Vroom (VRMMQ) 13 May 212021 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the Vroom First Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Thank you. I’d now like to hand the conference over to your speaker today Mr. Officer. Relations Investor Miller, Allen The floor yours. is

Thank us on Alex. Good earnings afternoon joining for you thank Vroom’s call. and conference you, first XXXX quarter

Chief Relations Jones, on Officer; will note at be us the ir.vroom.com. on today the call Paul Joining the company’s webcast Investor website call that this and of Financial Chief Hennessy, Dave simultaneously Officer. section Please are Executive corporate

IR earnings release is website. the quarter on first The posted also

differ could or Vroom developments today’s today’s in call. on no actual future obligation during XX, note additional year statements report materially the the the meaning such our we statements discussion includes certain The within speak to and are and based non-GAAP We Before important forward-looking future cause this also number please and forward-looking including and recent quarterly from laws, XXXX statements three section XX-Q the discussion factors company’s note discuss March about upon that call These assumes the measures uncertainties for updated including to date to in that risks forward for other of only company most as and the Vroom’s of the of such factors to recent the financial forward-looking that today by discussion Form the direct risk of statements. December XXXX other of statements XX-K including but begin, months that operations may statements. the financial update to for limited those SEC to securities performance. as a results subject looking of filings, ended you ended materially federal factors may those most differ further form from actual XX, cause statements Please otherwise. not Vroom’s results

kick it And GAAP directly I’ll over a measures those Paul? a press You today’s release. most can the Paul. of with measures in find comparable and presentation that, of reconciliation to

Allen. to company. thanks hard to for joining board in great our everyone executed ’d quarter in work like by Vroom Vroom’s first their start all all the and support quarter. And public and of first a call. building of for investors, customer-centric Thanks, well thanking members XXXX earnings employees,

e-commerce expectations we're XX% Our year-over-year. up units our exceeded and

building we're Our our e-commerce From be units also ability sales exists and gross and delivering XXX% in and of selling great foundation sales cars supply and for high. to means buying operations. exceeded in model. our demand on only demand a key pillars year-over-year. level to and marketing, both enthusiastic four the expectations executing well cars Vroom from pillars, across focusing profit strong the and up also it continue logistics, as to marketing of was sustainable gross demand about scale. business not demand these generate Demand But profit, perspective, and our as we remains strong By reconditioning for execution our that growth for four marketplace, a and means well Vroom key

that that brand flows demand his buying used our we're and upward And vehicles. known our into is nationwide building We business. that increased pleased brand increasingly in a are confident We're trend for awareness. continued selling

QX. unit e-commerce QX, is unit appropriately market. expectations is healthy profit reconditioning as economics only inventory see also convert We improvement in our in QX. in evidenced and growth not going with our per level beyond a pleased performance. growth I'm positioned are current gross continued We From We our well to sized demand, for perspective, guidance QX accelerating believe that and our for the we and generated by in also into our supply

on pressure data for and powered teams integrate the data market in be and experiencing market, We a new position science vehicles to used to microchips downward this we're delays shortage leverage AI putting pleased with and by analytics. upward this a supply increases particularly car and pricing. In in story demand an part unprecedented along of on pressure which caused conditions currently car are manufacturing,

supply high constrained vehicle and is I'm wholesale from used trajectory vehicles to well in As positioned very channels, sourcing. consumers traditional is pricing and on our bullish acquire consumers we're for

improvement in XXXX from scaling XXXX. that given experienced three Well XX% Over are the from the historically, XX% quarters we mix demonstrating in to XXXX retail market. and QX had sales has in percentage strong in acquired acquisitions duration focus past for a uncertainty XX% consumers, the and vehicles increasing consumers, area platform. inventory continue to QX we've of a QX sequential strong investment of particularly in a as of well have of Vroom always the consumer acquiring supply over be pricing current executed from of our Vroom, of we to of will Supply

third and X existing We added reconditioning for of our number capacity. total QX, our at continue we our overall to and In of a of both many XX facilities facilities. increase our facilities party reconditioning expanded the capacity

