Vroom (VRMMQ) 10-Q 12 May 21 2021 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 10, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q1
Trading Symbol	VRM
Entity Registrant Name	VROOM, INC.
Entity Central Index Key	0001580864
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock, $0.001 par value
Security Exchange Name	NASDAQ
Entity File Number	001-39315
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	90-1112566
Entity Address, Address Line One	1375 Broadway
Entity Address, Address Line Two	Floor 11
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10018
City Area Code	855
Local Phone Number	524-1300
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock, Shares Outstanding		136,456,295

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Current Assets:
Cash and cash equivalents	$ 940,287	$ 1,056,213
Restricted cash	26,550	33,826
Accounts receivable, net of allowance of $4,380 and $2,803, respectively	93,215	60,576
Inventory	337,696	423,647
Prepaid expenses and other current assets	24,724	23,617
Total current assets	1,422,472	1,597,879
Property and equipment, net	16,937	15,092
Intangible assets, net	32,912	34
Goodwill	159,306	78,172
Operating lease right-of-use assets	18,569	17,137
Other assets	16,511	15,742
Total assets	1,666,707	1,724,056
Current Liabilities:
Accounts payable	42,840	32,925
Accrued expenses	71,966	59,405
Vehicle floorplan	253,038	329,231
Deferred revenue	48,236	24,822
Operating lease liabilities, current	6,365	6,052
Other current liabilities	32,700	30,275
Total current liabilities	455,145	482,710
Operating lease liabilities, excluding current portion	13,457	12,093
Other long-term liabilities	2,504	2,151
Total liabilities	471,106	496,954
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $0.001 par value; 500,000,000 shares authorized as of March 31, 2021 and December 31, 2020; 136,303,301 and 134,043,969 shares issued and outstanding as of March 31, 2021 and December 31, 2020, respectively	134	132
Additional paid-in-capital	2,050,527	2,004,841
Accumulated deficit	(855,060)	(777,871)
Total stockholders’ equity	1,195,601	1,227,102
Total liabilities and stockholders’ equity	$ 1,666,707	$ 1,724,056

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Accounts receivable, net of allowance	$ 4,380	$ 2,803
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	136,303,301	134,043,969
Common stock, shares outstanding	136,303,301	134,043,969

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenue:
Total revenue	$ 591,118	$ 375,772
Cost of sales	554,942	357,385
Total gross profit	36,176	18,387
Selling, general and administrative expenses	109,114	58,380
Depreciation and amortization	2,594	966
Loss from operations	(75,532)	(40,959)
Interest expense	3,812	2,826
Interest income	(2,296)	(1,956)
Revaluation of preferred stock warrant		(790)
Other income, net	(15)	(33)
Loss before provision for income taxes	(77,033)	(41,006)
Provision for income taxes	156	53
Net loss	$ (77,189)	$ (41,059)
Net loss per share attributable to common stockholders, basic and diluted	$ (0.57)	$ (4.85)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted	135,497,511	8,471,456
Retail vehicle, net
Revenue:
Total revenue	$ 454,323	$ 308,710
Wholesale vehicle
Revenue:
Total revenue	118,024	55,578
Product, net
Revenue:
Total revenue	15,572	11,044
Other
Revenue:
Total revenue	$ 3,199	$ 440

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands	Total	Redeemable Convertible Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Dec. 31, 2019	$ (573,852)		$ 8		$ (573,860)
Balance (in shares) at Dec. 31, 2019			8,650,922
Temporary Equity, Balance at Dec. 31, 2019		$ 874,332
Temporary Equity, Balance, shares at Dec. 31, 2019		83,568,628
Stock-based compensation	600			$ 600
Exercise of stock options	6			6
Exercise of stock options (in shares)			2,774
Repurchase of common stock	(1,818)			(606)	(1,212)
Repurchase of common stock (in shares)			(200,000)
Issuance of Series H redeemable convertible preferred stock, net of issuance costs		$ 26,714
Issuance of Series H redeemable convertible preferred stock, net of issuance costs, shares		1,964,766
Net loss	(41,059)				(41,059)
Balance at Mar. 31, 2020	(616,123)		$ 8		(616,131)
Balance (in shares) at Mar. 31, 2020			8,453,696
Temporary Equity, Balance at Mar. 31, 2020		$ 901,046
Temporary Equity, Balance (in shares) at Mar. 31, 2020		85,533,394
Balance at Dec. 31, 2020	1,227,102		$ 132	2,004,841	(777,871)
Balance (in shares) at Dec. 31, 2020			134,043,969
Issuance of common stock for acquisition of business	39,030		$ 1	39,029
Issuance of common stock for acquisition of business (in shares)			1,072,117
Fair value of unvested stock options assumed in acquisition of business	1,017			1,017
Stock-based compensation	2,820			2,820
Exercise of stock options	2,821		$ 1	2,820
Exercise of stock options (in shares)			687,336
Vesting of restricted stock units (in shares)			499,879
Net loss	(77,189)				(77,189)
Balance at Mar. 31, 2021	$ 1,195,601		$ 134	$ 2,050,527	$ (855,060)
Balance (in shares) at Mar. 31, 2021			136,303,301

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Operating activities
Net loss	$ (77,189)	$ (41,059)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	2,906	970
Amortization of debt issuance costs	281	94
Stock-based compensation expense	2,820	600
Provision for inventory obsolescence	(2,551)	4,427
Revaluation of preferred stock warrant		(790)
Other	1,813	306
Changes in operating assets and liabilities:
Accounts receivable	(33,140)	(4,530)
Inventory	88,502	21,702
Prepaid expenses and other current assets	(1,127)	(2,084)
Other assets	(650)	(807)
Accounts payable	9,568	(2,937)
Accrued expenses	12,194	(847)
Deferred revenue	23,376	(4,499)
Other liabilities	2,751	4,309
Net cash provided by (used in) operating activities	29,554	(25,145)
Investing activities
Purchase of property and equipment	(3,239)	(1,699)
Acquisition of business, net of cash acquired	(76,145)
Net cash used in investing activities	(79,384)	(1,699)
Financing activities
Proceeds from vehicle floorplan	396,849	293,854
Repayments of vehicle floorplan	(473,042)	(302,149)
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		(1,818)
Payments of costs related to IPO		(828)
Proceeds from exercise of stock options	2,821	6
Other financing activities		(34)
Net cash (used in) provided by financing activities	(73,372)	9,600
Net decrease in cash, cash equivalents and restricted cash	(123,202)	(17,244)
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	966,837	202,343
Supplemental disclosure of cash flow information:
Cash paid for interest	3,525	2,743
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock for acquisition of business	39,030
Fair value of unvested stock options assumed for acquisition of business	1,017
Accrued property and equipment expenditures	$ 136	289
IPO
Supplemental disclosure of non-cash investing and financing activities:
Costs related to IPO included in accrued expenses and accounts payable		$ 2,162

