Vroom Inc (VRM) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Vroom third quarter 2023 conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的收看。歡迎參加 Vroom 2023 年第三季電話會議。 （接線員指示）請注意，今天的會議正在錄音中。

I would now like to hand the conference over to your first speaker today, Jon Sandison, VP of Investor Relations. Jon, please go ahead.

現在，我想將會議交給今天的第一位演講嘉賓，投資者關係副總裁喬恩·桑迪森 (Jon Sandison)。喬恩，請發言。

Thank you, operator. Good morning, everyone, and welcome Vroom's third quarter 2023 earnings call. Joining us on the call today are Tom Shortt, Chief Executive Officer; and Bob Krakowiak, Chief Financial Officer.

謝謝接線生。大家早安，歡迎參加Vroom 2023年第三季財報電話會議。今天參加電話會議的有執行長Tom Shortt和財務長Bob Krakowiak。

Please note this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at ir.vroom.com. The third quarter 2023 earnings release and earnings presentation are also posted to the Investor Relations website.

請注意，本次電話會議將在公司網站ir.vroom.com的投資者關係板塊同步網路直播。 2023年第三季業績報告及業績展示也將發佈於投資人關係網站。

Before we begin, please note that the discussion today includes forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements about Vroom's operations and future financial performance.

在我們開始之前，請注意，今天的討論包括聯邦證券法所定義的前瞻性陳述，包括但不限於有關 Vroom 的營運和未來財務業績的陳述。

These and other forward-looking statements are based on management's current assumptions, and are neither promises nor guarantees and are subject to a number of risks, uncertainties, and other important factors that may cause actual results to differ materially.

這些和其他前瞻性陳述均基於管理階層目前的假設，既不是承諾也不是保證，並且受多種風險、不確定性和其他可能導致實際結果大不相同的重要因素的影響。

We direct you to the company's most recent SEC filings, including the Risk Factors section of Vroom's most recent Form 10-K for the year ended December 31, 2022, as updated by our quarterly report on Form 10-Q for the three months ended September 30, 2023, for additional discussion of factors that could cause actual results to differ materially from those in the forward-looking statements.

我們引導您參閱本公司最近提交給美國證券交易委員會 (SEC) 的文件，包括 Vroom 截至 2022 年 12 月 31 日的最新 10-K 表格中的“風險因素”部分，該部分由我們截至 2023 年 9 月 30 日的三個月的 10-Q 表格大不相同，以進一步陳述可能導致的結果報告與前瞻性的實際結果報告。

Please note further that today's discussion, including the forward-looking statements speak only as of the date of this call, and Vroom assumes no obligation to update such statements, based on future developments or otherwise.

請進一步注意，今天的討論，包括前瞻性陳述僅代表本次電話會議之日的觀點，Vroom 不承擔根據未來發展或其他情況更新此類陳述的義務。

The company may also discuss certain non-GAAP financial measures. During today's call. You can find the presentation of the most directly comparable GAAP measures, and a reconciliation of those measures in the third quarter of 2023 earnings release and earnings presentation.

本公司也可能討論某些非公認會計準則 (GAAP) 財務指標。在今天的電話會議中，您可以找到最直接可比較的 GAAP 指標的介紹，以及這些指標的對帳表，請參閱 2023 年第三季的收益報告和收益演示。

I'd like to now hand the conference over to Tom Shortt, Chief Executive Officer. Tom?

現在我想將會議交給執行長湯姆·肖特 (Tom Shortt)。湯姆？

Thank you, Jon, and thank you to all of our investors, analysts, Vroommates, UACC colleagues, and partners who are joining us today.

謝謝你，喬恩，也感謝今天與我們一起的所有投資者、分析師、Vroommates、UACC 同事和合作夥伴。

Starting on slide 3. During the third quarter, we continued to work towards our goal of resuming growth, selling through aged inventory, and improving variable and fixed cost per unit, in alignment with our three key objectives, and four strategic initiatives.

從投影片 3 開始。在第三季度，我們繼續努力實現恢復成長、銷售陳舊庫存以及改善單位變動成本和固定成本的目標，這與我們的三個關鍵目標和四項策略舉措保持一致。

On slide 4, our third quarter highlights. During the third quarter, we recognized an adjusted EBITDA loss of $64.5 million, an $8.2 million sequential increase loss. Our results were negatively impacted by higher realized net losses, and a negative mark to market of financed receivables, originated in late 2022 and early 2023 at UACC, due to unfavorable portfolio performance.

