Vroom (VRMMQ) 10 Nov 212021 Q3 Earnings call transcript

Good morning, and thank you for standing by. Welcome to Vroom's Third-Quarter 2021 Earnings Conference Call. At this time, all participants ' lines are in a listen-only mode. After the speaker's presentation. There will be a question-and-answer session.

call Krakowiak, Paul Chief the Officer, Chief on Bob and Financial us today Hennessy, are Executive Joining Officer. website of Please be note Company's section simultaneously will corporate the webcast on that the Investor this at ir.vroom.com. call Relations

third also to are the earnings posted earnings and website. The quarter presentation release IR

important performance. includes and that Company's of the statements recent Form We Federal other and we including direct and the Securities number These Before recent today but please actual future about year the uncertainties, are within statements. from not Vroom's, most a ended that note the to including factors statements begin, section to most results materially to Vroom factors Laws, operations 's for meaning financial differ XXXX. discussion you such XX-K, limited statements to forward-looking the forward-looking SEC of other the cause XX, in December those subject risks, filings, may risk of

quarterly XX-Q, by updated September for on XXXX. ended months our XX, As X the report Form

today's such and only of no Vroom during of discussion otherwise. discussion, date call this upon differ in of additional those obligation from Please factors forward-looking statements to to statements, cause actual statements. materially forward-looking future speaks further Company also the call. the assumes GAAP discuss measures the that - that financial update may based The or including developments note today's certain results could non as For

to today, Chief now The hand is of You press I'll quarter measures conference yours. third directly Officer. GAAP over in earnings can comparable measures and find the those Executive your a Paul reconciliation of presentation floor most speaker the release. Hennessy, first the the

presentation Today, the everyone updated our third Thank on reviewing outlook an you to Bob third balance a through Vroom call. year. of 's you. I performance quarter provide will And and walk and earnings quarter welcome this

to efforts incredible as and Company. our in, - their members build we an outstanding their thank we investors like customer Board to ongoing business. for this for dive I'd also quarter, thank our I centric like employees our as Before scale I'd support

wanted Let's minute Bob introduce to take start Officer, our X. Krakowiak. slide Chief new formally Financial on to I a

from Previously, Auto or from While Call, time asset our for joining many guidance months Bob now, experience Stoneridge he is results-driven Credit the to and for on Bob on for been Bob a over and Corning, been systems I'm Corporation as the heard electronic served Corporation, Finance his at roles have UACC for thrilled to this with and of next of United X season have Corporation. you automotive Vroom help will leadership Kmart us X joined for Acquisition Earnings. Relations his He's propel track and designer CFO us of in already us where the first Vroom. a record and Owens industry, level. manufacturer Visteon, years. he's tremendous Investor leadership His have team. served

Let's X. to turn Slide

the triple-digit We we performance business chain. acquisitions, light ecommerce are ramped taking a and while good we growth, guidance to unit We approach we of during feel across the disciplined to about proud pace units, our ecommerce demand as drove supply output our our quarter. are record on keep with third of year-over-year slightly pricing,

as still expectations U, in side strategic on than product expense the Our while strong results in margins. of our our we expanded profit vehicle delivered came well making GPP well, coming We or unit and long-term ahead ecommerce objectives. investing We're guidance initial our margins per in progress preserve gross as our initiatives. better on

to greater in our be out commencing finance acquire our profitability With into a UACC an entered XXXX, able to reach to UACC. driving in captive we month, last announced we we'll consumers. business and build corner, expanding As agreement

% We to mile's last expectations, customers supply hubs over our exceed of quarter. ahead XXXX XX the are targets. our our track completed reaching XXXX We on of rollouts of chain key during our third

we of vehicles quarter. the of during % sourcing our Additionally, a to XX sold record grew high consumer

Looking the underlying a to presentation. approach We'll about of business targets. we in our later talk about take the bullish and are fundamentals continue more outlook ahead, our unit to sustainable we'll disciplined the

few increased inventory units go environment. Now on in going highlights. to as a levels to marketing XX,XXX high % we slide E-commerce and units e-commerce I'm capitalize X, year-over-year our a through listed of XXX grew on demand our investments

year-over-year to broader which growth revenue increased quarter vehicle e-commerce E-commerce units hit rates in gross accelerated while % We increased our puts get higher profit the attribute the XX prices record and profit our mainly elevated to in outpaced unit later gross average we market. attachment in further as slightly GPPU, product into through the through a takes vehicle Our selling prices GPPU $XXXX. per We'll high presentation.

