Slide 1: Third Quarter 2022 Earnings
vroom Third Quarter2022 Earnings November 2022
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 We aim to improve the customer experience while we live within our means, prioritize profitability and liquidity, and drive unit economics 3 Key Objectives 4 Focused Strategic Initiatives 1 Prioritize unit economics over growth 2 Significant
Slide 4: Third quarter highlights key performance indicators
Third quarter highlights key performance indicators $20M improvement in Adjusted EBITDA ex. non-recurring costs, a 26% sequential improvement (1) $4,206 Ecommerce Gross Profit Per Unit (GPPU) $21M sequential reduction in Adjusted SG&A driven by lower variable and fixed costs (2) $16M gain on UACC se
Slide 5: Third quarter operational highlights
Third quarter Operational highlights Operational progress on our 4 strategic initiatives Financial Lever Initiative 2q to 3q progress Product GPPU Originate and securitize Vroom loans through UACC $4,206 Ecommerce GPPU Continued improvements to pricing model Development of captive financing on plan
Slide 6: Ecommerce unit trends
ecommerce unit trends (1) In July As registrations and our customer experience (CX) improved we took steps to normalize unit sales; mid-quarter our third-party sales partner significantly reduced sales staff As registrations and CX improved, we took steps to normalize unit sales Mid-quarter large, u
Slide 7: Vroom Third Quarter 2022 Financial Update
Vroom Third Quarter 2022 Financial Update
Slide 8: Third quarter financial summary
third quarter financial summary cost reductions; securitization gain, higher gppu drive sequential adjusted ebitda improvement 3q 2022 perfomance highlights 3q 2022 performance vs 2q 2022 second quarter third quarter Total Revenue $475.4 million $340.8 million Ecommerce Units 9,233 6,428 Ecommerce G
Slide 9: Third quarter financial highlights
Third quarter financial highlights Sequential trends 3q 2022 Performance vs 2q 2022 Adjusted ebitda ex. Non-recurring costs ($m) (1) ($ 106) ($77) ($58) 1Q 2022 2Q 2022 3Q 2022 $20m improvement in adjusted ebitda ex. Non-recurring costs (1) Driven by higher GPPU, reduced operating costs, and a $16M
Slide 10: Third quarter adjusted EBITDA ex. non-recurring costs
Third quarter adjusted ebitda ex. non-recurring costs (1) ($ in millions) $77 $10 $4 $16 $9 $10 $9 $58 2Q 2022 (1) EcomVolume GP Ecom GPPU Securitization Gain Non-Ecom GP Comp & Benefits (2) Marketing, Logistics &Other 3Q 2022 (1) (1) Adjusted EBITDA excluding non-recurring costs is a non-GAAP measu
Slide 11: Third quarter liquidity update
Third quarter liquidity update Maintaining midpoint of liquidity guidance after deploying $18m to repurchase convertible notes (1) balance sheet update securitization/ uacc update $59m sequential reduction in restricted cash Primarily driven by improved transaction processing, including titling & re
Slide 12: Liquidity update: ended third quarter with $510M in liquidity
Liquidity update ended third quarter with $510m in liquidity (1) ($ in millions) $510 ($84-$59) $15-$35 $25-$80 ($16-$1) $450-$565 9/30/22 Liquidity 4Q Adjusted EBITDA (2) Restricted Cash Release Cash in Inventory Capex & Other 12/31/22E Liquidity (1) Liquidity represents unrestricted cash and cash
Slide 13: Summary
Summary Continued focus on improving the customer experience while we live within our means, prioritize profitability and liquidity, and drive unit economics 98% of customers received their registration before the expiration of their initial temporary tag in October $20m sequential improvement in Ad
Slide 14: Vroom Appendix
Vroom Appendix
Slide 15: 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 16: Reconciliation of Non-GAAP Financial measures (cont'd)
Reconciliation of Non-GAAP Financial measures (cont’d) Adjusted selling, general & administrative expenses We calculate adjusted selling, general & administrative expenses as selling, general & administrative expenses adjusted to exclude realignment costs, acquisition related costs, non-recurring co
Slide 17: Thank you
Thank you 2022 ©vroom all rights reserved 17