Vroom reported earnings Thursday.
The company issued a cautious near-term outlook that offset stronger-than-expected second-quarter profits.
Vroom said adjusted earnings for the three months ending in June, the group's first report since listing on the Nasdaq, were pegged at 34 cents per share, well ahead of the Street consensus forecast of a 70 cent per share loss. Group revenues, the company said, came in at $253.1 million, down 3% from last year but again topping analysts' estimates.
Looking into the current quarter, however, Vroom said it plans to accelerate its shift towards the sale of lower-priced cars, echoing post-pandemic demand changes, and as a result sees sales in the region of $268 million to $290 million, well shy of the Refinitiv forecast of $344.6 million.
"We've noticed a fairly profound shift in the buying preferences of our customers. Specifically, we've seen a downward shift in the price points that our customers are looking for. Fortunately for us, our tools were able to discern the shift in real-time. And given that our inventory was, and is at such low levels, we have been restocking our inventory at the same lower price points to line up with what our customers are demanding," CEO Paul Hennessy told investors on a conference call late Wednesday. "Thus, we've been able to maintain our GPPU targets, while decreasing the overall dollars committed to our inventory due to the lower cost paid for each car that we hold."
"Looking forward to the remainder of the third quarter, we will continue to invest in experiments in our end-to-end ecommerce platform, as well as in our driveway delivery experience," he added. "We expect to continue to accelerate sales and gross profit per unit in the quarter on a monthly sequential basis, as we scale inventory and take advantage of what we believe are structural shifts in consumer behavior and demand for the Vroom model."
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