VRM - Earnings call transcript Q3 2020

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Vroom Third Quarter 2020 Earnings Conference Call. At this time, all participants’ lines are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference call is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Allen Miller, Head of Investor Relations. go please, and you ahead, sir. Thank

Allen Miller

Chris. you for you, earnings call. Good third afternoon thank and conference gentlemen and joining XXXX ladies quarter Thank us Vroom's on

XX-Q operations, Executive other call The the Officer. earnings today company COVID-XX. call the may make about Paul statements those Joining outlined forward-looking potential, and expected quarterly the including and a factors may Chief about the risks today's including in company's in filings, the results today's direct some important statements discussion may today actual of forward-looking events, most Form the certain on on materially Dave cause The Jones, and that this Hennessy, statements you uncertainties for company statements, financial its me number release. results outlook this Also, that press also and materially Chief factors are as today. future We the statements. only to in Officer; SEC during measures their These to recent differ of include impacts call forward-looking and report those from Financial non-GAAP to differ are to cause forward-looking forward-looking including speak on discussion actual call. discuss of date subject liquidity the additional could and to from related

the comparable over today's measures GAAP call of directly Paul? and of most turn presentation With release. press in a that, those Paul. reconciliation find measures may I'll You to the a now

Paul Hennessy

for public thanking investors great earnings start thanks in work Vroom's quarter I'd call. like and all all company. for customer-centric and hard our by a joining support of and Allen, their building employees, everyone Board members Thanks, to third

in third and XXX% gross units XX% achieved year-over-year with XXX% the I'm were on third e-commerce was gross a delivered performance. our up quarter year-over-year record profit back up sequentially record profit. XX% and and number the units and of pleased E-commerce Vroom very sequentially. Looking quarter,

we a over ecommerce our As the gross what of to compared unit across We outstanding that gross our grow playbook at even per quarter, company over see advanced to units and the growth our up units the data science Vroom well. able a levels, the record great and drove to quarter. profit at our high, significant look significant end listed XX% in customers second pre-pandemic prices. in to increase teams generate to XX,XXX inventory and extremely selection and our was XXX% year-over-year leveraged against $X,XXX, we offering foremost, profit, first our executed

vehicles, the We have vehicles In to that so, demand we economics our have pandemic over demand. unit we lower-priced and selling responded that prices demonstrated our range. we we'll long-range seen thesis, demand and This during deliver in as at very doing strong supports economics. while lower-priced unit same can be shift the offer expanding conversion, our mid-$XX,XXX average the we time that towards expanding have

our We additional our reconditioning existing and increasing quarter, locations. reconditioning add third-party in continue operations within the capacity center to throughout an capacity by to footprint our adding

any year. scale contributing and in plan We our capacity current number will and incurring There broadly capacity confident products business we as and we the add strategy, network continue our capacity of the demand Vroom quarter to of demand sales reconditioning in are is our expand hybrid we our successfully and throughout to and specifically debt remains for to geographic The or excess able model are factors. CapEx. with a our our very reconditioning were footprint, that next our services without strong. asset-light for our Consistent

believe we e-commerce in for delivery model. and continue experience, structural demand to changes what we First, are, our

unit in flywheel, growth and drives increased our inventory improving sales economics. growth unit increased as and conversion, which our increased spins demonstrated demand performance Second, by

Finally, to launched way way We Vroom's and new we've the that to better better spots begun of see showcase campaign. vehicle. results buy brand early new sell our to a used

Our go they're dealership a message only Consumers the also Vroom, not with the side brand, are and the side. but never on is sell to the engaging you again. have transacting With brand, to clear. with buy both

the the Vroom a to in customer improve. same overall are friction improve experience car, e-commerce continue Our purchase for driveway appraisals, the overall offering enhance we their customers of with We've continues process reduced that faster time, made service automated process, when experience, At in series selling they free a to and engage great us them customers a developments the service. selling reduce our vehicle. streamline time experience and our their brand to by the pickup product as transaction

us Our simply car selling love sell car. feedback their The customers who us extraordinary. from their customers is

