Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Vroom Announces First Quarter 2024 Results By: Vroom, Inc. via Business Wire May 10, 2024 at 17:30 PM EDT Successfully Completed UACC Securitization Transaction in April 2024 Continued Progress on UACC Origination Performance Vroom, Inc. (Nasdaq:VRM) today announced financial results for the first quarter ended March 31, 2024. HIGHLIGHTS OF FIRST QUARTER 2024 $91.0 million cash and cash equivalents as of March 31, 2024 $(44.7) million net loss from continuing operations $(32.2) million Adjusted EBITDA Substantially completed the ecommerce wind-down Adopted new reporting segments to align with continuing operations at United Auto Credit (UACC) and CarStory Tom Shortt, the Company’s Chief Executive Officer, said “As we previously announced, our ecommerce wind-down was substantially completed during the first quarter of 2024. I am extremely proud of our team’s timely and orderly execution of the wind-down and continued focus on strengthening UACC’s operations. We have focused on portfolio performance at UACC and currently expect originations since early 2023 to perform at a level that enables UACC to drive toward profitability. We continue to take other actions to maximize stakeholder value by seeking to monetize our ecommerce platform and grow and enhance the profitability of UACC and CarStory.” Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We ended the quarter with cash and cash equivalents of approximately $91 million. The cash burn was primarily a result of the ecommerce wind-down, as we paid severance and other personnel-related costs and incurred exit costs associated with early termination or modification of ecommerce contracts and leases. I am pleased with the completion of UACC’s 2024-1 securitization transaction, in which $262.5 million of rated asset-backed securities were sold in April 2024, and $37.5 million of non-investment grade securities initially retained were subsequently sold in early May 2024.” FIRST QUARTER 2024 FINANCIAL DISCUSSION All financial comparisons are on a year-over-year basis unless otherwise noted. Three Months Ended March 31, 2024 2023 $ Change % Change Interest income $ 51,077 $ 34,368 $ 16,709 48.6 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,897 92.6 % Net interest income 36,737 26,924 9,812 36.4 % Realized and unrealized losses, net of recoveries 30,819 15,728 15,091 95.9 % Net interest income after losses and recoveries 5,918 11,196 (5,279 ) (47.1 )% Noninterest (loss) income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net (9,642 ) 2,835 (12,477 ) (440.1 )% CarStory revenue 2,979 3,170 (191 ) (6.0 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 2,784 3,032 (248 ) (8.2 )% Total noninterest (loss) income (1,860 ) 20,600 (22,460 ) (109.0 )% Expenses: Compensation and benefits 24,110 23,221 889 3.8 % Professional fees 3,343 4,973 (1,630 ) (32.8 )% Software and IT costs 4,622 5,246 (624 ) (11.9 )% Depreciation and amortization 7,626 7,232 394 5.4 % Interest expense on corporate debt 1,391 1,340 51 3.8 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 4,454 5,199 (745 ) (14.3 )% Total expenses 48,298 47,211 1,087 2.3 % Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) (28,825 ) 187.0 % Provision for income taxes from continuing operations 436 54 382 707.4 % Net loss from continuing operations $ (44,676 ) $ (15,469 ) $ (29,207 ) 188.8 % Net loss from discontinued operations $ (22,941 ) $ (59,272 ) $ 36,331 61.3 % Net loss $ (67,617 ) $ (74,741 ) $ 7,124 9.5 % Results by Segment UACC Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ 51,541 $ 35,299 $ 16,242 46.0 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,896 92.6 % Net interest income 37,201 27,855 9,346 33.6 % Realized and unrealized losses, net of recoveries 27,761 12,272 15,489 126.2 % Net interest income after losses and recoveries 9,439 15,582 (6,143 ) (39.4 )% Noninterest income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net 1,610 2,203 (593 ) (26.9 )% Other income 2,470 1,054 1,416 134.3 % Total noninterest income 6,099 6,111 (12 ) (0.2 )% Expenses: Compensation and benefits 18,788 18,537 252 1.4 % Professional fees 876 2,541 (1,664 ) (65.5 )% Software and IT costs 3,097 2,705 392 14.5 % Depreciation and amortization 6,021 5,627 394 7.0 % Interest expense on corporate debt 471 197 274 139.1 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 2,523 2,420 103 4.3 % Total expenses 34,529 32,026 2,503 7.8 % Adjusted EBITDA $ (10,147 ) $ (4,467 ) $ (5,680 ) 127.1 % Interest income on cash and cash equivalents $ (568 ) $ (448 ) (120 ) 26.7 % Stock compensation expense $ 168 $ 490 (322 ) (65.8 )% CarStory Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Noninterest income: CarStory revenue $ 2,979 $ 3,170 $ (191 ) (6.0 )% Other income 173 48 125 260.4 % Total noninterest income 3,152 3,218 (66 ) (2.1 )% Expenses: Compensation and benefits 2,214 2,401 (187 ) (7.8 )% Professional fees 122 177 (55 ) (31.1 )% Software and IT costs 167 174 (7 ) (4.0 )% Depreciation and amortization 1,605 1,605 - 0.0 % Other expenses 118 149 (31 ) (20.8 )% Total expenses 4,225 4,505 (280 ) (6.2 )% Adjusted EBITDA $ 559 $ 567 $ (8 ) (1.4 )% Interest income on cash and cash equivalents $ (173 ) $ (46 ) (126 ) 272.1 % Stock compensation expense $ 200 $ 296 (95 ) (32.3 )% Corporate Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ (464 ) $ (931 ) $ 467 50.2 % Realized and unrealized losses, net of recoveries 3,058 3,456 (398 ) (11.5 )% Net interest income after losses and recoveries (3,521 ) (4,387 ) 865 19.7 % Noninterest (loss) income: Warranties and GAP income, net $ (11,252 ) $ 632 $ (11,884 ) (1,880.4 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 141 1,930 (1,789 ) (92.7 )% Total noninterest (loss) income (11,111 ) 11,271 (22,382 ) (198.6 )% Expenses: Compensation and benefits 3,109 2,284 824 36.1 % Professional fees 2,345 2,256 89 3.9 % Software and IT costs 1,358 2,366 (1,009 ) (42.6 )% Interest expense on corporate debt 920 1,143 (223 ) (19.5 )% Other expenses 1,813 2,631 (819 ) (31.1 )% Total expenses 9,544 10,681 (1,137 ) (10.6 )% Adjusted EBITDA $ (22,564 ) $ (12,398 ) $ (10,166 ) 82.0 % Interest income on cash and cash equivalents $ (264 ) $ (1,930 ) 1,666 86.3 % Stock compensation expense $ 956 $ 894 63 7.0 % Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA and Adjusted EBITDA. