Vroom posted results that showed continued traction in buying and selling vehicles online, particularly through the platform model.
In terms of the headline numbers, the company’s consolidated revenues stood at $761.9 million, up 201 percent year over year, and better than the $652 million that had been expected by Wall Street.
In earnings materials posted by the company, eCommerce related revenues surged by 230 percent year on year to $579 million. Within that segment, eCommerce vehicle related sales were up by 228 percent to $559 million. The average selling price per vehicle was up over 20 percent year on year to $30,601.
The company said, too, that the eCommerce units sold surged by 172 percent to more than 18,260 units; average monthly unique visitors to the company’s platform were up 75 percent to 1.7 million.
Filings with the SEC revealed that retail vehicle sales, on a net basis were a bit more than $608 million, surging from $196.2 million last year. Wholesale vehicle sales were $128.1 million in the most recent quarter and gained from last year’s $50.9 million. Revenues from the TDA (dealership) segment stood at $50.7 million, up from $26.3 million last year. Units sold though the TDA channel were 1,583, compared to 1,110 last year.
CEO Paul Hennessy noted on a conference call with analysts that the eCommerce gross profit was up 153 percent, and 32 percent quarter over quarter. Management also said that its “data driven team is buying the right cars at the right price — and moving them quickly.”
The company continues to add to its “last mile” locations, according to the call, and 26 percent of the eCommerce units were delivered with the last mile services, up from 16 percent last quarter. Fleet expansion will be a continued area of focus.
Chief Financial Officer Dave Jones said that the eCommerce growth was marked by matching “robust consumer growth with increasing levels of available inventory at a faster clip.”
Management stated on the call that the company maintains confidence in its capacity headed into 2022.
Guidance from the company continues to expect triple-digit year-over-year growth in eCommerce unit sales and more than 200 percent year-over-year growth in aggregate gross profit. And so far as the current quarter is concerned, Vroom expects “e-Commerce unit sales of 20,000 to 20,500, implying year over year growth of 130 percent at the mid-point of the guidance range,” according to earnings materials.
In an interview with Karen Webster, CEO Hennessy stated that data and platforms (Vroom among them) can establish a relationship with a customer over a long period of time, using apps as a digital front door.
Read more: Vroom CEO Takes Fast Lane To Car Buying’s Connected Economy
He also stated that “as we expand our model, that allows us to continue to go down [in average selling prices (ASPs)] and meet that demand, while building good unit economics. Our long-range model has us getting into the low $20,000s.”
That ASP target was re-iterated on the conference call with analysts.
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