displayed of delivered executed by via capacity. rate our units customers end. last our on but XXXX. and But be sales reconditioning a advance hybrid customers XX% We are to build the achieve brand more not new in run brand the We great when capacity, do. to all positioned we invest current places with to a over like across goal service. continue projected to vehicle it's And added technology even and last year approach volume we on locations. rewarding in we our reduce mile customer in are volume, well flow, hundreds We made and We mile we experience. We delivering nationally quality still but rewarding the handle yet have to technology displayed manual customer e-commerce our we and XXXX only to trucks, our scaled But television well great and our experience, automate, track for driveway and see Superbowl. mile us and with scaling I'm investments of see our sales our and not to the locally in that trained growth tech. asset cost. investments meeting expanded sales, processes continues we've of provide mitigate satisfied. will mentioned coached pleased we in believe continuing invest to regard of Our remove our light and our also handle and remain for With locations We're service people increase operations, drive in We've of bottlenecks our and to in friction capacity, support in with to capacity to our agility. which these company process executed our capacity our people, units logistics I'm in areas three QX include In improve delivering our experience. processes improvements, sales and of we of more in hired improvements to It's of our deployed and drive terms to of e-commerce rollout efforts to of streamlined on last conversion. it in XX% to pleased people. well all QX. XX and sales

all the enable experiencing us and unit partners inventory sales We of In well employees strong invest demand, operations our from our appreciative valued third work platform. mile support across for short, and to last future. outstanding health sales, resources. increasing who expanded in sales reconditioning are to record sales we and execute will of deliveries, the e-commerce and improving economics, growing sales our I'm capacity, foreseeable continue party

triple with deliver gross to positioned digit and growth guidance. over XXXX. our well remarks I'll to our are for And further that, over hand in XXX% Dave Dave? aggregate on We e-commerce in growth unit financials profit

over units XX% the this year-over-year delivering XX% quarter new e-commerce with We Paul. growth. XX,XXX and sequential and Thanks, reached units record acceleration

unit We response vehicles and the robust was of sale. by Our the for positive those end with had listed of XX,XXX and increased position consumer to at available inventory growth over marketing. quarter XX% immediate our driven improved demand

in position buys now a quarter is driving inventory We increasing much continue fourth inventory better feel efficiency good we're quarter. than and demand. in to meet it the our was the inventory to in Our about

As of XX% up from the XXXX. we in during of QX of we Paul vehicles This purchased QX XX% from XX% mentioned and was the quarter XX in retailed consumers.

to Our days last to this due quarter quarter XX XX factors. few expanded a from to sale

we QX aged First, this quarter. work continue through inventory move to on bottlenecks and system the to continue we the this during QX

the we to addition improvements to In ramping those purchases some acquisition added time making process, we're scale. consumer but as

in quarter Importantly, the days to expect in in months each we improvements and sale, continued QX. sequential saw improvement of the

in units remaining we that to at anticipate In to adjust days XX we XX,XXX expect meet reconditioning the sold We grow environment. implying target we reminder, to demand dynamic a of to unit As while sequential XX,XXX XX QX, nimble XX% about growth to consumer guidance. to over XXX% year-over-year currently e-commerce midpoint capacity as sale. a

to capacity reconditioning build. continues Our

first the E-commerce of Paul over gross affected million, said, would believe gross capacity was profit grew us decline we're unit reach week, of unit XX VRCs As year-over-year quarter, per QX, Total about compared At normal demonstrating total unit, at had quarter we capacity new to at gross further VRCs $XX inventory growth of five to the end a million. about implying XX% pandemic. third vehicle our to XX of of XX% up in units XX% the end expectations XXX over the improved our to ahead quarter, year prior added and per and of bringing which by we party XXXX. XXXX target of XXXX, in Within year-over-year quarter cost VRCs. reserve was the of miles due XX% to XXXX revenue compared to profit XX% sequential reconditioning of $X,XXX of households XX in annually. in XX% XX% per us XX VRCs inventory improvements, to profit at and the one year-over-year U.S. We and XXX well higher within balances our sequentially onset the was enable reserves e-commerce which the tracking gross sequentially. improvement. than first against E-commerce XXX,XXX our profit

range expect in the to unit would midpoint which $X,XXX imply We average quarter, at the in sequential in gross per QX. e-commerce growth the over $X,XXX profit second XX% of

increased unit line in good as well per of in X,XXX the have $XXX sequentially of demand loss QX. previously profitability fourth year, profitability units We as tailwinds Wholesale $XX unit and was very year-over-year to Wholesale drivers. expect from from our as last ongoing in favorable wholesale market environment, QX the XX% our significantly quarter the sight mentioned, XX% into improved of units. strong and