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures. EBITDA and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. EBITDA and Adjusted EBITDA We calculate EBITDA as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense. We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, gain on debt extinguishment and long-lived asset impairment charges. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure: Three Months Ended March 31, 2024 2023 (in thousands) Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjusted to exclude the following: Interest expense on corporate debt 1,391 1,340 Interest income on cash and cash equivalents (1,005 ) (2,425 ) Provision for income taxes 436 54 Depreciation and amortization 7,626 7,232 EBITDA $ (36,228 ) $ (9,268 ) Stock compensation expense 1,324 1,679 Gain on debt extinguishment — (8,709 ) Impairment charges 2,752 — Adjusted EBITDA $ (32,152 ) $ (16,298 ) About Vroom (Nasdaq: VRM) Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. During fiscal 2023, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the potential impacts of the execution of and the expected benefits and cost-savings, if any, from our Value Maximization Plan, including the completion of the wind-down of the ecommerce business, our expectations regarding United Auto Credit Corporation and CarStory, the impact from the UACC’s 2024-1 securitization transaction, and future results of operations and financial position, including our liquidity outlook for 2024. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended March 31, 2023, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. VROOM, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) As of March 31, As of December 31, 2024 2023 ASSETS Cash and cash equivalents $ 90,990 $ 135,585 Restricted cash (including restricted cash of consolidated VIEs of $48.1 million and $49.1 million, respectively) 49,516 73,234 Finance receivables at fair value (including finance receivables of consolidated VIEs of $381.3 million and $341.4 million, respectively) 421,279 348,670 Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $450.0 million and $457.2 million, respectively) 454,189 503,546 Interest receivable (including interest receivables of consolidated VIEs of $13.4 million and $13.7 million, respectively) 14,142 14,484 Property and equipment, net 2,414 4,982 Intangible assets, net 125,136 131,892 Operating lease right-of-use assets 6,751 7,063 Other assets (including other assets of consolidated VIEs of $11.4 million and $13.3 million, respectively) 39,708 59,429 Assets from discontinued operations 18,142 196,537 Total assets $ 1,222,267 $ 1,475,422 LIABILITIES AND STOCKHOLDERS’ EQUITY Warehouse credit facilities of consolidated VIEs $ 516,276 $ 421,268 Long-term debt (including securitization debt of consolidated VIEs of $238.0 million and $314.1 million at fair value, respectively) 548,142 626,583 Operating lease liabilities 9,809 10,459 Other liabilities (including other liabilities of consolidated VIEs of $16.0 million and $14.3 million, respectively) 61,260 61,321 Liabilities from discontinued operations 25,293 228,120 Total liabilities 1,160,780 1,347,751 Commitments and contingencies (Note 11) Stockholders’ equity: Common stock, $0.001 par value; 500,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 1,795,626 and 1,791,286 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 2 2 Additional paid-in-capital 2,089,814 2,088,381 Accumulated deficit (2,028,329 ) (1,960,712 ) Total stockholders’ equity 61,487 127,671 Total liabilities and stockholders’ equity $ 1,222,267 $ 1,475,422 VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2024 2023 Interest income $ 51,077 $ 34,368 Interest expense: Warehouse credit facility 9,471 3,099 Securitization debt 4,869 4,345 Total interest expense 14,340 7,444 Net interest income 36,737 26,924 Realized and unrealized losses, net of recoveries 30,819 15,728 Net interest income after losses and recoveries 5,918 11,196 Noninterest (loss) income: Servicing income 2,019 2,854 Warranties and GAP income, net (9,642 ) 2,835 CarStory revenue 2,979 3,170 Gain on debt extinguishment — 8,709 Other income 2,784 3,032 Total noninterest (loss) income (1,860 ) 20,600 Expenses: Compensation and benefits 24,110 23,221 Professional fees 3,343 4,973 Software and IT costs 4,622 5,246 Depreciation and amortization 7,626 7,232 Interest expense on corporate debt 1,391 1,340 Impairment charges 2,752 — Other expenses 4,454 5,199 Total expenses 48,298 47,211 Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) Provision for income taxes from continuing operations 436 54 Net loss from continuing operations $ (44,676 ) $ (15,469 ) Net loss from discontinued operations $ (22,941 ) $ (59,272 ) Net loss $ (67,617 ) $ (74,741 ) Net loss per share attributable to common stockholders, continuing operations $ (24.90 ) $ (8.93 ) Net loss per share attributable to common stockholders, discontinued operations $ (12.79 ) $ (34.23 ) Total net loss per share attributable to common stockholders, basic and diluted $ (37.68 ) $ (43.16 ) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,794,303 1,731,636 