Vroom (NASDAQ:VRM) missed estimates on both lines of itsQ3earnings report as the tough stretch for the company continued. Sales were down 62% year-over-year and an adjusted EBITDA loss of -$57.5M was disclosed after excludingnon-recurring costs.
The online used auto retailer reported a 67% drop in total units for Q3, with declines across both the e-commerce and wholesales segments.
Gross profit per wholesale unit was up 64.3% to $4,206, while gross report per wholesale unit fell to -$503 from $215 a year ago.
CEO Tom Shortt noted that for the month of October, 98% of VRM's customers received their completed registrations before the expiration of their initial temporary tags. Vroom (VRM) plans to continue to focus on achieving its goal of becoming best-in-class in titling and registration.
CFO update: "We took several actions to maximize liquidity and strengthen our balance sheet, including unlocking $59 million of restricted cash, repurchasing a portion of our convertible notes and completing our second securitization since the acquisition of UACC. Based on our progress, we are forecasting year-end cash liquidity near the midpoint of our previous guidance of $450 to $565 million."
Despite the earnings miss, shares of Vroom (VRM) moved up 13.19% in after-hours trading to $1.03.
Vroom (VRM) still trades more than 60% below its 200-day moving average.