wholesale XXXX Looking through $XXX we ahead XXXX believe continue as to gross to per and strong $XXX, will we quarter, second the QX. profit of expect wholesale to to units market unit the of be

flat units fast TDA our e-commerce continues as business inventory. at sequentially demand turning were Looking to

term near inventory the We we scaling inventory in in as expect TDA be to a continue to operations buying competitive e-commerce focus for environment. on lean our

the we local in However, profit XXXX service to a term, $X,XXX dedicated demand. TDA per anticipate average we the long to $X,XXX. quarter, building In the inventory XXXX remain gross to of units, second an and unit TDA to for committed

if revenue and total million total put all obviously last of gross of by of growth expect million over we $XX XXX from which affected pandemic. year, sequential million for we growth and the implying $XX together, was XXX QX, profit profit So over million XXX% QX it XX% to gross to

to on expenses. operating Moving

represented First our as gave leverage. than of some us XX.X% about revenue, higher million, quarter total revenue operating $XXX expected expenses of

capital are as an SG&A intentionally provide experience for an we expected, point as we view is we organization processing less and which the Our times. built efficient human from of OpEx clear, efficient as for sales grew customer To enhanced scale. currently deploying dollars be

support well as longer we're which we in XX% While time, as technology, down bolstered operating as teams. expense grew $XX.X engineering at million it to scale further we as business a and term. investing sales sales leverage lead little will the benefits same the sequentially Breaking to company functions,

mentioned, I unit our customer increasing we've to ever As help building teams volumes continued prioritize vehicle to quickly. process support

additional as We continue to capitalize an on outsource parties leveraging light resource. our model hybrid asset

know customer progress to all functions XX% valued year-over-year bottlenecks the for that But XX.X continuing of solution QX. the time, made over frictionless and we quarter expense that and customer the have on to exceptional that identified was in make growing our a regard. are in We experience, technology we want Marketing experience invest the our sales and substantial continue million to provide progress to consumers. quarter-over-quarter. are in support We XX% automation we in

effect of received financial As a reminder, included QX the very Superbowl well our commercial.

year, visitor We to at has as the the our growth levels of we increasing our rest a scale terms, business strategies lockstep marketing the are our expect higher significantly Through dollar XX% drive XX%. awareness. and accelerated we remain response website XXXX basis, marketing pleased marketing at than year-over-year national unique monthly grown average with and brand sequential as visitors year-over-year. investments in to On with unique in

unit logistics XX% outbound quarter at expense per line sequentially of in our grew growth cost similar Finally, to almost $X,XXX. unit with and a last e-commerce

We expect QX. in a similar carrier environment

end service. Customer build run year. total XX% on the is out last the rapidly and in XX% and build with the end proprietary of QX we logistics experience of X hubs obtain We deliveries with last out over of continue remain with satisfaction hubs our QX proprietary our mile had network. to delivered we deliveries logistics the XX from running a our up the rate mile to XX and mile and up we last our of high by proprietary of quarter, At track service our

arriving line haul of operations. busy of our the we're quarter planning trucks first this are trailers and Our line and launch haul

As million year. to think logistics CapEx up approximately the be for we quarter, will mentioned last XX

on So XX to to loss XX growth, We XX% total XX% more overall, e-commerce than XXX% digit million year-over-year to of we remain gross aggregate triple revenue. deliver track growth for of million and EBITDA in at profit second sales unit XXXX. operating as anticipate expect we in expenses quarter the

in ended $XXX our on first sheet with million the touching XXX sheet facility. availability floor cash plan million the on over Finally of our we balance on balance and quarter

to turn in operator we've release. questions. guidance always, earnings it provided As back I'll QX comprehensive for our now the

line from Gupta JPMorgan. Your of first from Rajat comes the Instructions] question [Operator

is now open. line Your

quarter sequential March. part quarter just from can guidance what four going is lastly, you say you beginning seasonality? what quality Good afternoon, reported initial XX multi Unfortunately, your the Thanks to efficiencies common was help then the on had for that would today then to getting what is e-commerce bridge questions. update sourcing of us like second GPU. good was us I of what much is, a etc? evening. unpack question the of sequentially reconditioning either, old? the help last Could the taking to or drivers year? the three the in your changed the mix, days Thanks. greater better inventory of order? the versus How customer And weeks just first number you the your or And like during And inventory than or just percentage at

