 |
|
Selling, general and administrative expenses |
|
| 166,341 |
|
|
| 78,128 |
|
|
| 547,823 |
|
|
| 245,546 |
|
Depreciation and amortization |
|
| 3,615 |
|
|
| 1,359 |
|
|
| 12,891 |
|
|
| 4,598 |
|
Loss from operations |
|
| (125,250 | ) |
|
| (59,381 | ) |
|
| (358,615 | ) |
|
| (178,599 | ) |
Interest expense |
|
| 7,228 |
|
|
| 3,274 |
|
|
| 21,948 |
|
|
| 9,656 |
|
Interest income |
|
| (3,053 | ) |
|
| (1,936 | ) |
|
| (10,341 | ) |
|
| (5,896 | ) |
Revaluation of preferred stock warrant |
|
| — |
|
|
| — |
|
|
| — |
|
|
| 20,470 |
|
Other income, net |
|
| (7 | ) |
|
| (3 | ) |
|
| (65 | ) |
|
| (114 | ) |
Loss before provision for income taxes |
|
| (129,418 | ) |
|
| (60,716 | ) |
|
| (370,157 | ) |
|
| (202,715 | ) |
Provision for income taxes |
|
| 375 |
|
|
| (54 | ) |
|
| 754 |
|
|
| 84 |
|
Net loss |
| $ | (129,793 | ) |
| $ | (60,662 | ) |
| $ | (370,911 | ) |
| $ | (202,799 | ) |
Net loss per share attributable to common stockholders, basic and diluted |
| $ | (0.95 | ) |
| $ | (0.46 | ) |
| $ | (2.72 | ) |
| $ | (2.76 | ) |
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted |
|
| 136,948,461 |
|
|
| 132,187,850 |
|
|
| 136,429,791 |
|
|
| 73,345,569 |
|
12
VROOM, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
| Year Ended |
| |||||
|
| 2021 |
|
| 2020 |
| ||
Operating activities |
|
|
|
|
|
| ||
Net loss |
| $ | (370,911 | ) |
| $ | (202,799 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
| 13,215 |
|
|
| 4,654 |
|
Amortization of debt issuance costs |
|
| 2,872 |
|
|
| 938 |
|
Stock-based compensation expense |
|
| 13,409 |
|
|
| 13,254 |
|
Provision to record inventory at lower of cost or net realizable value |
|
| 9,471 |
|
|
| 6,588 |
|
Revaluation of preferred stock warrant |
|
| — |
|
|
| 20,470 |
|
Other |
|
| 9,619 |
|
|
| 2,375 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
| ||
Accounts receivable |
|
| (53,206 | ) |
|
| (32,068 | ) |
Inventory |
|
| (312,208 | ) |
|
| (224,489 | ) |
Prepaid expenses and other current assets |
|
| (32,452 | ) |
|
| (9,117 | ) |
Other assets |
|
| (9,172 | ) |
|
| (4,556 | ) |
Accounts payable |
|
| 19,321 |
|
|
| 14,066 |
|
Accrued expenses |
|
| 61,170 |
|
|
| 28,431 |
|
Deferred revenue |
|
| 50,943 |
|
|
| 7,499 |
|
Other liabilities |
|
| 29,241 |
|
|
| 19,500 |
|
Net cash used in operating activities |
|
| (568,688 | ) |
|
| (355,254 | ) |
Investing activities |
|
|
|
|
|
| ||
Purchase of property and equipment |
|
| (28,413 | ) |
|
| (11,329 | ) |
Acquisition of business, net of cash acquired |
|
| (75,875 | ) |
|
| — |
|
Net cash used in investing activities |
|
| (104,288 | ) |
|
| (11,329 | ) |
Financing activities |
|
|
|
|
|
| ||
Proceeds from vehicle floorplan |
|
| 2,713,350 |
|
|
| 1,242,736 |
|
Repayments of vehicle floorplan |
|
| (2,529,780 | ) |
|
| (1,086,966 | ) |
Proceeds from issuance of convertible senior notes |
|
| 625,000 |
|
|
| — |
|
Issuance costs paid for convertible senior notes |
|
| (16,129 | ) |
|
| — |
|
Proceeds from the issuance of redeemable convertible preferred stock, net |
|
| — |
|
|
| 21,694 |
|
Repurchase of common stock |
|
| — |
|
|
| (1,818 | ) |
Common stock shares withheld to satisfy employee tax withholding obligations |
|
| — |
|
|
| (2,915 | ) |
Proceeds from the issuance of common stock in connection with IPO, net of underwriting discount |
|
| — |
|
|
| 504,024 |
|
Payments of costs related to IPO |
|
| — |
|
|
| (6,791 | ) |
Proceeds from the issuance of common stock in connection with follow-on public offering, net of underwriting discount |
|
| — |
|
|
| 569,471 |
|
Payments of costs related to follow-on public offering |
|
| — |
|
|
| (1,519 | ) |
Proceeds from exercise of stock options |
|
| 5,766 |
|
|
| 2,341 |
|
Other financing activities |
|
| (495 | ) |
|
| (3,222 | ) |
Net cash provided by financing activities |
|
| 797,712 |
|
|
| 1,237,035 |
|
Net increase in cash, cash equivalents and restricted cash |
|
| 124,736 |
|
|
| 870,452 |
|
Cash, cash equivalents and restricted cash at the beginning of period |
|
| 1,090,039 |
|
|
| 219,587 |
|
Cash, cash equivalents and restricted cash at the end of period |
| $ | 1,214,775 |
|
| $ | 1,090,039 |
|
13