Description of Business and Bas

Description of Business and Basis of Presentation	3 Months Ended
	Mar. 31, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of Business and Basis of Presentation	1. Description of Business and Basis of Presentation Description of Business and Organization Vroom, Inc., and its wholly owned subsidiaries (collectively, “the Company”) is an innovative, end-to-end ecommerce platform that is transforming the used vehicle industry by offering a better way to buy and a better way to sell used vehicles. In December 2015, the Company acquired Houston-based Left Gate Property Holding, LLC (d/b/a Texas Direct Auto and Vroom). The acquisition included the Company's proprietary vehicle reconditioning center, the Texas Direct Auto ("TDA") dealership, and Sell Us Your Car® centers. Left Gate Property Holding, LLC was renamed Vroom Automotive, LLC in March 2021, and is the primary operating entity for the Company's purchases and sales of used vehicles. In January 2021, the Company acquired Vast Holdings, Inc.(d/b/a CarStory). The Company currently is organized into three reportable segments: Ecommerce, Wholesale, and TDA. The Ecommerce reportable 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 vehicles sales. The Wholesale reportable segment represents sales of used vehicles through wholesale channels. The TDA reportable segment represents retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicles sales. The Company was incorporated in Delaware on January 31, 2012 under the name BCM Partners III, Corp. On June 25, 2013, the Company changed its name to Auto America, Inc. and on July 9, 2015, the Company changed its name to Vroom, Inc. Stock Split In connection with the closing of the Company’s initial public offering (“IPO”) on June 11, 2020, the Company effected a 2-for-1 forward stock split of the Company’s common stock, which became effective immediately prior to the consummation of the IPO. All shares of the Company’s common stock, stock-based instruments, and per-share data included in these condensed consolidated financial statements have been retroactively adjusted as though the stock split has been effected prior to all periods presented. Initial Public Offering The Company closed its IPO on June 11, 2020 in which it sold 24,437,500 shares of common stock at the public offering price of $22.00 per share, including 3,187,500 shares sold pursuant to exercise by the underwriters of their option to purchase additional shares. The Company received proceeds of $504.0 million from the IPO, net of the underwriting discount and before deducting offering expenses of $7.5 million. In addition, in accordance with their terms, all shares of the Company’s outstanding redeemable convertible preferred stock were automatically converted into common stock upon the closing of the IPO. Follow-on Public Offering The Company closed its follow-on public offering on September 15, 2020 in which it sold 10,800,000 shares of common stock at the public offering price of $54.50 per share. The Company received proceeds of $569.5 million from the offering, net of the underwriting discount and before deducting offering expenses of $1.5 million. Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of the Company’s condensed consolidated balance sheet as of March 31, 2021 and its results of operations for the three months ended March 31, 2021 and 2020. The results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. Certain prior year amounts have been reclassified to conform to the current year presentation. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to income taxes, the realizability of inventory, stock-based compensation, contingencies, revenue-related reserves, fair value measurements, goodwill, and useful lives of property and equipment and intangible assets. The Company bases its estimates on historical experience, market conditions, and on various other assumptions that are believed to be reasonable. Actual results may differ from these estimates. Due to the evolving and uncertain nature of the COVID-19 pandemic, it is reasonably possible that it could materially impact the Company’s estimates, particularly those noted above that require consideration of forecasted financial information, in the near to medium term. The ultimate impact will depend on numerous evolving factors that the Company may not be able to accurately predict, including the duration and extent of the pandemic, the impact of federal, state, local and foreign governmental actions, consumer behavior in response to the pandemic and other economic and operational conditions the Company may face. Comprehensive Loss The Company did not have any other comprehensive income or loss for the three months ended March 31, 2021 and 2020. Accordingly, net loss and comprehensive loss are the same for the periods presented. Restricted Cash Restricted cash includes cash deposits required under letter of credit agreements as explained in Note 10 – Commitments and Contingencies. As of March 31, 2021 and December 31, 2020, restricted cash also includes $24.7 million and $31.6 million, respectively, of cash deposits required under the Company’s 2020 Vehicle Floorplan Facility as explained in Note 9 – Vehicle Floorplan Facilities. Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company will continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments will be recorded to the Company’s condensed consolidated statement of operations. Advertising Advertising costs are expensed as incurred and are included within “Selling, general and administrative expenses” in the condensed consolidated statements of operations. Advertising expenses were $29.6 million and $17.9 million for the three months ended March 31, 2021 and 2020, respectively. Shipping and Handling The Company’s logistics costs related to transporting its used vehicle inventory primarily include third-party transportation fees. The portion of these costs related to inbound transportation from the point of acquisition to the relevant reconditioning facility is included in cost of sales when the related used vehicle is sold. Logistics costs not included in cost of sales are accounted for as costs to fulfil contracts with customers and are included in “Selling, general and administrative expenses” in the condensed consolidated statements of operations and were $15.4 million and $5.8 million for the three months ended March 31, 2021 and 2020, respectively. Concentration of Credit Risk and Significant Customers The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents and accounts receivable, which are unsecured. The Company’s cash balances are maintained at various large financial institutions. Deposits held with financial institutions may at times exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and, therefore, management believes they bear minimal risk. The Company’s cash equivalents primarily consist of money market funds that hold investments in highly liquid US treasury securities. Concentration of credit risk with respect to accounts receivable is generally mitigated by a large customer base. For the three months ended March 31, 2021 and 2020, no customer represented 10% or more of the Company’s revenues and no customer represented more than 10% of the Company’s accounts receivable as of March 31, 2021 and December 31, 2020. Liquidity The Company has had negative cash flows and losses from operations since inception which it has funded primarily through issuances of common and preferred stock. The Company has historically funded vehicle inventory purchases through a vehicle floorplan facility. As further discussed in Note 9 – Vehicle Floorplan Facilities, the Company entered into a new facility in March 2020 which increased the borrowing capacity to $450.0 million. In October 2020, the Vehicle Floorplan Facility was amended to extend the maturity date to September 2022. Nonemployee Share-Based Payments On May 15, 2020, the Company entered into an agreement with Rocket Auto LLC and certain of its affiliates (collectively, “Rocket”) providing for the launch of an ecommerce platform under the “Rocket Auto” brand for the marketing and sale of vehicles directly to consumers (the “RA Agreement”). The Company will list its used vehicle inventory for sale on the Rocket Auto platform, but all sales of the Company’s inventory will be conducted through the Company’s platform. Rocket Auto is expected to launch publicly during 2021 and, during the term of the RA Agreement, Rocket has agreed to ensure that not less than a minimum percentage of all used vehicles sold or leased through the platform on a monthly basis will be Vroom inventory. The Company issued Rocket 183,870 shares of the Company’s common stock upon execution of the RA Agreement. The Company will pay Rocket a combination of cash and stock for vehicle sales made through the platform. Rocket may earn up to 8,641,914 shares of common stock over a four-year period based upon sales volume of Vroom inventory through the Rocket Auto platform. The Company accounts for the issuance of its common stock under the RA agreement in accordance with ASC 718, Compensation – Stock Compensation Accounting Standards Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2021
Revenue From Contract With Customer [Abstract]
Revenue Recognition	3. Revenue Recognition The Company recognizes revenue upon transfer of control of goods or services to customers, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The Company may collect sales taxes and other taxes from customers on behalf of governmental authorities at the time of sale as required. These taxes are accounted for on a net basis and are not included in revenues or cost of sales. The Company’s revenue is disaggregated within the condensed consolidated statements of operations and is generated from customers throughout the United States. The Company recognizes revenue at a point in time as described below. Retail Vehicle Revenue The Company sells used vehicles to its retail customers through its ecommerce platform and TDA retail location. The transaction price for used vehicles is a fixed amount as set forth within the customer contract at the time of sale. Customers frequently trade-in their existing vehicle to apply toward the transaction price of a used vehicle. Trade-in vehicles represent non-cash consideration which the Company measures at fair value based on external and internal market data for each specific vehicle. The Company satisfies its performance obligation and recognizes revenue for used vehicle sales generally at a point in time when the vehicles are delivered to the customer for ecommerce sales or picked up by the customer for TDA sales. The revenue recognized by the Company includes the agreed upon transaction price, including any delivery charges stated within the customer contract. Revenue excludes any sales taxes, title and registration fees, and other government fees that are collected from customers. The Company receives payment for used vehicle sales directly from the customer at the time of sale or from third-party financial institutions within a short period of time following the sale if the customer obtains financing. Payments received prior to delivery or pick-up of used vehicles are recorded as “Deferred revenue” within the condensed consolidated balance sheets. The Company offers a return program for used vehicle sales and establishes a provision for estimated returns based on historical information and current trends. The reserve for estimated returns is presented gross on the condensed consolidated balance sheets, with an asset recorded in “Prepaid expenses and other current assets” and a refund liability recorded in “Other current liabilities.” Wholesale Vehicle Revenue The Company sells vehicles that do not meet its retail sales criteria through wholesale channels. Vehicles sold through wholesale channels are acquired from customers who trade-in their vehicles when making a purchase from the Company, from customers who sell their vehicles to the Company in direct-buy transactions, and from liquidation of vehicles previously listed for retail sale. The transaction price for wholesale vehicles is a fixed amount. The Company satisfies its performance obligation and recognizes revenue for wholesale vehicle sales at a point in time when the vehicle is sold. The transaction price is typically due and collected within a short period of time following the vehicle sales. Product Revenue The Company’s product revenue consists of fees earned on selling vehicle service contracts, guaranteed asset protection (“GAP”) and tire and wheel coverage. The Company sells these products pursuant to arrangements with the third parties that provide these products and are responsible for their fulfillment. The Company concluded that it is an agent for these transactions because it does not control the products before they are transferred to the customer. The Company recognizes product revenues on a net basis when the customer enters into an arrangement for the products, which is typically at the time of a used vehicle sale. Customers may enter into a retail installment sales contract to finance the purchase of used vehicles. The Company sells these contracts on a non-recourse basis to various financial institutions. The Company receives a fee from the financial institution based on the difference between the interest rate charged to the customer that purchased the used vehicle and the interest rate set by the financial institution. These fees are recognized upon sale and assignment of the installment sales contract to the financial institution, which occurs concurrently at the time of a used vehicle sale. A portion of the fees earned on these products is subject to chargebacks in the event of early termination, default, or prepayment of the contracts by end-customers. The Company’s exposure for these events is limited to the fees that it receives. An estimated refund liability for chargebacks against the revenue recognized from sales of these products is recorded in the period in which the related revenue is recognized and is based primarily on the Company’s historical chargeback experience. The Company updates its estimates at each reporting date. As of March 31, 2021 and December 31, 2020, the Company’s reserve for chargebacks was $4.7 million and $3.8 million, respectively, of which $2.2 million and $1.7 million, respectively, are included within “Accrued expenses” and $2.5 million and $2.1 million, respectively, are included in “Other long-term liabilities.” The Company also is contractually entitled to receive profit-sharing revenues based on the performance of the vehicle service policies once a required claims period has passed. The Company recognizes profit-sharing revenues to the extent it is probable that it will not result in a significant revenue reversal. The Company estimates the revenue based on historical claims and cancellation data from its customers, as well as other qualitative assumptions. The Company reassesses the estimate at each reporting period with any changes reflected as an adjustment to revenues in the period identified. As of March 31, 2021 and December 31, 2020, the Company recognized $12.1 million and $11.5 million, respectively, related to cumulative profit-sharing payments to which it expects to be entitled, of which $0.9 million and $0.8 million, respectively, are included within “Prepaid expenses and other current assets” and $11.2 million and $10.7 million, respectively, are included within “Other assets.” Other Revenue Other revenue consists of labor and parts revenue earned by the Company for vehicle repair services at TDA and, commencing in the first quarter of 2021, revenue from CarStory. Contract Costs The Company has elected, as a practical expedient, to expense sales commissions when incurred because the amortization period would have been less than one year. These costs are recorded within “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

