Slide 1: First Quarter 2022 Earnings
First Quarter 2022 Earnings May 2022
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: Tom Shortt eCommerce SVP Supply Chain Management SVP Supply Chain
eCommerce SVP Supply Chain Management SVP Supply Chain President Global Products President Chief Supply Chain Officer EVP Supply Chain Tom Shortt
Slide 4: First quarter highlights and results versus guidance
• Ecommerce Gross Profit Per Unit (GPPU) ahead of expectations and prior quarter because of improved vehicle and product margins • Adjusted EBITDA well ahead of expectations on improved ecommerce performance and favorable United Auto Credit Corporation (UACC) contribution • Reconditioning network tr
Slide 5: Realignment plan priorities
• Leverage our national brand while focusing on regional operations that drive density • Optimize pricing for acquisitions and sales • Maximize the power of UACC • Reduce marketing expenses by focusing on highest-ROI marketing channels and aligning total spend with volume trajectory • Resize the org
Slide 6: Operational focus areas
1 2 1 3 1 4 1 • Leverage technology to improve our • Rationalize near-term reconditioning • Incorporate our regional hubs and • Launch and scale direct financing via titling and registration process footprint following the Adesa exit reconditioning centers into our end- Vroom Finance (UACC) to incre
Slide 7: Investor event May 26, 2022
Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 7 1 1 8 9 10 11 12 13 14 15 16 17 18 19 20 21 2 1 22 23 24 25 26 27 28 2 1 29 30 31 3 1 3 1 Thursday, May 26, 2022 9:00 am – 12:00 pm ET 4 1 Virtual format
Slide 8: First Quarter 2022 Financial Update
First Quarter 2022 Financial Update May 2022
Slide 9: First quarter results versus guidance
• Better-than-expected ecommerce unit growth and contributions from Retail Financing (new segment as a result of UACC acquisition) $924 million ✓ ~$875 million 19,473 ✓ 18,000 - 19,000 • Driven by stronger seasonal demand $1,763 ✓ ~$1,500 ($107) million ✓ (~$130) million • Better-than-anticipated pe
Slide 10: Ecommerce units, revenue and gross profit per unit
(Ecommerce revenues in millions) 19,683 21,243 19,473 • Driven by increased inventory YoY and ongoing demand for used vehicles 3Q 2021 4Q 2021 1Q 2022 $702 $739 $675 • Fueled by 26% unit growth and a ~$7,200 (27%) YoY increase in ecommerce average selling price to ~$33,500 3Q 2021 4Q 2021 1Q 2022 $1
Slide 11: Retail financing and ecommerce segment changes
1 1 • Ecommerce segment will include captive financing for vehicles sold to • $118 million of new loan originations Vroom customers • $350 million of unused capacity in warehouse credit facilities available • Ecommerce product revenue will include gains on securitizations or forward flows for loans
Slide 12: Cost reduction actions
Reducing headcount by Reducing the rate of Reducing marketing Further developing our Further improving and •~270 Reducing headcount positions or 14% • Increasing vehicle to unit sales growth • expense Focus marketing on to be in-line • Further developing regional operating •automating Further improv
Slide 13: Adjusted EBITDA bridge to FY2022 guidance
(Dollars in millions) Adjusted $65-$75 ($27)-($17) EBITDA $135-$165 1Q 2022 Actual ($107.4) ($375)-($325) Remove: UACC Impact (29.6) 1Q 2022 (ex. UACC) ($137.0) Multiply by 4 x4 ($548) Annualized ($548.0) 1Q 2022 Vroom UACC / Vroom Non-recurring CX FY 2022E Annualized Cost Reductions Financing (1) a
Slide 14: Liquidity bridge to year-end 2022
(Dollars in millions) $601 ($268)-($218) $17-$42 $450-$565 • Forecasted Adjusted EBITDA reflects $125-$150 expected significant improvement vs. 1Q 2022 annualized rate.(2) Expected gain on second planned securitization (3Q or 4Q) ($45)-($35) $10-$15 ~$10 included in Adjusted EBITDA outlook • UACC /
Slide 15: Liquidity and funding
• $601 million in unrestricted • $700 million floorplan until • Working capital efficiencies cash and cash equivalents at March 2023 • Future ABS and forward-flow 3/31/2022 (1) • Potential to upsize and extend transactions • Reflects $268 million term to support future growth • Ability to add modest
Slide 16: Summary
summary confidence in go-forward execution (fl) ahead of expectations on first quarter guidance = | realignment plan designed to drive improvement in unit economics, reduce ad + operating expenses and maximize liquidity G uacc acquisition expected to create incremental liquidity >) ~$500 million in
Slide 17: Appendix
Appendix May 2022
Slide 18: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense and we calculate Adjusted EBITDA as EBITDA adjusted to exclude acquisition related costs, change in fair value of finance receivables and
Slide 19: Non-GAAP net loss and Non-GAAP net loss per share, as adjusted
Non-GAAP net loss and Non-GAAP net loss per share, as adjusted W e c alc ulate Non -GAAP net los s as net los s adjus ted to ex c lude ac quis ition related c osts, change in fair value of finance receiv ables, and goodwill impairme nt c har ges . W e c alc ulate Non - G AAP net los s per s hare as
Slide 20: Thank you!
thank you! »@ © 2022 Vroom, All rights reserved.