第四張幻燈片展示了我們第三季的亮點。第三季度，我們確認調整後EBITDA虧損6,450萬美元，季後虧損增加820萬美元。由於投資組合表現不佳，UACC在2022年末和2023年初產生了更高的已實現淨虧損，以及融資應收帳款的市價為負值，對我們的業績產生了負面影響。

We made changes in underwriting criteria earlier this year, that we expect to lead to improved delinquency trends. Ecommerce units grew approximately 11% sequentially. As we pivot the business towards growth, we remain focused on reducing variable and fixed cost per unit, while driving the right mix of marketing spend, unit growth rate, and GPPU.

我們今年稍早調整了承保標準，預計這將改善拖欠率趨勢。電商業務季增約11%。隨著業務重心轉向成長，我們將繼續專注於降低單位變動成本和固定成本，同時優化行銷支出、單位成長率和每單位淨收入 (GPPU) 的合理組合。

E-commerce GPPU. increased from $2,954 to $3,144 sequentially, benefiting from an increase in mix of unaged units sold within the quarter. We are making progress on our long-term roadmap, and our four strategic initiatives.

電商業務每單位淨銷售額 (GPPU) 從環比 2,954 美元增至 3,144 美元，這得益於本季未老化單元銷售組合的增加。我們的長期發展路線圖和四項策略措施正在推進中。

We reduced our adjusted SG&A $3.1 million sequentially, on an 11% increase in unit volume. We are updating the range of our full year 2023 guidance, to an adjusted EBITDA loss of $225 million to $245 million, primarily driven by the higher realized losses and negative mark to market at UACC as previously discussed. Additionally, we are updating our year-end cash and cash equivalents guidance to a range of $137 million to $162 million.

由於單位銷售成長11%，我們較上季減少了310萬美元的調整後銷售、行政及管理費用。我們將2023年全年業績指引區間更新為調整後EBITDA虧損2.25億美元至2.45億美元，主要是由於UACC已實現虧損增加以及市價為負（如前所述）。此外，我們將年末現金及現金等價物預期更新為1.37億美元至1.62億美元。

Moving to slide 5. During Investor Day in May '22, we outline the unit economic drivers behind our four strategic initiatives, that we believe are key to building a profitable business, and we have been providing quarterly updates on the progress on each driver.

轉到投影片 5。在 2022 年 5 月的投資者日期間，我們概述了四項戰略舉措背後的單位經濟驅動力，我們認為這些驅動力是建立盈利業務的關鍵，並且我們一直在每季度提供每個驅動力進展的最新情況。

For Q3, GPPU was $3,144, a $190 sequential improvement, primarily driven by an improved mix of unaged and aged units. During the third quarter as a result of legacy title issues, 34% of our units sold were held greater than 180 days compared to 80% in the second quarter, 77% in the first quarter, 75% in the fourth quarter of '22, and 49% in the third quarter of '22.

第三季度，GPPU 為 3,144 美元，環比增長 1.90 美元，主要得益於未老舊單元和老舊單元組合的改善。第三季度，由於遺留產權問題，我們售出的單位中 34% 持有時間超過 180 天，而第二季度為 80%，第一季為 77%，2022 年第四季為 75%，第三季為 49%。

We expect sequential reduction in our mix of aged units, and expect improved GPPU as a result. We expect our fourth quarter mix to be less than 20% from aged units. Our GPPU of unaged units or units we've owned less than 180 days was comparable to our third quarter of 2022 GPPU of $4,206. We continue to see strong product GPPU, as we develop and grow our captive financing capabilities.

我們預計，我們的老舊單元組合將環比減少，並因此提高每單位收益 (GPPU)。我們預計第四季老舊單元組合的比例將低於20%。我們未老舊單位或持有時間少於180天的單位的每單位收益 (GPPU) 與2022年第三季的4,206美元相當。隨著我們不斷發展和提升自保融資能力，我們的產品每單位收益 (GPPU) 將繼續保持強勁成長。

We reduced our all in logistics cost per unit by 7% sequentially. We recovered $48 million of cash and inventory in the third quarter, by selling through aged units and financing a higher percentage of our inventory under our floor plan facility.

我們季減了7%的單位總物流成本。第三季度，我們透過出售老舊設備以及利用我們的平面圖融資機制為更高比例的庫存提供融資，回收了4800萬美元的現金和庫存。

Our selling cost per unit increased by 1%, as we completed the full insourcing of our sales function. We reduced our titling, registration, and support cost per unit by 15% sequentially. We reduced our marketing cost per unit by 13% sequentially. We reduced our fixed cost per unit by 15% sequentially.