Acquisition

Acquisition	3 Months Ended
	Mar. 31, 2021
Business Combinations [Abstract]
Acquisition	4. Acquisition On January 7, 2021, the Company completed the acquisition of 100% of Vast Holdings, Inc. (d/b/a CarStory), a leader in AI-powered analytics and digital services for automotive retail. Leveraging its machine learning, CarStory brings predictive market data to the Company’s national ecommerce and vehicle operations platform. The Company expects CarStory to continue to offer its digital retailing services to dealers, automotive financial services companies and others in the automotive industry. The financial results of CarStory were included in the condensed consolidated financial statements from the date of acquisition and were not material for the three months ended March 31, 2021. The transaction costs associated with its acquisition were not material for the three months ended March 31, 2021. Pro forma results of operations have not been presented as the effect of this acquisition was not material to the condensed consolidated financial statements. The fair value of the consideration transferred to acquire Vast Holdings, Inc. was approximately $117.1 million at the acquisition date and consisted of the following (in thousands): Fair Value Cash $ 77,010 Common stock issued (1) 39,030 Fair value of unvested stock options assumed (2) 1,017 Total $ 117,057 (1) The Company issued 1,072,117 shares of common stock. The fair value of common stock was determined based on the closing market price on the date of acquisition discounted for a lack of marketability of 10.0% to account for the 180 day lock up period. (2) The fair value of the unvested stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.0392 was applied to convert CarStory’s outstanding equity awards for CarStory's common stock into equity awards for shares of the Company's common stock. The following table summarizes the fair value of the identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair Value Cash and cash equivalents $ 865 Accounts receivable, prepaid expenses and other current assets 1,330 Property and equipment and other assets 371 Intangible Assets 34,300 Goodwill 81,134 Current liabilities (943 ) Net assets acquired $ 117,057 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill which is not deductible for tax purposes. Goodwill is primarily attributable to the workforce of the acquired business and benefits related to expanded market opportunities from integrating CarStory's technology with the Company's ecommerce offerings. All of the goodwill was assigned to the ecommerce reportable segment. The following table summarizes the preliminary identifiable intangible assets acquired and their estimated weighted average useful life at the date of acquisition (in thousands): Fair Value Weighted Average Useful Life Developed technology $ 25,700 5 Trademarks 5,200 8 Customer relationships 3,400 8 Total intangible assets subject to amortization $ 34,300 Developed technology, most of which is protected by a patent portfolio, represents the fair value of CarStory’s industry-specific AI powered analytics software. Trademarks represent the CarStory trademarks, trade names and domain names. The fair values assigned to tangible and intangible assets acquired and liabilities assumed are based on management’s estimates and assumptions and may be subject to change as additional information is received. The estimated fair value of the intangible assets acquired was determined using a discounted cash flow (DCF) method under the income approach. Under this approach, the Company estimates future cash flows and discounts these cash flows at a rate of return that reflects the Company’s relative risk.

Inventory

Inventory	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Inventory	5. Inventory Inventory consisted of the following (in thousands): March 31, December 31, 2021 2020 Vehicles $ 335,703 $ 421,458 Parts and accessories 1,993 2,189 Total inventory $ 337,696 $ 423,647 As of March 31, 2021 and December 31, 2020, “Inventory” includes an adjustment of $10.4 million and $12.9 million, respectively, to record the balances at the lower of cost or net realizable value.

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Property and Equipment, Net	6. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Equipment $ 1,009 $ 1,061 Furniture and fixtures 1,778 1,746 Company vehicles 6,174 5,002 Leasehold improvements 7,094 7,068 Internal-use software 12,057 10,552 Other 3,634 2,997 31,746 28,426 Accumulated depreciation and amortization (14,809 ) (13,334 ) Property and equipment, net $ 16,937 $ 15,092 Depreciation and amortization expense was $1.5 million and $0.9 million for the three months ended March 31, 2021 and 2020, respectively. Depreciation and amortization expense included within “Cost of sales” in the condensed consolidated statements of operations for the three months ended March 31, 2021 and 2020 was not material. Implementation costs capitalized and accumulated amortization related to the Company’s cloud computing arrangements were $3.9 million and $1.2 million as of March 31, 2021, respectively, and $3.6 million and $1.0 million as of December 31, 2020, respectively, and were included within “Other assets” in the condensed consolidated balance sheets. Amortization expense of $0.3 million and $0.2 million was included within “Selling, general and administrative expenses” in the condensed statements of operations for the three months ended March 31, 2021 and 2020, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	7. Goodwill and Intangible Assets Goodwill The following table summarizes the activity in the carrying value of goodwill by reportable segment for the three months ended March 31, 2021 and 2020 (in thousands): Ecommerce Wholesale TDA Total Balance as of December 31, 2019 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Change in carrying amount — — — — Balance as of March 31, 2020 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Balance as of December 31, 2020 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Acquisition 81,134 — — 81,134 Balance as of March 31, 2021 $ 153,365 $ 1,720 $ 4,221 $ 159,306 Refer to Note 4 – Acquisition for more information related to the acquisition that occurred in the three months ended March 31, 2021. Intangible Assets Intangibles assets, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Developed Technology $ 25,700 $ — Trademarks 5,240 40 Customer Relationships 3,400 — Other 252 252 34,592 292 Accumulated Amortization (1,680 ) (258 ) Intangible assets, net $ 32,912 $ 34 Refer to Note 4 – Acquisition for more information related to the acquisition that occurred in the three months ended March 31, 2021. Amortization expense for intangible assets was $1.4 million and $0.1 million for the three months ended March 31, 2021 and 2020, respectively. The estimated amortization expense for intangible assets subsequent to March 31, 2021 consists of the following (in thousands): Year Ending December 31: For remainder of 2021 $ 4,705 2022 6,220 2023 6,215 2024 6,215 2025 6,215 Thereafter 3,342 $ 32,912

Accrued Expenses and Other Curr

Accrued Expenses and Other Current Liabilities	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities And Other Liabilities [Abstract]
Accrued Expenses and Other Current Liabilities	8. Accrued Expenses and Other Current Liabilities The Company’s accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Accrued marketing expenses $ 12,696 $ 9,106 Vehicle related expenses 14,555 13,062 Sales taxes 22,789 15,443 Accrued compensation and benefits 8,151 5,749 Accrued professional services 3,174 4,890 Other 10,601 11,155 Total accrued expenses $ 71,966 $ 59,405 The Company’s other current liabilities consisted of the following (in thousands): March 31, December 31, 2021 2020 Vehicle payable $ 23,289 $ 25,086 Other 9,411 5,189 Total other current liabilities $ 32,700 $ 30,275

