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Vroom CEO on Going Public During a Recession and COVID-19

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Vroom is officially a public company.

The company expanded to 21.25 million shares and the price was boosted to $22 a share, raising $468 million for the online seller of used vehicles.

Previously, Vroom had marketed 18.75 million shares for $18 to $20 a share.

The company, whose backers include L Catterton, General Catalyst Partners and T. Rowe Price Associates, moved up the pricing of the initial public offering to Monday after earlier planning to sell the shares on Wednesday, according to a report from Bloomberg.

Vroom CEO Paul Hennessy joined TheStreet to talk about going public in the middle of a recession and a global pandemic and how he plans to keep employees safe.

The company is valued in the offering at more than $2.5 billion.

Vroom reported a loss of $41 million on revenue of $376 million for the three months ended March 31, compared with a year-earlier loss of $27 million on revenue of $235 million.

The company hasn't been profitable since operations began in 2012.

Vroom said in its IPO filing that the coronavirus pandemic could move more car buyers online. However, the company did acknowledge that the covid-19 pandemic did hurt its e-commerce operations, with online sales falling 15% from March 11 to March 31.

Watch the full interview above for more.

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