由於我們完成了銷售職能的全面內包，我們的單位銷售成本上漲了1%。我們的授權、註冊和支援成本較上月下降了15%。我們的單位行銷成本較上季下降了13%。我們的單位固定成本較上季下降了15%。

Lastly, our advanced analytics team, functional business teams, and tech team, continue to build data assets, analytical assets, and tech assets, that we believe in the long term will provide a competitive advantage across titling and registration, pricing, conversion, unit and product margin, and supply chain costs.

最後，我們的高階分析團隊、職能業務團隊和技術團隊將繼續建立資料資產、分析資產和技術資產，我們相信從長遠來看，這些資產將在所有權和註冊、定價、轉換、單位和產品利潤以及供應鏈成本方面提供競爭優勢。

Turning to slide 6. I'm very pleased with what our Vroommates and UACC colleagues have delivered over the past year. As mentioned previously, we expect the headwinds experienced in this quarter related to UACC portfolio performance to ease, as the tightening and underwriting criteria made earlier this year, is expected to lead to improved delinquency trends.

翻到第6張投影片。我對Vroommates和UACC同事在過去一年所取得的成績非常滿意。如前所述，我們預期本季UACC投資組合表現面臨的阻力將會緩解，因為今年稍早推出的收緊和承保標準預計將改善拖欠率趨勢。

We have improved e-commerce GPPU the last four quarters, as we sell through our aged inventory. We continue to make progress on our long-term road map. We are resuming growth, while we continue improving our operations and reducing fixed and variable costs. We expect GPPU to normalize when we sell through the remainder of our aged inventory.

過去四個季度，隨著我們銷售掉一些舊庫存，我們的電商平均每單位銷售額（GPPU）有所提升。我們的長期發展規劃正在持續進行中。我們正在恢復成長，同時繼續改進運營，降低固定成本和變動成本。我們預計，當剩餘的舊庫存銷售完畢後，GPPU 將會恢復正常。

Now I will turn it over to Bob to discuss third quarter results in greater detail. Bob?

現在我將把時間交給鮑伯來更詳細地討論第三季的業績。鮑伯？

Thanks, Tom. I'll start with a summary of our financial performance on slide 8. All comparisons are against the prior quarter unless otherwise noted.

謝謝，湯姆。我先從第8張投影片開始，總結我們的財務表現。除非另有說明，否則所有比較均與上一季進行比較。

Total revenue of $236 million increased 5%, as e-commerce units increased 11%. As mentioned on our call, last quarter, we are in the early stages of ramping up the business, while remaining focused on positive unit economics. E-commerce GPPU increased 6% to $3,144.

總收入2.36億美元，成長5%，其中電商部門成長11%。正如我們在上個季度電話會議上提到的，我們正處於業務擴張的初期階段，同時仍專注於實現積極的單位經濟效益。電商部門平均每單位收益（GPPU）成長6%，達到3,144美元。

As we expected and discussed during the second quarter earnings call, we realized a negative impact of selling through aged vehicles, which was approximately $5 million. This impact was offset by a higher portion of units sold within the quarter being unaged or held less than 180 days.

正如我們在第二季財報電話會議上所預期和討論的那樣，我們意識到出售老舊車輛的負面影響約為 500 萬美元。這一影響被本季度售出的未使用或持有時間少於 180 天的汽車比例所抵消。

Adjusted EBITDA loss increased $8.2 million or 15%, to a loss of $64.5 million. This increased loss was driven by higher realized net losses and an unfavorable mark to market on finance receivables at UACCC. This headwind was partially offset by higher e-commerce gross profit, as a result of higher unit volume and GPPU improvement.

調整後EBITDA虧損增加820萬美元，增幅15%，至6,450萬美元。虧損增加的原因是UACCC已實現淨虧損增加，以及融資應收帳款的市價調整不利。由於單位銷售增加和GPPU改善，電子商務毛利增加部分抵消了這一不利因素。

On the expense side, we further reduced our fixed and variable operating costs, despite higher unit volume, as we continue to pursue our three key objectives and four focused strategic initiatives.

在費用方面，儘管單位產量較高，但我們仍進一步降低了固定和可變營運成本，因為我們將繼續追求三大關鍵目標和四項重點策略措施。

We remain focused on maximizing our liquidity and strengthening our balance sheet. As we continued to sell through the remaining aged inventory, and began to ramp up unit acquisitions, we recovered approximately $48 million of cash in inventory quarter over quarter. This recovery significantly reduced our cash burn for the quarter, as cash and cash equivalents were reduced by $29.3 million sequentially, during the third quarter.