demand you and when I our improved our marketing, operational reconditioning, experience, to expectations and compelling and by overall buy driven quarter. inventory, performed in expanded all so data and our improvement So mentioned, increased think apparent beyond of consumer increased brand the about is both we executions customer it in why becomes just third sell model capacity strong science, the

experience. another look will significant scale growth, we towards we to business quarter continue operations enhance our in our and of our As to ahead invest customer

continued investments our for ongoing fourth last-mile enhance service anticipation experience delivery sales making sales outlook the of proprietary operations up the quarter also sales customers. in in to Year. as e-commerce in customer expansion and we ramp team, our expand of reflects our our support We're logistics the escalating for New of unit growth Our our over progression

our with third-party maintain by further calibrate our scale operating our flexibility, Dave guidance. We that, for substantial levering business, growth. continue our partners hybrid position capital financials rapidly remarks us expenditures, Dave? and and asset-light will And over our our hand to optimize to to approach and on our Vroom-owned operations I'll our for both

Dave Jones

Good Paul. everyone. Thanks, afternoon

driven a by XX% generation. Vroom, the for increased the in year-over-year, sold demand me which quarter, quarterly and units bit. unpack new a quality inventory Let E-commerce record third was quarter increased

today, again up to As the approximately sale Paul XX,XXX. increased inventory units of XX% inventory. the offering. thousand XX% sequentially, an QX QX soon at the increased excluding to Of and vehicles X,XXX the and for Listed listed XX,XXX at sales, coming from vehicles end are XX-plus mentioned, remainder the available are are end vehicle e-commerce over about due currently pending were of

are and XX,XXX we to estimating QX. imply XX%, to growth XX,XXX We would compared our e-commerce for XX% sold midrange units of quarter-to-quarter The year-over-year in the sequential experienced guidance growth QX. XX% accelerating

mentioned to provide a our we selection reconditioning QX, to and that Vroom expanding can us platform expanding partners growth price Our then by we sales currently Houston. are inventory, versus grew last on in world-class we capacity, decreased create marketing the have gives We're demand That's $XX,XXX Paul And Through benefits with efficiently obviously quarter, strong formula demand, in in e-commerce plentiful $XX,XXX that year-to-date XXXX had are to demand. reconditioning selling year convert our of QX. with in confident targets. XX simple, ample third is we're XX reconditioning We sequential XX% X,XXX continuing XX% our capability QX per of track number create around QX currently grown reconditioning revenue we the including of the the the per and center average we have to Vroom approximately proprietary XX% These data-driven widely convert that, focus demand. our work to capacity network. our which meet the of vehicles and of facilities on has year. the end currently us quarter-to-quarter, for recondition which facilities, driven sold units, we At strong In all reconditioning country, as the units our centers quarter, year-over-year continued reconditioning And growth XXXX. e-commerce from week. a growth our with to unit, distributed provide in this year-over-year.

see QX on we're based consistent per industry. mentioned total on now KPI we've therefore in Note that vehicles an previously price times long-term forecasting We're price data lower-priced opportunities revenue in data-driven unit. us we with demand to unit. $XX,XXX is average market. average provided typical goals. acquire the is inventory selling buying that in see guidance $XX.XXX and we In our As our which per that are selling of guiding moving the we analytics and many on That towards the data we we

that in was $X,XXX unit to quarter's profit. last $XXX per costs. set we two per $XX.X and as gross on Remember gross we e-commerce per year-over-year E-commerce of year's last QX, logistics ahead pieces: in gained We record at unit million, in QX reconditioning unit well inbound up product. improved a $X,XXX. Moving in efficiencies gross profit measure Vehicle XXX% vehicle and gross and $X,XXX unit profit profit per year-over-year.

in around will pricing rates we on selling per average strong a profit inventory track We $XXX per per we driven profit In very industry But we'll towards purchased higher increase continue reduction seen primarily to gross most used be $XXX the product in QX pricing in QX. This selling goal price that the of high be moderate the gross unit since per approximately our the in Our unit. we've of unit, products unit across per offered. $X,XXX XX-year year-over-year by environment. attachment vehicle long-term from was May despite that during QX, to that vehicle. increased believe

