- Vroom Inc (NASDAQ:VRM) reported first-quarter FY22 sales growth of 56.3% year-on-year to $923.77 million, beating the consensus of $878.13 million.
- Ecommerce revenue jumped 59.9% Y/Y to $675.4 million, and Ecommerce Unit Sales rose 26% Y/Y.
- Revenue from Wholesale rose 18.6%, and Texas Direct Auto (TDA) segment increased by 18.2%.
- The gross profit rose 125.7% Y/Y to $81.6 million with an 8.8% gross margin.
- The operating loss widened to $(315.9) million. Adjusted EBITDA loss was $(107.4) million.
- The company held $797.53 million in cash and equivalents as of March 31, 2022.
- Adjusted EPS loss of $(0.71) beat the analyst consensus of $(1.01).
- The Board of Directors has approved a business realignment plan to prioritize unit economics, reduce operating expenses and maximize liquidity.
- The company expects to achieve about $135.0 million to $165.0 million of cost reductions across operations for the remainder of 2022.
- Outlook: Vroom sees FY22 Ecommerce unit sales of 45,000 - 55,000.
- The company expects FY22 adjusted EBITDA of $(375) million - $(325) million.
- Price Action: VRM shares are trading higher by 37% at $1.48 in premarket on the last check Tuesday.
