Slide 1: Third Quarter 2023 Earnings
vroom Third Quarter 2023 Earnings November 7 th , 2023
Slide 2: 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: Third quarter 2023 highlights
third quarter 2023 highlights ($64.5)M of Adjusted EBITDA(1), an $8.2M / 15% sequential decline ~$13.3M sequential headwind for realized losses and mark-to-market on UACC portfolio · • Higher delinquency and default rates on originations prior to tightening of underwriting criteria earlier this year
Slide 5: Third quarter operational highlights
third quarter operational highlights operational progress on our 4 strategic initiatives financial lever Product GPPU initiative q22023 to q32023 $3,144 Ecommerce GPPU, a $190 improvement $ Vehicle GPPU Originate and securitize Vroom loans through UACC • 34% of Q3 units sold were aged (>180 days), n
Slide 6: Quarterly progression: operational improvements driving performance
quarterly progression operational improvements driving performance ($ in millions) adjusted ebitda ex. securitization gain and non-recurring costs (1) ■ Adjusted EBITDA ex. non-recurring costs Securitization Gain $3,629 ecommerce gppu $4,206 $(56) $1,763 $(64) $(65) $(71) $(74) $1,233 $(79) ~$13.3 m
Slide 7: Third Quarter 2023 Financial Update
vroom Third Quarter 2023 Financial Update
Slide 8: 3rd quarter 2023 financial summary
3rd quarter 2023 financial summary continued progress on long term roadmap, headwinds on uacc losses q32023 performancehighlights total revenue ecommerce units ecommerce gppu adjusted ebitda (1) second quarter 2023 third quarter 2023 $235.6 million $225.2 million 4,561 $3,144 ($64.5) million q32023
Slide 9: 3rd quarter performance drivers
3rd quarter performance drivers ($ in millions) 3rd quarter adjusted ebitda (1) $2m increase in ecommerce gross profit $3 $1 $1 $(56) 2Q 2023 $5 million (1) Ecommerce Volume Ecommerce GPPU Expansion Adjusted SG&A (2) ($13) UACC Mark to Market & Net Losses $(65) 3Q 2023 (1) 11% sequential unit growth
Slide 10: FY2023 cash and cash equivalents and liquidity outlook
fy2023 cash and cash equivalents and liquidity outlook cash and liquidity drivers • Expect to reduce operating loss in the fourth quarter by growing units, increasing GPPU and improving unit economics · 12/31/23 mid-point potential liquidity excludes any additional potential debt repurchases • Cash
Slide 11: Significant accomplishments since inception of long-term roadmap
significant accomplishments since inception of long-term roadmap-now we intend to raise capital to scale the business financial lever Product GPPU Vehicle GPPU initiative Originate and securitize Vroom loans through UACC Optimize pricing through predictive data and regionalization Optimize assortmen
Slide 12: Appendix
Vroom Appendix
Slide 13: 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 addr
Slide 14: 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 severance costs, non-recurring costs to address operational and customer experience issues, UACC
Slide 15: Thank you
thank you 15 V