Short VRM Today On IPO Lockup Expiration

The company notes that the U.S. used vehicle marketplace generates around $841 billion in sales annually. The segment includes millions of peer-to-peer sales and more than 42,000 car dealers. Vroom’s strategy includes increasing its penetration into the market by improving quality and satisfaction in the used car segment.

Vroom has recorded impressive revenue growth. Sales increased from approximately $855 million in 2018 to approximately $1.2 billion last year. Some company watchers expect sales to reach around $1.7 billion in 2020, helped by the COVID19 pandemic and an increase in consumers shopping online to avoid personal contact. Vroom seems well positioned to optimize their position with its end-to-end electronic platform, financing options, transparent pricing, and contact-free pick-up and delivery nationwide.

Vroom maintains its headquarters in New York City, and the company has approximately 800 employees.

Financial Highlights

Vroom reported third-quarter financial highlights for the period ending September 30, 2020:

  • Ecommerce revenue grew to $221.8 million for an increase of 24.5%

  • Ecommerce vehicle revenue grew to $214.0 million for an increase of 22.6%

  • Ecommerce product revenue grew to $7.8 million for an increase of 117%

  • Ecommerce gross profit rose to $19.3 million for an increase of 120%

  • Ecommerce vehicle gross profit rose to $11.5 million for an increase of 122.1%

  • Ecommerce product gross profit grew to $7.8 million for an increase of 117%

Management

CEO Paul Hennessy has served in his position since June 2016, and he is a member of the board of directors. He previously held senior positions at Booking Holdings, Pricelinecom, and Booking.com. Mr. Hennessy serves on the board of directors for Shutterstock. He earned a B.S. in Marketing Management at Dominican College. In addition, he earned an MBA from Long Island University. The company’s SEC filing notes that Mr. Hennessy’s first car was a Pontiac Catalina.

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Disclosure: We have a short position in VRM. 

Disclaimer: I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business ...

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