Vehicle Floorplan Facilities

Vehicle Floorplan Facilities	3 Months Ended
	Mar. 31, 2021
Debt Disclosure [Abstract]
Vehicle Floorplan Facilities	9. Vehicle Floorplan Facilities In 2020, the Company entered into a new vehicle floorplan facility with Ally Bank and Ally Financial (the “2020 Vehicle Floorplan Facility”). The 2020 Vehicle Floorplan Facility provides a committed credit line of up to $450.0 million which is scheduled to expire in September 30, 2022.The amount of credit available is determined on a monthly basis based on a calculation that considers average outstanding borrowings and vehicle units paid off by the Company within the immediately preceding three-month period. As of March 31, 2021, the borrowing capacity of the 2020 Vehicle Floorplan Facility was $415.2 million, of which $162.2 million was unutilized. Outstanding borrowings related to the 2020 Vehicle Floorplan Facility are due as the vehicles financed are sold, or in any event, on the maturity date. The 2020 Vehicle Floorplan Facility bears interest at a rate equal to the 1-Month LIBOR rate applicable in the immediately preceding month plus a spread of 425 basis points. The 2020 Vehicle Floorplan Facility is collateralized by the Company’s vehicle inventory and certain other assets and the Company is subject to covenants that require it to maintain a certain level of equity in the vehicles that are financed, to maintain at least 7.5% of the outstanding borrowings in cash and cash equivalents, and to maintain 10% of the daily floorplan principal balance outstanding on deposit with Ally Bank. The Company is required to pay an availability fee each quarter on the average unused capacity from the prior quarter if it was greater than 50% of the calculated floorplan allowance, as defined. As of March 31, 2021 and December 31, 2020, outstanding borrowings on the 2020 Vehicle Floorplan Facility were $253.0 million and $329.2 million, respectively. Interest expense incurred by the Company for the 2020 Vehicle Floorplan Facility was $3.8 million and $2.7 million for the three months ended March 31, 2021 and 2020, respectively, which are recorded within “Interest expense” in the condensed consolidated statements of operations. The weighted average interest rate on the vehicle floorplan borrowings was 4.37% and 4.39% as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company was in compliance with all covenants related to the 2020 Vehicle Floorplan Facility. In connection with the 2020 Vehicle Floorplan Facility, the Company entered into credit balance agreements with Ally Bank and Ally Financial that permit the Company to deposit cash with the bank for the purpose of reducing the amount of interest payable for borrowings. Interest credits earned by the Company were $2.2 million and $1.7 million for the three months ended March 31, 2021 and 2020, respectively, which are recorded within “Interest income” in the condensed consolidated statements of operations.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2021
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	10. Commitments and Contingencies Litigation From time to time, the Company is involved in various claims and legal actions that arise in the ordinary course of business and an unfavorable resolution of any of these matters could materially affect the Company’s future results of operations, cash flows or financial position. The Company is also party to various disputes that the Company considers routine and incidental to its business. The Company does not expect the results of any of these routine actions to have a material effect on the Company’s business, results of operations, financial condition, or cash flows. The Company accrues a liability when a loss is considered probable and the amount can be reasonably estimated. When a material loss contingency is reasonably possible but not probable, the Company does not record a liability, but instead discloses the nature and the amount of the claim, and an estimate of the loss or range of loss, if such an estimate can be made. Legal fees are expensed as incurred. Beginning in March 2021, multiple putative class actions were filed in the U.S. District Court for the Southern District of New York by certain of the Company’s stockholders against the Company and certain of the Company’s officers alleging violations of federal securities laws. The lawsuits are captioned Zawatsky et al. v. Vroom, Inc. et al., Case No. 21-cv-2477; Holbrook v. Vroom, Inc. et al., Case No. 21-cv-2551; and Hudda v. Vroom, Inc. et al., Case No. 21-cv-3296. All three of the lawsuits assert similar claims under Sections 10(b) and 20(a) of the Exchange Act, and SEC Rule 10b-5. The complaints seek damages purportedly caused by alleged materially misleading statements and/or omissions by the Company and the named individual officers. In each case, the named plaintiff(s) seek to represent a proposed class of all persons who purchased or otherwise acquired the Company’s securities during a period from June 9, 2020 to March 3, 2021 (in the case of Holbrook and Hudda), or November 11, 2020 to March 3, 2021 (in the case of Zawatsky). These cases are in preliminary stages, and the Company has not yet responded to the complaints. The Company believes these lawsuits are without merit and intends to vigorously contest these claims. While the outcome of any complex legal proceeding is inherently unpredictable and subject to significant uncertainties, based upon information presently known to management, the Company believes that the potential liability, if any, will not have a material adverse effect on the Company’s financial condition, cash flows, or results of operations. Letters of Credit The Company obtained stand-by letters of credit to satisfy conditions under three lease agreements. The Company was required to maintain a cash deposit of $1.8 million and $2.2 million with the financial institution that issued the stand-by letters of credit, which is classified as “Restricted cash” within the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020, respectively. Other Matters The Company enters into agreements with third parties in the ordinary course of business that may contain indemnification provisions. In the event that an indemnification claim is asserted, the Company’s liability, if any, would be limited by the terms of the applicable agreement. Historically, the Company has not incurred material costs to defend lawsuits or settle claims related to indemnification provisions.

Redeemable Convertible Preferre

Redeemable Convertible Preferred Stock and Stockholders Equity	3 Months Ended
	Mar. 31, 2021
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Abstract]
Redeemable Convertible Preferred Stock and Stockholders' Equity	11. Redeemable Convertible Preferred Stock and Stockholders’ Equity Redeemable Convertible Preferred Stock On January 8, 2020, the Company completed an additional closing of its Series H Preferred Stock whereby it sold and issued an aggregate of 1,964,766 shares of Series H Preferred Stock in exchange for gross proceeds of $26.7 million. The proceeds were used for general corporate purposes and business development. Immediately upon closing of the IPO, the Company’s outstanding preferred stock was automatically converted into an aggregate of 85,533,394 shares of the Company’s common stock. On June 11, 2020, the Company amended its certificate of incorporation to authorize the issuance of up to 10,000,000 shares of Preferred Stock. As of March 31, 2021, there was no preferred stock issued or outstanding. Common Stock On June 11, 2020, the Company amended its certificate of incorporation to effect a 2-for-1 forward stock split of shares of the Company’s outstanding common stock, such that each share of common stock, $0.001 par value became two shares of common stock, $0.001 par value per share. Warrants In connection with the offering of shares of Series B Preferred Stock, the Company issued warrants to an investor in return for providing ongoing advisory services (“Series B Warrants”). The Series B Warrants allowed the investor to purchase up to 161,136 shares of common stock with an exercise price of $0.72 per share. The Series B Warrants vested in equal monthly installments through October 1, 2017. Upon the closing of the IPO, all of the Series B Warrants were exercised on a cashless basis by the holder which resulted in the net issuance of 155,862 shares of the Company’s common stock. In August 2017, the Company issued a warrant (the “Series F Preferred Stock Warrant”) which allowed the holders to purchase up to 589,970 shares of the Company’s Series F Preferred Stock, or common stock upon conversion of the Company’s preferred stock into common stock, with an exercise price of $8.53 per share. The holders exercised the warrant on June 23, 2020 on a cashless basis, which resulted in the net issuance of 480,250 shares of the Company’s common stock. Prior to the conversion of the Company’s preferred stock into common stock, the Series F Preferred Stock Warrant was classified as a liability due to the contingent redemption features of the Series F Preferred Stock and was measured at fair value at each reporting date.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2021
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-based Compensation	12. Stock-based Compensation On May 28, 2020, the Company adopted the 2020 Incentive Award Plan (“the 2020 Plan”), which authorized the issuance of (i) up to 3,019,108 shares of the Company’s common stock, (ii) up to the number of shares representing a 4% annual increase on the first day of each year beginning on January 1, 2022 and ending on January 1, 2030, and (iii) any shares of the Company’s common stock subject to awards under the 2014 Plan which are forfeited or lapse unexercised and which following the effective date are not issued under the 2014 Plan. Awards may be issued Stock Options The Company recognized $0.6 million of stock-based compensation expense related to stock options for each of the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had $4.6 million and $3.5 million, respectively, of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 2.3 years and 2.2 years, respectively. RSUs The Company recognized $2.2 million and $0.0 million of stock-based compensation expense related to RSUs for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021 and December 31, 2020, the Company had $22.0 million and $15.4 million, respectively, of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 1.9 years and 1.8 years, respectively.

Financial Instruments and Fair

Financial Instruments and Fair Value Measurements	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Financial Instruments and Fair Value Measurements	13. Financial Instruments and Fair Value Measurements U.S. GAAP defines fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision. U.S. GAAP establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and establishes the following three levels of inputs that may be used to measure fair value: Level 1—Quoted prices in active markets for identical assets or liabilities Level 2—Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Items Measured at Fair Value on a Recurring Basis The following tables present the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): ` As of March 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Money market funds $ 734,652 $ — $ — $ — Total financial assets $ 734,652 $ — $ — $ — ` As of December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Money market funds $ 814,681 $ — $ — $ — Total financial assets $ 814,681 $ — $ — $ — Fair Value of Financial Instruments The carrying amounts of restricted cash, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term nature. The carrying value of the 2020 Vehicle Floorplan Facility was determined to approximate fair value due to its short-term duration and variable interest rate that approximates prevailing interest rates as of each reporting period.

Segment Information

Segment Information	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Segment Information	14. Segment Information The Company has three reportable segments: Ecommerce, Wholesale, and TDA. No operating segments have been aggregated to form the reportable segments. The Company determined its operating segments based on how the chief operating decision maker (“CODM”) reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of sales incurred by the segment. The CODM does not evaluate operating segments using asset information as these are managed on an enterprise-wide group basis. Accordingly, the Company does not report segment asset information. As of March 31, 2021 and December 31, 2020, long-lived assets were predominantly located in the United States. The Ecommerce reportable 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 reportable segment represents sales of used vehicles through wholesale channels. The TDA reportable segment represents retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicle sales. Revenues within the “All Other” category consist of the CarStory business and vehicle repair services at TDA. Information about the Company’s segments are as follows (in thousands): Three Months Ended March 31, 2021 Ecommerce Wholesale TDA All Other Total Revenues from external customers $ 422,308 $ 118,024 $ 47,587 $ 3,199 $ 591,118 Gross profit (loss) $ 31,837 $ (282 ) $ 2,791 $ 1,830 $ 36,176 Three Months Ended March 31, 2020 Ecommerce Wholesale TDA All Other (1) Total Revenues from external customers $ 233,172 $ 55,578 $ 86,582 $ 440 $ 375,772 Gross profit (loss) $ 14,267 $ (1,292 ) $ 5,258 $ 154 $ 18,387 (1) The Company reclassified other revenue and other gross profit related to the vehicle repair service at TDA from the TDA reportable segment to the ”All Other” category to conform to current year presentation. Reconciliations of total reportable segment revenue and gross profit to consolidated total revenue and consolidated loss before provision for income taxes are as follows (in thousands): Three Months Ended March 31, 2021 2020 Reconciliation to consolidated total revenue Total reportable segment revenue $ 587,919 $ 375,332 All Other revenues 3,199 440 Consolidated total revenue $ 591,118 $ 375,772 Reconciliation to consolidated loss before provision for income taxes Total reportable segment gross profit $ 34,346 $ 18,233 All Other gross profit 1,830 154 Selling, general and administrative expenses 109,114 58,380 Depreciation and amortization 2,594 966 Interest expense 3,812 2,826 Interest Income (2,296 ) (1,956 ) Revaluation of preferred stock warrant — (790 ) Other income, net (15 ) (33 ) Consolidated loss before provision for income taxes $ (77,033 ) $ (41,006 )