deeper unit go on Let's X. slide into trends

unit we means % This plus our sourced to processing and capabilities. total total consumers. scale about in holistically, in XXX year-to-date experienced like growth As of e-commerce look excess we selling consumer executed our our from and we think initiatives business sold, tremendous We've transactions as unit across transactions. sourcing

In from in As third sourced rate a units of triple last XX retail prior you quarter consumers, third year, of quarter. sourcing the and can % in significantly directly the been nearly programs sold our imagine, our consumer key quarter, from driver XX our growth transactions. % up of the for has we

their compelling for sell Our us competitive make to methods pricing option wishing a consumers vehicles. algorithm-based

environment. marketing Our other national campaigns. fellowship marketing to with favorable quarter amplified seller have investments also increased car demand model our efforts and this for market a catalyzed in We

unique quarter. visitation result, % record achieved XX website in the quarter, over third prior a up X.X monthly with visitors high to a in million compared the we average As

Turning to Slide X.

we As expecting we or to year an announced year. into UACC, late agreement early next previously, acquire to close this entered

business our benefits from this expect reap several acquisition. We to

product gross and profit opportunity our will transaction. increasing with build Vroom, First economics foremost, more combined capture capabilities, us captive as to UACC we of the allow finance

our X, conversion committed reach of loan UACC improved an across score half will the our Vroom UACC year, year. logistics asset-light us and benefits our We will In is Back on credit integrating second significant we half closes. potential XXXX. scale an finance Currently, begin acquisition have strategy for first The credit to half of the after applications lower accomplishments we who proud credit to begin with allow operation Once expect rate. lending the to consumer the receive. we consumers is up over make planning integrated spectrum. also direct-to-consumer Integration our expect of processes provide business we'll well underway. e-commerce and systems scale more to on back-end develop complete, the as in to originations entire the remain I'm funding into we and we acquisition of of increase UACC this and the current the transaction operations of Slide combined opportunity specifics our captive We

our target of the continues. for our last-mile of rollout XXXX hub mile ahead Our program XXth in achieving our schedule. last opened We annual third quarter,

with quarter. deliveries last above our of own XX our second accelerated rate mile last-mile in % to experience XX the e-commerce achieved delivery also We % deliveries, meaningfully

already rate fourth target As into run nearing we XX exit XXXX are %. of quarter, we the our head

to unit to us way efficiency. deliver Our program improving delivery the by mile economics and allows a customer better last paves experience, superior

out are issue. quarter. adding In trucks new experiencing haul view we I demand our and as addition, also to a reconditioning further historically reconditioning this point like and made this in We network to drivers transitory due would our at that constraints we've investments our third-party program, labor currently to high shortages line levels centers.

optionality selling require as dedicated will the Vroom with like to of reconditioning and in invest Growing continue expand in capacity. continue increasingly capacity. of approach, online environment we acknowledge capacity, the part to hybrid our will also to we interest work competitive While third-party to cars selective, reconditioning partners sites, for our

our X Our hybrid the invest update the processes. scale our near-term, is technology. and sales our future. people an the to Slide In On scale we to support business continue best and for in to improve is approach on strategy

higher as buying touchless since beginning has process both providing experience transactions selling on improved work the volumes towards a side to support of and ability year, for we the significantly vehicles. the of Our

environment well supply recap in profit our for per I results Going Stepping advanced strong had forward, us will a unit supply-constrained chain to investments experience, We kickstarted seamless unit themes to we towards through Slide and current ecommerce our economics. today continue plans this In navigate driving grow to quarter We on XXXX. captive guidance. business to scale back, to year-over-year end-to-end achieved build exceptional as as e-commerce strategy near-term, our growth. continue We XX. our our versus want the arm move the the for improved business. the gross finance

the financials Now, Bob to I'll our and walk hand quarter to over outlook. the Bob. of you through it

of earnings the our with unit XXX financial and growth, begin member a nearly guidance. pit profit join be and above % end healthy Vroom, like call. gross year-over-year I million to % on our e-commerce XX Thanks to revenue, would $XXX quarter unit, at our for and We Paul. It's strong adjusted quarter quarter revenues to high in XX everyone EBITDA. the Total for sequentially, Slide profit, great per drove expectations gross total increased the outperformed crew the as a we of had and of coming third highlights. year-over-year on

relative selling was to units. growth the in expectations. drove average growth expected prices overall driven principally retail Our than by outperformance our Higher further

