Vroom Results Presentation Deck
May 2022, 20 slides
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first quarter earnings may quart earn | Vroom
forward looking statements this presentation contains forward looking statements within the meaning of the private securities litigation reform act of all statements contained in this presentation that do not relate to matters of historical fact should be considered forward looking statements including without limitation statements regarding the expected our execution of and the expected benefits from our business realignment plan and cost saving initiatives our expectations regarding our business strategy and plans including our ability to integrate and develop united auto credit corporation into a captive finance operation as well as our ability to scale our business address operational challenges expand reconditioning capacity invest in logistics and improve our end to end customer experience and statements regarding our future results of operations and financial position including our ability to improve our unit economics lower our operating expenses and our financial outlook including with respect to our liquidity our profitability changes to our leadership team and our cash balances for the fiscal year these statements are based on management current assumptions and are neither promises nor guarantees but involve known and unknown risks uncertainties and other important factors that may cause our actual results performance or achievements to be materially different from any future results performance or achievements expressed or implied by the forward looking statements for factors that could cause actual results to differ materially from the forward looking statements in this presentation please see the risks and uncertainties identified under the heading risk factors in our annual report on form for the year ended as updated by our quarterly report on form for the quarter ended march each of which is available on our investor relations at and on the sec at sec all forward looking statements reflect our beliefs and assumptions only as of the date of this presentation we undertake no obligation to update forward looking statements to reflect future events or circumstances industry and market information to the extent this presentation includes information concerning the industry and the markets in which the company operates including general observations expectations market position market opportunity and market size such information is based on management knowledge and experience in the markets in which we operate including publicly available information from independent industry analysts and publications as well as the company own estimates our estimates are based on third party sources as well as internal research which the company believes to be reasonable but which are inherently uncertain and imprecise accordingly you are cautioned not to place undue reliance on such market and industry information financial presentation and use of non financial measures certain monetary amounts percentages and other figures included in this presentation have been subject to rounding adjustments certain other amounts that appear in this presentation may not sum due to rounding this presentation contains certain supplemental financial measures that are not calculated pursuant to generally accepted accounting principles these non measures are in addition to and not a substitute or superior to measures of financial performance prepared in accordance with these non financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with because of these limitations these non financial measures should be considered along with other operating and financial performance measures presented in accordance with we have reconciled all non financial measures with the most directly comparable financial measures disclaimer | Vroom
supply chain management supply chain president global products president chief supply chain officer supply chain introducing executive of i fisher scientific | Vroom
gross profit per unit ahead of expectations and prior quarter because of improved vehicle and product margins adjusted well ahead of expectations on improved performance and favorable united auto credit corporation contribution reconditioning network transition out of on track record last mile hub delivery of continued high sourcing of consumer direct units at completed acquisition of in beginning our transformation to fully captive lending successfully completed our first auto loan of million in receivables for a gain of million in announcing our realignment plan unit economics over growth reduce operating expenses maximize liquidity million million million million million million million a highlights | Vroom
leverage our national brand while focusing on regional operations that drive density optimize pricing for acquisitions and sales maximize the power of reduce marketing expenses by focusing on highest roi marketing channels and aligning total spend with volume trajectory resize the organization to focus on profitability over growth leverage technology to increase productivity focus on preserving cash while positioning the business for profitability reduce and convert major balance sheet items into unrestricted cash dramatically improve the customer experience announcing realignment plan | Vroom
leverage technology to improve our rationalize near term reconditioning titling and registration process footprint following the exit improve cycle time minimize manual steps and resources to improve unit economics dramatically improve our customer experience maintain key third party supply chain partnerships while pursuing low capital in house opportunities in reconditioning and last mile optimize our end to end supply chain by synchronizing acquisitions inbound transportation reconditioning and outbound transportation to reduce cycle times and supply chain costs and improve customer delivery times build into our pricing engine our end to end supply chain and captive finance model incorporate our regional hubs and reconditioning centers into our end to end supply chain model launch and scale direct financing via finance to increase customer reach and improve build density in regions to drive marketing and supply chain efficiencies while improving customer delivery times improve conversion rates and capture greater unit economics with captive financing while improving the customer experience building a profitable business go | Vroom