我們持續專注於最大化流動性並強化資產負債表。隨著我們持續銷售剩餘的陳舊庫存，並開始加大單位收購力度，我們環比回收了約4800萬美元的庫存現金。這項回收顯著降低了本季的現金消耗，因為第三季現金及現金等價物較上季減少了2,930萬美元。

Let's move to slide 9, which provides a bridge from second quarter 2023 to third quarter 2023 adjusted EBITDA as well as cash and liquidity. E-commerce gross profit improved sequentially by approximately $2 million. Sequential unit growth, along with a higher mix of unaged units sold within the quarter drove this improvement.

我們來看第9張投影片，它展現了2023年第二季至2023年第三季調整後EBITDA以及現金和流動性的銜接情況。電商毛利季增約200萬美元。環比增長的單位數，以及本季未老化單位銷售比例的提高，推動了這一增長。

Additionally, despite higher unit volume, we reduced our adjusted SG&A spending by $3 million sequentially. This was primarily driven by continued improvements in our marketing cost per unit. As mentioned previously, we experienced higher net losses and an unfavorable mark to market related to loan portfolio performance at UACC, resulting in a $13.3 million headwind for the quarter. In total for the quarter, adjusted EBITDA loss increased by approximately $8.2 million.

此外，儘管單位銷售量增加，但我們調整後的銷售、一般及行政管理（SG&A）支出較上月減少了300萬美元。這主要得益於單位行銷成本的持續改善。如前所述，UACC的淨虧損增加，且貸款組合表現相關的市價調整不利，導致本季虧損1,330萬美元。本季調整後EBITDA虧損總計增加約820萬美元。

Moving to liquidity. Third quarter adjusted EBITDA loss and net interest expense are the primary drivers of cash utilization within the quarter. As discussed in the second quarter call, we expected to recover cash in inventory as we sold through aged units.

再來說說流動性。第三季調整後EBITDA虧損和淨利息支出是本季現金使用率的主要驅動因素。正如第二季電話會議中所討論的，我們預計隨著老舊庫存的售出，庫存現金將得以回籠。

We released $48 million of cash and inventory within the quarter. This was partially offset by restricted cash increase of $14 million due to inventory growth. These factors resulted in $209 million of cash and cash equivalents on the balance sheet at quarter end, which was within the range of our expectations.

我們在本季釋放了4800萬美元的現金和庫存。由於庫存成長，限制性現金增加了1400萬美元，部分抵消了這部分損失。這些因素導致季度末資產負債表上的現金和現金等價物餘額為2.09億美元，符合我們的預期。

Additionally, it is important to understand that earnings from the UACC business have been used to pay down warehouse lines. We can draw against these lines as a source of liquidity.

此外，需要注意的是，UACC業務的收益已用於支付倉庫的墊款。我們可以將這些墊款作為流動資金來源。

At the end of the third quarter, there was approximately $73 million of available liquidity at UACC, which when combined with our cash balance resulted in approximately $282 million of total available liquidity. We remain focused on capturing balance sheet opportunities to improve our available liquidity.

截至第三季末，UACC 的可用流動資金約為 7,300 萬美元，加上我們的現金餘額，總可用流動資金約為 2.82 億美元。我們將繼續致力於抓住資產負債表機會，以提升我們可用的流動資金。

Next, let's turn to our full year cash and cash equivalents and liquidity outlook on slide 10. This morning, we are updating our 2023 year-end cash and cash equivalents forecast to a range of $137 million to $162 million.

接下來，讓我們來看看第 10 張投影片上的全年現金和現金等價物以及流動性展望。今天上午，我們將 2023 年年底現金和現金等價物預測更新為 1.37 億美元至 1.62 億美元。

Additionally, we expect approximately $60 million of available liquidity at UACC at the end of the fourth quarter. We continue to hold the residual certificates, associated with our securitization completed earlier this year.

此外，我們預計第四季末UACC的可用流動資金約為6000萬美元。我們將繼續持有與今年稍早完成的證券化相關的剩餘憑證。

If we decide to sell those certificates in the fourth quarter, we estimate that proceeds from the transaction could contribute up to an additional $20 million of liquidity. As a result, our year-end midpoint liquidity could be up to $230 million.

如果我們決定在第四季出售這些證書，我們估計交易所得將帶來最多2000萬美元的額外流動性。因此，我們年底的中點流動性可能高達2.3億美元。

Thank you for your time and attention this morning. And with that, I'll turn it back to Tom for a few closing remarks. Tom?

