Exhibit 99.1
Financing and Contract Servicing Full eCommerce Platform Assets Industry Leading Data, AI and Technology Long-Term Strategic Plan September 23, 2024
Disclaimer Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including without limitation statements regarding our expectations and business strategy regarding Vroom, United Auto Credit Corporation, and Car Story; the implementation of our three objectives and four strategic initiatives; our ability to build a world class lending program; our ability to return portfolio performance and operational cost metrics back to pre-COVID levels; the impact from the UACC’s 2024-1 securitization transaction; residual sale impacts and the income recognition; expectations regarding originations; the impacts of credit tightening; our models regarding indicative potential for EBITDA, Adjusted EBITDA, unrestricted cash, and Excess Liquidity; our assumptions regarding operating capital, long-term debt, and macroeconomic, operational and competitive risks; and the timing of any of the foregoing. These statements are based on management’s current assumptions and are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. For factors that could cause actual results to differ materially from the forward-looking statements in this presentation, please see the risks and uncertainties identified under the heading “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, as updated by our Quarterly report on Form 10-Q for the quarter ended June 30,2024, which are available on our Investor Relations website at ir.vroom.com and on the SEC website at www.sec.gov. All forward-looking statements reflect our beliefs and assumptions only as of the date of this presentation. We undertake no obligation to update forward-looking statements to reflect future events or circumstances. On-GAAP Financial Measures This presentation and the accompanying oral presentation include the following non-GAAP financial measures which we believe are useful in evaluating our operating performance: EBITDA and Adjusted EBITDA and Adjusted EBITDA % of Serviced Portfolio Target. EBITDA and Adjusted EBITDA are supplemental performance measures that our management uses to assess our operating performance and the operating leverage in our business. Because EBITDA and Adjusted EBITDA facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. We define EBITDA as net loss before interest expense on corporate debt, interest income on cash and cash equivalents, income tax expense and depreciation and amortization expense. We define Adjusted EBITDA as EBITDA adjusted to exclude stock compensation expense, severance expense related to the continuing operations, gain on debt extinguishment and long-lived asset impairment charges. We define Adjusted EBITDA % of Serviced Portfolio Target as Adjusted EBITDA divided by gross serviced portfolio. These non-GAAP financial measures have limitations as analytical tools in that they do not reflect all of the amounts associated with our results of operations as determined in accordance with U.S. GAAP. Because of these limitations, these non-GAAP financial measures should be considered along with other operating, financial, and liquidity performance measures presented in accordance with U.S. GAAP. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with U.S. GAAP. Industry and Market Information To the extent this presentation includes information concerning the industry and the markets in which the Company operates, including general observations, expectations, market position, market opportunity and market size, such information is based on management's knowledge and experience in the markets in which we operate, including publicly available information from independent industry analysts and publications, as well as the Company’s own estimates. Our estimates are based on third-party sources, as well as internal research, which the Company believes to be reasonable, but which are inherently uncertain and imprecise. Accordingly, you are cautioned not to place undue reliance on such market and industry information.2
