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Sep 30, 2024
Vroom Q3 2024 Earnings Report
Vroom's Q3 2024 financial results were announced, revealing a net loss from continuing operations of $(37.7) million and an agreement to restructure $290 million of unsecured convertible notes into equity.
Key Takeaways
Vroom Inc. reported its Q3 2024 financial results, highlighting a net loss from continuing operations of $(37.7) million. The company reached an agreement to restructure $290 million of unsecured convertible notes into equity through a prepackaged Chapter 11 case. The company is focused on maximizing the value of its remaining assets and executing its Long-Term Strategic Plan.
Cash and cash equivalents totaled $51.1 million as of September 30, 2024.
Liquidity available to UACC under the warehouse credit facilities was $32.9 million.
Net loss from continuing operations was $(37.7) million.
Adjusted EBITDA was $(25.5) million.
Vroom
Vroom
Forward Guidance
The company believes eliminating its unsecured notes will significantly strengthen its balance sheet and allow it to emerge without any long-term debt at Vroom, Inc.
Positive Outlook
- Eliminating unsecured notes will significantly strengthen the balance sheet.
- The company will emerge without any long-term debt at Vroom, Inc.
- The team remains focused on executing the Long-Term Strategic Plan.
- Progress is being made on key initiatives.
- The company is focused on portfolio performance.
Challenges Ahead
- UACC will continue to be obligated to debt that is related to asset-backed securitizations and their trust preferred securities.
- The company is still in a loss position.
- The company is undergoing a prepackaged Chapter 11 case.
- The company discontinued its ecommerce operations and used vehicle dealership business.
- The company faces risks and uncertainties that may cause actual results to differ materially from forward-looking statements.