Business
Vroom Announces Fourth Quarter and Full Year 2022 Results
Significant Sequential Cost Reductions and Continued Progress on Long-Term Roadmap NEW YORK--(BUSINESS WIRE)-- Vroom, Inc. (Nasdaq:VRM), a leading ecommerce
About this update from Vroom, Inc.
[{"type":"text","content":"\nSignificant Sequential Cost Reductions and Continued Progress on Long-Term Roadmap\n\n NEW YORK--(BUSINESS WIRE)--\nVroom, Inc. (Nasdaq:VRM), a leading ecommerce platform for buying and selling used vehicles, today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.\n\nHIGHLIGHTS OF FOURTH QUARTER 2022 VERSUS THIRD QUARTER 2022\n\n\nEcommerce gross profit per unit of $1,233 as compared to $4,206\n\n\nSG&A expenses of $90.8 million as compared to $134.6 million\n\n\nNet income of $24.8 million as compared to net loss of $(51.1) million\n\n\nAdjusted EBITDA of $(70.9) million as compared to $(73.3) million\n\n\nAdjusted EBITDA excluding securitization gain and non-recurring costs of $(70.5) million as compared to $(73.5) million\n\n\nHIGHLIGHTS OF FISCAL YEAR 2022(1) VERSUS FISCAL YEAR 2021\n\n\nEcommerce gross profit per unit of $2,545 compared to $2,206\n\n\nSG&A expenses of $566.4 million compared to $547.8 million\n\n\nNet loss of $(451.9) million compared to $(370.9) million\n\n\nAdjusted EBITDA of $(337.2) million compared to $(340.2) million\n\n\nAdjusted EBITDA excluding securitization gain and non-recurring costs of $(357.4) million compared to $(340.2) million\n\n\n(1) Fiscal year 2022 includes UACC's results of operations starting on February 1, 2022.\n\nTom Shortt, Chief Executive Officer of Vroom, said, “In the fourth quarter we continued to make progress on our three key objectives and four strategic initiatives. We significantly reduced operating expenses quarter over quarter and continued to improve our operations and customer experience. We improved our titling process enabling us to end the year with 87% of units available for sale or pending sale versus 52% at the end of Q3, however it also increased the age of our inventory available for sale and inventory sold.\n\nGross profit per unit declined from $4,206 in Q3 to $1,233 in Q4 primarily due to three items. The decline quarter over quarter was impacted primarily by three items. First, the percentage of sales from aged units increased 5X from Q3 to Q4; 36% of our units sold during the 4th quarter were aged units we’ve held >270 days. Second, increased industry wide market depreciation. Third, higher inventory reserves primarily driven by recent electric unit OEM price decreases.\n\nDuring 2022 we strategically slowed do...