Vroom Cuts Losses in Q3
Vehicle retailer trims costs, increases profit per vehicle.

Vroom cut its net loss from $115.1 million in the second quarter to $51.1 million
IMAGE: Getty Images/georgeclerk
Online vehicle retailer Vroom improved its results in the third quarter, though it still recorded a loss.
Vroom cut its net loss from $115.1 million in the second quarter to $51.1 million as it reduced costs and focused on boosting profit per vehicle.
The volume of vehicles it sold fell sharply year-over-year from 19,683 to 6,428, but profit per unit soared by 64% to a record $4,206.
Meanwhile, the New York City-based company trimmed its workforce and logistics to cut expenses, shedding a total of $18.3 million quarter-over-quarter from its selling, general and administrative costs.
CEO Tom Shortt pointed out in a press release that Vroom also reduced its leverage by $56 million. He thanked his fellow “vroommates” for helping transform “our business and improving our customer experience.”
Vroom noted in a recently quarterly report to the Securities and Exchange Commission that, "despite the cost saving measures, reduced growth rates and increased focus on liquidity and profitability contemplated by the Realignment Plan, we may need to raise additional capital through debt or equity financings to achieve our business objectives."
Vroom competitor Carvana, meanwhile, missed third-quarter forecasts as its year-over-year sales, profit and revenue fell.
Originally posted on Auto Dealer Today
More Industry

Kia Closes Out Summer With a Bang
Its U.S. subsidiary broke multiple records in August, in part due to a surge of demand for hybrids models.
Read More →
Indiana Dealership Changes Hands
A 30-year-old Ford dealership in Indiana has a new owner and will soon be undergoing renovations to meet manufacturer requirements.
Read More →
Texas Dealership No Longer in the Family
The Ford store, a longtime cornerstone of the Houston market, is now part of one of the fastest-growing U.S. auto groups.
Read More →
Genesis Grows California Presence
The Cardinale Automotive Group opened its third Genesis rooftop in the Golden State, Genesis of San Bruno, a stand-alone dealership serving the San Francisco Bay Area.
Read More →
August Auto Sales a Mixed Bag
An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.
Read More →
EV Market Humming Along
July sales show steady growth as the segment stabilizes from last year’s artificial surge following pullback of federal support.
Read More →
Auto Loan Delinquency Rates Stabilize
Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.
Read More →
EV Sales Recover in Q2
The EV sales roller coaster continues as numbers show improvement, but industry experts predict a year-over-year third-quarter decline and fourth-quarter jump.
Read More →
The Cheapest Hybrids to Fuel
The powertrain is increasing in popularity, in no small part due to its fuel economy. A new report lists the most efficient hybrids on the market.
Read More →
Hybrids and SUVs Gaining Ground
The most recent Kelley Blue Book Brand Watch found that only two nonluxury brands increased in shopper consideration, buoyed by their hybrid and SUV offerings.
Read More →