$X,XXX profit a we be unit to such $X,XXX gross e-commerce QX. in believe will in per of As that range unit per

to about from an year-over-year we be in directly record in in a per returning XX% wholesale increased Our although in QX, The due of increase see QX. in wholesale market levels strong wholesale grade market to historical The that QX. market consumers. to gross resulted purchased unit primarily profit pricing $XXX strong X,XXX wholesale units continued to units business do

see COVID per per to wholesale location units unit. foot unit in profit experienced X,XXX quarter, only XX% be in decrease to breakeven in in X,XXX of which in gross based the TDA to our TDA a QX continues decrease to expect in X% $XXX country which per We traffic. of impacted a sold physical relative and unit. has is profit sole but the hotspot units gross Houston a

of although, inventory time Houston levels. that this returned eventual with predict be. the to has excess our an pre-COVID in dramatically expanded the at we've not total when vehicles will In we in believe will can't pre-COVID rebound in We that levels addition, of supply but area TDA used recovery

future continue results contributor business said our our decreasing As past as e-commerce expect to grows. a to in to we've be TDA the we

expenses. operating to Turning

compensation from -- and benefits Our approximately is about the included approximately and $XXX,XXX million. quarter Including up of comp million in $XX.X benefits expense in and $X.X in versus XXXX. year-over-year $XX.X only million comp XX% to comp stock-based benefit current was

remained industry more technology, XXX% increased logistics XX% functions year-over-year in QX around to to expect almost significantly invest high. logistics need e-commerce business. our as and in the particular that and increased Outbound the support scale pricing in We in logistics people with volume

$XXX factored We logistics was outbound $XXX this hope in through expect this at do we and it continue cost QX trend Our into QX, and per dynamic but unit is XXXX. QX in least will expect temporary, guidance. our versus is

As a you will continue is increase would variable expense volume. expect, with and this to

and on improving unit to was Total we're this experience. operating while logistics operating our costs that approach our in $X,XXX hard item enhancing expanding Given logistics, our QX. in QX hybrid line versus customer retail proprietary on to at work leverage network also $X,XXX achieve per

of like expect We provided Chris? call the we'd as we ahead today's now in And up comprehensive be earnings future questions. in announcement. open QX may guidance QX growth. that for We've up to invest

Operator

with first Baird. comes line [Operator Sebastian Colin you. question Instructions] Thank from Our the of

Your line is open. now

Colin Sebastian

questions Two Great, may. afternoon. thanks. I Good if

The And you Paul, little up, drive that, then, first early more secondly, can leverage that. provide rollout. assume you regarding detail line hybrid the just on next mentioned as was could is I for example, next the escalating if growth. comments I a Is following as something I time think growth on for sales we year? on wondering the QX will year, think that logistics or

you that just or means, if growth you. accelerating else? clarify year-over-year could If or Thank something sequential

Paul Hennessy

of to Happy those. Yes. both take

quarter-to-quarter. of mile own now the we'll those hybrid forward a logistics, markets expand markets. couple continue On last I doing our been knows, in think to And we've everyone as going

our a I was to going but about guiding way growth, third really the mile. so, plan far last to our to slow us out continue into coming for and that's that quarter steady ahead out of and I XXXX, And about think expect getting as we're referencing. quarter, would And then, rollout that not And building as of growth throughout fourth and and as strong that. XXXX, of have understand accelerating is we growth that's what into think we

anticipation growth. So that's experience these investments the that why we're in customer now putting in of

Colin Sebastian

-- sorry. just maybe And it. Got yes,

Dave Jones

of extent party. terms solution cost think any Sorry, own expect would to the that on leverage. Colin. What what that which the with in we're a a But the there. gain is get cost add Obviously, of I in to we use obviously leverage, just to short-term. come think leverage over part I using we third our scale we wouldn't not I would big we're experience, after do is leverage consumers'

Colin Sebastian

Okay. now? the statement? In you something And -- next the beginning OpEx are other is words, CapEx and any on that acquiring when is fleet the that start initiative already year? there that hit is do Or vehicle from income to planned

Dave Jones

Yes, Colin.

think of, as We effort, think QX. related will about we primarily CapEx, And are into the that together then, about think acquiring be effort about think we'll $X We're obviously put We building not plan We think million of to we over those vehicles and with any tens provide now. that XXXX our facilities millions. more the ultimately probably in I we've leverage of there. hundreds guidance long-term partners as around investment But got that. there. not millions, that

it's so, a And modest CapEx investment.