感謝您今天上午的時間和關注。現在，我將請湯姆做最後幾句發言。湯姆？

Thanks, Bob. Now turning to slide 11. We introduced our long-term roadmap at our May of 2022 Investor Day, where we highlighted our midterm goal of a breakeven EBITDA business, and our long-term goal of a 5% to 10% adjusted EBITDA margin business.

謝謝，鮑伯。現在翻到第 11 張投影片。我們在 2022 年 5 月的投資者日上介紹了我們的長期路線圖，其中強調了我們的中期目標是實現 EBITDA 業務的盈虧平衡，以及我們的長期目標是實現 5% 至 10% 的調整後 EBITDA 利潤率。

As we indicated on Investor Day, implementing order of magnitude changes rarely a direct route. We adjust the specifics of this route from time to time, when we believe it makes sense to do so, in the pursuit of long-term profitability. Since that day, we have made significant progress on building a well-oiled transaction machine, building a well-oiled metal machine, in building our captive finance offering.

正如我們在投資人日所指出的，實施規模級的變革很少是一條捷徑。為了追求長期獲利，我們會不時調整這條路線的具體細節，只要我們認為這樣做是合理的。自那以後，我們在打造運作良好的交易機器、運作良好的金屬機器以及建立自保金融產品方面取得了重大進展。

We have significantly improved our customer experience, and dramatically improved our sales to customers Net Promoter Score by 84-percentage-points. We have transformed virtually every aspect of the business, and we are now ready to pursue raising capital to scale the business. Since Investor Day, we have had headwinds we did not anticipate and few if any tailwinds.

我們大幅提升了客戶體驗，並將淨推薦值大幅提升了84個百分點。我們幾乎改變了業務的方方面面，現在我們已準備好籌集資金來擴大業務規模。自投資者日以來，我們遇到了意料之外的逆風，但順風卻寥寥無幾。

First, our legacy titling and registration issues resulted in significant costs, including customer rental car expenses, customer concessions, losses from customer buybacks, significant aged inventory which has impacted GPPU. and legal and regulatory costs.

首先，我們遺留的所有權和註冊問題導致了大量成本，包括客戶租車費用、客戶讓步、客戶回購損失、影響 GPPU 的大量陳舊庫存以及法律和監管成本。

We ended 2022 with a significant portion of our inventory greater than 180 days old, while used vehicles depreciated in 2022. We've spent most of 2023 selling down aged units that were greater than 180 days old, causing significant pressure on GPPU in 2023.

截至 2022 年底，我們庫存中很大一部分的使用時間超過 180 天，而二手車在 2022 年也貶值了。我們在 2023 年的大部分時間裡都在銷售使用超過 180 天的舊車輛，這給 2023 年的 GPPU 帶來了巨大壓力。

Second, we purchased UACC in early 2022, with the strategy of executing securitization transaction, selling the residual certificates, and recognizing a gain on sale on each transaction. During 2022, we executed two securitization transactions, in which we sold the residual certificates, and recognized a gain on asset sale of $46 million.

其次，我們在2022年初收購了UACC，策略是執行證券化交易，出售剩餘憑證，並在每次交易中確認出售收益。 2022年期間，我們執行了兩次證券化交易，出售了剩餘憑證，並確認了4,600萬美元的資產出售收益。

Since 2022, several macro-economic factors, including high inflation, higher interest rates, degraded credit performance, and volatility, and used vehicle valuation, impacted our performance at UACC, including the following.

自 2022 年以來，高通膨、高利率、信貸表現下降和波動性以及二手車估值等多種宏觀經濟因素影響了 UACC 的業績，具體如下。

Inflation increased significantly in 2022 and continues ahead of the FED's target in 2023, impacting consumer purchasing power. Interest rates have increased significantly since we bought UACC. In May of 2022, the FED funds rate was 77 basis points, up from less than 10 basis points since April of 2020.

2022年通膨大幅上升，並在2023年持續超過聯準會的目標，影響了消費者的購買力。自我們收購UACC以來，利率已大幅上升。 2022年5月，聯邦基金利率為77個基點，而自2020年4月以來一直低於10個基點。

The FED funds rate is currently at 5.33%. The last time it was that high, was in February of 2001. This sizable increase in interest rates had an adverse impact on UACC's business.

聯邦基金利率目前為5.33%。上一次達到如此高位是在2001年2月。此次利率大幅上漲對UACC的業務產生了不利影響。

Used cars are less affordable, and used car payments are at all-time highs. Our warehouse interest rates have increased approximately 500 basis point, increase in our cost of funds, and compressing our spreads. Volatility in used vehicle valuations caused vehicle book values to increase significantly in 2021, and then decrease in 2022.

