Vroom Inc. said Monday it recorded a smaller net loss and took in record profit per used car and truck it sold in the third quarter as it cut costs, though revenue and volume of vehicles sold fell sharply year-over-year.
The online used-vehicle retailer reported a net loss of $51.1 million for the quarter ended Sept. 30, a period in which it trimmed jobs and slimmed down its logistics network. That loss is smaller than both its first-quarter loss of $310.5 million and second-quarter loss of $115.1 million. It’s also an improvement from its $98.1 million loss in the year-earlier period. Vroom’s smaller net loss comes a few days after online used-market peer Carvana Co. posted a $508 million quarterly loss, its largest in 2022.
Vroom said its revenue tumbled 62 percent to $340.8 million in the quarter.
The company’s volume of vehicles sold online also plunged in the third quarter to 6,428 vehicles, compared with 19,683 sold during the year-ago period. But profit per vehicle sold online rose 64 percent to a company record of $4,206.
Vroom earlier in 2022 indicated it would trim volume to focus on increasing gross profit per vehicle sold and making its sales margins more sustainable.
“Under our Realignment Plan, we are reducing the rate of unit sales to focus on profitability, by among other things, lowering our operating expenses and increasing our gross profit per unit,” the company said in a Monday quarterly filing.
Vroom said it reduced its selling, general and administrative expenses by $18.3 million quarter-over-quarter.
It also reported restructuring its network of logistics hubs to align with the reduced unit volume and its regional operating model. Vroom reduced employee headcount “in its proprietary logistics operations and customer support team” and closed one of its office locations in Houston, according to the filing.
Shares of Vroom rose 11 percent to $1.01 in after-hours trading Monday.
Q3 revenue: $340.8 million, down 62 percent from the year-earlier period
Q3 e-commerce revenue: $225.4 million, down 68 percent.
Q3 net loss: $51.1 million, smaller than year-ago loss of $98.1 million
Q3 e-commerce vehicles sold: 6,428, down 67 percent