What’s Going on with VRM?
Vroom (VRM), an e-commerce auto purchasing and selling platform, reported record first quarter 2021 unit sales and gross revenue. Sales and revenue were up 96% and 123%, respectively, year-to-year. During the first fiscal quarter of this year, the company sold 15,504 e-commerce units, with gross profits hitting $31.8 million.
In pre-market movement today, Vroom shares were up an impressive 12.57%, reaching $39.86 a share.
What Does This Mean for Vroom Inc.?
In a Q1 2021 earnings call transcript, Vroom CEO Paul Hennessy touted the company’s positive business and revenue news. "Vroom executed well in the first quarter. Our e-commerce units exceeded our expectations and were up 96% year over year," Hennessy said. "Our e-commerce gross profit also exceeded our expectations and was up 123% year over year."
Hennessy went on to point out, in the call, that, "We're [Vroom] confident that as increased demand flows into our business, we are well-positioned to convert that demand as evidenced by our growth in Q1 and guidance for accelerating growth in Q2." The company plans to expand its inventory, as well as invest in logistics, among other moves, in the months ahead.
Read here to learn how the chip shortage could be playing into Vroom's hand.
VRM has a Fundamental Rank of 74. Find out what this means to you and get the rest of the rankings on VRM!
Vroom Inc is engaged in the business of buying and selling used vehicles through its e-commerce platform. The company functions in three segments namely, Ecommerce, which involves retail sales of used vehicles through the company's ecommerce platform and fees earned on sales of value-added products associated with those vehicles sales. The TDA reportable segment represents retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicles sales. The wholesale reportable segment represents sales of used vehicles through wholesale auctions.