% XXX and X demand as in for environment. Third quarter-over-quarter. used consumer quarter high the and of a vehicles, e-commerce delivered grew experienced for % growth year-over-year as healthy remains demand strong $XX,XXX execution units We healthy quarter we

in on focus inventory continued quarter, the strategic During marketing. objectives increased amplified drove listed our

GPPU million Full the up gross meaningfully unit performance This profit into year-over-year, in driven $XXXX of of Further came increased and for and expectations. GPPU. by was hit of % GPPU slide. the on the expansion product units e-commerce slightly e-commerce higher quarter drivers of XXX next in e-commerce and and Our our vehicle GPPU, e-commerce XX $XX year-over-year, the ahead volumes. higher % primarily increased

margins. per loss the which This our guidance of as transaction, million was across announced related was in at also year. for $XX headwinds, came we to acquisition prior ahead to profitability million our lines performance, EBITDA, our surpassed adjusted quarter, experienced business. our all $XX the in expectations versus the UACC profit the for expected, headwinds costs macro unit quarter. gross As Despite of versus we our thanks loss a to better-than-anticipated the X sales second contracted transient for quarter an

guidance quarter loss revenues, gross share At you levels. can was better improved outlook. highlights Third our quarter of of XX, Page adjusted bottom to fourth expense the primary and $X.XX, than of per our the profit, due see

details We're year-over-year % XX XX,XXX growth more our release. in see regarding guidance, our expecting units the This For at earnings press e-commerce XX,XXX implies quarter. to the fourth please quarter fourth midpoint.

As Paul experiencing that are are events transitory throughput in we our chain. reducing mentioned, supply

temporary $XXX issues, Primarily these of prices. we anticipate result unit increase XXX of of As $XXX midpoint million. total to average A selling current by growth a and year-over-year revenues million %. elevated driven

We Supplies unit expect range ecommerce in per year-over-year % profit XX growth midpoint. $XXXX to the $XXXX. at of the gross

We units third quarter and are e-commerce profit to Slide million, performance. e-commerce total gross provides annual our % GPPU. primarily over on growth We driven by XX, gross the in achieving for summary guiding XXX $XX a to profit focused XXXX. our growth of $XX remain of

previously we've our today's by increase on prices. expectations. higher came year-over-year, unit an XXX % It units E-commerce million, discussed call, grew hit in selling driven growth and revenues our of below % XXX e-commerce strong average As $XXX slightly year-over-year.

range was the average our increased from strong algorithm a GPPU selling guided to market. third-quarter vehicle price prior higher historically expanded Our year-over-year and vehicle approximately in than we slightly $X,XXX improve our Ecommerce - pricing e-commerce $XX,XXX significantly in year. $X,XXX pricing as of of continue

improved in the productivity GPPU reconditioning showed It $X,XXX the % increased the prior on deliver partially margins $XXX XX acquire also offset gains. sales the as E-commerce During current were was or to higher product by a which year. continued vehicles quarter, quarter-over-quarter from $XXX environment costs, lower ago. we to year than of cost

Our higher to prices. as average by higher higher due average selling product profitability was higher e-commerce loan well sizes attachment as rates, primarily driven

gross grew as XX expected Slide Moving in other contracted guidance year-over-year. on $XX year-over-year ahead units and $XXX. Wholesale segments $X,XXX profit % to of $XXX, per to Wholesale came unit of of our XX. of the

units TDA surpassing in prices we our market the We third increasing % gross we on growing the to anticipated. through of response wholesale customer higher higher to expectations. to able than $XXXX. well book selection as TDA and profit used of X,XXX ahead to quarter, saw sold TDA in We also As unit higher over inventory for pricing originally our pace well our vehicle strategies profit, quarter, XX improvements and year, year-over-year, quarter, units kept with were positive the product balances. up average from the TDA. loan as GPPU the due lower prior $X,XXX to range increased costs GPPU guidance $XXXX per $XXX for year-over-year, sourcing benefited our

XX. Slide On and to strategic discussed increased our additional comments. our we as an investments to I provide with chart spend to spend pace basis, to color Turning staffing year-to-date, absolute new versus SG&A some transaction shows on continue in like demand SG&A would key make The SG&A our per technology, Paul keep XX earlier Slide his in total XXXX. as on for XXXX ecommerce performance.