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	15. Income Taxes The Company computes income taxes using the liability method. This method requires recognition of deferred tax assets and liabilities, measured by enacted rates, attributable to temporary differences between the financial statements and the income tax basis of assets and liabilities. In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that certain deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those specific jurisdictions prior to the dates on which such net operating losses expire. The Company maintained a full valuation allowance against its net deferred tax assets because the Company has determined that is it more likely than not that these assets will not be fully realized based on a current evaluation of expected future taxable income and the Company is in a cumulative loss position. The Company’s effective tax rate for the three months ended March 31, 2021 and 2020 was 0.20% and 0.13%, respectively. The Company is subject to tax in the United States and many state and local jurisdictions. The Company, with certain exceptions, is no longer subject to income tax examinations by U.S. federal, state and local for tax years 2015 and prior. The Internal Revenue Code (IRC) Section 382 provides for a limitation of the annual use of net operating loss and tax credit carryforwards following certain ownership changes (as defined by the IRC Section 382) that limits the Company’s ability to utilize these carryforwards. The Company completed a Section 382 study to determine the applicable limitation, if any. It was determined that the Company has undergone three ownership changes. There were ownership changes in July 2013, November 2014 and July 2015 which substantially limit the use of the net operating losses generated before the change in control. The Company has not identified any uncertain tax positions as of March 31, 2021 and December 31, 2020.

Net Loss Per Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2021
Earnings Per Share Basic And Diluted [Abstract]
Net Loss Per Share	16. Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended March 31, (in thousands, except share and per share amounts) 2021 2020 Net loss $ (77,189 ) $ (41,059 ) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 135,497,511 8,471,456 Net loss per share attributable to common stockholders, basic and diluted $ (0.57 ) $ (4.85 ) The following potentially dilutive shares were not included in the calculation of diluted shares outstanding for the periods presented as the effect would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Redeemable convertible preferred stock — 85,533,394 Warrants — 161,136 Stock options 4,995,310 6,198,676 Restricted stock awards — 3,249,382 Restricted stock units 1,700,090 610,278 Total 6,695,400 95,752,866

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2021
Related Party Transactions [Abstract]
Related Party Transactions	17. Related Party Transactions Management Services Agreement In July 2015, the Company entered into a management services agreement (“MSA”) with Catterton Management Company, L.L.C. (“Catterton Management”), an affiliate of L Catterton (“Catterton”), a holder of more than 5% of the Company’s outstanding capital stock, pursuant to which Catterton Management agreed to provide consulting services on certain business and financial matters. Under the MSA, the Company agreed to pay Catterton Management an annual fee of $0.3 million until the expiration of the MSA upon the earlier of (i) termination by mutual consent of the parties and (ii) such time that Catterton and/or its affiliates cease to be one of the Company’s stockholders. For the year ended December 31, 2020, payments of the annual fees were waived. In May 2020, the MSA was terminated. AutoNation Reconditioning Agreement In January 2019, the Company entered into a vendor agreement (“Vendor Agreement”) with AutoNation, Inc. (“AutoNation”), an affiliate of Auto Holdings, Inc., a holder of more than 5% of the Company’s outstanding capital stock, pursuant to which AutoNation agreed to provide certain reconditioning and repair services for vehicles owned by the Company. Amounts due under the Vendor Agreement for parts supplied and services performed by AutoNation become due and payable as they accrue. The Vendor Agreement was terminated in February 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2021
Accounting Policies [Abstract]
Stock Split	Stock Split In connection with the closing of the Company’s initial public offering (“IPO”) on June 11, 2020, the Company effected a 2-for-1 forward stock split of the Company’s common stock, which became effective immediately prior to the consummation of the IPO. All shares of the Company’s common stock, stock-based instruments, and per-share data included in these condensed consolidated financial statements have been retroactively adjusted as though the stock split has been effected prior to all periods presented.
Initial Public Offering	Initial Public Offering The Company closed its IPO on June 11, 2020 in which it sold 24,437,500 shares of common stock at the public offering price of $22.00 per share, including 3,187,500 shares sold pursuant to exercise by the underwriters of their option to purchase additional shares. The Company received proceeds of $504.0 million from the IPO, net of the underwriting discount and before deducting offering expenses of $7.5 million. In addition, in accordance with their terms, all shares of the Company’s outstanding redeemable convertible preferred stock were automatically converted into common stock upon the closing of the IPO.
Follow-on Public Offering	Follow-on Public Offering The Company closed its follow-on public offering on September 15, 2020 in which it sold 10,800,000 shares of common stock at the public offering price of $54.50 per share. The Company received proceeds of $569.5 million from the offering, net of the underwriting discount and before deducting offering expenses of $1.5 million.
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements of the Company have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and applicable rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited consolidated financial statements as of that date. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Annual Report on Form 10-K for the year ended December 31, 2020. The unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements, and in management’s opinion, include all adjustments, which consist of only normal recurring adjustments necessary for the fair statement of the Company’s condensed consolidated balance sheet as of March 31, 2021 and its results of operations for the three months ended March 31, 2021 and 2020. The results for the three months ended March 31, 2021 are not necessarily indicative of the results expected for the current fiscal year or any other future periods. Certain prior year amounts have been reclassified to conform to the current year presentation.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in accordance with U.S. GAAP requires management to make estimates, assumptions and judgments that affect the reported amounts of assets, liabilities, revenue, and expenses and related disclosures. On an ongoing basis, the Company evaluates its estimates, including, among others, those related to income taxes, the realizability of inventory, stock-based compensation, contingencies, revenue-related reserves, fair value measurements, goodwill, and useful lives of property and equipment and intangible assets. The Company bases its estimates on historical experience, market conditions, and on various other assumptions that are believed to be reasonable. Actual results may differ from these estimates. Due to the evolving and uncertain nature of the COVID-19 pandemic, it is reasonably possible that it could materially impact the Company’s estimates, particularly those noted above that require consideration of forecasted financial information, in the near to medium term. The ultimate impact will depend on numerous evolving factors that the Company may not be able to accurately predict, including the duration and extent of the pandemic, the impact of federal, state, local and foreign governmental actions, consumer behavior in response to the pandemic and other economic and operational conditions the Company may face.
Comprehensive Loss	Comprehensive Loss The Company did not have any other comprehensive income or loss for the three months ended March 31, 2021 and 2020. Accordingly, net loss and comprehensive loss are the same for the periods presented.
Restricted Cash	Restricted Cash Restricted cash includes cash deposits required under letter of credit agreements as explained in Note 10 – Commitments and Contingencies. As of March 31, 2021 and December 31, 2020, restricted cash also includes $24.7 million and $31.6 million, respectively, of cash deposits required under the Company’s 2020 Vehicle Floorplan Facility as explained in Note 9 – Vehicle Floorplan Facilities.
Business Combinations	Business Combinations The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. The Company will continue to collect information and reevaluate these estimates and assumptions quarterly and record any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments will be recorded to the Company’s condensed consolidated statement of operations.
Advertising	Advertising Advertising costs are expensed as incurred and are included within “Selling, general and administrative expenses” in the condensed consolidated statements of operations. Advertising expenses were $29.6 million and $17.9 million for the three months ended March 31, 2021 and 2020, respectively.
Shipping and Handling	Shipping and Handling The Company’s logistics costs related to transporting its used vehicle inventory primarily include third-party transportation fees. The portion of these costs related to inbound transportation from the point of acquisition to the relevant reconditioning facility is included in cost of sales when the related used vehicle is sold. Logistics costs not included in cost of sales are accounted for as costs to fulfil contracts with customers and are included in “Selling, general and administrative expenses” in the condensed consolidated statements of operations and were $15.4 million and $5.8 million for the three months ended March 31, 2021 and 2020, respectively.
Concentration of Credit Risk and Significant Customers	Concentration of Credit Risk and Significant Customers The Company’s principal financial instruments subject to potential concentration of credit risk are cash and cash equivalents and accounts receivable, which are unsecured. The Company’s cash balances are maintained at various large financial institutions. Deposits held with financial institutions may at times exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and, therefore, management believes they bear minimal risk. The Company’s cash equivalents primarily consist of money market funds that hold investments in highly liquid US treasury securities. Concentration of credit risk with respect to accounts receivable is generally mitigated by a large customer base. For the three months ended March 31, 2021 and 2020, no customer represented 10% or more of the Company’s revenues and no customer represented more than 10% of the Company’s accounts receivable as of March 31, 2021 and December 31, 2020.
Liquidity	Liquidity The Company has had negative cash flows and losses from operations since inception which it has funded primarily through issuances of common and preferred stock. The Company has historically funded vehicle inventory purchases through a vehicle floorplan facility. As further discussed in Note 9 – Vehicle Floorplan Facilities, the Company entered into a new facility in March 2020 which increased the borrowing capacity to $450.0 million. In October 2020, the Vehicle Floorplan Facility was amended to extend the maturity date to September 2022.
Non-Employee Share-Based Payments	Nonemployee Share-Based Payments On May 15, 2020, the Company entered into an agreement with Rocket Auto LLC and certain of its affiliates (collectively, “Rocket”) providing for the launch of an ecommerce platform under the “Rocket Auto” brand for the marketing and sale of vehicles directly to consumers (the “RA Agreement”). The Company will list its used vehicle inventory for sale on the Rocket Auto platform, but all sales of the Company’s inventory will be conducted through the Company’s platform. Rocket Auto is expected to launch publicly during 2021 and, during the term of the RA Agreement, Rocket has agreed to ensure that not less than a minimum percentage of all used vehicles sold or leased through the platform on a monthly basis will be Vroom inventory. The Company issued Rocket 183,870 shares of the Company’s common stock upon execution of the RA Agreement. The Company will pay Rocket a combination of cash and stock for vehicle sales made through the platform. Rocket may earn up to 8,641,914 shares of common stock over a four-year period based upon sales volume of Vroom inventory through the Rocket Auto platform. The Company accounts for the issuance of its common stock under the RA agreement in accordance with ASC 718, Compensation – Stock Compensation
Accounting Standards Adopted	Accounting Standards Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes

Acquisition (Tables)

Acquisition (Tables)	3 Months Ended
	Mar. 31, 2021
Business Combinations [Abstract]
Summary of Fair Value of Consideration Transferred	The fair value of the consideration transferred to acquire Vast Holdings, Inc. was approximately $117.1 million at the acquisition date and consisted of the following (in thousands): Fair Value Cash $ 77,010 Common stock issued (1) 39,030 Fair value of unvested stock options assumed (2) 1,017 Total $ 117,057 (1) The Company issued 1,072,117 shares of common stock. The fair value of common stock was determined based on the closing market price on the date of acquisition discounted for a lack of marketability of 10.0% to account for the 180 day lock up period. (2) The fair value of the unvested stock options assumed by the Company was determined using the Black-Scholes option pricing model. The share conversion ratio of 0.0392 was applied to convert CarStory’s outstanding equity awards for CarStory's common stock into equity awards for shares of the Company's common stock.
Summary of Fair Value of Identified Assets Acquired and Liabilities Assumed	The following table summarizes the fair value of the identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Fair Value Cash and cash equivalents $ 865 Accounts receivable, prepaid expenses and other current assets 1,330 Property and equipment and other assets 371 Intangible Assets 34,300 Goodwill 81,134 Current liabilities (943 ) Net assets acquired $ 117,057
Summary of Preliminary Identifiable Intangible Assets Acquired and their Estimated Weighted Average Useful Life	The following table summarizes the preliminary identifiable intangible assets acquired and their estimated weighted average useful life at the date of acquisition (in thousands): Fair Value Weighted Average Useful Life Developed technology $ 25,700 5 Trademarks 5,200 8 Customer relationships 3,400 8 Total intangible assets subject to amortization $ 34,300

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Mar. 31, 2021
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventory consisted of the following (in thousands): March 31, December 31, 2021 2020 Vehicles $ 335,703 $ 421,458 Parts and accessories 1,993 2,189 Total inventory $ 337,696 $ 423,647

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2021
Property Plant And Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Equipment $ 1,009 $ 1,061 Furniture and fixtures 1,778 1,746 Company vehicles 6,174 5,002 Leasehold improvements 7,094 7,068 Internal-use software 12,057 10,552 Other 3,634 2,997 31,746 28,426 Accumulated depreciation and amortization (14,809 ) (13,334 ) Property and equipment, net $ 16,937 $ 15,092

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Summary of Activity in Goodwill by Segment	The following table summarizes the activity in the carrying value of goodwill by reportable segment for the three months ended March 31, 2021 and 2020 (in thousands): Ecommerce Wholesale TDA Total Balance as of December 31, 2019 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Change in carrying amount — — — — Balance as of March 31, 2020 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Balance as of December 31, 2020 $ 72,231 $ 1,720 $ 4,221 $ 78,172 Acquisition 81,134 — — 81,134 Balance as of March 31, 2021 $ 153,365 $ 1,720 $ 4,221 $ 159,306
Schedule of Intangible Assets, Net	Intangible Assets Intangibles assets, net consisted of the following (in thousands): March 31, December 31, 2021 2020 Developed Technology $ 25,700 $ — Trademarks 5,240 40 Customer Relationships 3,400 — Other 252 252 34,592 292 Accumulated Amortization (1,680 ) (258 ) Intangible assets, net $ 32,912 $ 34
Schedule of Estimated Amortization Expense for Intangible Assets	The estimated amortization expense for intangible assets subsequent to March 31, 2021 consists of the following (in thousands): Year Ending December 31: For remainder of 2021 $ 4,705 2022 6,220 2023 6,215 2024 6,215 2025 6,215 Thereafter 3,342 $ 32,912

Accrued Expenses and Other Cu_2

Accrued Expenses and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2021
Accrued Liabilities And Other Liabilities [Abstract]
Schedule of Accrued Expenses	The Company’s accrued expenses consisted of the following (in thousands): March 31, December 31, 2021 2020 Accrued marketing expenses $ 12,696 $ 9,106 Vehicle related expenses 14,555 13,062 Sales taxes 22,789 15,443 Accrued compensation and benefits 8,151 5,749 Accrued professional services 3,174 4,890 Other 10,601 11,155 Total accrued expenses $ 71,966 $ 59,405
Other Current Liabilities	The Company’s other current liabilities consisted of the following (in thousands): March 31, December 31, 2021 2020 Vehicle payable $ 23,289 $ 25,086 Other 9,411 5,189 Total other current liabilities $ 32,700 $ 30,275

Financial Instruments and Fai_2

Financial Instruments and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2021
Fair Value Disclosures [Abstract]
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following tables present the Company’s financial assets and liabilities measured at fair value on a recurring basis (in thousands): ` As of March 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Money market funds $ 734,652 $ — $ — $ — Total financial assets $ 734,652 $ — $ — $ — ` As of December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets Cash and cash equivalents: Money market funds $ 814,681 $ — $ — $ — Total financial assets $ 814,681 $ — $ — $ —

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Mar. 31, 2021
Segment Reporting [Abstract]
Summary of Segments	Information about the Company’s segments are as follows (in thousands): Three Months Ended March 31, 2021 Ecommerce Wholesale TDA All Other Total Revenues from external customers $ 422,308 $ 118,024 $ 47,587 $ 3,199 $ 591,118 Gross profit (loss) $ 31,837 $ (282 ) $ 2,791 $ 1,830 $ 36,176 Three Months Ended March 31, 2020 Ecommerce Wholesale TDA All Other (1) Total Revenues from external customers $ 233,172 $ 55,578 $ 86,582 $ 440 $ 375,772 Gross profit (loss) $ 14,267 $ (1,292 ) $ 5,258 $ 154 $ 18,387 (1) The Company reclassified other revenue and other gross profit related to the vehicle repair service at TDA from the TDA reportable segment to the ”All Other” category to conform to current year presentation.
Reconciliation of Total Reportable Segment Revenue and Gross Profit to Consolidated Total Revenue and Loss Before Provision for Income Taxes	Reconciliations of total reportable segment revenue and gross profit to consolidated total revenue and consolidated loss before provision for income taxes are as follows (in thousands): Three Months Ended March 31, 2021 2020 Reconciliation to consolidated total revenue Total reportable segment revenue $ 587,919 $ 375,332 All Other revenues 3,199 440 Consolidated total revenue $ 591,118 $ 375,772 Reconciliation to consolidated loss before provision for income taxes Total reportable segment gross profit $ 34,346 $ 18,233 All Other gross profit 1,830 154 Selling, general and administrative expenses 109,114 58,380 Depreciation and amortization 2,594 966 Interest expense 3,812 2,826 Interest Income (2,296 ) (1,956 ) Revaluation of preferred stock warrant — (790 ) Other income, net (15 ) (33 ) Consolidated loss before provision for income taxes $ (77,033 ) $ (41,006 )

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	3 Months Ended
	Mar. 31, 2021
Earnings Per Share Basic And Diluted [Abstract]
Summary of Computation of Basic and Diluted Net Loss Per Share	The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders: Three Months Ended March 31, (in thousands, except share and per share amounts) 2021 2020 Net loss $ (77,189 ) $ (41,059 ) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 135,497,511 8,471,456 Net loss per share attributable to common stockholders, basic and diluted $ (0.57 ) $ (4.85 )
Summary of Calculation of Diluted Shares Outstanding	The following potentially dilutive shares were not included in the calculation of diluted shares outstanding for the periods presented as the effect would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Redeemable convertible preferred stock — 85,533,394 Warrants — 161,136 Stock options 4,995,310 6,198,676 Restricted stock awards — 3,249,382 Restricted stock units 1,700,090 610,278 Total 6,695,400 95,752,866