Presenters A seasoned leadership team with diverse experience Tom Shortt CEO Tom is CEO of Vroom, Inc. which now consists of UACC, Car Story and Vroom’s ecommerce platform assets. He is a transformational leader and change agent with experience delivering order of magnitude operating improvements in Fortune 1 to multibillion dollar Public and Private Equity companies leveraging Advanced Analytics and Digital Transformation to drive Execution while inspiring an innovative culture. Stefano Balistreri Chief Risk Officer - UACC Stefano most recently spent 13 years at Wells Fargo Auto Finance where he led risk programs for the full credit spectrum. He has 24 years of experience in the consumer financial services industry. Lyndon Elam Chief Operating Officer - UACC Lyn has 20 years of experience with full-spectrum credit programs at companies including Wells Fargo Dealer Services , Yamaha Financial Services, and Synchrony Financial. Stacie Grueser Senior Vice President Sales & Marketing - UACC Stacie has 15 years of experience in sales, marketing, customer experience, strategy, and operations across multiple industries. Prior to joining UACC, Stacie spent 5 years driving sales, support, and transactions for Vroom. Jon Sandison CFO and Treasurer - UACC Jon has 15 years of experience in strategy, P&L management, financial modeling, FP&A and investor relations across multiple industries. Jon has been involved in driving improvement at UACC over the last two years. 3
Vroom Overview Strategic Plan Overview Strategic Initiatives Build a World Class Lending Program Build a World Class Sales and Marketing Program Build Operational Excellence in Originations Build Operational Excellence in Servicing Strategic Plan Indicative Models Agenda 4
Vroom Overview 5 Financing and Contract Servicing Full eCommerce Platform Assets Industry Leading Data, AI and Technology
Following the wind-down of our ecommerce operations, Vroom’s business is comprised of UACC, Car Story and the Vroom Automotive eCommerce Platform UACC is a national indirect lender that offers vehicle financing to consumers through third-party dealers under the UACC brand, focusing primarily on the non-prime market Car Story is a leader in AI-powered analytics and digital services for automotive retail Vroom continues to own the technology, IP and digital assets that previously powered Vroom’s retail automotive ecommerce platform. We believe our Vroom IP and Tech Stack have the potential to create value for our business and continue to explore opportunities to monetize these assets through asset sales, licensing and a SaaS model Vroom, Inc. Overview united auto credit business Financing and Loan Servicing Acquired by Vroom in 2022 Non-prime lending expertise. Successful capital markets experience 9,500+ independent dealer network $1B+ gross serviced portfolio $629M in loan origination in 2022 External finance and management portal for dealers • Consumer payment integrations and auto-pay functionality Integrated with largest dealer management platform credit applications Automatic pricing programs for both independent and franchise dealerships 3rd generation proprietary pricing engine powered by big data models with machine learning 100+ nationwide sales team with strong dealer relationships Tangible book value at 6/30-$154M car story business Industry Leading Data, Al and Technology Acquired by Vroom in 2021 18+ years of automotive vehicle history Extensive patent portfolio, including 31 issued or allowed and 9 pending patents Website conversion expertise Data science and analytics Al and ML models for vehicle pricing, similarity and imaging processing Major financial institution customers, dealers and retail auto service providers Vehicle acquisition and pricing product suite for dealers Consumer mobile apps with full-featured marketplace and augmented reality shopping experience vroom assets Automotive eCommerce Platform eCommerce used vehicle platform Predictive price and P&L models Consumer and B2B Inventory acquisition Consumer shopping solution Self-service checkout Consumer transaction hub deal status, pending action items, delivery and registration tracking Delivery and logistics solution with integrated tools for seamless driveway experiences Patent-pending titling, registration and document platform Proprietary document processing pipeline for automated contracting Payment integrations for credit card, ACH, debit and wire transfer payments Internal sales-enablement platform to guide sales and support agents on financing terms and approval probabilities