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment charges 2,752 — Profit share receivable 9,642 — Gain on debt extinguishment — (8,709 ) Depreciation and amortization 7,626 7,224 Amortization of debt issuance costs 843 802 Losses on finance receivables and securitization debt, net 40,163 16,603 Stock-based compensation expense 1,324 1,679 Provision to record finance receivables held for sale at lower of cost or fair value 306 (1,251 ) Amortization of unearned discounts on finance receivables at fair value (4,792 ) (5,320 ) Other, net (1,921 ) (3,256 ) Changes in operating assets and liabilities: Finance receivables, held for sale Originations of finance receivables held for sale (130,404 ) (143,174 ) Principal payments received on finance receivables held for sale 40,387 20,731 Other 404 1,850 Interest receivable 342 (3,737 ) Other assets 3,022 7,069 Other liabilities (61 ) (6,740 ) Net cash used in operating activities from continuing operations (75,043 ) (131,698 ) Net cash provided by operating activities from discontinued operations 98,167 46,677 Net cash provided by (used in) operating activities 23,124 (85,021 ) Investing activities Finance receivables at fair value Originations of finance receivables at fair value — (3,392 ) Principal payments received on finance receivables at fair value 35,195 41,850 Consolidation of VIEs — 11,409 Principal payments received on beneficial interests 773 2,144 Purchase of property and equipment (644 ) (814 ) Net cash provided by investing activities from continuing operations 35,324 51,197 Net cash provided by (used in) investing activities from discontinued operations 5,747 (4,379 ) Net cash provided by investing activities 41,071 46,818 Financing activities Proceeds from borrowings under secured financing agreements — 238,735 Principal repayment under secured financing agreements (73,647 ) (42,784 ) Principal repayments of financing of beneficial interests in securitizations (2,651 ) — Proceeds from warehouse credit facilities 125,100 135,900 Repayments of warehouse credit facilities (30,092 ) (241,351 ) Repurchases of convertible senior notes — (5,883 ) Other financing activities (40 ) (156 ) Net cash provided by financing activities from continuing operations 18,670 84,461 Net cash used in financing activities from discontinued operations (151,178 ) (129,560 ) Net cash used in financing activities (132,508 ) (45,099 ) Net decrease in cash, cash equivalents and restricted cash (68,313 ) (83,302 ) Cash, cash equivalents and restricted cash at the beginning of period 208,819 472,010 Cash, cash equivalents and restricted cash at the end of period $ 140,506 $ 388,708 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) (unaudited) Supplemental disclosure of cash flow information: Cash paid for interest $ 13,497 $ 6,347 Supplemental disclosure of non-cash investing and financing activities: Finance receivables from consolidation of 2022-2 securitization transaction $ — $ 180,706 Elimination of beneficial interest from the consolidation of 2022-2 securitization transaction $ — $ 9,811 Securitization debt from consolidation of 2022-2 securitization transaction $ — $ 186,386 Reclassification of finance receivables held for sale to finance receivables at fair value, net $ — $ 248,081 View source version on businesswire.com: https://www.businesswire.com/news/home/20240510890980/en/Contacts Investor Relations: Vroom Jon Sandison investors@vroom.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Vroom Announces First Quarter 2024 Results By: Vroom, Inc. via Business Wire May 10, 2024 at 17:30 PM EDT Successfully Completed UACC Securitization Transaction in April 2024 Continued Progress on UACC Origination Performance Vroom, Inc. (Nasdaq:VRM) today announced financial results for the first quarter ended March 31, 2024. HIGHLIGHTS OF FIRST QUARTER 2024 $91.0 million cash and cash equivalents as of March 31, 2024 $(44.7) million net loss from continuing operations $(32.2) million Adjusted EBITDA Substantially completed the ecommerce wind-down Adopted new reporting segments to align with continuing operations at United Auto Credit (UACC) and CarStory Tom Shortt, the Company’s Chief Executive Officer, said “As we previously announced, our ecommerce wind-down was substantially completed during the first quarter of 2024. I am extremely proud of our team’s timely and orderly execution of the wind-down and continued focus on strengthening UACC’s operations. We have focused on portfolio performance at UACC and currently expect originations since early 2023 to perform at a level that enables UACC to drive toward profitability. We continue to take other actions to maximize stakeholder value by seeking to monetize our ecommerce platform and grow and enhance the profitability of UACC and CarStory.” Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We ended the quarter with cash and cash equivalents of approximately $91 million. The cash burn was primarily a result of the ecommerce wind-down, as we paid severance and other personnel-related costs and incurred exit costs associated with early termination or modification of ecommerce contracts and leases. I am pleased with the completion of UACC’s 2024-1 securitization transaction, in which $262.5 million of rated asset-backed securities were sold in April 2024, and $37.5 million of non-investment grade securities initially retained were subsequently sold in early May 2024.” FIRST QUARTER 2024 FINANCIAL DISCUSSION All financial comparisons are on a year-over-year basis unless otherwise noted. Three Months Ended March 31, 2024 2023 $ Change % Change Interest income $ 51,077 $ 34,368 $ 16,709 48.6 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,897 92.6 % Net interest income 36,737 26,924 9,812 36.4 % Realized and unrealized losses, net