Description of Business and B_2

Description of Business and Basis of Presentation - Additional Information (Details) $ / shares in Units, $ in Millions	Sep. 15, 2020USD ($)$ / sharesshares	Jun. 11, 2020USD ($)$ / sharesshares	Jun. 30, 2020	Mar. 31, 2021Segment	Sep. 30, 2020
Description of Business and Basis of Presentation [Line Items]
Number of reportable segments | Segment				3
Forward stock split, description			2-for-1		On June 11, 2020, the Company amended its certificate of incorporation to effect a 2-for-1 forward stock split of shares of the Company’s outstanding common stock, such that each share of common stock, $0.001 par value became two shares of common stock, $0.001 par value per share.
Forward stock split		2	2
Stock issued during period shares | shares	10,800,000
Sale of stock, price per share | $ / shares	$ 54.50
Stock offering expenses	$ 1.5
Proceeds from offering, net	$ 569.5
Initial Public Offering
Description of Business and Basis of Presentation [Line Items]
Stock issued during period shares | shares		24,437,500
Sale of stock, price per share | $ / shares		$ 22
Proceeds from underwriting discount and commission		$ 504
Stock offering expenses		$ 7.5
Underwriters
Description of Business and Basis of Presentation [Line Items]
Stock issued during period shares | shares		3,187,500

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	Sep. 15, 2020	May 15, 2020	Oct. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Accounting Policies [Line Items]
Other comprehensive income (loss)				$ 0	$ 0
Cash deposits included in restricted cash				$ 26,550,000		$ 33,826,000
Common stock, issued	10,800,000
Sale of stock, price per share	$ 54.50
ASU 2019-12
Accounting Policies [Line Items]
Change in accounting principle, accounting standards update, adopted [true false]				true
Change in accounting principle, accounting standards update, adoption date				Jan. 1, 2021
Change in accounting principle, accounting standards update, adopted [true false]				true
RA Agreement
Accounting Policies [Line Items]
Common stock, issued		183,870
Term for issuance of additional shares of common stock		4 years
Sale of stock, price per share		$ 11.57
Selling, General and Administrative Expenses
Accounting Policies [Line Items]
Advertising expense				$ 29,600,000	17,900,000
Selling, General and Administrative Expenses | Shipping and Handling
Accounting Policies [Line Items]
Shipping and handling expenses				$ 15,400,000	5,800,000
Maximum
Accounting Policies [Line Items]
Business combination, measurement period				1 year
Maximum | RA Agreement
Accounting Policies [Line Items]
Issuance of additional shares of common stock		8,641,914
Vehicle Floorplan Facilities | Line Of Credit
Accounting Policies [Line Items]
Increased borrowing capacity					$ 450,000,000
Amended to extend maturity date			2022-09
Vehicle Floorplan Facilities | Cash Deposits
Accounting Policies [Line Items]
Cash deposits included in restricted cash				$ 24,700,000		$ 31,600,000

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
Disaggregation Of Revenue [Line Items]
Reserve for chargebacks	$ 4.7	$ 3.8
Cumulative profit sharing payment recognized	$ 12.1	11.5
Revenue, practical expedient, incremental cost of obtaining contract	true
Accrued Expenses
Disaggregation Of Revenue [Line Items]
Reserve for chargebacks	$ 2.2	1.7
Other Long-term Liabilities
Disaggregation Of Revenue [Line Items]
Reserve for chargebacks	2.5	2.1
Prepaid Expenses and Other Current Assets
Disaggregation Of Revenue [Line Items]
Cumulative profit sharing payment recognized	0.9	0.8
Other Assets
Disaggregation Of Revenue [Line Items]
Cumulative profit sharing payment recognized	$ 11.2	$ 10.7

Acquisition - Additional Inform

Acquisition - Additional Information (Details) - Vast Holdings, Inc. (“d/b/a CarStory”) $ in Thousands	Jan. 07, 2021USD ($)
Business Acquisition [Line Items]
Business acquisition, date of acquisition	Jan. 7, 2021
Percentage of business acquisition rate	100.00%
Fair value of consideration transferred	$ 117,057

Acquisition - Summary of Fair V

Acquisition - Summary of Fair Value of Consideration Transferred (Details) - Vast Holdings, Inc. (“d/b/a CarStory”) $ in Thousands	Jan. 07, 2021USD ($)
Business Acquisition [Line Items]
Cash	$ 77,010
Common stock issued	39,030
Fair value of unvested stock options assumed	1,017
Total	$ 117,057

Acquisition - Summary of Fair_2

Acquisition - Summary of Fair Value of Consideration Transferred (Parenthetical) (Details) - Vast Holdings, Inc. (“d/b/a CarStory”)	Jan. 07, 2021shares
Business Acquisition [Line Items]
Business acquisition discounted marketability percentage	10.00%
Business acquisition lock up period	180 days
Share conversion ratio	0.0392
Common Stock
Business Acquisition [Line Items]
Business acquisition, number of shares issued	1,072,117

Acquisition - Summary of Fair_3

Acquisition - Summary of Fair Value of Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jan. 07, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill	$ 159,306		$ 78,172	$ 78,172	$ 78,172
Vast Holdings, Inc. (“d/b/a CarStory”)
Business Acquisition [Line Items]
Cash and cash equivalents		$ 865
Accounts receivable, prepaid expenses and other current assets		1,330
Property and equipment and other assets		371
Intangible Assets		34,300
Goodwill		81,134
Current liabilities		(943)
Net assets acquired		$ 117,057

Acquisition - Summary of Prelim

Acquisition - Summary of Preliminary Identifiable Intangible Assets Acquired and their Estimated Weighted Average Useful Life (Details) - Vast Holdings, Inc. (“d/b/a CarStory”) $ in Thousands	Jan. 07, 2021USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Fair Value	$ 34,300
Developed Technology
Acquired Finite Lived Intangible Assets [Line Items]
Fair Value	$ 25,700
Weighted Average Useful Life	5 years
Trademarks
Acquired Finite Lived Intangible Assets [Line Items]
Fair Value	$ 5,200
Weighted Average Useful Life	8 years
Customer Relationships
Acquired Finite Lived Intangible Assets [Line Items]
Fair Value	$ 3,400
Weighted Average Useful Life	8 years

Inventory - Schedule of Invento

Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Vehicles	$ 335,703	$ 421,458
Parts and accessories	1,993	2,189
Total inventory	$ 337,696	$ 423,647

Inventory - Additional Informat

Inventory - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Inventory valuation reserves	$ 10.4	$ 12.9

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 31,746	$ 28,426
Accumulated depreciation and amortization	(14,809)	(13,334)
Property and equipment, net	16,937	15,092
Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,009	1,061
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,778	1,746
Company Vehicles
Property Plant And Equipment [Line Items]
Property and equipment, gross	6,174	5,002
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	7,094	7,068
Internal-use Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	12,057	10,552
Other
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 3,634	$ 2,997

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Depreciation and amortization	$ 2,594	$ 966
Amortization expense	1,400	100
Selling, General and Administrative Expenses
Property Plant And Equipment [Line Items]
Amortization expense	300	200
Property and Equipment, Net
Property Plant And Equipment [Line Items]
Depreciation and amortization	1,500	$ 900
Cloud Computing Arrangements | Other Assets
Property Plant And Equipment [Line Items]
Implementation costs capitalized	3,900		$ 3,600
Implementation costs capitalized, accumulated amortization	$ 1,200		$ 1,000

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Summary of Activity in Goodwill by Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill [Line Items]
Beginning Balance	$ 78,172	$ 78,172
Change in carrying amount
Acquisition	81,134
Ending Balance	159,306	78,172
Ecommerce
Goodwill [Line Items]
Beginning Balance	72,231	72,231
Change in carrying amount
Acquisition	81,134
Ending Balance	153,365	72,231
Wholesale
Goodwill [Line Items]
Beginning Balance	1,720	1,720
Change in carrying amount
Ending Balance	1,720	1,720
TDA
Goodwill [Line Items]
Beginning Balance	4,221	4,221
Change in carrying amount
Ending Balance	$ 4,221	$ 4,221

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 34,592	$ 292
Accumulated Amortization	(1,680)	(258)
Intangible assets, net	32,912	34
Developed Technology
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	25,700
Trademarks
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	5,240	40
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	3,400
Other
Finite Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 252	$ 252

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense for intangible assets	$ 1.4	$ 0.1

Goodwill and Intangible Asset_5

Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Goodwill And Intangible Assets Disclosure [Abstract]
For remainder of 2021	$ 4,705
2022	6,220
2023	6,215
2024	6,215
2025	6,215
Thereafter	3,342
Intangible assets, net	$ 32,912	$ 34