二手車價格下跌，二手車還款額創歷史新高。我們的倉庫利率上漲了約500個基點，導致資金成本上升，利差也受到壓縮。二手車估值波動導致車輛帳面價值在2021年大幅上漲，但在2022年又出現下降。

This increased credit losses as vehicle recoveries were adversely impacted, and default rates increased. Due to these current market conditions and investors' return expectations, UACC has elected to hold its 2023-1 residual certificate.

由於車輛回收受到不利影響，違約率上升，信貸損失增加。鑑於目前的市場狀況和投資者的回報預期，UACC 選擇持有 2023-1 年剩餘憑證。

Despite these headwinds, we have made significant progress on our long-term road map. Over the last 15 months from the second quarter of '22 to the third quarter of '23, UACC has increased its room loan originations, and is currently originating over 40% of Vroom customer loans.

儘管面臨這些不利因素，我們在長期發展規劃上仍取得了重大進展。從2022年第二季到2023年第三季的15個月裡，UACC增加了客房貸款發放量，目前Vroom客戶貸款的40%以上都由UACC發放。

We improved product GPPU by approximately $1,200. Leveraging our car story assets, we have invested 18 months developing our pricing engine, and for 2023 year-to-date generated greater than $4,200 GPU on unaged units or units held less than 180 days. We sold through the majority of aged units caused by legacy titling and registration issue.

我們將產品平均每單位收益 (GPPU) 提升了約 1,200 美元。利用我們的汽車故事資產，我們投入了 18 個月的時間開發定價引擎，截至 2023 年，非老化單元或持有時間少於 180 天的單元的 GPU 收益超過 4,200 美元。我們已售出大部分因所有權和註冊問題而老化的單位。

We have reduced our all in logistics cost per unit by 18%, and reduced all-in logistics costs by $40 million annualized. We increased the percent of pickups and deliveries on the Vroom fleet. We reduced cash and inventory by $85 million.

我們已將單位總物流成本降低了18%，年度總物流成本降低了4000萬美元。我們提高了Vroom車隊的取貨和送貨比例。我們減少了8500萬美元的現金和庫存。

We improved inventory turns 24%, and reduced inventory by $295 million. We reduced our leverage by repurchasing approximately $292.5 million at face value of our convertible notes, for approximately $103.4 million, including accrued interest with a weighted average repurchase price of approximately $0.35 on the dollar.

我們的庫存週轉率提高了24%，庫存減少了2.95億美元。我們透過以面值回購約2.925億美元的可轉換債券（包括應計利息）降低了槓桿率，回購價格約為1.034億美元，加權平均回購價格約為0.35美元。

We completed in-sourcing our sales function. We improved our Net Promoter Score for sales to customers by 80-full-percentage-points. We have made significant progress on our goal to be best in class in title and registration, including during 2022, we introduced our digital title bolt, and focused on significantly improving titling and registrations for our customers.

我們完成了銷售職能的內包。客戶銷售淨推薦值提升了整整80個百分點。我們在實現產權和登記領域領先地位的目標方面取得了重大進展，包括在2022年推出數位產權螺栓系統，並致力於顯著提升客戶的產權和登記服務。

We reduced our titling registration support cost per unit by 46%, and reduced annualized cost by $78 million. 99.7% of our customers received their registration before the expiration of their initial temporary tag in September 2023.

我們將每單位所有權登記支援成本降低了 46%，並將年化成本降低了 7,800 萬美元。 99.7% 的客戶在其初始臨時標籤於 2023 年 9 月到期之前獲得了登記。

We partnered with the state of West Virginia to launch its national digital titles clearing house. As the only retailer with access to this new digital system, Vroom will be able to transfer out of state titles into the company's name, and significantly reduce the timeline for processing them.

我們與西維吉尼亞州合作，推出了其全國性的數位圖書清算中心。作為唯一一家能夠使用這套全新數位系統的零售商，Vroom 將能夠將州外的圖書轉移到公司名下，從而顯著縮短處理時間。

We reduced our annualized marketing costs by $22 million, while we worked to optimize the mix of unit growth, pricing, and marketing spend. We reduced annualized fixed cost by $59 million. We have reduced our annualized run rate costs by $235 million since the second quarter of '22, and by $440 million since the first quarter of 2022.