$XXX spend to and purchases, increase % our vehicle total logistics we XX, Year-over-year the of year-to-date the transaction trade-ins year-to-date source announcement $X,XXX. plus Slide SG&A XXXX. our was units. per units a we unit to year-over-year. by logistics per buys e-commerce rate auction exclude e-commerce has I and versus Despite UACC am total unit by as seeing SG&A than acquisition year-to-date transaction benefit $X,XXX XXXX. pleased closing are total tripled expenses reduction e-commerce sold leveraging per our e-commerce resulted which per include related transaction On with in a basis. on increases e-commerce our XXXX, in the basis, reducing a net A and straight in on of of the Purchases the benefit during more versus at this cost and expenses, total transactions, sale For inflation performance quarter. third In XX defined

executing strategy. our continue working growth tirelessly to are We

to their guidance continues quarter welcoming record And our the looking fourth acquisition of year-over-year and of the Company. future partners forward growth. our we strong track closing as are UACC Our team in growth

everyone. early the to the share Paul for after you great aspect UACC or your are transformational you Thank the at your in this to ready are and of and year late so is XXXX. questions. We Vroom. I It closes time, excited transaction will acquisition, that, for be with With do

[Operator Please by Instructions roster. we while stand ] the compile Q&A

of from Our Wells Fadem Fargo. comes question first the Zach of line

Your line is open.

morning. good Hey,

expect there constraints if I of I of units it So $X,XXX about it's to today. % to reconditioning are running talk quarters? take And suggests bogging down upcoming utilization and about what us about for realize you that current needs the is capacity. through in your can happen break XX capacity per reasonable But e-comm to you're some whether at labor your that output XX % unlock to week, you full you that near-term level

near-term to Yeah. you own been doing capacity Thanks, what been Zach. think that's I'll take that additional one. and the adding What's we've unlock then the is, we've additional facilities, when to to those facilities. been adding facilities, we've required is adding headcount our about headcount which we've additional that, outlook. doing been And

units. to the been our XXXX third-party We capacity year, throughout in our work with continue absolutely partners to even capacity. XXXX from growing doing units that express that And scale to we've reconditioning quarter-to-quarter successful

really fix not in issue. we challenge a a Where lean on what again and that this the it's we've see Zach, we see and our a in business, as challenge doing we we So short-term transitory doing. issue, problem long-term been

at Zach, the one -- it want labor locations. Paul issue third just -- our add piece thing just I significant 's is is just is that to with a there what it's of that we're partners to this seeing comment a is party to

the hard, in to to as facilities our Paul So can do -- partnered with mentioned, our that extent -- correct. we party and we're own everything to the partners -- staffing that third levels working get with

as nationally, his -- situation is current that this than, at reconditioning well, that's competitive mentioned very centers point it's driver time the just high the situation in facing that's had Paul -- a we're as So driving comments in demand one in key well.

about e-comm Got can how now managing the ways talk on between added customers sourced And through to trade-offs GPPU and dilutive? you this constraint. -- higher And your customer you versus I that versus sourcing? total you cars capacity sharp you're talk both I'm customer sells is liked pivot guys accretive the you And from then sourcing think do benefits think SG&A the of then and the constraints QX, curious you rise just about it. the what how and that resources XX with buys infrastructure, if the given % framed in extent units, and in of could about

Absolutely, Seth. Thanks for the question.

of situation the And lot So up that people look showed competitive. in on market, it's a dial we at way a extremely with the auction basically current it, of us. now, bids for vehicles, price right auctions, lots for the

from this, trade-off speaking, that the you like So into when transaction inbound recon when consumer, do you logistics higher buy you you a our generally incur centers. the do

You vehicle SG&A you but get well. some better additional a as also spend

trade-off fourth and the right the to in current to on really as manager’s market trade-off and looking our move in perspective vehicle So perspective. the benefit based But making conditions right -- And the tweak time. But from the terms the from to upon determination the dial sourcing. to trade-off. we're additional based now the is that definitely adjust SG&A costs constantly continue current better with what's developed of we'll versus they that, at and consumer auction the over market,

