Vroom, Inc. · NASDAQ:VRM
Vroom — Q1 2023 Earnings Presentation
16 slides from Vroom's earnings presentation, May 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings May 2023
Slide 2: Forward Looking Statements
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 statements,
Slide 3: Build a well-oiled transaction machine
Build a well-oiled transaction machine 1. Prioritize unit economics and growth Build a well-oiled metal machine 2. Improve Costs per unit Build a regional operating model 3. Maximize liquidity Build a captive finance offering
Slide 4: First Quarter 2023 Highlights
• ($64.8)M of Adjusted EBITDA(1), a $10M / 13% improvement vs fourth quarter 2022 results (2) • ($64.1)M of Adjusted EBITDA excluding non-recurring costs(1), a $10M / 14% improvement vs fourth quarter 2022 results (2) • Includes ~$5.0M negative impact of up-front expenses related to 2023-1 securitiz
Slide 5: Long-term roadmap strategic initiatives progress
Product GPPU Originate and securitize Vroom loans through UACC • $2,552 Ecommerce GPPU, a $1,319 improvement • 77% of Q1 units sold were aged (>180 days), negatively impacting GPPU Optimize pricing through predictive data and • We expect a similar mix of units sold in Q2-23 to be from aged units (>1
Slide 6: Adjusted EBITDA and GPPU trends
($ in millions) $171 Adjusted EBITDA ex. non-recurring costs Securitization Gain $120 $99 $(64) $67 $66 $(71) $(74) $(79) $10 million improvement $(142) $1,763 $3,629 $4,206 $1,233 $2,552 $684 million $480 million $396 million $268 million $264 million 4% 11% 49% 75% 77% (1) Adjusted EBITDA, Adjuste
Slide 7: First Quarter 2023 Financial Update
First Quarter 2023 Financial Update
Slide 8: First Quarter 2023 financial results
$209.3 million $196.5 million • Ongoing focus on operational improvement over sales volume 4,144 3,933 • We expect January to be our trough in unit volume $1,233 $2,552 ($74.8) million ($64.8) million ($74.4) million ($64.1) million • ~$9M / $2,888 per unit negative impact of selling through aged (>
Slide 9: Adjusted EBITDA and cash bridges
($ in millions) Total Ecommerce Gross Profit +$5M • $6 • Strong GPPU on unaged (0-180 days) inventory $4 $8 • Benefit of inventory reserve release offset by impact of aged inventory (>180 days) $1 $(64) ($9) • • Reduction of losses due to titling and registration $(74) improvements (1) 4Q 2022 (1) (
Slide 10: Full year 2023 liquidity outlook
• Expect to continue to reduce operating loss each quarter as we improve our processes • Expect to free up cash in inventory as we sell through aged units and improve inventory turns • Expect continued progress on initiatives to release cash trapped on the balance sheet • Incremental $24M of UACC li
Slide 11: Summary and outlook
• Continued execution of our Long-Term Roadmap focused on 4 strategic initiatives • We remain on track for our full year Adjusted EBITDA(1) guidance and year end cash expected to build a profitable business model and cash equivalents guidance • Achieved sequential GPPU improvement of $1,319 • Contin
Slide 12: Appendix
vroom Appendix
Slide 13: EBITDA and Adjusted EBITDA reconciliation
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 address operational and customer experience issues
Slide 14: Adjusted SG&A
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 selling, general & administrative expenses, realignment co
Slide 15: Adjusted EBITDA recast
• Adjusted EBITDA – recast to “add back” of fair value (“FV”) changes on securitized finance receivables and debt ($107.4) million ($85.6) million ($73.3) million ($70.9) million n/a ($5.6) million ($1.8) million $3.0 million ($3.9) million n/a ($113.0) million ($87.5) million ($70.3) million ($74.8
Slide 16: Thank you
thank you