我們將年度行銷成本降低了2,200萬美元，同時努力優化單位成長、定價和行銷支出的組合。我們將年度固定成本降低了5,900萬美元。自2022年第二季以來，我們已將年度運行成本降低了2.35億美元，自2022年第一季以來，我們已將年度運行成本降低了4.4億美元。

I'm very proud of what our Vroommates and UACC colleagues have achieved in executing our long-term road map. And I continue to be excited about the long-term opportunity ahead of us.

我為 Vroommates 和 UACC 同事在執行長期路線圖方面所取得的成就感到非常自豪。我依然對我們未來的長期機會感到興奮。

Thank you for your time today. And operator, we are ready for questions.

感謝您今天的時間。接線員，我們準備好回答您的問題了。

Thank you. (Operator Instructions)

謝謝。 （操作員指示）

Rajat Gupta, JP Morgan.

摩根大通的 Rajat Gupta。

Great. Thanks for taking the question. I have first question on UACC. If I look at the other loss item in the income statement, it's gone from $5 million last quarter, last year in Q3 to $33 million. You mentioned like $13 million of the sequential move from 2Q, was due to the higher realized and unrealized losses, but it still seems like a very big number. Could you help us understand how we should expect that other loss item to progress in the near term, and also within that $33 million, how much of it is tied to the UACC third party portfolio versus the Vroom portfolio? And I have a quick follow-up.

太好了。感謝您回答這個問題。我的第一個問題是關於UACC的。如果我看一下損益表中的另一個損失，它從上個季度（也就是去年第三季）的500萬美元成長到了3,300萬美元。您提到，第二季度環比增長了1300萬美元，這是由於已實現和未實現損失的增加，但這似乎仍然是一個很大的數字。您能否幫助我們理解一下，短期內我們該如何預期這項損失的進展？在這3300萬美元中，有多少是與UACC第三方投資組合和Vroom投資組合相關的？我還有一個簡短的後續問題。

Yeah, Rajat. So thank you for your question. So that number is really -- it's a combination of two things. So it's first of all, it's the what Tom had mentioned before, the increased losses, and the mark to market on the UACC portfolio -- on the residual portfolio for 2023-1.

是的，拉賈特。謝謝你的提問。這個數字實際上是——它是兩件事的結合。首先，是湯姆之前提到的增加的損失，以及UACC投資組合——也就是2023-2024年剩餘投資組合——的市價調整。

But it's also the additional loans that have been originated as well, since the 2023-1 in January of this year. So that that's the primary driver. And then in terms of the breakout between Vroom and UACC, we don't we don't break out that detail.

但自今年1月2023-1期貸款發放以來，新增貸款也起到了推波助瀾的作用。所以，這是主要驅動因素。至於Vroom和UACC的分拆，我們目前還沒有透露細節。

And so until what's flowing through the product GPPU, is basically just the interest income on those loans?

那麼，流經產品 GPPU 的資金基本上只是這些貸款的利息收入嗎？

That's correct.

沒錯。

Got it. Got it. And as a follow-up and a more like a broader question. If we look at the fourth quarter guidance, and the exit rate on EBITDA losses, and dial in some CapEx, and some cash interest, mean -- it's still pretty material or $40 million-ish per quarter, $40 million to $50 million-ish per quarter of cash burn, which at the current liquidity profile, would give you around 4, at max 5 quarters of bandwidth.

明白了，明白了。作為後續問題，我問一個更廣泛的問題。如果我們看一下第四季度的業績指引，以及EBITDA虧損的退出率，再加上一些資本支出和一些現金利息，這意味著——這仍然是相當可觀的，或者說每季度4000萬美元左右，每季度4000萬到5000萬美元左右的現金消耗，按照目前的流動性狀況，這將提供大約4個季度的寬頻帶。

How do you plan to navigate in case we do have like a choppier backdrop, or maybe more credit losses in the near term, like how do you navigate that backdrop? I mean, are you considering any other recapitalization, or restructuring options of the balance sheet, like we have seen at some of your peers and for the US and UK? Thanks.

如果我們真的面臨更動盪的環境，或短期內信貸損失可能增加，您打算如何應對？我的意思是，您是否考慮過其他資本重組或資產負債表重組方案，就像我們在一些同行以及美國和英國看到的一樣？謝謝。

Hey Rajat, thanks for the question. Yes, we actually announced today that we are going to pursue raising capital to scale the business, and so we are going to pursue that. Relative to just the ongoing performance of the business, this has been a challenging year as we work through the remaining titling and registration issues, it's really impacted our GPPU. all year.