UACC has operated in the subprime auto finance industry since 1996 UACC 28 Year History 7 YTD 16 securitization transactions Over $3 billion in issued notes (Bar Chart) Vroom acquires UACC, transaction closed on February 1, 2022 Vrooms 2022- 2024 THE FASTLANE Initiated consolidation of the decentralized branch structure UACC Founded 1996 2008 - 2010 UACC is taken private by Pine Brook Road Partners UACC begins using proprietary pricing and decision engine. Foursquares 2011-2015 UACC releases proprietary originations platform, The Fastlane (TFL) 2016 - 2021 WELLS FARGO JPMorgan 100 Over $3 billion in 'AAA' rated capital markets execution 150 January 22, 2024-Vroom discontinues e-commerce operations 250 225 225 FIFTH THIRD BANK $225 million Sub/Near- Prime Hybrid 200 200 $600 million Sub-Prime Capital One 100 200 200 Revolving Period 2024-1 2019-1 2022-1 $296 2022-2 2023-1 $316 $276 $240 $249 $255 2012-1 2014-1 2015-1 2018-2 2018-1 $184 2013-1 5176 5187 2016-1 2016-2 2017-1 $186 $151 5162 $172 $150 $148 2012 2013 2014 2015 2016 2017
Large and fragmented market (1) Source: Experian State of the Automotive Finance Market Q4 2023 report; February 2024 and Automotive Market Trends Q4 2023 report; March 2024 (2) Source: Experian Velocity data; July 2024 YTD Note that dataset excludes Buy Here Pay Here dealers, unassigned lienholders, and Title Loan (refinance) lenders Subprime Market $33B Total Addressable Annual Originations Market (2) (1) 8 Subprime & Deep Subprime Market Share (Used) Other 2,626 Lenders 29.9% Credit Acceptance 10.4% Santander 9.2% UACC Capital One 8.5% Ally 0.7% 6.6% Exeter 6.2% Next 10 Lenders Westlake 22.4% 6.1%
Our large VIN database is intended to enable more accurate vehicle valuations CarStory VIN Database 3.8B Vehicle Photos 360M Sales Cycles 180M Window Stickers 240M Unique VINs Leveraging big data, computer vision and AI, CarStory has curated a comprehensive used vehicle information database 9
Our large VIN database is intended to enable more accurate vehicle valuations CarStory has VIN Data for 90% of US Consumer Vehicles VIN Database Coverage by Model Year VIN Database Coverage = Unique VINS in CarStory database / FRED Light Weight Vehicle Sales FRED Sales data available at: https://fred.stlouisfed.org/series/ALTSALES#0 10 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Valuations based on market averages can over or understate the vehicle’s market value 11 Average Market Prices Can Be Misleading Why the discrepancy? Today’s pricing tools often oversimplify the vehicle There may not be enough similar vehicles Averages typically do not account for local supply, demand, and dealer performance For Sale 2022 Chevy Equinox LT (28-33k Miles) Nationwide – Last Seen For Sale 5/1/24-7/1/24(1) Average price = $21,500 $10k price range $8k price range Average price = $22,300 For Sale 2022 Chevy Equinox LT (28-33k Miles) Ohio –Last Seen For Sale 5/1/24-7/1/24(1) (1) For Sale inventory in nationwide feed data provided to CarStory 205 VINs 297 Vehicle Features 182 Dealers 169 Cities 50 90 45 40 35 30 25 20 15 10 5 $17,000 $18,000 $19,000 $20,000 $21,000 $22,000 $23,000 $24,000 $25,000 $26,000 $27,000 For Sale Units 50 45 40 35 30 30 25 25 20 15 10 10 5 0 $18,000 $19,000 $20,000 $21,000 $22,000 $23,000 $24,000 $25,000 $26,000 List Price (in Thousand Dollar Increment)
CarStory patented algorithm accounts for factors that averages often miss local market & dealer performance 12 CarStory Real Market Price Unlike simple averages, CarStory’s patented neural-net algorithm provides more accurate market price, regardless of “exact” matches. CarStory Real Market Price accounts for factors that averages often miss: local market dynamics, dealer performance. Listing Details: Dealership, location, date, age, mileage, condition Vehicle Details: Year, make, model, trim, engine, color, transmission, mpg, damage, features, etc. VIN Vault Current Inventory Inventory Forecast Macroeconomic Data CarStory Real Market Price Distribution CarStory Neural Net Locations
