Vroom, Inc Pre-IPO Profile
IPO Terms:
Company: Vroom, Inc
Proposed Symbol: VRM
Exchange: Nasdaq Global
Expected IPO Date: 6/11/20
CEO: Paul J. Hennessy
# of employees (as of 3/31/30): 800
Offer Amount: $431.25 mm
Proposed Price Range Per Share: $18-$20
Shares Offered: 21.5 mm
Estimated Market Cap: $2.25 bn
Shares Outstanding: 112.7 mm
Prospectus Summary (From S-1):
“Vroom is an innovative, end-to-end ecommerce platform that is transforming the used vehicle industry by offering a better way to buy and a better way to sell used vehicles.”
Underwriting Information:
Lead Underwriter(s): Goldman Sachs, BofA Securities
Warrants issued to Underwriter(s): 2.8 mm
Competitors:
CarMax, Cars.com, Carvana, AutoNation
Notes from S-1
- Vroom has developed an ecommerce platform dedicated to helping buyers and sellers conduct virtual transactions in the automotive industry.
- Acquires inventory from auctions, consumers, rental car companies and dealers
- Asset-light approach allows Vroom to effectively manage risk through third party operational agreements
- current CEO, Hennessy, formerly led Priceline Group, Inc.
- 42,000 automotive dealers across the U.S.
- Only .9% of all used automotive sales in 2018 were ecommerce based
- Revenue increased by 39.3% from the year ended Dec. 31 2018 to the year ended Dec 31 2019
Revenue:
2017: $855.4 mm
2018: $1.2 bn
3 months ended March 31, 2019: $235.1
3 months ended March 31, 2020: $375.8 mm
Estimated 2020 revenue: $1.5 bn
- Reported a net loss of $85 mm and $142 mm for the years ended Dec 31, 2018 and Dec 31, 2019, respectively
- Reported a net loss of $27 mm and $41 mm for the 3 months ended March 31, 2019 and March 31, 2020, respectively
Current Financial Status (as of March 31, 2020):
Cash: $169.8 mm
Assets: $547 mm
Liabilities: $262.1 mm
Shareholders Equity: $284.9 mm