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Vroom Cuts Losses in Q3

Vehicle retailer trims costs, increases profit per vehicle.

November 8, 2022
Vroom Cuts Losses in Q3

Vroom cut its net loss from $115.1 million in the second quarter to $51.1 million

IMAGE: Getty Images/georgeclerk

1 min to read


Online vehicle retailer Vroom improved its results in the third quarter, though it still recorded a loss.

Vroom cut its net loss from $115.1 million in the second quarter to $51.1 million as it reduced costs and focused on boosting profit per vehicle.

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The volume of vehicles it sold fell sharply year-over-year from 19,683 to 6,428, but profit per unit soared by 64% to a record $4,206.

Meanwhile, the New York City-based company trimmed its workforce and logistics to cut expenses, shedding a total of $18.3 million quarter-over-quarter from its selling, general and administrative costs.

CEO Tom Shortt pointed out in a press release that Vroom also reduced its leverage by $56 million. He thanked his fellow “vroommates” for helping transform “our business and improving our customer experience.”

Vroom noted in a recently quarterly report to the Securities and Exchange Commission that, "despite the cost saving measures, reduced growth rates and increased focus on liquidity and profitability contemplated by the Realignment Plan, we may need to raise additional capital through debt or equity financings to achieve our business objectives."

Vroom competitor Carvana, meanwhile, missed third-quarter forecasts as its year-over-year sales, profit and revenue fell.

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Originally posted on Auto Dealer Today

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