Culmination of 15 years of data collection and analytics; 39 patents or pending patents 13 CarStory VIN Database and Pricing Models Price Elasticity VIN Data, Pricing Models and AI are used in CarStory, were used at Vroom and are starting to be used at UACC Instant Cash Offer VINspect Week of Year Price Vehicle Depreciation
Strategic Plan Overview14
Focused on 3 objectives and 4 strategic initiatives15Build a world class lending programBuild a world class sales & marketing programBuild operational excellence in originationsBuild operational excellence in servicingAchieve pre-COVID CumulativeNet Losses (CNL) or lowerGrow origination with pre-COVIDCNL or lowerLower operating cost3 Objectives 4 Strategic InitiativesLeverage the Assets and IP of All 3 Businesses
Base Model Growth Model Aggressive Growth ModelSubprime Cumulative Net Loss (CNL) Low 20’s% (Pre-COVID Level) High Teens (%) Mid Teens (%)Nearprime Cumulative Net Loss (CNL) N/A ~10% ~10%Origination Cost Per Funded Contract Pre-COVID LevelServicing Cost Per Serviced Account Pre-COVID Level ~10% below Pre-COVID ~15% below Pre-COVIDSubprime Program Mix 100% ~90% ~80%Near-Prime Program Mix <1% ~10% ~20%Franchise Dealer Segment % <1% >1% Grow Market ShareLeverage CarStory Real Market Pricefor Valuations Leverage CarStory Vehicle Valuations in underwriting and servicing activitiesDealer Portal Tech Investment Integrate existing Vroom tech intoplatform Build new tech into the platform16Long-Term Strategic Plan Indicative ModelsBase: Return business to profitabilityGrowth: Grow share through near prime program, grow the Franchise segment, and deepen dealer relationshipsAggressive Growth: Based on success of strategic initiatives - accelerate growth
Strategic Initiative:Build a World ClassLending Program17
Goal: pre-COVID subprime cumulative net loss (CNL)Multivariate 12 mo CNL Model (Orange) correlates to Actual 12 mo CNL (Gray) [Left Axis], which correlates to Actual 48 mo CNL (Yellow) [Right Axis]Portfolio Performance2017 2018 2019 2020 2021 2022 2023 YTD-2024Avg. FICO 579 581 577 584 578 567 584 591Avg. Back-End LTV 110.2% 112.7% 112.4% 112.6% 117.1% 125.5% 113.0% 112.9%18March202336%34%Credittightening32%30%Multivariate LossCovid StimulusProjection Vs. Cumulative Net Loss28%26%24%22%20%18%48 Mo CNL16%14%12%10%16%8%15%6%14%4%13%12%12 Mon CNL11%10%9%8%7%6%5%4%3%2%1%0%01/200200/00289/20074/201711/2012/201701/201/201804/200/200831/2018/2011сл4/2019-Cumulative fNet Loss s@12moarlate Loss Projection-Multivariat4/202012/02aran200/001200/%30/202123/2006/20High-Cumulative Net Net Loss@48mo30/202saran05/200255EXsarano81/2024Low
Focus on using advanced models/analytics - aim to predict losses and drive profitable growthRisk initiatives aimed at reducing CNL and achieving profitable growthIn Process: Expand toNear-Prime and RefineSubprime programShort-Term: Modernizecredit programLonger-Term: Build aWorld Class LendingProgramCore ProgramOfferingsSystemCapabilitiesMarket ExpansionConsumer CreditRisk AssessmentNear-Prime Program LaunchNew Internal Credit ScoreExpand Near Prime RolloutNew Cloud Decision EngineOptimize Approval LogicExpanded use of FICO 9Multi-decisioning for Dealers’InventoryMore Pre-verification of Stips3rd Party VSC allowanceEnter Franchise MarketIncrease Data SourcesMarket Specific ProgramsNew Dealer Risk AssessmentBuild a World Class Lending ProgramBuild on predictive analytics19
DeepSubprimeLender ADeepSubprimeLender BRegional Subprime LenderDeep Subprime Subprime Near-Prime Prime Super PrimeDistributionof OriginationOpportunitiesWith the Near-Prime program, UACC aims to become a more significant partner to the dealerCredit Spectrum of Through-the-Door Sales OpportunitiesNational BankLocal Credit UnionNational Full-Spectrum LenderNational Subprime Lender Dealers tend to work with as few lenders as possible, while ensuring they have sufficient coverage Lenders with broader credit coverage tend to get “first look” on credit apps Expansion into Near-Prime aims to increase UACC’s coverage footprint and generate more “first look”opportunitiesNear-Prime Expansion20