may am virtual format investor event | Vroom
first quarter financial update may quart | Vroom
million million million million million a better than expected unit growth and contributions from retail financing new segment as a result of acquisition driven by seasonal demand better than anticipated performance across product and vehicle driven primarily by better than anticipated and favorable contributions from a gain on the expectations million goodwill impairment is a non cash adjustment within adjusted million total cash charges of approximately million in related primarily to million severance and lease payments other non recurring costs of million to address operational and customer experience issues first quarter financial summary units ahead high end guidance | Vroom
driven by increased inventory yoy and ongoing demand for used vehicles fueled by unit growth and a yoy increase in average selling price to driven by lower sales margin levels yoy as a result of higher depreciation we expect sequential improvement to continue driven by higher attachment rate and higher average loan balances on increased average selling prices first quarter financial summary | Vroom
segment will include captive financing for vehicles sold to customers product revenue will include gains on or forward flows for loans to customers and interest earned until loans are sold off balance sheet minimal impact to results retail financing includes loans originated by third party independent dealership customers retail financing revenue gains on of third party originations and interest earned until loans are sold off balance sheet servicing income interest income on historical on balance sheet loans retail financing expense cost of sales expenses related to historical on balance sheet debt million of new loan originations million of unused capacity in warehouse credit facilities available and historical legacy dealership loans will run off in approximately months loans and debt are marked to fair value at each reporting period million exclusion from adjusted for financial highlights | Vroom
reducing by reducing positions or by positions or of driving of million in expected annual savings reducing the rate of increasing vehicle unit sales growth to and product focus on growth while reducing a reducing marketing focus marketing on expense to be in line highest roi channels with unit sales while aligning with expectations volume trajectory further developing our further developing regional operating our regional operating model to reduce costs model to reduce costs and increase further improving and further improving and key aspects key of sales operations aspects of sales operations realignment plan detail | Vroom
actual remove impact multiply by adjusted adjusted cost reductions and operating improvements financing non recurring and operational costs adjusted guidance | Vroom
liquidity adjusted stock based compensation financing restricted cash release all other liquidity forecasted adjusted reflects expected significant improvement rate expected gain on second planned or included in adjusted outlook financing in addition to second later this year excess cash expected from we expect restricted cash release will occur as we improve our customer experience throughout this year all other includes improvements in working capital partially offset by interest expense and realignment costs year end forecasting million at year end | Vroom
million in unrestricted cash and cash equivalents at reflects million reduction related to acquisition forecasting million in unrestricted cash and cash equivalents at million until working capital efficiencies march potential to and extend term to support future growth future and forward flow transactions ability to add modest leverage to balance sheet liquidity sources an all | Vroom
summary ahead on first quarter guidance a realignment plan designed to drive improvement in unit economics reduce operating expenses and maximize liquidity acquisition expected to create incremental liquidity million in liquidity forecasted excluding restricted cash and facility at the end of | Vroom
appendix may a | Vroom
and adjusted we calculate as net loss before interest expense interest income income tax expense and depreciation and amortization expense and we calculate adjusted as adjusted to exclude acquisition related costs change in fair value of finance receivables and goodwill impairment charges changes in fair value of finance receivables can fluctuate significantly from period to period and relate primarily to historical loans and debt which have been and acquired on from our ongoing business model is to originate or purchase finance receivables with the intent to sell which we recognize at the lower of cost or fair value therefore these historical finance receivables acquired which are accounted for under the fair value option will experience fluctuations in value from period to period we believe it is appropriate to remove this temporary volatility from our adjusted results to better reflect our ongoing business model additionally these historical finance receivables acquired from are expected to run off within approximately months the following table presents a reconciliation of and adjusted to net loss which is the most directly comparable measure non financial measures | Vroom
non net loss and non net loss per share as adjusted calculate non net loss as net loss adjusted to exclude acquisition related costs hange in fair value of finance and goodwill non net per hare as non net div by weighted number of hares uts the following table a ion of non net and non net per hare to net and net per are the mos reconciliation financial measures | Vroom
thank you | Vroom
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