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Wednesday, June 16, 2021

Vroom, Inc. (VRM) stock plunged after Q4 results announcement

Vroom, Inc. (Nasdaq:VRM) recently announced financial results for the fourth quarter and fiscal year ended December 31, 2020. The announcement also affects their share price in after-hours trading. In after-hours trading, the share price declined 14.81% and closed at $37.40 per share. The company beat revenue estimates but fell short on earnings and hence the share price went down in after-hours trading.


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Fourth Quarter 2020 Highlights:

  • The company sold 11,022 eCommerce units which are 74% up year-over-year.
  • The e-commerce revenue increases 43% year-over-year and it remained $285.0 million.
  • The company’s gross profit increase 95% year-over-year it was $20.1 million.
  • Average monthly unique visitors to the Company`s platform increased by 26.3% to 1,004,368.
  • The average selling price per unit decreased from $30,808 to $24,909
  • Ecommerce Product revenue increased 166.3% to $10.4 million due to more units sold and also due to increase revenue per unit which jumped from $616 to $943 per unit.
  • Ecommerce Product gross profit increased by 166.3% to $10.4 million
  • Ecommerce gross profit per unit increased by 12.0% to $1,821
  • Total revenue increased by 14.1% to $405.8 million
  • Total gross profit increased by 23.1% to $20.1 million
  • Total gross profit per unit decreased by 12.5% to $1,016.
  • Ecommerce gross profit per unit increased by 12.0% to $1,821.
  • Wholesale gross loss per unit increased by 225.6% to $(420).
  • TDA gross profit per unit decreased by 11.8% to $1,620.
  • Selling, general and administrative expenses increased 45.3% to $78.1 million
  • Loss from operations increased by 52.6% to $59.4 million. Net loss increased by 41.9% to $60.7 million.
  • For the fourth quarter EBITDA was $57.979 million compared to $42.735 million in the same quarter in 2019
  • For the fourth quarter, Adjusted EBITDA was $55.899 million compared to $37.675 million in the same quarter in 2019

Highlights of the Fiscal year 2020

  • 34,488 eCommerce units sold, up 82% YoY
  • Ecommerce revenue of $915.5 million, up 56% YoY
  • Ecommerce gross profit of $60.9 million, up 89% YoY

CEO of VroomPaul Hennessy said that the company had a strong last quarter in all sectors, which increased our sales and revenues. He explained the recent acquisition of CarStory, a company that is a leader in AI-powered analytics and digital services for automotive retail as an aggressive step towards the company expansion.

2021 Financial Outlook

The company is expecting triple-digit year-over-year growth in eCommerce unit sales and expecting more than 200% year-over-year growth in aggregate gross profit.

2021 Q1 Financial Outlook

  • The company is expecting Ecommerce unit sales of 14,000 to 14,500 in the first Q1 2021.
  • The company set a selling price of $25,000 to $26,000 per unit and looking for a gross profit of $1,750 to $1,850 per unit in the first quarter of 2021.
  • The company targeting Wholesale unit sales of 7,000 to 8,000, the average selling price per unit of $12,000 to $13,000 and average gross loss per unit of $(450) to $(600) in Q1 2021.
  • In Q1, 2021 company is hopeful for the TDA unit sales of 1,400 to 1,500, at an average selling price of $25,000 to $26,000 per unit and gross profit of $1,300 to $1,400 per unit.
  • The company is expecting Total revenue of $500 to $529 million and a total gross profit of $24 to $28 million in the first quarter of 2021.
  • The company is expecting a net loss of $0.61 to $0.68 per share.
  • EBITDA of $80 million to $88 million is expected in Q1

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