Thanks for the think Yes, great big we I e-commerce, when story the look margin. is at sales environment. there question. a It's

our with I think that did in when car first and we we good at consumers look at the vehicles skill got sets behind and that XX%. feel of story acquiring we the obviously horsepower have vehicles. of job quarter lot we the data from acquiring data we've a really teams Obviously, now internal a analysts, acquisition like

in isn't there So I think would the point particular that thing one in two I quarter.

unit. we profit think per gross product, solid I continued

was it's I we a continue think to we as in I where vehicles we profit so And guidance And upside progress the QX, think quarter, similar, unit profit guess of, QX good about break well. in when we reduce down into probably between product it acquire gross saw margin was per terms from unit we sales efforts vehicle, costs. continue most if and we going reconditioning to it gross per make to and our in

acquire forward. to implement gross and product continue from the And helps profit stability we to have better and which costs. continue per miles continue then us network, margin inbound acquiring our and as unit side our build initiatives vehicles better to reduces the continue We to And going naturally out we we obviously product on at expect sales as get inbound consumer. more with vehicles, we in to

now QX put think we're things gross so those that And our target us profit together of when what $X,XXX the all to allows I raise to you getting for to $X,XXX to. unit per

problem way had. inventory, were. of in we we had work healthier we quarter terms than that much through objective In our we're like the said We to an the inventory

at We the don't about aged point means like this mix a any we inventory got of which healthy board. across are we've now, good got very And we have concerns inventory. feel aging we've

that hopefully, understand. So you helps

Got it.

wholesale a inventory obviously up you're on there's the a the come still on customer Just great I the source see a XX% pricing mean, you side, auction done improving that mix, you good but from of like follow just job still particularly or wholesale. your

have retail So with wholesale move this or pass like to or not assuming I think mean spread later that in pricing, like up you in able you all you happens some Is of kind baked that quarter? that have kind you we guidance into do the may like I the seen of in mean, what up you at quarter. pricing can that or through considered retail Thanks. in that in the point of catch make you're do

be of in inventory you're is about to turn. consideration The to think any that retail is the be pricing. way so obviously right Yes, there's reason a guidance. in that would There management going we change believe no dramatic it, and though,

business buying think in I So look, of and selling we're the vehicles. vehicles

we there if do turn shouldn't any be hit inventory. in that think targets and efficiently I undue the can current risk our

Great. and Thanks, the on for question. it thanks pass I taking will

Thanks Rajat.

from the Wells question next Zach comes from Fargo. of Your line Fadem

Your now line is open.

afternoon. Good

So And about sell to lower Chicago, anticipate do to as to and markets its can talk XX% as GPU like to delivery delivery the works and costs? LA expected rollout you like of improvements you logistics and with satisfaction? in well in customer as things impact what way concierge house days conversion

stop. we'll I'll getting our to take network foremost our experience control a first customers us allows that. logistics good because fundamentally just deliver over it and Zach I we're to think better

and to that we great the because time ultimately they customers it over And they satisfaction NPS so believe conversion over talk And to a leads cost better per experience, and have for and then strategy time, come reason acquisition better that's back. and about lower and getting XX%. our

behind network so the And that's broadly. thinking the all strategic logistics

or should to how add cost our that. logistics deliver And say, facilities network in we as the more structure about as we as in terms cost and deploy closer as we're we close his outbound, acquisition mentioned Dave In proximity I miles of customers why cost per think we a customers, closer of network and pursuing as and running that's the both improves. inbound to and of script, that's remove we

get you better fundamentally, experience. So customer a

better a cost you we better better acquisition because a outstanding benefit get get believe service. You delivering of and then conversion unit and the for company that economic you're an

XXX%, and then it the see incremental we the least growth customer and you growth. QX? do called year on I XXX% actually gross seeing any the out like about other Is said you then trends with internal/external mind. Got continuation things for of gross profit benefits table curious profit more talk a You've days Or there. this sourcing, at from upward I'm And you're sell? in reconditioning. still drivers the to second in think if could half the should keep dynamics you

