Vroom CEO on the Used Car Market During COVID-19

Author:
Publish date:
Video Duration:
5:09

Vroom is the latest company to hit the public markets.

The company sold 21.25 million shares at $22 each, raising $468 million. And it gave the underwriters an option on nearly 3.2 million more shares if demand for the offering requires.

The offering valued all of Vroom at more than $2.5 billion.

Vroom is unprofitable. For the three months ended March 31, Vroom's loss widened to $41 million from $27 million in the year-earlier quarter. Revenue climbed to $376 million from $235 million.

Paul Hennessy, CEO of Vroom, weighs in on the used car market after the company went public earlier this week. 

"We're seeing both in our business and in survey data that customers are appropriately concerned about re-engaging very crowded subways and using mass transit and riding buses. And so I think there's a real move to car ownership and using personal cars until they get a level of comfort. And that's obviously a positive tailwind in our own business as people start to use more used vehicles and by the way, then replace them. So, again, we see it as a tailwind in our business," Hennessy said.

Watch the full interview for more.

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

Watch TheStreet's Interview with Dr. Fauci