Got for time, it. the Thanks guys.

for the Thanks questions. Zach. you, Thank

you. Thank

comes Gupta go question JP of Please Morgan. Raja from next Our ahead.

follow-up adding, just the could of the a follow-up. a centers? have taking Thanks. on for that for dedicated the you the and Thanks question. I needs did those centers Great. cash just The And the How sense those us I give dedicated reconditioning timing, a have question. capacity, ramp? you're

you, Thank in line. take I'll that Raj.

we're look, putting in incredibly their in about I foremost, we're to super going scale, we in where logistics the to our thoughtful our demand matching and these in requirements. that opportunity And that reconditioning second this. centers. contemplate and quarter signaled our start earnings with be so We'll ability and First would they location, opportunities size supply to strategic be coordinate obviously are

be going thoughtful of the language locations. that when So that. about I XX And think we've think on we're thesis, X the to been using investment is,

aligning that rules capital approach, asset-light approach our still hybrid so the and our we're the our deployment. business day So in judicious here of the being needs

a you see as own high of of million all and so rejects. as total million, a XX a reconditioning we a don't not billion maybe $X strategic think half we supply dozen be $XXX we CapEx areas high great these and So demand think, this centers. have be Vroom to as in that Again, that it call expect in places the would or might $XXX

What it to Paul I make the to had Company And it able to as lot stable of operations us in to support make this it's really where our comments. we'll means very means, Company. we'll to just the We to for investments have the view in -- responsible we add some capacity reconditioning have areas, higher planning Because costs. what reasonable sense throughput high stable demand centers. have just be a operations going means lower and the for

buying volume shareholders our addresses our better as more well. basically and more for and So that's to customers lower-cost

color the I there. in have for GPU just Thanks Understood. or on a question particular. e-commerce GPU

GPU. in maybe trying quarter? sense into used Is some For elevated that higher a for roughly better pricing a still to guiding vehicle there or November. year to XQ to and vehicle you all pretty the the in Particularly even retail the Thanks. used baking the is seasonality remainder from of some Just side. October conservatism of in given XQ, the at that's pricing of remains direction drop midpoint. or the quarter, get bridge that Presumably, around on logistics, reconditioning are inbound primarily fourth $XXX

to costs driven third result quarter Most the quarter is being we're between respect Raja. really Yeah, the of GPPU the of additional logistics. Delta seeing the -- reconditioning a Thanks by in that with question. as and fourth the for and

you're what seeing really XQ. XQ that's to So on

it. Got [Indiscernible]

just let Well, me about very be it. clear

shipping actually well. then and reconditioning So vehicles as

a rate just inflation and terms basis seeing outbound, like. and and inbound and we're just year-over-year inflation trend on So in what of looks the in

back jump I'll in Thanks. clear. queue. That's Understood.

you Thank [Indiscernible]

Thank you.

Our Sharon William comes from Zackfia of next question Blair.

please? Your question,

And wanted on first difficult it partners, up control owned your tax now but would versus how of parties owned Hi. getting at how I guess as versus you more to get helpful going to season? the cost to Good your would -- are couple third-party secondarily, trending in And level to morning. to those on it's be? opening particularly order where questions, where recon staffing is you I with need obviously facilities? guess the be confident is for staffing an facility, what's your in the then the you partners refund third-party levels A prepare you update ideally contemplate

Sharon. Great. Thanks, I'll take one. that

we In structures with because terms cost cost deploy own and both continue the attractive third approach of the parties. our see structure, to we within hybrid our

reconditioning and costs. And so well with we're managing that comfortable are the

we from of overarching sure the trend, couple which second and start we it's XXXX trend remarks we of when will you modestly reconditioning make as we the in modestly maybe QX. that deck, wanted XXX off directly handfuls of spread we the In XX in from confident that question. where of near-term, How In mechanics you've locations, that the and QX with get your wanted got be terms third-parties? in prepared leads to where to need, to in we the scale. be And dimensionalize across near-term as to for it that to We're be. need decline staff again, our to we terms off where to units, the by efficiency, heard working there's we're we've reconditioning in units to that to location. in are the of that output pressure, our them thinking units our to And from need

transitory as long-term. this nature solve that's in structural see rather teams issue our -- are a So to we something don't than working that again, we and