Yes, trend we good is give we what we that have continued tell trend into a pieces. will QX. the you QX. But underlying don't out I saw That in

e-commerce and to up is Our growth right. acceleration of unit the

the are in now is quarter on well mentioned that. certainly dollars. large the Consumers gross obviously the of profit as reconditioning what earnings going in And the to scaling our side That's of all a we side in on our our believe on play of numbers are first in models I we in aggregate as and vehicles. pillars happen as logistics. that triple quarter the telling role that earnings those digit growth acquisition same because execution the same that's the business marketing e-commerce call we Good what from call so numbers our and execute XXX% and all forecasted on fourth areas then us

can operations contributing mentioned scale remarks good of the I'll opening given. feel invest add that So business again it's the about the factors all greater in we we've in process my ops guidance that's and the why that I as and and sales we sales in

today. Appreciate the time

Potter Next Piper question Alex is from Sandler. from

open. now is line Your

thanks. Great,

bottleneck execution first was mentioned that that the of the question recent focused sort sales areas sort step, you and one you. of fourth in been the of which the you're and on So for operations four quarters is has

and terms like it looking addressed in and gauge So I'm I there? sounds your that what? it specific there. itself inventory a primarily in say, at of getting you would progress What as some you're in would completely mean, GPU, to you're analyst, interested, metric be issue or sales an making manifesting progress external days

because inventory word both to increase. can I block flow, it's age, Yes, we you when flow can blocks can the can't sales use decline, customer sales experience quite bottleneck. literally It point one cancellations

metric. you So There's improving that a not lifts will. single all boats, if

I terms of in opening the In improvements. we've my answer remarks ending said, made look,

the to satisfied to our You in and finish e-commerce experience see end on But and customer it sales velocity. there's platform not we're an experience end line commitment outstanding no that.

it very are good progress. committed to the right we So making for we're getting customers and

So I believe spot a we're in we for say I improvement. think with good what room is,

house I And more more more in on one on the XX% doing target. then you and hear logistics

out well gives the logistics to think XXX? assuming cost than all more Assuming it that better everything does also but any as experience control way this goes is side eventually side side assuming both necessarily that the customer I Is gunning want in play stop would conversion, mentioned, reason the there on cost theory, Thanks. on XX% everything on goes rather you well. to for at you

quarter first ads appropriate And on insight to give out as kind experience will customers jog guidance just we some could believe north we're giving location see Yes. just number We're We're just XXXX. and will And our front. go that. an guidance that driveway not slamming that. starting tell to by of giving that far you as when on the But as likely we can on we're brakes. that in outstanding our

Thanks, guys. perfect. Okay,

Zackfia question Sharon Blair. from from Next William is

line open. now Your is

initiatives. drive logistics network a system look obviously, stress ago, you've is I I now guess afternoon. Or standpoint mean, party third the the you've your own had over internal if good it Hi, had has quarters the question some, something from sub and level everyone follow up the into mean, there where past in play? the can car? you network you few next some logistics think Is do sustainably Over got on be time a as again was coming few years? with will that $XXX. I see I elevated can that that in years you X-XX per now back the a

Hi Sharon, thanks for question. the

obviously I We past started with think guidance give leverage think few we months logistics model is out. just get the don't amazed we in well and can far We personally the that today. been the that we out. that literally I've have rolling how in it team

control over on leverage to scale. any we'll congratulations the needs I leverage, experience, get see guidance key We'll really think where as but after. get we give some time. that is are some we're it we components Look, think quarters the that But think and that that's leverage there I customer what to obviously do that of So to experience definitely them. over

we end at here. XX% of one as on we're XX to through of the so quarter the the most And view that the of month our move clearer way

the I Thanks quarter first for progresses up that about a the finance of within profit gross pressure more and year-over-year? embedded saw XXX% for and side, kind of in as the increase, year can expectations kind what that the GPU that talk caused go that finance bit up you you're you on of with than can that. are there follow expectation question a And if

Obviously say attachment break that rates to the don't I great consistent job, about the guidance, improving great. we team quarters improvement of We've In think, lot versus has seen product. couple initiatives out talked Yes. attachment a a we've I is done very past around in the rates. over we have would which product vehicle. the

the of that few a think I variability percentage, a this that percentage we is quarter points. saw couple

got that significant. on per got There We've charge profit sharing. into are estimates lot goes product There's not profit reserves. So We've a unit. backs. gross

mix. is individual attachment quite and a rates and there there and pricing got then in goes bit you've product So that

will And shouldn't think but ending to way see we so be variability continue significant. and an and seen the unit I be profit have that it along product will per there gross some ace

we how that's So think it. about

great you. Thank That's color.

