In late trading, Shift stock is up 3.4%, to $7.65, while Vroom stock is up 10.4%, to $39.09.I worked for Shift Oregon, when they were still privately owned, there were standards and the cars were actually worked on prior to going up for sale and we had pride in the company. “Demand for our convenient, online used-vehicle shopping experience remains strong in a dynamic environment.” “Vroom delivered record results in the first quarter of 2021, with total gross profit nearly doubling versus the same period in the prior year as we delivered exceptional growth and improving unit economics,” CEO Paul Hennessy said in a statement. Vroom projects average price for e-commerce units to be $27,000 to $28,000, with profit per unit of $2,500 to $2,600. The company sees e-commerce unit sales of 17,500 to 18,000 vehicles, with wholesale units of 7,500 to 8,000. But gross profit per vehicle was up 14.2% to $2,054.įor the second quarter, Vroom sees revenue of $618 million to $640 million, ahead of the Street consensus estimate for $601 million. Average price per e-commerce unit sold was $26,336, down 7.4% from a year ago. The company lost $77.2 million in the quarter, or 57 cents a share, better than the Street consensus forecast for a per-share loss of 63 cents.
Online sales of vehicles were 15,504 units, up 96% from a year earlier. Vroom reported first-quarter revenue of $591.1 million, up 57%, including e-commerce revenue of $422.3 million, up 81%, and wholesale revenue of $118 million, up 112%, well ahead of the Street consensus at $518.2 million. Also, it tends to carry a broader inventory, with a great number of older vehicles. Shift has a slightly different model, offering test drives in local markets, for instance, says Arison. (CVNA)-he notes that the three companies together have less than 1% of the U.S. And he also says that a market campaign that launched in mid-February is already having a positive impact on the level of consumer activity.Īrison says he’s not really concerned about competition from players such as Vroom (VRM) and One, he notes that the company had elevated costs during the pandemic for reconditioning used cars, turning to third parties given that the company had “trouble getting staffing in the right places.” But he says that problem has been solved faster than the company had expected.
He says that the company expanded sellable inventory 93% over the course of the March quarter.Īrison says several factors contributed to the strong quarter. He notes that the high auction prices don’t impact their business very much, since the company acquires 87% of its inventory from consumers and partners. Said in an interview that the company had a “really great quarter,” despite “very weird” market dynamics, which includes very high auction prices for used cars as consumers seek alternatives amid a shortage of new vehicles.
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