Paul add to said. just Sharon, what Yes. on

for you're XXX you put If the if at then basically every shortfall. the vehicle about the talking in units XX-day you of units the of we our were drive XX below that impact that range the of if days reconditioning quarter. kind you across in spread look context, -- X about centers period, unit over overall would low-end a And terms one that

partners, So -- volume. way it has as And impacted really it's at that look when mentioned at hard earlier, you our well, then partners, as working with Paul those we're third-party the our strategic third-party to labor constraint, look other existing our continue the and making response our with you to unit expand capacity strategic with capacity data, well. dedicated with and or investments own it

One agreements That's question, does structured that such how if a passed really helpful. that's are that third-parties the cost clutch your other on arrangement are it's that having pressure, like labor you, to work? or

particulars share we're through problem Yeah. of the don't in the impacting We material costs a way without the agreement. long any term. sharing it confident of for our We're working

So our with I we're good there agreements. we're think in shape --

you. Thank

Thank you, Sharon

Instructions [Operator ]. you. Thank

question line the Wedbush. next from Seth of Our comes Basham of

Your line open. is

Thanks GPU a I third quarter question a have good lot. And morning. when around start. GPU, ecommerce the

Those that us sold in Just sourced that you GPU. from higher why? year-to-year that about vehicle consumers. didn't be saving but of with you help your come mix to that improvement, on Can sequential basis huge increase were in usually vehicle understand improvement GPU's, ecommerce seem reflected thinking much

driving costs I guidance it's we're the incremental and is the the lines as side the third, difference. (ph on talked our we quarter, What's fourth side really the what really Seth. the in big logistics seeing well same on it's Sure, along the just quarter. mean, in about ) fourth reconditioning

at that, reported midpoint $X,XXX That's guidance a that GPU quarter, relative And the fourth third a quarter. e-commerce on Okay. for at the your if decline. you look follow-up to the we for $XXX just $X,XXX

a to You're logistics the That's reconditioning basis. higher attributing pretty that increase primarily X-month costs? on substantial

seeing the the in a reconditioning but more those look And side, It you correct. so logistics drivers. than is especially if That's at side primary the that's and the what trends, we're increase. substantial are

range, around you at that the from of end the then math to the over high Okay. doing dollars profit wrong? it %, being the for I'm full increase guided gross fourth-quarter lastly, that year And guidance XXX gross profit for going the at if unless look imply

doing No, at the That's way correct. it, you're to the correct. math look

Thank you.

Thank you.

you. Thank

Yruma Our Markets. question from Edward Capital next comes KeyBanc of

is line Your open.

Hey, Thanks guys. question. good for taking the morning,

progress would the percentage? vehicles. given high though, consumer reconditioning these First, -- That good you issues, plan in a the the that should interim? have in-house? think as progress guys ahead one, the transformed term And you final buys the given are increase you Thanks. about are the Are you % Second, business in you vehicles longer there some downsides where longer around year. expecting really all a this or to of How you XX source on of slowing brought consumer stores inventory guys that services is algorithm we talked levels having through should profitability, term?

I'll Great. the comments start can with that, at and add Bob Okay. end.

stewards and earlier, going In good terms business. we're the Bob of be our consumer [Indiscernible], to of articulated

to whether be reusing So XX or time. that's that we're scientists be going to or to down drops remains our XX And opportunistic % buyers. actually XX that % And creeps evaluating XX over something We're we're market. to that demand. up, on based dial the algorithms % good or in on and we'll or data as be appropriate all of on what at we're number seeing %, going

for So that. to that happen we'll we that be cars deals auction well out continue it sense at as that that want our there consumer makes And turns if and are on care, are our it do they business. if we'll as good do we

because the, the schedule? sell us We us, terms audience only but we buying economics it's been cars in super to. great to been We've also strategic for not associated at, cars of from because consumers. think are with target unit that's for In of cars, that ahead our those DNA of becomes a

the got got XX marketing of right we've right, % And strategic. people allows process the the to now got our working we so think get to it's us We've and algorithms, mix. we've that and

we'll we're quarter thoughtful based on by really environment. that. what market the So on be is mix perfect again, of And proud the

buys, is the strong QX we're what fourth again, Regarding been. only based on us. slowing buying quarter but see and quarter has we in a inventory what for not our Historically, the typically forecast

forecast see our more we ultimately we what the drive match And to you so as that's better that cars be -- reflected that supply buying we've conversion. demand know of a the number cars that website. and we're business, we on again, So on to scale