of recoveries 30,819 15,728 15,091 95.9 % Net interest income after losses and recoveries 5,918 11,196 (5,279 ) (47.1 )% Noninterest (loss) income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net (9,642 ) 2,835 (12,477 ) (440.1 )% CarStory revenue 2,979 3,170 (191 ) (6.0 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 2,784 3,032 (248 ) (8.2 )% Total noninterest (loss) income (1,860 ) 20,600 (22,460 ) (109.0 )% Expenses: Compensation and benefits 24,110 23,221 889 3.8 % Professional fees 3,343 4,973 (1,630 ) (32.8 )% Software and IT costs 4,622 5,246 (624 ) (11.9 )% Depreciation and amortization 7,626 7,232 394 5.4 % Interest expense on corporate debt 1,391 1,340 51 3.8 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 4,454 5,199 (745 ) (14.3 )% Total expenses 48,298 47,211 1,087 2.3 % Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) (28,825 ) 187.0 % Provision for income taxes from continuing operations 436 54 382 707.4 % Net loss from continuing operations $ (44,676 ) $ (15,469 ) $ (29,207 ) 188.8 % Net loss from discontinued operations $ (22,941 ) $ (59,272 ) $ 36,331 61.3 % Net loss $ (67,617 ) $ (74,741 ) $ 7,124 9.5 % Results by Segment UACC Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ 51,541 $ 35,299 $ 16,242 46.0 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,896 92.6 % Net interest income 37,201 27,855 9,346 33.6 % Realized and unrealized losses, net of recoveries 27,761 12,272 15,489 126.2 % Net interest income after losses and recoveries 9,439 15,582 (6,143 ) (39.4 )% Noninterest income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net 1,610 2,203 (593 ) (26.9 )% Other income 2,470 1,054 1,416 134.3 % Total noninterest income 6,099 6,111 (12 ) (0.2 )% Expenses: Compensation and benefits 18,788 18,537 252 1.4 % Professional fees 876 2,541 (1,664 ) (65.5 )% Software and IT costs 3,097 2,705 392 14.5 % Depreciation and amortization 6,021 5,627 394 7.0 % Interest expense on corporate debt 471 197 274 139.1 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 2,523 2,420 103 4.3 % Total expenses 34,529 32,026 2,503 7.8 % Adjusted EBITDA $ (10,147 ) $ (4,467 ) $ (5,680 ) 127.1 % Interest income on cash and cash equivalents $ (568 ) $ (448 ) (120 ) 26.7 % Stock compensation expense $ 168 $ 490 (322 ) (65.8 )% CarStory Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Noninterest income: CarStory revenue $ 2,979 $ 3,170 $ (191 ) (6.0 )% Other income 173 48 125 260.4 % Total noninterest income 3,152 3,218 (66 ) (2.1 )% Expenses: Compensation and benefits 2,214 2,401 (187 ) (7.8 )% Professional fees 122 177 (55 ) (31.1 )% Software and IT costs 167 174 (7 ) (4.0 )% Depreciation and amortization 1,605 1,605 - 0.0 % Other expenses 118 149 (31 ) (20.8 )% Total expenses 4,225 4,505 (280 ) (6.2 )% Adjusted EBITDA $ 559 $ 567 $ (8 ) (1.4 )% Interest income on cash and cash equivalents $ (173 ) $ (46 ) (126 ) 272.1 % Stock compensation expense $ 200 $ 296 (95 ) (32.3 )% Corporate Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ (464 ) $ (931 ) $ 467 50.2 % Realized and unrealized losses, net of recoveries 3,058 3,456 (398 ) (11.5 )% Net interest income after losses and recoveries (3,521 ) (4,387 ) 865 19.7 % Noninterest (loss) income: Warranties and GAP income, net $ (11,252 ) $ 632 $ (11,884 ) (1,880.4 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 141 1,930 (1,789 ) (92.7 )% Total noninterest (loss) income (11,111 ) 11,271 (22,382 ) (198.6 )% Expenses: Compensation and benefits 3,109 2,284 824 36.1 % Professional fees 2,345 2,256 89 3.9 % Software and IT costs 1,358 2,366 (1,009 ) (42.6 )% Interest expense on corporate debt 920 1,143 (223 ) (19.5 )% Other expenses 1,813 2,631 (819 ) (31.1 )% Total expenses 9,544 10,681 (1,137 ) (10.6 )% Adjusted EBITDA $ (22,564 ) $ (12,398 ) $ (10,166 ) 82.0 % Interest income on cash and cash equivalents $ (264 ) $ (1,930 ) 1,666 86.3 % Stock compensation expense $ 956 $ 894 63 7.0 % Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA and Adjusted EBITDA. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures. EBITDA and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. EBITDA and Adjusted EBITDA We calculate EBITDA as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense. We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, gain on debt extinguishment and long-lived asset impairment charges. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure: Three Months Ended March 31, 2024 2023 (in thousands) Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjusted to exclude the following: Interest expense on corporate debt 1,391 1,340 Interest income on cash and cash equivalents (1,005 ) (2,425 ) Provision for income taxes 436 54 Depreciation and amortization 7,626 7,232 EBITDA $ (36,228 ) $ (9,268 ) Stock compensation expense 1,324 1,679 Gain on debt extinguishment — (8,709 ) Impairment charges 2,752 — Adjusted EBITDA $ (32,152 ) $ (16,298 ) About Vroom (Nasdaq: VRM) Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. During fiscal 2023, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the potential impacts of the execution of and the expected benefits and cost-savings, if any, from our Value Maximization Plan, including the completion of the wind-down of the ecommerce business, our expectations regarding United Auto Credit Corporation and CarStory, the impact from the UACC’s 2024-1 securitization transaction, and future results of operations and financial position, including our liquidity outlook for 2024. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended March 31, 2023, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. VROOM, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) As of March 31, As of December 31, 2024 2023 ASSETS Cash and cash equivalents $ 90,990 $ 135,585 Restricted cash (including restricted cash of consolidated VIEs of $48.1 million and $49.1 million, respectively) 49,516 73,234 Finance receivables at fair value (including finance receivables of consolidated VIEs of $381.3 million and $341.4 million, respectively) 421,279 348,670 Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $450.0 million and $457.2 million, respectively) 454,189 503,546 Interest receivable (including interest receivables of consolidated VIEs of $13.4 million and $13.7 million, respectively) 14,142 14,484 Property and equipment, net 2,414 4,982 Intangible assets, net 125,136 131,892 Operating lease right-of-use assets 6,751 7,063 Other assets (including other assets of consolidated VIEs of $11.4 million and $13.3 million, respectively) 39,708 59,429 Assets from discontinued operations 18,142 196,537 Total assets $ 1,222,267 $ 1,475,422 LIABILITIES AND STOCKHOLDERS’ EQUITY Warehouse credit facilities of consolidated VIEs $ 516,276 $ 421,268 Long-term debt (including securitization debt of consolidated VIEs of $238.0 million and $314.1 million at fair value, respectively) 548,142 626,583 Operating lease liabilities 9,809 10,459 Other liabilities (including other liabilities of consolidated VIEs of $16.0 million and $14.3 million, respectively) 61,260 61,321 Liabilities from discontinued operations 25,293 228,120 Total liabilities 1,160,780 1,347,751 Commitments and contingencies (Note 11) Stockholders’ equity: Common stock, $0.001 par value; 500,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 1,795,626 and 1,791,286 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 2 2 Additional paid-in-capital 2,089,814 2,088,381 Accumulated deficit (2,028,329 ) (1,960,712 ) Total stockholders’ equity 61,487 127,671 Total liabilities and stockholders’ equity $ 1,222,267 $ 1,475,422 VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2024 2023 Interest income $ 51,077 $ 34,368 Interest expense: Warehouse credit facility 9,471 3,099 Securitization debt 4,869 4,345 Total interest expense 14,340 7,444 Net interest income 36,737 26,924 Realized and unrealized losses, net of recoveries 30,819 15,728 Net interest income after losses and recoveries 5,918 11,196 Noninterest (loss) income: Servicing income 2,019 2,854 Warranties and GAP income, net (9,642 ) 2,835 CarStory revenue 2,979 3,170 Gain on debt extinguishment — 8,709 Other income 2,784 3,032 Total noninterest (loss) income (1,860 ) 20,600 Expenses: Compensation and benefits 24,110 23,221 Professional fees 3,343 4,973 Software and IT costs 4,622 5,246 Depreciation and amortization 7,626 7,232 Interest expense on corporate debt 1,391 1,340 Impairment charges 2,752 — Other expenses 4,454 5,199 Total expenses 48,298 47,211 Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) Provision for income taxes from continuing operations 436 54 Net loss from continuing operations $ (44,676 ) $ (15,469 ) Net loss from discontinued operations $ (22,941 ) $ (59,272 ) Net loss $ (67,617 ) $ (74,741 ) Net loss per share attributable to common stockholders, continuing operations $ (24.90 ) $ (8.93 ) Net loss per share attributable to common stockholders, discontinued operations $ (12.79 ) $ (34.23 ) Total net loss per share attributable to common stockholders, basic and diluted $ (37.68 ) $ (43.16 ) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,794,303 1,731,636 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment charges 2,752 — Profit share receivable 9,642 — Gain on debt extinguishment — (8,709 ) Depreciation and amortization 7,626 7,224 Amortization of debt issuance costs 843 802 Losses on finance receivables and securitization debt, net 40,163 16,603 Stock-based compensation expense 1,324 1,679 Provision to record finance receivables held for sale at lower of cost or fair value 306 (1,251 ) Amortization of unearned discounts on finance receivables at fair value (4,792 ) (5,320 ) Other, net (1,921 ) (3,256 ) Changes in operating assets and liabilities: Finance receivables, held for sale Originations of finance receivables held for sale (130,404 ) (143,174 ) Principal payments received on finance receivables held for sale 40,387 20,731 Other 404 1,850 Interest receivable 342 (3,737 ) Other assets 3,022 7,069 Other liabilities (61 ) (6,740 ) Net cash used in operating activities from continuing operations (75,043 ) (131,698 ) Net cash provided by operating activities from discontinued operations 98,167 46,677 Net cash provided by (used in) operating activities 23,124 (85,021 ) Investing activities Finance receivables at fair value Originations of finance receivables at fair value — (3,392 ) Principal payments received on finance receivables at fair value 35,195 41,850 Consolidation of VIEs — 11,409 Principal payments received on beneficial interests 773 2,144 Purchase of property and equipment (644 ) (814 ) Net cash provided by investing activities from continuing operations 35,324 51,197 Net cash provided by (used in) investing activities from discontinued operations 5,747 (4,379 ) Net cash provided by investing activities 41,071 46,818 Financing activities Proceeds from borrowings under secured financing agreements — 238,735 Principal repayment under secured financing agreements (73,647 ) (42,784 ) Principal repayments of financing of beneficial interests in securitizations (2,651 ) — Proceeds from warehouse credit facilities 125,100 135,900 Repayments of warehouse credit facilities (30,092 ) (241,351 ) Repurchases of convertible senior notes — (5,883 ) Other financing activities (40 ) (156 ) Net cash provided by financing activities from continuing operations 18,670 84,461 Net cash used in financing activities from discontinued operations (151,178 ) (129,560 ) Net cash used in financing activities (132,508 ) (45,099 ) Net decrease in cash, cash equivalents and restricted cash (68,313 ) (83,302 ) Cash, cash equivalents and restricted cash at the beginning of period 208,819 472,010 Cash, cash equivalents and restricted cash at the end of period $ 140,506 $ 388,708 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) (unaudited) Supplemental disclosure of cash flow information: Cash paid for interest $ 13,497 $ 6,347 Supplemental disclosure of non-cash investing and financing activities: Finance receivables from consolidation of 2022-2 securitization transaction $ — $ 180,706 Elimination of beneficial interest from the consolidation of 2022-2 securitization transaction $ — $ 9,811 Securitization debt from consolidation of 2022-2 securitization transaction $ — $ 186,386 Reclassification of finance receivables held for sale to finance receivables at fair value, net $ — $ 248,081 View source version on businesswire.com: https://www.businesswire.com/news/home/20240510890980/en/Contacts Investor Relations: Vroom Jon Sandison investors@vroom.com
Successfully Completed UACC Securitization Transaction in April 2024 Continued Progress on UACC Origination Performance
Vroom, Inc. (Nasdaq:VRM) today announced financial results for the first quarter ended March 31, 2024. HIGHLIGHTS OF FIRST QUARTER 2024 $91.0 million cash and cash equivalents as of March 31, 2024 $(44.7) million net loss from continuing operations $(32.2) million Adjusted EBITDA Substantially completed the ecommerce wind-down Adopted new reporting segments to align with continuing operations at United Auto Credit (UACC) and CarStory Tom Shortt, the Company’s Chief Executive Officer, said “As we previously announced, our ecommerce wind-down was substantially completed during the first quarter of 2024. I am extremely proud of our team’s timely and orderly execution of the wind-down and continued focus on strengthening UACC’s operations. We have focused on portfolio performance at UACC and currently expect originations since early 2023 to perform at a level that enables UACC to drive toward profitability. We continue to take other actions to maximize stakeholder value by seeking to monetize our ecommerce platform and grow and enhance the profitability of UACC and CarStory.” Bob Krakowiak, Vroom’s Chief Financial Officer, commented, “We ended the quarter with cash and cash equivalents of approximately $91 million. The cash burn was primarily a result of the ecommerce wind-down, as we paid severance and other personnel-related costs and incurred exit costs associated with early termination or modification of ecommerce contracts and leases. I am pleased with the completion of UACC’s 2024-1 securitization transaction, in which $262.5 million of rated asset-backed securities were sold in April 2024, and $37.5 million of non-investment grade securities initially retained were subsequently sold in early May 2024.” FIRST QUARTER 2024 FINANCIAL DISCUSSION All financial comparisons are on a year-over-year basis unless otherwise noted. Three Months Ended March 31, 2024 2023 $ Change % Change Interest income $ 51,077 $ 34,368 $ 16,709 48.6 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,897 92.6 % Net interest income 36,737 26,924 9,812 36.4 % Realized and unrealized losses, net of recoveries 30,819 15,728 15,091 95.9 % Net interest income after losses and recoveries 5,918 11,196 (5,279 ) (47.1 )% Noninterest (loss) income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net (9,642 ) 2,835 (12,477 ) (440.1 )% CarStory revenue 2,979 3,170 (191 ) (6.0 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 2,784 3,032 (248 ) (8.2 )% Total noninterest (loss) income (1,860 ) 20,600 (22,460 ) (109.0 )% Expenses: Compensation and benefits 24,110 23,221 889 3.8 % Professional fees 3,343 4,973 (1,630 ) (32.8 )% Software and IT costs 4,622 5,246 (624 ) (11.9 )% Depreciation and amortization 7,626 7,232 394 5.4 % Interest expense on corporate debt 1,391 1,340 51 3.8 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 4,454 5,199 (745 ) (14.3 )% Total expenses 48,298 47,211 1,087 2.3 % Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) (28,825 ) 187.0 % Provision for income taxes from continuing operations 436 54 382 707.4 % Net loss from continuing operations $ (44,676 ) $ (15,469 ) $ (29,207 ) 188.8 % Net loss from discontinued operations $ (22,941 ) $ (59,272 ) $ 36,331 61.3 % Net loss $ (67,617 ) $ (74,741 ) $ 7,124 9.5 % Results by Segment UACC Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ 51,541 $ 35,299 $ 16,242 46.0 % Interest expense: Warehouse credit facility 9,471 3,099 6,372 205.6 % Securitization debt 4,869 4,345 524 12.1 % Total interest expense 14,340 7,444 6,896 92.6 % Net interest income 37,201 27,855 9,346 33.6 % Realized and unrealized losses, net of recoveries 27,761 12,272 15,489 126.2 % Net interest income after losses and recoveries 9,439 15,582 (6,143 ) (39.4 )% Noninterest income: Servicing income 2,019 2,854 (835 ) (29.3 )% Warranties and GAP income, net 1,610 2,203 (593 ) (26.9 )% Other income 2,470 1,054 1,416 134.3 % Total noninterest income 6,099 6,111 (12 ) (0.2 )% Expenses: Compensation and benefits 18,788 18,537 252 1.4 % Professional fees 876 2,541 (1,664 ) (65.5 )% Software and IT costs 3,097 2,705 392 14.5 % Depreciation and amortization 6,021 5,627 394 7.0 % Interest expense on corporate debt 471 197 274 139.1 % Impairment charges 2,752 — 2,752 100.0 % Other expenses 2,523 2,420 103 4.3 % Total expenses 34,529 32,026 2,503 7.8 % Adjusted EBITDA $ (10,147 ) $ (4,467 ) $ (5,680 ) 127.1 % Interest income on cash and cash equivalents $ (568 ) $ (448 ) (120 ) 26.7 % Stock compensation expense $ 168 $ 490 (322 ) (65.8 )% CarStory Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Noninterest income: CarStory