嘿，Rajat，謝謝你的提問。是的，我們今天確實宣布了將尋求融資來擴大業務規模，所以我們將繼續前進。相對於業務的持續表現而言，今年是充滿挑戰的一年，因為我們正在處理剩餘的所有權和註冊問題，這確實影響了我們全年的GPPU。

But we feel like we're well positioned going forward into 2024, and that we've got a very strong operating business. We're very pleased with the customer experience that we're delivering. We focused on really improving all our unit economics, and we think that positions us really well for 2024.

但我們覺得，邁向2024年，我們已做好充分準備，而且我們的營運業務非常強勁。我們對目前提供的客戶體驗非常滿意。我們專注於實際提升所有單位經濟效益，我們認為這為我們在2024年奠定了良好的基礎。

And then on top of that, we do want to grow the business at a faster rate. And so we did announce that we are just now at the beginning stages of pursuing additional capital.

除此之外，我們確實希望業務以更快的速度成長。因此，我們宣布目前正處於尋求額外資本的初始階段。

Got it. And what form would that take, have you disclosed any more details around that?

明白了。那具體會是什麼形式呢？您有沒有透露更多細節？

Yeah, not at not at this time. Obviously, you know, it could be a private investment. It could be additional convertible debt, it could be at the market offering, rights offering. But again, we're at the very beginning stages, and we'll update you down the road, as we have more information.

是的，目前還不行。顯然，你知道，這可能是一項私人投資。可能是額外的可轉換債券，也可能是透過市場發行或配股發行。不過，我們目前還處於起步階段，後續有更多資訊後，我們會及時更新。

Yes. And just one more thing, Rajat, I wanted to add to you -- at the tail end of the last question you had asked about. So we've made a number of -- UACC has made a number of changes to their underwriting standards since they've issued 2023-1. And obviously, it takes time for those changes to cycle through.

是的。 Rajat，我還有一件事想補充——關於你剛才問的最後一個問題。自發布2023-1號法規以來，UACC對其承保標準進行了一些修改。顯然，這些修改需要時間才能生效。

But in terms of what we're seeing so far, based upon those initial underwriting changes they've made, we have seen improvement in the portfolio, but that will take time to materialize in our results.

但就我們目前所看到的情況而言，根據他們所做的初步承保變更，我們已經看到投資組合有所改善，但這需要時間才能在我們的結果中實現。

Got it. Thanks for the color.

明白了。謝謝你的顏色。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Colin Sebastian, Baird.

科林·塞巴斯蒂安，貝爾德。

Thanks. This is [Reese] on for Colin. Yeah, I guess you guys did just address the capital plans, and you're not going to provide any further detail on that.

謝謝。我是[Reese]，Colin。是的，我想你們剛才確實談到了資本計劃，但你不會再提供任何細節了。

But maybe you could touch on where you're at in the aged inventory process right now. I know you guys were hoping to finish most of that by the end of the year, and the amount of aged units is going to be down in Q4 versus Q3.

但或許您可以談談目前庫存處理進度如何。我知道你們希望在年底前完成大部分工作，第四季的庫存量相比第三季會有所下降。

So how does that shape up heading into 2024? You're going to be mostly worked through the aged inventory? Or is there still going to be more work to do next year, and that's just potentially more tailwind or less headwind? Thanks.

那麼，2024年的情況會如何？你們主要會處理老庫存嗎？還是明年還會有更多工作要做，而且這些工作可能會順風順水，逆風減少？謝謝。

Yeah, I would say that we're down to just a few hundred cars or less, that are we consider aged. And, you know, as we said each month this year, we've continued to improve the mix. So while we said less than 20% for the quarter, we think each month sequentially in the quarter will go down. We may have a little bit left at the end of the year, but nothing that we would view as material going into 2024.

是的，我想說的是，我們的車輛數量已經降到了幾百輛甚至更少，我們認為這些車輛已經老化了。而且，正如我們今年每個月所說的那樣，我們一直在持續優化車輛組合。所以，雖然我們之前說本季的車輛數量不到20%，但我們認為本季每個月的車輛數量都會較上季下降。到年底我們可能還會剩下一些，但我們認為這些車輛數量對2024年來說都不算什麼。

Okay, got it. Thank you.

好的，明白了。謝謝。

Thank you, Reese.

謝謝你，里斯。

Thanks, Reese.

謝謝，里斯。

I'm showing no further questions at this time. I would now like to turn it back to Tom Shortt for closing remarks. Tom?

我現在沒有其他問題了。現在我想請湯姆·肖特做最後發言。湯姆？

Thanks, everyone. We appreciate your time today and have a fantastic day.

謝謝大家！感謝大家今天抽出時間，祝大家有美好的一天。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。今天的節目到此結束。您可以斷開連線了。