Colin Sebastian

Thank great. Okay, you.

Operator

our you. question Thank with And comes of Daniel the Goldman Powell line from Sachs. next

line now Your is open.

Daniel Powell

question. you for taking Thank Okay. my

those of about little owned those was there in improvements -- of more Just Were your ask sort improvements improvement down and pulling getting aggressively? sort you're hear the inbound improved logistics those reconditioning network I the to side. more to rate? how from these a and was normalized were Or reconditioning coming wanted to you are scaling bit understand GPU Houston? network more saw on a your Thanks. sort in this Just of back where Or interested curious in e-commerce. up vehicle and levers. partner reconditioning

Paul Hennessy

Yes.

better. We're is science. with enabled the buying buying optimizing I reconditioning. think answer broadly data in location. rather particular any We're We're

reconditioning profit executing per buy so rather a is the it's side unit and is that both numbers. in organization on see And the the then but single the short gross side we location, entire not answer well and the

Daniel Powell

you. Great. Thank

Paul Hennessy

you. Thank

Operator

next the of line with our Potter And Sandler. Piper question Alex comes from

is line Your now open.

Alex Potter

guess the you great. that if of could right you environment. provide sourcing. can size, supply do be I your using degree your just there Okay, would with I helpful. strategies was inventory. Thanks. size it's know of it don't which a increasing inventory Any destiny that because some the I the if broadly, own increase you're I to And control has comments customer wondering through to in then when know now you're to constrained comes of talk to

inventory? So you any comments can provide on

Paul Hennessy

Yes. And at sitting to scaling Happy second overall the from the to we're demand. that to third do quarter we're appropriately to that. and look hear I our growth match where quarter think inventory you if you quarter in today

I also an to car, really experience. our mentioned mentioned advantage constraints. to I we're customers and in taking also are real not And their their feeling selling offering that advertising we're as those to of starting And us opening consumers So remarks, traction in my outstanding and that see car model sell us. valuing

from strategy continue from our associated appropriate leverage at demand that to auctions and grow inventory to drive inventory buy continue to purchases opportunities, to gross to fill we're to that. buying the third-party so so optimize is match then only our our to consumers, not to with continue also profit in but looking conversion other consumer where And

broad buy spectrum So of when how we'll and and where the in we be across opportunistic the channels.

Alex Potter

quarters? you the Thanks. you to and on wondering specifically these products Then Okay, a you little types products seeing where which good you lot last what could lower success But product I maybe into revenue was rates expect if that that’s elaborate the great. ASP. the then despite coming had know to strength, different mentioned a on why extent you're of up and attach was of

Dave Jones

to we Alex. was offer any tire We warranty. I those. of offer Hi, third-party. year-over-year. offer take balance -- gap. product today customers. risk are obviously sheet offer of don't We it wheel. Yes, and think broad-based We We on And we saw generally all financing. our pretty But We products offer the financing

good And improvements rate so some we saw pretty year-over-year. attach in

But always look of cash those out rate. products areas think us that we that. the the terms are help think the as continue there's friction to are on build attach we in works rate. new we'll optimize to initiatives of other in that e-commerce process to And though, forward look look I improve I the taking to

I think as a historically market. depreciation we in go it's of into QX, time increased the

about profit unit. how that's forward. so we going per And think products and we'll gross products that yes, balance with try But,

Alex Potter

Thanks Okay. much. very

Operator

with you. Thank line of our Securities. Josey from comes And next question the Ron JMP

open. is now Your line

Ron Josey

supply just a supply Thanks is know ask taking Great. Vroom little based And believe to I the think more you we're you -- I about said on I Paul, just wanted for about. don't what talking constrained. question.