revenue $ 2,979 $ 3,170 $ (191 ) (6.0 )% Other income 173 48 125 260.4 % Total noninterest income 3,152 3,218 (66 ) (2.1 )% Expenses: Compensation and benefits 2,214 2,401 (187 ) (7.8 )% Professional fees 122 177 (55 ) (31.1 )% Software and IT costs 167 174 (7 ) (4.0 )% Depreciation and amortization 1,605 1,605 - 0.0 % Other expenses 118 149 (31 ) (20.8 )% Total expenses 4,225 4,505 (280 ) (6.2 )% Adjusted EBITDA $ 559 $ 567 $ (8 ) (1.4 )% Interest income on cash and cash equivalents $ (173 ) $ (46 ) (126 ) 272.1 % Stock compensation expense $ 200 $ 296 (95 ) (32.3 )% Corporate Three Months Ended March 31, 2024 2023 Change % Change (in thousands, except unit data and average days to sale) Interest income $ (464 ) $ (931 ) $ 467 50.2 % Realized and unrealized losses, net of recoveries 3,058 3,456 (398 ) (11.5 )% Net interest income after losses and recoveries (3,521 ) (4,387 ) 865 19.7 % Noninterest (loss) income: Warranties and GAP income, net $ (11,252 ) $ 632 $ (11,884 ) (1,880.4 )% Gain on debt extinguishment — 8,709 (8,709 ) (100.0 )% Other income 141 1,930 (1,789 ) (92.7 )% Total noninterest (loss) income (11,111 ) 11,271 (22,382 ) (198.6 )% Expenses: Compensation and benefits 3,109 2,284 824 36.1 % Professional fees 2,345 2,256 89 3.9 % Software and IT costs 1,358 2,366 (1,009 ) (42.6 )% Interest expense on corporate debt 920 1,143 (223 ) (19.5 )% Other expenses 1,813 2,631 (819 ) (31.1 )% Total expenses 9,544 10,681 (1,137 ) (10.6 )% Adjusted EBITDA $ (22,564 ) $ (12,398 ) $ (10,166 ) 82.0 % Interest income on cash and cash equivalents $ (264 ) $ (1,930 ) 1,666 86.3 % Stock compensation expense $ 956 $ 894 63 7.0 % Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. GAAP, we believe the following non-GAAP financial measures are useful in evaluating our operating performance: EBITDA and Adjusted EBITDA. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating and financial performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. We have reconciled all non-GAAP financial measures with the most directly comparable U.S. GAAP financial measures. EBITDA and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. EBITDA and Adjusted EBITDA We calculate EBITDA as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense. We calculate Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, gain on debt extinguishment and long-lived asset impairment charges. The following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure: Three Months Ended March 31, 2024 2023 (in thousands) Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjusted to exclude the following: Interest expense on corporate debt 1,391 1,340 Interest income on cash and cash equivalents (1,005 ) (2,425 ) Provision for income taxes 436 54 Depreciation and amortization 7,626 7,232 EBITDA $ (36,228 ) $ (9,268 ) Stock compensation expense 1,324 1,679 Gain on debt extinguishment — (8,709 ) Impairment charges 2,752 — Adjusted EBITDA $ (32,152 ) $ (16,298 ) About Vroom (Nasdaq: VRM) Vroom owns and operates United Auto Credit Corporation (UACC), a leading indirect automotive lender serving the independent and franchise dealer market nationwide, and CarStory, a leader in AI-powered analytics and digital services for automotive retail. During fiscal 2023, Vroom also operated an end-to-end ecommerce platform to buy and sell used vehicles. Pursuant to its previously announced Value Maximization Plan, Vroom discontinued its ecommerce operations and used vehicle dealership business. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding the potential impacts of the execution of and the expected benefits and cost-savings, if any, from our Value Maximization Plan, including the completion of the wind-down of the ecommerce business, our expectations regarding United Auto Credit Corporation and CarStory, the impact from the UACC’s 2024-1 securitization transaction, and future results of operations and financial position, including our liquidity outlook for 2024. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this press release, please see the risks and uncertainties identified under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended March 31, 2023, which is available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. VROOM, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) As of March 31, As of December 31, 2024 2023 ASSETS Cash and cash equivalents $ 90,990 $ 135,585 Restricted cash (including restricted cash of consolidated VIEs of $48.1 million and $49.1 million, respectively) 49,516 73,234 Finance receivables at fair value (including finance receivables of consolidated VIEs of $381.3 million and $341.4 million, respectively) 421,279 348,670 Finance receivables held for sale, net (including finance receivables of consolidated VIEs of $450.0 million and $457.2 million, respectively) 454,189 503,546 Interest receivable (including interest receivables of consolidated VIEs of $13.4 million and $13.7 million, respectively) 14,142 14,484 Property and equipment, net 2,414 4,982 Intangible assets, net 125,136 131,892 Operating lease right-of-use assets 6,751 7,063 Other assets (including other assets of consolidated VIEs of $11.4 million and $13.3 million, respectively) 39,708 59,429 Assets from discontinued operations 18,142 196,537 Total assets $ 1,222,267 $ 1,475,422 LIABILITIES AND STOCKHOLDERS’ EQUITY Warehouse credit facilities of consolidated VIEs $ 516,276 $ 421,268 Long-term debt (including securitization debt of consolidated VIEs of $238.0 million and $314.1 million at fair value, respectively) 548,142 626,583 Operating lease liabilities 9,809 10,459 Other liabilities (including other liabilities of consolidated VIEs of $16.0 million and $14.3 million, respectively) 61,260 61,321 Liabilities from discontinued