Vroom, Inc. · NASDAQ:VRM
Vroom — Q4 2023 Earnings Presentation
18 slides from Vroom's earnings presentation, Mar 13, 2024
Slide 1: Fourth Quarter and Full Year 2023 Earnings
vroom Fourth Quarter and Full Year 2023 Earnings March 2024
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: 2023 Full Year and Fourth Quarter Results
vroom 2023 full year and fourth quarter results • During the fiscal year ended December 31, 2023, Vroom operated an end-to-end ecommerce platform to buy and sell used vehicles, utilizing a combination of automotive ecommerce, vehicle operations and data science and experimentation to bring all phase
Slide 4: Fourth Quarter and 2023 Full Year Results
fourth quarter and 2023 full year results 4th quarter key performance indicators · • • 5% Ecommerce unit growth sequentially, third consecutive quarter of ecommerce unit growth $4,742 Ecommerce Gross Profit Per Unit (GPPU), a $1,598 sequential improvement, driven by improved mix of unaged units and
Slide 5: Financial Lever Initiative Transformation Results
financial lever initiative Product GPPU Originate and securitize Vroom loans through UACC Vehicle GPPU Optimize pricing through predictive data and regionalization Optimize assortment • • transformation results • ~40+% of Vroom loans originated through UACC in Q4-2023 ~$1,700 improvement in ecommerc
Slide 6: 4th Quarter Cash and Cash Equivalents
4th quarter cash and cash equivalents 4th quarter cash and cash equivalents(1) $209 9/30/23 Cash and Cash Equivalents (1) ($92) 4Q Adjusted EBITDA (2) ($10) $16 $7 $29 $160 Interest Expense (net) Cash in Inventory Restricted Cash Non-Cash Items & Other $24 $136 12/31/23 Cash and Cash Equivalents (1)
Slide 7: Ecommerce Wind Down Update
900 800 700 600 500 400 300 200 100 0 6-Jan 13-Jan 20-Jan 27-Jan 3-Feb 10-Feb 17-Feb (1) Excludes UACC and CarStory headcount ecommerce wind down exceeding expectations on results and timing 24-Feb 2-Mar • · Liquidating linehaul and last mile delivery fleet Reducing headcount as wind down activities
Slide 8: Ecommerce Wind Down Update: Value Maximization Plan
ecommerce wind down update value maximization plan On January 22, 2024, we announced that our Board of Directors had approved a Value Maximization Plan, pursuant to which we discontinued our ecommerce operations and are winding down our used vehicle dealership business in order to preserve liquidity
Slide 9: Vroom Overview
vroom overview following the wind-down of our ecommerce operations, vroom's business is comprised of uacc andcarstory.uacc is an indirect lender that offers vehicle financing to consumers through third-party dealers under the uacc brand, focusing primarily on the non-prime market.carstory is a leade
Slide 10: UACC Key Financial Statement Items
uacc key financial statement items Dollars in thousands 2019 2020 2021 2022 2023(1) Total interest income Net interest income Securitization gain Operating Expenses Other EA 153,198 $ 160,458 162,423 106,808 181,837 131,979 141,490 147,711 95,362 137,825 45,999 (51,814) (49,704) (58,020) (69,908) (8
Slide 11: Key Balance Sheet Items
key balance sheet items ASSETS Current Assets: Cash and cash equivalents Vroom Operations UACC As of December 31, 2023 UACC 2022-2 Securitization (1) Carstory, Parent & Intercompany Total $ $ 13,172 $ $ 122,413 $ 135,585 Restricted cash (including restricted cash of consolidated VIES of $49.1 millio
Slide 12: UACC Performance Trends
uacc performance trends 0% 2% 1/1/2017 2/1/2017 3/1/2017 4/1/2017 10% CNL @ 12mo and Mix Adj DQ @4mo 4% %9 5/1/2017 6/1/2017 7/1/2017 3/1/2017 2017 8% 9/1/2017 10/1/2017 11/1/2017 12% 2018 14% 16% 31+ Day Delinquency and Cumulative Net Loss Covid Stimulus 34% Credit tightening 32% 12/1/2017 1/1/2018
Slide 13: 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 addr
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 acquisition related costs, severance costs, non-recurring costs to address operational and custom
Slide 16: UACC Financial Statements Reconciliation to Consolidated Financials 2022
uacc financial statements reconciliation to consolidated financials For year ended December 31, 2022 Dollars in thousands UACC standalone Predecessor UACC financial information January 1-January 31 Intercompany Slide 10 2022 Eliminations Vroom* Consolidated Total interest income Net interest income
Slide 17: UACC Financial Statements Reconciliation to Consolidated Financials 2023
Uacc financial statements reconciliation to consolidated financials For year ended December 31, 2023 Dollars in thousands UACC standalone financial information UACC Intercompany Slide 10 Eliminations Vroom* Consolidated Total interest income Net interest income Credit losses Pre-tax net income/(loss
Slide 18: Thank You
thank you 18 V