Accrued Expenses and Other Cu_3

Accrued Expenses and Other Current Liabilities - Schedule of Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Accrued marketing expenses	$ 12,696	$ 9,106
Vehicle related expenses	14,555	13,062
Sales taxes	22,789	15,443
Accrued compensation and benefits	8,151	5,749
Accrued professional services	3,174	4,890
Other	10,601	11,155
Total accrued expenses	$ 71,966	$ 59,405

Accrued Expenses and Other Cu_4

Accrued Expenses and Other Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Accrued Liabilities And Other Liabilities [Abstract]
Vehicle payable	$ 23,289	$ 25,086
Other	9,411	5,189
Total other current liabilities	$ 32,700	$ 30,275

Vehicle Floorplan Facilities -

Vehicle Floorplan Facilities - Additional Information (Details) - 2020 Vehicle Floorplan Facility - USD ($)	1 Months Ended	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Line Of Credit Facility [Line Items]
Outstanding borrowings		$ 253,000,000		$ 329,200,000
Interest expense		$ 3,800,000	$ 2,700,000
Weighted average interest rate		4.37%		4.39%
Debt instrument, covenant compliance		As of March 31, 2021 and December 31, 2020, the Company was in compliance with all covenants related to the 2020 Vehicle Floorplan Facility.
Credit Balance Agreements
Line Of Credit Facility [Line Items]
Interest credits earned		$ 2,200,000	1,700,000
Ally Bank and Ally Financial | Line Of Credit
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity	$ 450,000,000		$ 450,000,000
Expiration term	2022-09
Line of credit facility, description		The amount of credit available is determined on a monthly basis based on a calculation that considers average outstanding borrowings and vehicle units paid off by the Company within the immediately preceding three-month period.
Line of credit facility, current borrowing capacity		$ 415,200,000
Line of credit facility, unutilized borrowing capacity		$ 162,200,000
Period of LIBOR measurement	1 month
Basis points	4.25%
Debt instrument, covenant description		The 2020 Vehicle Floorplan Facility is collateralized by the Company’s vehicle inventory and certain other assets and the Company is subject to covenants that require it to maintain a certain level of equity in the vehicles that are financed, to maintain at least 7.5% of the outstanding borrowings in cash and cash equivalents, and to maintain 10% of the daily floorplan principal balance outstanding on deposit with Ally Bank.
Debt instrument covenant to maintain minimum percentage of outstanding borrowings in cash and cash equivalents	7.50%
Debt instrument covenant percentage of deposit in basis of monthly credit line availability	10.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - Financial Standby Letters of Credit $ in Millions	Mar. 31, 2021USD ($)Lease	Dec. 31, 2020USD ($)
Loss Contingencies [Line Items]
Number of lease agreements | Lease	3
Required cash deposit with financial institution | $	$ 1.8	$ 2.2

Redeemable Convertible Prefer_2

Redeemable Convertible Preferred Stock and Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands	Sep. 15, 2020shares	Jun. 11, 2020$ / sharesshares	Jan. 08, 2020USD ($)shares	Jun. 30, 2020	Mar. 31, 2020USD ($)	Sep. 30, 2020shares	Mar. 31, 2021$ / sharesshares	Dec. 31, 2020$ / sharesshares	Jun. 23, 2020shares	Aug. 31, 2017$ / sharesshares
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Common stock, issued	10,800,000
Gross proceeds from issuance of preferred stock | $					$ 21,694
Preferred stock converted into common stock		85,533,394
Preferred stock, authorized		10,000,000
Preferred stock, issued						0
Preferred Stock, outstanding						0
Forward stock split		2		2
Common stock, par value | $ / shares		$ 0.001					$ 0.001	$ 0.001
Common stock, voting rights						one vote
Stock split, description				2-for-1		On June 11, 2020, the Company amended its certificate of incorporation to effect a 2-for-1 forward stock split of shares of the Company’s outstanding common stock, such that each share of common stock, $0.001 par value became two shares of common stock, $0.001 par value per share.
Common stock, shares authorized		500,000,000					500,000,000	500,000,000
Series B Warrants
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Warrants to purchase shares of common stock		155,862
Exercise price | $ / shares							$ 0.72
Maximum | Series B Warrants
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Warrants to purchase shares of common stock							161,136
Series H Preferred Stock
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Common stock, issued			1,964,766
Gross proceeds from issuance of preferred stock | $			$ 26,700
Series F Preferred Stock Warrant
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Warrants to purchase shares of common stock									480,250
Exercise price | $ / shares										$ 8.53
Series F Preferred Stock Warrant | Maximum
Redeemable Convertible Preferred Stock And Stockholders Deficit Equity [Line Items]
Warrants to purchase shares of common stock										589,970

Stock-based Compensation - Addi

Stock-based Compensation - Additional Information (Details) - USD ($) $ in Millions	May 28, 2020	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense		$ 22		$ 15.4
Unrecognized stock-based compensation weighted-average period		1 year 10 months 24 days		1 year 9 months 18 days
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 0.6	$ 0.6
Unrecognized stock-based compensation expense		$ 4.6		$ 3.5
Unrecognized stock-based compensation weighted-average period		2 years 3 months 18 days		2 years 2 months 12 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 2.2	$ 0
2020 Incentive Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future issuance		2,788,577
2020 Incentive Award Plan | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance	3,019,108
Percentage annual increase in shares available for issuance as award in each year beginning	4.00%

Financial Instruments and Fai_3

Financial Instruments and Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring - Level 1 - USD ($) $ in Thousands	Mar. 31, 2021	Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 734,652	$ 814,681
Money Market Funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Total financial assets	$ 734,652	$ 814,681

Segment Information - Additiona

Segment Information - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)Segment
Segment Reporting [Abstract]
Number of reportable segments	3
Number of operating segments	3
Segment assets | $	$ 0

Segment Information - Summary o

Segment Information - Summary of Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Segment Reporting Information [Line Items]
Revenues from external customers	$ 591,118	$ 375,772
Gross profit (loss)	36,176	18,387
Ecommerce
Segment Reporting Information [Line Items]
Revenues from external customers	422,308	233,172
Gross profit (loss)	31,837	14,267
Wholesale
Segment Reporting Information [Line Items]
Revenues from external customers	118,024	55,578
Gross profit (loss)	(282)	(1,292)
TDA
Segment Reporting Information [Line Items]
Revenues from external customers	47,587	86,582
Gross profit (loss)	2,791	5,258
All Other
Segment Reporting Information [Line Items]
Revenues from external customers	3,199	440
Gross profit (loss)	$ 1,830	$ 154

Segment Information - Reconcili

Segment Information - Reconciliation of Total Reportable Segment Revenue and Gross Profit to Consolidated Total Revenue and Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Reconciliation to consolidated total revenue
Total revenue	$ 591,118	$ 375,772
Reconciliation to consolidated loss before provision for income taxes
Gross profit	36,176	18,387
Selling, general and administrative expenses	109,114	58,380
Depreciation and amortization	2,594	966
Interest expense	3,812	2,826
Interest income	(2,296)	(1,956)
Revaluation of preferred stock warrant		(790)
Other income, net	(15)	(33)
Loss before provision for income taxes	(77,033)	(41,006)
All Other
Reconciliation to consolidated total revenue
Total revenue	3,199	440
Reconciliation to consolidated loss before provision for income taxes
Gross profit	1,830	154
Reportable Segments
Reconciliation to consolidated total revenue
Total revenue	587,919	375,332
Reconciliation to consolidated loss before provision for income taxes
Gross profit	$ 34,346	$ 18,233

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Dec. 31, 2020
Income Tax Disclosure [Abstract]
Effective tax rate	0.20%	0.13%
Uncertain tax positions	$ 0		$ 0

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Earnings Per Share Basic And Diluted [Abstract]
Net loss	$ (77,189)	$ (41,059)
Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted	135,497,511	8,471,456
Net loss per share attributable to common stockholders, basic and diluted	$ (0.57)	$ (4.85)

Net Loss Per Share - Summary _2

Net Loss Per Share - Summary of Calculation of Diluted Shares Outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Potentially dilutive shares not included in calculation of diluted shares outstanding	6,695,400	95,752,866
Redeemable Convertible Preferred Stock
Potentially dilutive shares not included in calculation of diluted shares outstanding		85,533,394
Warrants
Potentially dilutive shares not included in calculation of diluted shares outstanding		161,136
Stock Options
Potentially dilutive shares not included in calculation of diluted shares outstanding	4,995,310	6,198,676
Restricted Stock Awards
Potentially dilutive shares not included in calculation of diluted shares outstanding		3,249,382
Restricted Stock Units
Potentially dilutive shares not included in calculation of diluted shares outstanding	1,700,090	610,278

Related Party Transactions - Ad

Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended
	Jan. 31, 2019	Jul. 31, 2015
Management Services Agreement | Catterton Management L.L.C
Related Party Transaction [Line Items]
Payment of expenses		$ 0.3
Management Services Agreement | Catterton Management L.L.C | Minimum
Related Party Transaction [Line Items]
Percentage of outstanding capital stock		5.00%
Vendor Agreement | Auto Nation, Inc
Related Party Transaction [Line Items]
Termination period	2020-02
Vendor Agreement | Auto Nation, Inc | Minimum
Related Party Transaction [Line Items]
Percentage of outstanding capital stock	5.00%