cars? positioned maybe So the supply, October any talk go sort on, year would more still about from can bit all-important insights you first helpful of overall used intra-quarter Any that Vroom as well. perspective? insights demand a is half demand you. for the September? just for we the what from little about an how you as Did Thank you elevated of be for for remains that, XXXX as And as talk continue on saw into

Paul Hennessy

their I there. And as markets got positioned vehicles have cars think, feeling ourselves selective, good to as demand because said come as opportunity well in to be great see great Ron, market. we've shape. to Sure. Supply We're consumer we down. auction I sell we're Wholesale us buy

again, great forward. like our size, growth sales, rate a going given we're given and we our projected position feel So our in

to based give intra-quarter, how guidance as I'd stand I you doing just a numbers guidance. our growth of I really year-over-year strong. is, I Dave there we by about, guess on, -- just far insight what good say that are the out seeing As it's far. put about, And basis. e-commerce we're great think on that It's talked thus in everything We terms feel

really So good. we're feeling

Ron Josey

we a lookout to Great. I for build you can progresses? be up XX% here, continued XQ growth about... the a ready just, for as of sale, rate quarter different Should follow-up, Understood, inventory think as on And maybe but as get way. expect just ask the inventory we

Paul Hennessy

Yes.

Ron Josey

Okay.

Paul Hennessy

mean, business. because meets to a I And we're customers' add to to we're our the going Yes. portfolio, inventory scaling continue demand. it

of match think inventory us of coming we'll And scale have amount So the right the well amount you've COVID. lows right to I out continue to seen the of of demand.

Ron Josey

Thank Great. much. you very

Paul Hennessy

Sure. Yes.

Operator

Thank you.

with Our next the from of line Fargo. comes Wells Zach question Fadem

now Your line is open.

Zach Fadem

guys. evening good Hey,

the and buckets costs, upside today? line, the think vehicles are you we XXXX, Year? how lower New as And we customer-sourced think here reconditioning Could move size Another about GPPU or contributing most et the the one you these as on cetera. days all as opportunities what long-term opportunities, into sell, factors from about talk to should lower you about

Dave Jones

Zach for Yes, the thanks question.

Paul I majority mentioned think think whole the bit we've of of of it's a appraisals week. per right? acquisitions, we process effort our everything, now. We do automated of If acquiring little through hundreds a thousands

opportunities inventory. acquiring very you know, few And so us for skills have. are nationally the that those companies that's And opened for really up as

of proud that. very we're So

so think that I sales And gives us on margin. opportunities

our XX ingesting today different real inventory at sources. As opportunities puts from for we a inbound on consumers, inbound continue we've to and facilities got then which is, we've mentioned I auction, advantage reconditioning -- network, from expand from got and distributed logistics. us

tailwind. think a So we that's

as And efforts. a those it to the And hone reconditioning been We've to expectations set refine but as work us we reconditioning. for we our for experience, mentioned defects to now skills. helps hard consumer can customer while. both You disclosing continue continue

the little -- there. about already. And little think, a so board a across We've product bit about bit talked there's we

of little So, I a bit think everything. it's

progress on of -- in goal we'll stop unit. gross And got -- think our guidance But That's first our good kind got effort of And continue think the feel XXXX. that. stop train. we you we're get first per there out about that a ultimately we're we've that. QX long-term to profit station making like $X,XXX towards I for we've to when obviously,

Zach Fadem

normalizes? local to called David. of can due for Thanks know out are region, I little And you relevant that, do lot cannibalizing your think that to to you the with And starting your business? it's can COVID. e-com Got business suggest it's about Houston think And a over when a going rebound then you disruption TDA talk fair units time be you TDA units? dealers in less to that in but this you about more talk it.

Dave Jones

Yes.

