Vroom, Inc. · NASDAQ:VRM
Vroom — Q4 2022 Earnings Presentation
16 slides from Vroom's earnings presentation, Feb 28, 2023
Slide 1: Vroom Fourth Quarter 2022 Earnings
Vroom Fourth Quarter 2022 Earnings February 2023
Slide 2: Disclaimer: Forward Looking Statements
Disclaimer Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking
Slide 3: Focused on our objectives and strategic initiatives
We are Focused on our objectives and Strategic initiatives During 2022 we improved the customer experience, improved our processes, and reduced our debt. During 2023 we intend to resume growth, sell through aged inventory, improve variable costs per unit, continue to reduce fixed costs and convert b
Slide 4: Fourth quarter highlights and 2022 full year results
Fourth quarter highlights and 2022 full year results 4th quarter key performance indicators ($70.9)M of Adjusted EBITDA(1) within range of prior outlook. Net income of $25M ($70.5)M of Adjusted EBITDA excluding securitization gain and non-recurring costs(1), a $65M / 48% improvement vs first quarter
Slide 5: Fourth quarter operational highlights
Fourth quarter Operational highlights Operational progress on our 4 strategic initiatives Financial Lever Initiative 3q to 4q $1,233 Ecommerce GPPU ~$6M of LCM markdown, including ~$4M related to electric vehicle OEM price decreases ~$4M negative impact of aged vehicles (>270 days) Continued improve
Slide 6: FY2023 guidance
fy2023 guidance 4 strategic initiatives intended to improve financial results fy 2023 Guidance fy2022 ($200) - ($250) million $150 - $200 million $399 million($337) million Adjusted EBITDA (1) (3) Year-end cash and cash equivalents (2) FY 2023 adjusted ebitda (1)(3) ~$40M 2023 EBITDA headwind due to
Slide 7: Vroom fourth quarter 2022 financial update
Vroom fourth quarter 2022 financial update
Slide 8: 4th quarter financial summary
4th quarter financial summary Continued progress on long term roadmap despite short term headwinds 4Q 2022 Performance Highlights 4q 2022 Performance vs 3q 2022 39% decrease in total revenue, 36% decrease in ecommerce units sold Ongoing focus on operational improvement over sales volume Ecommerce un
Slide 9: 4th quarter financial highlights
4th quarter financial highlights Sequential trends 4q 2022 Performance vs 3q 2022 $3m increase in adjusted ebitda ex. Securitization gain and Non-recurring costs (1) Driven by reduced operating costs, partially offset by lower units and GPPU headwinds 36% decrease in ecommerce units Ongoing focus on
Slide 10: 4th quarter performance drivers
4th quarter performance drivers 4th quarter adjusted ebitda ex. Securitization gain and non-recurring costs(1) Ecommerce gross profit Lower unit volume and negative impact of aged units, market depreciation and electric vehicle price reductions $2M reduction in Compensation & benefits Driven by focu
Slide 11: FY2023 outlook key performance drivers
Fy2023 outlook key performance drivers Improve ecommerce GPPU by selling through aged inventory and continued improvement on pricing algorithm Improve marketing spend efficiency through conversion Reduce support and transaction expenses through process improvements and technology enhancements Contin
Slide 12: Summary
Summary During 2022 we improved the customer experience, improved our processes, and reduced our debt 2022 Highlights 2023 outlook Developed our Long-Term Roadmap focused on 4 strategic initiatives expected to build a profitable business model Completed the acquisition of UACC to build out captive f
Slide 13: Vroom appendix
Vroom appendix
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial measures EBITDA, Adjusted EBITDA, Adjusted EBITDA excluding non-recurring costs to address operational and customer experience issues, Adjusted EBITDA excluding securitization gain and Adjusted EBITDA excluding securitization gain and non-recurring costs to addre
Slide 15: Reconciliation of Non-GAAP Financial Measures (continued)
Reconciliation of Non-GAAP Financial measures (continued) Adjusted SG&A We calculate adjusted selling, general & administrative expenses as selling, general & administrative expenses adjusted to exclude realignment costs, acquisition related costs, acceleration of non-cash stock-based compensation,
Slide 16: Thank you
thank you 16 V