Vroom Reports Q4 Results, Sees E-Commerce Wind Down Complete By Q1 End

Vroom, Inc. VRM reported its fourth-quarter financial results after the bell Wednesday. Here's a look at the details. 

The Details:

Vroom reported quarterly losses of $80.51 per share and quarterly sales of $235.92 million which beat the analyst consensus estimate of $232 million.

The company said it has sold substantially all of its used vehicle inventory and expects to be substantially complete with the ecommerce wind down by the end of the first quarter of 2024.

“As we previously announced, in January 2024 Vroom’s Board of Directors approved a Value Maximization Plan pursuant to which the company has discontinued its ecommerce operations and is winding down its used vehicle dealership business,” said Tom Shortt, Vroom CEO.

“I am incredibly proud of the commitment and professionalism demonstrated by our team as they execute an orderly wind down of our ecommerce operations with a focus on timeliness and cost effectiveness. We anticipate that the wind-down will be substantially complete by the end of the month and look forward to working to maximize stakeholder value through our remaining businesses, United Auto Credit and CarStory,” Shortt added.

Outlook: 

Vroom expects year-end 2024 cash and cash equivalents in the range of $35 million to $65 million.

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VRM Price Action: Vroom shares gained more than 53.8% on Wednesday and closed at $17.49. According to Benzinga Pro, Vroom shares are down 11.2% after-hours at $15.52 at the time of publication.

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