Vroom(US:VRM)2023-03-01 13:26Financial Performance & Objectives - The company aims to prioritize unit economics and growth, improve costs per unit, and maximize liquidity[5] - Q4 2022 Adjusted EBITDA was -$709 million, within the prior outlook range[6] - Q4 2022 saw a $65 million / 48% improvement in Adjusted EBITDA (excluding securitization gain and non-recurring costs) compared to Q1 2022[6] - Ecommerce Gross Profit Per Unit (GPPU) was $1,233 in Q4 2022[6,9] Cost Reduction & Efficiency - Adjusted SG&A expenses decreased by $31 million sequentially, driven by lower variable and fixed costs[6] - The company unlocked approximately $70 million of cash in inventory and restricted cash[6] - The company expects ~$27 million of annualized variable and fixed cost reductions implemented in January 2023[9] - Logistics costs saw a reduction of approximately $6 million[9] Inventory & Sales - 36% of units sold in Q4 were aged units (>270 days) due to earlier titling delays[6,9] - 87% of units were available for sale or pending sale at the end of Q4 2022, compared to 52% at the end of Q3 2022[6,9] Strategic Initiatives & Outlook - The company repurchased $198 million of convertible notes for $72 million[6] - FY2023 Adjusted EBITDA guidance is between -$250 million and -$200 million[10,23]