Goal: Active review of Credit Risk models and strategies while adapting to changing market conditionsVirtuous Cycle – Combining Disciplined RiskManagement with Market-Sensing Program ExpansionRisk Modeling &Program ChangesImproved CreditPerformanceBetter CreditPerformanceIncreased DealerAdoption & More FirstLook ApplicationsExpanded ProgramOfferingsIntegrated Risk&ProgramManagement21
Opportunity to improve CNL within current FICO rangeSubprime CNL OpportunitySource: S&P Global Ratings research reports for Auto Receivable Trusts for the periods of 2022-202422Average Expected CNL35302022-2024 Securitizations: FICO by Expected CNL25UACC2015101050500550600650 FICO700750800Average Expected CNL27.525.0CaptiveIssuer A22.52022-2024 Securitizations: FICO 550-600 by Expected CNLCaptive Issuer BNational Subprime Issuer AUACC20.0National SubprimeCaptive Issuer C17.5Issuer G15.012.510.0NationalNational Subprime Issuer BSubprimeIssuer CNational Subprime Issuer ENational Subprime Issuer DNationalFull- Spectrum Issuer ACaptive Issuer ECaptive Issuer D757.5550560570580590600FICO
Early results are positive and reflect better customer and vehicle mix relative to our traditional subprime program In 2023, developed a Near-Prime programfor Vroom applicants (7/23-2/24) 235 Vroom customer funded deals - wehave yet to experience a loss (Avg FICO: 671) Modified Vroom program to launch UACCDealer Near-Prime pilot Launched UACC Dealer Near Prime Pilot: June11, 2024 Total Near Prime Deals (June 11 - Sept 9,2024): 233○ Avg FICO: 672Near-Prime Pilot: Avg 672 FICO with 2x ConversionUACC Dealer Near-Prime Pilot Metrics23 *Vroom Near-Prime Program excludes first time buyers that are ineligible for the program.Amount FinancedMileage$25,000140,000120,000$20,000$21,503119,616100,000$15,000$17,04280,00084,515$10,00060,00040,000$5,00020,000500ControlNear Prime ProgramControlNear Prime Program10Vehicle Age275Financing Term645060507.76.125ControlNear Prime ProgramControlNear Prime Program
Goal: Competitive expected CNL’sNear-prime CNL OpportunitySource: S&P Global Ratings research reports for Auto Receivable Trusts for the periods of 2022-202424 Average Expected CNL35302022-2024 Securitizations:FICO by Expected CNL25UACC2015101052022-2024 Securitizations: FICO 580-700 by Expected CNLNational Full-Spectrum15.0National Subprime Issuer EIssuer AUACC NearPrime Pilot Avg FICO: 67212.5Captive Issuer E1557.5Average Expected CNL- 10.0CaptiveIssuer DNational Full-Spectrum Issuer BNational Subprime Issuer HNational Subprime Issuer C05.0500550600650700750800580600620FICO640 FICO660672 680700
Strategic Initiative:Build a World Class Salesand Marketing Program25
Aligning resources with density optimizes efficiency and allows for scalability National Presence:licensed in 49 states External sales teamaligned withhigh-density markets Internal sales teamfocused on less densemarketsNational Presence with Local FocusTotal Available Subprime Deals 2024 YTDUACC DealersSource: Experian’s Velocity dataNote that dataset excludes Buy Here Pay Here dealers, unassigned lienholders, and Title Loan (refinance) lenders26
In Process / Enabled Short TermSalesCompensation& PerformanceMarketingProgramDealer Loyalty& engagementMarketAlignmentNew market definitions and teamalignmentBalance current and longer termperformanceUtilize market data to drive growthand provide focusIncreased data utilization intargeted marketing effortsProvide exclusive CarStory data andinsightsDealerPerformanceTighter alignment of goals andcompensationFull loyalty program to drive dealerengagement and performanceDetails and recommendations toimprove performanceBuilding a World Class Sales & Marketing ProgramExpanded programs to drive highervalue customersDealer portal improvementsData specialization to guide teamAttract & retain the best dealers and drive deeper dealer engagement to enable growth27Longer TermComprehensive strategy to drivedealer commitmentDealer performance scorecardrevampContinued portal enhancementsSales performance scorecardrevamp
A portal built to provide the dealer with everything they need from application through contractingThe Fast Lane 24/7 access for dealers to view andwork applications Instant approvals after submittingcustomer and vehicle information Populate, print, and sign/e-signcontract documents Track contract progress with LIVEfunding updates LIVE chat feature available toconnect with funding28 (Graphic)