Josey is from from Ron Securities. Next JMP question

line Your is open. now

Hi, brand kind marketing. just guys. call for Green type from investments seeing This increase I Ron, into you on historically In the versus are more component more your questions. what up. transactional your moving of about Can is click our calls then of are you thanks plans And learnings you change? follow of into from wanted to your for And I other centers taking with Superbowl Andrew talk to have words, was the kind kind of a of educational? a kind ad?

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is cars like necessarily site or when performance where the looking not fundamentally the on And versus a marketing for they're so they one something listing car, higher of that, just channel listed on our conversion service. a party see might third or

So on spend to brand. we continue

seeing for offering super we're both build when foreseeable understand the will on a and with after so they better. they brand We the the future exactly for transact us. side that on what buy way just customers customers come so brand, can the convert that side And sell

that's how yes, about we it. So think

have look we to to what And those opportunities the exactly offer. explain showcase and so we'll brand for

you. into step the there? drivers just vehicle, kind double then consumer quarters. just Thank consistent on sense. of the kind the and the of that last And makes help source up couple Can us for That you click just understand guys

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So a all and because increase we're of as for great get lot a that that's and a when the lot them move price, of ascending is their our you we place see making fire that on kind aware do go transactions. consumer price and the way customers acquisitions why a Vroom good give you vehicle cylinders of And we that right to therefore a appraisals platform.

So we're just the truth is really we're just well executing there.

Fair you. enough. Thank

open. is Your Wedbush line from is Basham question from now Next Seth Securities,

Thanks a you first first expectations on that that How the acquisition upside e-commerce is your market question expectations. quarter in retail good clicking gross the the My and profit, costs to in that sales was better your pricing just anticipated? strength from lot margin much above to relative drove of strong in afternoon. March

Yes, tough it's the two. question I the think it's difference because a between

profit. So I guess more with we the we XXX% or units what in out what We and which and was year through across say gross the had that would gross digit obviously and gross profit. gave full aggregate vehicle board started view for on the is, And those on obviously guidance now product I we've say obviously first coming execute QX of the profit well. planned quarter, improvements had would triple to I is

retailers necessarily by that of market a to difficult it we guidance way I originally. we market s, say I it how was is when the didn't it's great much know for all obviously today it's but good which automotive good think how this gave

per think So I got terms step on happy And that in unit. executing in we've guidance gross we pretty up reflected QX the And can the continue that. further to profit plan. obviously of we've been we're think where do we that's

so just as to day. on we'll executing every get And do we that work

Got strong Obviously guidance. color. XQ Helpful it.

you top. full just a obviously your should it's forecasting in raise officially little March? guys at the year we didn't open about guidance be better And thinking bit than early You something were ended

you just you sorry, thinking we've exactly I as think I articulated. I'll be just should thinking, about it think I be say should

six thinking enough. give faced lastly, update course delivery you fall support the the the challenges able net scores just and Alright, into you not sales delivery particularly or And operational Could us fair to some promoter improve an about on of times winter extend and times. relates past guys then been last of average to reduce over months? whether and as you've the

causes it and believe the imagine velocity we the performance a share downstream system experience the unit Fundamentally, inventory, of Yes. in but create bottlenecks. of that see economics again, those you and with We when QX. specifically, of guidance and problems that all customer and both the in the you then QX start you can remove with don't to improves numbers the and sales with those delivery, bottleneck you

So the we headed that in believe that's right direction.

Wonderful. and very much, you Thank luck. good

Your next Capital. of KeyBanc Yruma question line comes from the from Edward

is line open. now Your

Thank center, guys relates I external customer guess, with invest service indicated we of a service real behind customers a and customer the continue you car quarter? to more you've as guys, to you. that to have Hi, taking the then when under changed against belt started you should in level it. being of you time understand were your it were I to kind there, normalized you versus last thanks it, progress for get it first some that now now had house your just customer kind trying guess, of with questions. to able a that versus also how it's keep story some assume where of kind

Yes.