operations 25,293 228,120 Total liabilities 1,160,780 1,347,751 Commitments and contingencies (Note 11) Stockholders’ equity: Common stock, $0.001 par value; 500,000,000 shares authorized as of March 31, 2024 and December 31, 2023; 1,795,626 and 1,791,286 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively 2 2 Additional paid-in-capital 2,089,814 2,088,381 Accumulated deficit (2,028,329 ) (1,960,712 ) Total stockholders’ equity 61,487 127,671 Total liabilities and stockholders’ equity $ 1,222,267 $ 1,475,422 VROOM, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended March 31, 2024 2023 Interest income $ 51,077 $ 34,368 Interest expense: Warehouse credit facility 9,471 3,099 Securitization debt 4,869 4,345 Total interest expense 14,340 7,444 Net interest income 36,737 26,924 Realized and unrealized losses, net of recoveries 30,819 15,728 Net interest income after losses and recoveries 5,918 11,196 Noninterest (loss) income: Servicing income 2,019 2,854 Warranties and GAP income, net (9,642 ) 2,835 CarStory revenue 2,979 3,170 Gain on debt extinguishment — 8,709 Other income 2,784 3,032 Total noninterest (loss) income (1,860 ) 20,600 Expenses: Compensation and benefits 24,110 23,221 Professional fees 3,343 4,973 Software and IT costs 4,622 5,246 Depreciation and amortization 7,626 7,232 Interest expense on corporate debt 1,391 1,340 Impairment charges 2,752 — Other expenses 4,454 5,199 Total expenses 48,298 47,211 Loss from continuing operations before provision for income taxes (44,240 ) (15,415 ) Provision for income taxes from continuing operations 436 54 Net loss from continuing operations $ (44,676 ) $ (15,469 ) Net loss from discontinued operations $ (22,941 ) $ (59,272 ) Net loss $ (67,617 ) $ (74,741 ) Net loss per share attributable to common stockholders, continuing operations $ (24.90 ) $ (8.93 ) Net loss per share attributable to common stockholders, discontinued operations $ (12.79 ) $ (34.23 ) Total net loss per share attributable to common stockholders, basic and diluted $ (37.68 ) $ (43.16 ) Weighted-average number of shares outstanding used to compute net loss per share attributable to common stockholders, basic and diluted 1,794,303 1,731,636 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2024 2023 Operating activities Net loss from continuing operations $ (44,676 ) $ (15,469 ) Adjustments to reconcile net loss to net cash used in operating activities: Impairment charges 2,752 — Profit share receivable 9,642 — Gain on debt extinguishment — (8,709 ) Depreciation and amortization 7,626 7,224 Amortization of debt issuance costs 843 802 Losses on finance receivables and securitization debt, net 40,163 16,603 Stock-based compensation expense 1,324 1,679 Provision to record finance receivables held for sale at lower of cost or fair value 306 (1,251 ) Amortization of unearned discounts on finance receivables at fair value (4,792 ) (5,320 ) Other, net (1,921 ) (3,256 ) Changes in operating assets and liabilities: Finance receivables, held for sale Originations of finance receivables held for sale (130,404 ) (143,174 ) Principal payments received on finance receivables held for sale 40,387 20,731 Other 404 1,850 Interest receivable 342 (3,737 ) Other assets 3,022 7,069 Other liabilities (61 ) (6,740 ) Net cash used in operating activities from continuing operations (75,043 ) (131,698 ) Net cash provided by operating activities from discontinued operations 98,167 46,677 Net cash provided by (used in) operating activities 23,124 (85,021 ) Investing activities Finance receivables at fair value Originations of finance receivables at fair value — (3,392 ) Principal payments received on finance receivables at fair value 35,195 41,850 Consolidation of VIEs — 11,409 Principal payments received on beneficial interests 773 2,144 Purchase of property and equipment (644 ) (814 ) Net cash provided by investing activities from continuing operations 35,324 51,197 Net cash provided by (used in) investing activities from discontinued operations 5,747 (4,379 ) Net cash provided by investing activities 41,071 46,818 Financing activities Proceeds from borrowings under secured financing agreements — 238,735 Principal repayment under secured financing agreements (73,647 ) (42,784 ) Principal repayments of financing of beneficial interests in securitizations (2,651 ) — Proceeds from warehouse credit facilities 125,100 135,900 Repayments of warehouse credit facilities (30,092 ) (241,351 ) Repurchases of convertible senior notes — (5,883 ) Other financing activities (40 ) (156 ) Net cash provided by financing activities from continuing operations 18,670 84,461 Net cash used in financing activities from discontinued operations (151,178 ) (129,560 ) Net cash used in financing activities (132,508 ) (45,099 ) Net decrease in cash, cash equivalents and restricted cash (68,313 ) (83,302 ) Cash, cash equivalents and restricted cash at the beginning of period 208,819 472,010 Cash, cash equivalents and restricted cash at the end of period $ 140,506 $ 388,708 VROOM, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (continued) (in thousands) (unaudited) Supplemental disclosure of cash flow information: Cash paid for interest $ 13,497 $ 6,347 Supplemental disclosure of non-cash investing and financing activities: Finance receivables from consolidation of 2022-2 securitization transaction $ — $ 180,706 Elimination of beneficial interest from the consolidation of 2022-2 securitization transaction $ — $ 9,811 Securitization debt from consolidation of 2022-2 securitization transaction $ — $ 186,386 Reclassification of finance receivables held for sale to finance receivables at fair value, net $ — $ 248,081 View source version on businesswire.com: https://www.businesswire.com/news/home/20240510890980/en/