Dealer Inventory in The Fast Lane Launched June 2024Increase credit app volume and drive dealer engagement with tools to improve their profitsInventory integration provides: Seamless dealer experience withstreamlined vehicle selection andbookouts Ability for dealers to improvetheir own profitability Inventory review and financialimpacts at a granular level29 (Graphic)
Strategic Initiative:Build OperationalExcellence inOriginations30
Origination cost per funded contract increased 72% from 2019 to 202331Origination Cost per Funded Contract+72%-12%Note: Cost per funded contract represents origination cost as incurred in the period presented, assuming no capitalization of origination costFunded contracts exclude Vroom originations 201920202021202220232024 YTD
Originations are highly manualEnhance systemic capabilities and decisioning for a more efficient process~98% of applications aredecisioned automatically32~80% manuallyrestructured &redecisionedOpportunities to Streamline: Optimize automated credit decisions○ Expand straight approvals / turndowns○ Improve callback structure / pricing○ Tailor callbacks to dealers’needs/preferences Provide dealers with better tools to quickly& easily self-serveUnderwriters Credit Managers Sales RepsFunded Contracts
Reduce costs, improve accuracy, and reduce fraud33Integrating Vroom Patent-Pending Title and Registration Product intoUACC Funding ProcessAutomated DocumentClassificationAutomated SignatureDetectionState: New YorkLicense Nbr: 123 456 789Name: Motorist, Michael MDOB: 10/30/1972Expiration Date: 10/30/2025Employer: ABC Employment Inc.Pay Period: 9/7 - 9/18Name: Doe, JohnGross income: $800.00Net Income: $577.84Document Type: ElectronicSignature AcknowledgementTask: Signature detectionActual: 3Expected: 3Status: PassedDocument Type: GuaranteedAsset Protection WaiverTask: Signature detectionActual: 3Expected: 3Status: PassedState: IllinoisName: Doe, John A and Jane BPolicy Nbr: 9999999999999999Effective Date: 08/27/2024Expiration Date: 02/27/2025Automated DataExtractionDocument Type: Drivers LicenseClassification: Drivers LicenseDocument Type: Insurance CardClassification: Proof of InsuranceDocument Type: Pay StubClassification: Proof of IncomeAI and computer vision used for classification, data extraction and object detection
Building Pre-Verification Automated EnginePre-Verification improves dealer service, improves credit quality and increases capture ratesAutomated stipulation verification accelerates the funding process and gives dealersconfidence that the applicant's information is correctIdentityResidenceEmploymentIncomeContact Info & ReferencesCreditApplicationFintech PartnersAutomatedPre-Verification EngineBankingAPIsInsurance Identity UtilitiesVerifications34
Strategic Initiative:Build OperationalExcellence inServicing35
Servicing Cost per Serviced AccountServicing cost per serviced account increased 60% from 2019 to February 2024+60%-13%** Servicing headcount peaked in Feb 2024 36Note: Cost per account includes compensation and operating expenses related to servicing activitiesServicing Cost per Serviced Account20192020202120222023Feb 2024Jul 2024
Data ScienceDecisioningModelsBuild Operational Excellence in ServicingData Science, Advanced Analytics and Tech enable improved approach to Servicing effectivenessAutomated Decisioning Creating a Frictionless Experience Behavior Score(Account Treatment) Repossession Timing Customer Extensions Vehicle Pricing VehicleReconditioning Cycle-Based AccountAssignment Repo VendorAssignments Consumer Mobile App Expand DigitalCampaigns Wireless GPS Devices Automatic Payment Expand PaymentChannel OptionsWorkflow& AccountManagementDigitalCommunications& TrackingPaymentProcessing37
New channel for customer engagement and communication targeting on-time paymentsNative Consumer Mobile App Launched September 202438
Strategic Plan IndicativeModels39