On to on the the integration. story work officially integration got in closed January early deal and car we

playbook days, So what into has Again there their continue outlook and immediate early is we're would great existing won't but strong. very to we what and I term a client lists we how But expect. and in of say or we results do I grow maintain with client it's pleased list it. you their and question get the I'd the do the performance been think was as on

pleased, mentioned, we very strong of of to kind glad team have as of combined we're, are market really-really in the time we're yes especially conditions, data folks. now So I, unprecedented a

day line. As finish the every customer that on work there experience no and far is we as again

have completed, is get our experience faster we DNA. all speed as a improvements their their the those said get and customers car that. still delivered transaction to can get faster in way are car And to strong we're can hard picked working making and we can the positive really go. in drivers of at up long the them faster So we new And I that again, customer we're their

not want behind us. go better. we'll call we'll and to a is when date faster there So that be Because always

you. Thank

John from from Next question is Colantuoni Jefferies.

open. now is line Your

Thanks questions. my for taking

it sense for other e-commerce expect full remaining makes and about above a growth still to if know growth the So you curious I in to should are digit guiding was two But triple unit given first the year. words, we comparisons I that's see quarter think unit the and back easier in for in rate quarters to basis growth half stacked the year up? first on follow

Hey look, a guide quarter at thanks one we Yes John. time.

is now have say and QX guidance. think what QX would I actual you I

year. the half got you've So

you on make guys if going obviously triple assumptions but think, I shouldn't so to you be it make, to to see I path to think And if are difficult extrapolate forward that don't number. how digit a too just the

give As want just you past can to QX. imagine don't guidance we

than just guidance the completed. a one two QX of quick and months more provided already quarter with Okay you

I'm of that in Was was weeks seeing trajectory assuming than being And unit in month there last was of the a growth talk or e-com there? there so trajectory So few the flex improvements quarter? on? much what the conservative so some you curious going caused in to Thanks. other this far just about could function better continued growth dynamic you last QX? expected just Maybe e-com the are

Yes.

to give. always the in we think I try that we logical guidance and transparent be

the in market. been what think in I of growth rate industry saw has accelerating retail an the you

So than there expected. growth some, more was I was had think we obviously there

to we a that what as you expect is I think as of in and we simply terms and we can hit you about think really from us guidance that's range expect range it. give

question. your answered that hopefully So

Thanks so much.

comes next the from of question Your Nicholas Raymond line from Bacchus James.

is line now open. Your

the question. Hi, thanks taking guys, for

in lot market. U.S. availability, tightness of inventory there's market in the a the the clearly So

capacity that And is is of that. up your inhibitor sourcing had this at currently? tight So how supply And question a I a strategy then impacting point? after follow an

we for used Yes. in here in large car see the and fundamental it. vehicles, sellers large way historically companies supply actually channels way the buyers of those the I of is including weeks used reduction by cars. of traditional and and to guess wholesale pricing rental unprecedented XX up ascending demand consecutive a cars are now

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penetration, from just a the that time? to up or And over have you And vehicle think terms continuing the a customer us you there versus you incremental can remind source obviously, do Got at one XX%. that's Where on Do in specific of it. go get profitability otherwise? customer can you source time? over auction target

Yes.

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of at a is as of in again, strange from on of broadly a the total that wholesale that's it conditions $XXX But unit $X,XXX purchase the the As value car a way and time. economics consumer a bounced what market are the market, versus that's is we're an depends improvement between that I'll broad the answer typically and aspects far the car. mass market in

Thanks very much.

of comes Your question Naved Truist from Securities. the line Khan last from

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Just couple questions. a of

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Yes.

that that's I you're the sale second unit sale for if think you out targeting need available readily to you So think for to available where be get and gave unit do quarter. you a

got Oh, Yes. it.

our So lucky quickly. inventory turns look, we've got in very the, we're that

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work. numbers the So

actually had maybe quarter quickly gross in If profit am Just sequentially adjust QX. to way down. you missing Is reversal wanted QX, like the run Or right by e-commerce it? then QX And unit it. and first reserve you obsolescence something? the both to quarter the for you? GPU, the per it Got fourth unit the and the look on I that had in went on vehicle per unit it looks at the I in GPU that the

the Yes. of We economics. the unit out components break don't

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Got it. Thank you.

questions have at time We presenters. more any this don't

You may continue.

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