So our look the is -- unfortunately state and we Texas foot when in think the sickest traffic. now, right affected about nation definitely it

carefully. since can you we is pretty it imagine that As COVID significantly down hit. track And

having levels. has that a one we factor think of that's location. But about pre-COVID concentration not particular for We've So in there got us. the to the also supply just rebounded market as certainly inventory inventory,

think model Houston supply the And well. to as constrained. But so about that's we're distributed and and has our our particular of something that inventory when that try we expanding now, need inventory nationally. right somewhat to in expansion address And been you just

So that's a us focus QX. also in for

Zach Fadem

for it. Thanks the time. Got

Dave Jones

Absolutely

Operator

next Bank And you. our America. Thank of Schindler the comes Nat of question from line with

open. now Your line is

Nat Schindler

guys. there -- what out through XX,XXX. to and get Hi, fast is are cannot cars mean I'm growth? I to them being get grew have by Carvana out. out is They now. in units you Great. right enough their the And their though units e-commerce limited sold. nearly limits lines wondering. QX. cars did year-over-year X,XXX Carvana Thanks. supply your there move Obviously, specifically Fundamentally, what

You guys not. you're say

you grow higher So rates? substantially why suddenly at can't

Paul Hennessy

for support, experience, of the Yes. that might sales to honestly, that areas I XXXX really certainly and guess, towards what putting that And my and continued remarks the I'd check; investment facilitate reconditioning this we're last all you continued ops working acquisition that stage in And feel that and capacity, sales investing in great marketing, think constrain we're forward, that's opening opening in about we open constraint of we're bit I remarks, that. does as growth that check; will into described my up. creating you way setting is And inventory, check. we that sales. help our the around sales, of now business growth. those really are saw opening those if Right exactly sales that's our up say the

Nat Schindler

we get that. So

if see now units currently units, catching I me than sales numbers. it to substantially in grow times it all not maybe -- able support? people pieces phone year-over-year, understand the for multiple simply whatever similar this. bottleneck? the be the let So Is Carvana Is you So you are Right more -- more growing all that of need kind is up you to the answer is that to giving questions? on

Paul Hennessy

Yes. I in would say that's business a those need like today's bottleneck. This is -- unison. connected But all our highly business. to rise

don't And not want too so enough have inventory you much to demand.

So you we how dollars build amount need regulate in brand, we bring which to between our the to relationship customers. of the and supply, spend demand is

got have recondition. right the amount You've resources of to to

These supply whole meet or like and the suddenly the true. inventory. We size. enough things need unison a Xx to be not that light would use you leave upset to word opposite of something and get switch in demand, drive customers regulate, looks rather So And you the which sideways the with an excess really us and twice obviously flywheel or moderate consumer more move suddenly, either having business than also be size we this forward. that would will

demonstrated the our So we that That's that. profitability and growth, eye say, working controlled an are we that trajectory. the I and really and we've moves like increase while that unison. it's trajectory forward so can in much would trick more to And if you do business on about keeping will whole scaled

Nat Schindler

Okay. Great. Thank you.

Paul Hennessy

Yes.

Nat Schindler

Sure.

Dave Jones

you. Thank

Operator

of next with Blair. from Sharon Our question line William comes the Zackfia

open. Your is line now

Sharon Zackfia

seeing afternoon. you with broad-based strength TDA. Hi. curious the Houston Good on seeing I'm country. I in Congratulations sequentially guess across whether that out to know and expect the increase I you're the fourth see called you're quarter.

this on really aware e-com Monday of? are Cyber an that So a And a you planning or be we then Black should secondarily, is question. for anything Friday

Paul Hennessy

question, The demand. seeing is both national and you investing I sales great we're We're demand is mentioned capacity. about in remarks got which the feeling Dave's make that remarks broad really demand we're Great Yes. heard based. to Sharon. strong. my sure we've that the And encouraging

really that anything because unique to to we've flowing demand feel the got we we prices the so quarter fourth business. planning And for the stimulate demand are about not lower good into

just we have to try to think drive levers don't or what any abnormal throw would I So call demand conversion. to we

Sharon Zackfia

Okay. Thank you.

Paul Hennessy

Sure.