Base Model Growth Model Aggressive Growth ModelSubprime Cumulative Net Loss (CNL) Low 20’s% (Pre-COVID Level) High Teens (%) Mid Teens (%)Nearprime Cumulative Net Loss (CNL) N/A ~10% ~10%Origination Cost Per Funded Contract Pre-COVID LevelServicing Cost Per Serviced Account Pre-COVID Level ~10% below Pre-COVID ~15% below Pre-COVIDSubprime Program Mix 100% ~90% ~80%Near-Prime Program Mix <1% ~10% ~20%Franchise Dealer Segment % <1% >1% Grow Market ShareLeverage CarStory Real Market Pricefor Valuations Leverage CarStory Vehicle Valuations in underwriting and servicing activitiesDealer Portal Tech Investment Integrate existing Vroom tech intoplatform Build new tech into the platformOrigination Growth CAGR ~2% - 4% ~15% - 20% ~25% - 30%Gross Serviced Portfolio Size ~$1 Billion ~$2 Billion ~$3-4 BillionLong-Term Adjusted EBITDA % ofServiced Portfolio Target ~2.5% - 5.0% ~3.5% - 5.0% ~4.0% - 5.0%40Long-Term Strategic Plan Indicative ModelsBase: Return business to profitabilityGrowth: Grow share through near prime program, grow the Franchise segment, and deepen dealer relationshipsAggressive Growth: Based on success of strategic initiatives - accelerate growthAdjusted EBITDA % of Serviced Portfolio Target is a non-GAAP financial measure. See slide 2 for a definition of Adjusted EBITDA % of Serviced Portfolio Target.. A reconciliation of Adjusted EBITDA % of Serviced Portfolio Targetin this presentation to the most directly comparable U.S. GAAP measure is not available on a forward-looking basis without unreasonable effort due to uncertainty regarding, and the potential variability of, the costs andexpenses that may be incurred in the future.
Selling residuals and gain recognition upon securitizations results in time lag to normalize income Selling residuals for 2022 securitizations pulled forward discount income via gain on sale recognition Expect discount income amortization to normalize by 2027/2028Indicative Base Model$45M of Gain on Salerecognized in 2022Residual Sale Impacts Timing of Income RecognitionExpect to normalize discountincome ~ 2027/202841 201920202021202220232024202520262027
Indicative models: Potential paths to profitabilityEach of the Base Model and Growth Model assumes the current interest rate environment (assuming no rate cuts or increases) and normal macroeconomic conditions (assuming no potential recession).EBITDA and Adjusted EBITDA are non-GAAP financial measures. See slide 2 for a definition of EBITDA and Adjusted EBITDA. A reconciliation of EBITDA and Adjusted EBITDA in this presentation to, in each case, the mostdirectly comparable U.S. GAAP measure is not available on a forward-looking basis without unreasonable effort due to uncertainty regarding, and the potential variability of, the costs and expenses that may be incurred in thefuture2025 Quarterly2025 QuarterlyIndicative Model Potential Adjusted EBITDA42 Potential to have positive Adjusted EBITDAfor a quarter in 2025 Potential to have positive Adjusted EBITDAin FY 2026 Our models do not reflect Potential interest ratereductions (positive) Potential recession (negative) Other potentialmacroeconomic, operationaland competitive risksEstimated range under respective indicative modelvalues in 000s (Bar Chart)
The aggressive growth scenario would require raising additional operating capitalWe define Excess Liquidity as cash that can be generated from the Warehouse Credit Facilities by pledging and borrowing against eligible finance receivables. Indicative potential unrestricted cash and Excess Liquidity onlyconsiders operating cash utilization and does not consider or reflect the maturation of Convertible Notes on July 1, 2026.2026 QuarterlyIndicative Model Potential Unrestricted Cash and Excess Liquidity432026 QuarterlyConvertible Notesmature July 1, 2026Convertible Notesmature July 1, 2026 Represents Operating Capital whichincludes Unrestricted Cash and ExcessLiquidity Does not take into account theConvertible Notes that mature July 1, 2026subject to earlier repurchase, redemptionor conversion ($287.6 million aggregateprincipal amount of convertible seniornotes outstanding, net of deferredissuance costs of $2.9 million) We will continue to explore strategicoptions for addressing our outstandingConvertible NotesEstimated range under respective indicative modelvalues in 000s (Bar Chart)
Thank You 44