So, again, that we'll be thoughtful on quarter-to-quarter is. right what number

situation we missed terms that under get the into oversupply or business. an So supplying a of don't opportunity in situation,

a long-term XXXX I give In acquisition that, but not think year going transaction to on in position terms the what again, like comment we'll business we years a complete aggregate, looks this and potential, but out. in complete only better forward let of profitability, on, also with our I'll multiple our Bob view our the UACC and as be better much you

transaction a transaction outlook, continue only thing with to next will on on The expect say to converse to my it to I [Indiscernible] at see closes. Paul ramp as And I respect after see total would referenced on side weak we transactions. up leverage the totally the in have -- look on and to and more today longer-term I and starting and comp basis that have UACC leverage comments is more slide said we add it continue to we per to that to But Yes. volume are what I'll continue year.

much. so Thanks

you. Thank

you. Thank

Sandler. Potter next comes Piper Our of question from Alex

Your is open. line

attach you that like expect costs are Hey, down products, ticking implied the to clear more you or GPU rates that flattish QX ancillary on Do for It's QX. headwind. also? be of F&I that? in question the logistics reconditioning and expecting What guys. One guide the labor, versus the costs, things are

the want the fourth-quarter. attachment quarter, the some a the things, product We for expense aspect logistics are some on centers some don't between as just little thanks so revenue, transitory If this the more to on is capacity shipping what question, additional of going the of third well, part of Well, guide doing is for Alex. just to the we're I rates be the reason but cost in do bit Yes. because our vehicles constraints. distances say additional increase of specifically reconditioning

move you rates of our customers. that's doing see and inflation, up that little enough we Thanksgiving that, great rate addition additional mileage an from generally to holiday. up incurring sure on a the have rate as in of on businesses But satisfy holiday we top So vehicles additional a some season, some costs the have we to some we the inflation. around things terms possible make are as bit into go and transaction average demand the driving are get Christmas the that vehicles But shipping we in to whilst

looks That's has -- a like if Good. bit like I'm in like or higher then of one e-commerce maybe again expense in guidance Okay. per your helpful. Looks little And implies math last QX. doing it similar on a little looks one correctly, maybe unit my marketing. spending, level It above that marketing XXXX maybe QX.

Thanks. national would be you is Just working level things But then the also, of and wondering this come are maybe near-term what qualitative that. if referenced you're this back of spending, and comment, on? like you that forward to quantitative down? will helpful. of a campaigns, choosing rate run couple sort can You've comments qualitatively, looking in something Any then

one. that take building brand. a I'll Look, Great. super we're

good marketers very, very well strong worked channels. be will we brand various story [Indiscernible] telling marketers that well as the in both our drive as to being digital our and media in building transactions so business. in our And

we the transactions working a to led awareness, see the trend marketing some of total the business, a exactly quarter. we our you mentioned are with can this: pleased be. the is national way selling buying that the so on brand want third And is of we're the to brand cars. in lot as I'll awareness lot you where of also But and of That in a we increase our it in that building cars both only not very spend And the in tell campaign. we're

we'll positive very, is about business that future. the So and us, for the job very doing as in feeling to our marketing lever so the to business that in continue our we're use scale a

And the initiatives. outcome very so pleased marketing of with I'm our

Great. Thanks, guys.

you. Thank

Thank you.

you. Thank

Our [Indiscernible] next comes John question Jefferies. from of

open. Your line is

for Thanks my questions. taking

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some timeline start And detail just secondly, and quick about of you increased you the integration Just gains inventory. would and around talk just in conversion terms benefits a when to share on couple market. some us sub-prime for to Can the UACC. see of expect ones in on more timeline? used market Give then cars

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closing At like Paul Hennessy, call the to over remarks. I'd turn Sir? you. for Thank to this time,

helped deliver are Great. and Thanks Vroom to that special to a going partners employees plans deliver everyone. the the call Vroom a Thanks, everyone great and and joining us a all for QX QX. great

may participating, disconnect. for you Thank call. conference you today's concludes This now