Operator

Thank you.

question Our with line Chris the comes of from next Bottiglieri Exane.

open. Your now line is

Chris Bottiglieri

Thanks about the could for question. I hoping talk was inbound improvement costs. logistics taking Yes. in the you

reconciled Is of that with the outbound driven was costs costs. a to so -- on was I most rate. It behind the like all or just sourcing more to of -- unit You mean in-house higher moving market simply because just of you're had that? seems outbound your -- per reconditioning sorry was by third-party it it most basis transport? there's no Or what's

Dave Jones

to think, us Chris, it. is Yes The much on you're I inbound a different animal for than outbound. the

in partner As Manheim we a ADESA. have you know and

cases is facility. lane auction the lot just to an the in effort reconditioning moving a from of inbound so And

shorter we little more more over that can a different would Typically it's vendor And inbound over. have logistics a control vendor a And too. -- we're when say it's process. different about the we thinking trip and so more a inbound I have influence it's it's

the really that's So difference.

Chris Bottiglieri

then you makes earlier, but a That lot if can you sense. talk you you. Got -- about And apologies pop of had this per I answered in unit. a F&I mean nice

on highlighted you've changes accomplish partnerships. improvement. strategic platform what's Can Just going to that of you there? just and walk I you through type us think elaborate done some some what

Dave Jones

Yes.

Chase. announced So first strategic I was of with we quarter our partnership fourth in -- the it year last think

with have then those so in And Ally side. and since done a we've we and partner -- Santander on the financing

those little push a to of those can preferred relationships. the us. the And as experience. we what rate. is attach more as were And better better maturing bit we customer with find for so what is a helps are it's I relationships a It referring And think volume economics we relationship into

a of just maturing your question? those answers really it's partnerships. So That

Chris Bottiglieri

Appreciate Thank it. you.

Operator

Thank you. And Securities. the line Wedbush our Basham last with question comes from of Seth

Your open. now line is

Seth Basham

relates good opinion the and talking bottlenecks in Can sales to as the that a whether experience lot, not down support. us you're it's you've first your it fallen areas customer impacted around afternoon. in NPS My about those of your whether the sense some or question Thanks customer experience give and you customer is and and currently on scores?

Paul Hennessy

Yes. fallen I certainly wouldn't say down.

on premium think, a about that in you we get carrier issues. the delivery some or I pay to talked their of about we impact third having carriers incoming has quarter come customer think the anything them Seth a when when being to delay a either negative And the causes experience. delayed talked to

to of you And And we're the the so about titles start other country one is And think or this across then their the closed, have which of also not are customers short about lot surprisingly DMVs a slowed that a taking of you've in on order. the when concerned seen COVID, created getting many of going our things ourselves. backlog. impact response

the in issue whether believe we again or a obviously, what we're the very titles. of paperwork investments And and to We're the take so have now reopened, And that things getting that. are are DMV we're underway it's going it's whether doing have experience on through focused of closures backlogs there? that as customer now. those working ahead delivery rectified very, getting very like we Again QX. right issue And and a seriously

Seth Basham

just All retailers why or TDA's in sale? from a a we whether trends to lead I'm Vroom's regarding and or is on when is area. understand in good it so comes Vroom TDA sold, And through website about TDA it that is Vroom's wondering little question trying as hear sale right. the is news. is counted I'm much and surprised also website at a e-commerce weak as piece second I'm my other inventory of not more That's a bit better and how TDA, inventory

Dave Jones

site. of that Yes, physically unit sell Houston shipped the on Seth local inventory in And it's to e-commerce a is unit. the all an Yes, Dave. it's is is then If for inventory the is TDA in-store. available

can the If TDA is this they from some vehicle. imagine And national like as model and so there there say, is pressure -- inventory someone I comes well. on the as you in

if up pulling we're it's for on can e-commerce on not put buy As it hold. the someone model them it

inventory. shared is it So,

is ensure there. is as seeing past is what returned the area. supply that in the I at not in an in And that mentioned done level there we're in we've what so adequate least remarks of And inventory

we're so now. some that solutions right working for on And

Seth Basham

Understood. Thank much. very you

Operator

any call Thank the to That would concludes like today's to you. I management remarks. now closing turn question-and-answer for back session.

Paul Hennessy

Great.

their Just our thank in to the and a call. all for an for shout everyone you employees joining delivering Vroom all out outstanding QX. thanks hard And work

Operator

gentlemen, this Thank and Ladies participating. for conference today's you concludes call.

disconnect. now may You

Vroom (VRMMQ) 11 Nov 202020 Q3 Earnings call transcript