Vroom Reports Q4 EPS of $0.18, Revenue Misses by $58.86M, and Ecommerce Gross Profit per Unit of $1,233.
March 1, 2023
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Vroom ($NASDAQ:VRM), an online used car retailer, reported its Q4 earnings recently. The company reported an earnings per share (EPS) of $0.18, which was significantly lower than the consensus of -$0.63.
Additionally, the company reported revenue of $209.35M, missing the expected figure by $58.86M. This can likely be attributed to the decrease in ecommerce gross profit per unit, which came in at $1,233, a significant decrease from the expected $4,206. These disappointing results were likely a result of Vroom’s inability to compete with larger players in the online retail market.
Share Price
News sentiment for VROOM was mostly negative when the company reported their Q4 earnings per share (EPS) of $0.18, missing the revenue expectation of $58.86M. However, on Tuesday, the stock opened at $1.0 and closed at $1.1, up by 2.9% from prior closing price, despite the lower-than-expected revenue. The company also reported strong eCommerce gross profit per unit of $1,233, which could be a sign of future profitability. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vroom. More…
| Total Revenues | Net Income | Net Margin |
| 2.67k | -606.47 | -16.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vroom. More…
| Operations | Investing | Financing |
| -266.33 | -190.9 | -334.93 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vroom. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.81k | 1.36k | 3.22 |
Key Ratios Snapshot
Some of the financial key ratios for Vroom are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 55.0% | – | -22.2% |
| FCF Margin | ROE | ROA |
| -11.1% | -78.8% | -20.5% |
Analysis
At GoodWhale we have conducted an analysis of VROOM‘s wellbeing. Our assessment divides the company into three risk ratings: low, medium and high risk. Based on our review, VROOM is a medium risk investment in terms of financial and business aspects. Furthermore, we have detected at least one risk warnings in the company’s cashflow statement. In order to access this information you will need to become a registered user of our platform. We always recommend that potential investors conduct their own due diligence when evaluating a company for investment. In the meantime, if you have any questions or would like to discuss our analysis in further detail, please do not hesitate to get in touch. More…
Peers
Vroom Inc. is an online retailer of used cars, headquartered in New York City. The company was founded in 2013, and competes with other online used car retailers such as G A Holdings Ltd, Marshall Motor Holdings PLC, and Grand Baoxin Auto Group Ltd.
– G A Holdings Ltd ($SEHK:08126)
A. H. Belo Corporation is a media company that owns and operates newspapers in the United States. The company was founded in 1842 and is headquartered in Dallas, Texas. A. H. Belo operates through two segments: Newspaper and Digital Media. The Newspaper segment publishes The Dallas Morning News, a daily newspaper; and The Providence Journal, a daily newspaper. The Digital Media segment provides digital marketing services, including website design and development, search engine optimization, and social media management; and produces video content, as well as offers digital marketing solutions, such as email marketing, pay-per-click advertising, and display advertising.
– Marshall Motor Holdings PLC ($SEHK:01293)
Grand Baoxin Auto Group Ltd is a Chinese car dealership and manufacturer. The company has a market cap of 1.11 billion as of 2022 and a return on equity of 11.81%. Grand Baoxin Auto Group Ltd is involved in the sales, service, and production of vehicles. The company has over 100 dealerships in China.
Summary
Vroom Inc. reported fourth quarter earnings per share of $0.18, significantly lower than the expectations of analysts. Revenue also missed expectations, coming in at $58.86 million lower than expected.
Additionally, e-commerce gross profits per unit was declared at $1,233. Investors seem to be mostly negative on these results, with the stock price taking a hit. Despite these lackluster results, Vroom still offers great potential for investors looking to capitalize in the automotive e-commerce industry. The company has established a strong presence in the market backed by its technology and operational capabilities. With a sound business strategy in place, Vroom should be able to transform the industry and drive revenue higher in the upcoming periods.
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