Vroom (VRMMQ) 10 May 232023 Q1 Earnings call transcript

Thank you for standing by and welcome to Vroom’s First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions].

I would now like to hand the call over to Jon Sandison, Vice President, Investor Relations. ahead. go Please

Good quarter operator. and to welcome Thank earnings morning, call. first XXXX Vroom's you, everyone,

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

The XXXX earnings also investor the to first release are quarter relations posted and earnings website. presentation

that Federal financial that note the we discussion based laws, forward-looking cause differ includes to to are promises forward-looking not please number actual nor within assumptions to operations the and and Before statements about materially. on statements meaning of factors limited and a today are and the neither Securities may management's but performance. including current uncertainties of Vroom’s results subject are begin, other risks, statements guarantees and important These other future

SEC section for XX-K We year by most months to the XXXX, as XX-Q report recent company's our Form XX, March ended recent three including most updated quarterly Factors direct on the for December Vroom's XX, Form filings, Risk the ended you XXXX. the of

of discussion differ from could in cause factors actual materially statements. results the to forward-looking that those additional For

discuss on further based as future today's statements update developments assumes non-GAAP Vroom note otherwise. of measures certain the this and financial call. statements speak including or of company forward-looking Please that discussion, only call date during to also may the no such today's The obligation

earnings earnings of measures the measures a those and find and in a GAAP presentation. presentation XXXX quarter reconciliation You most the comparable directly can first of release

Tom? Tom now Shortt, to hand over like the chief Executive to Officer, I'd conference

and am of XX% a progress pleased long-term Vroommates, business EBITDA who to margin mid-term our and investors, at we analysts, third-party made I joining our to our as today. towards introduced X% breakeven business. XX, Slide X, thank all Thank adjusted long-term we us work goal Day, have goals. where roadmap you, Investor UACC of and on you we Starting partners May EBITDA with highlighted XXXX Jon, goal we are these our the the colleagues

on improving our Day, across business we processes logistics, the down registration, titling while experience, and primary improving customer our focus our marketing, and As we resource. we strategically Investor our third-party on in and function reconditioning sales we indicated slowed insourced from XXXX, pricing,

unit, continue within cash, costs, our XXXX, fixed to intend execute inventory, our resume we living aged As through balance we per growth, all strategy to while continue means. into items reduce and in improve variable sheet sell convert to cost

roadmap Our unchanged. long-term remains

continue strategic to XXXX, three key During we will objectives focus four on our initiatives. and

On first quarter highlights. our Slide X,

note EBITDA performance, adjusted discuss I please and the made in a first Before presentation other we have quarter measures. non-GAAP of change

finance value of receivables. previous to In back related movements we fair adjustments added quarters,

more We our EBITDA continue receivables from the we impact finance order section. In this receivables our securitization. of the to of XXXX-X of adjusted all to finance speak and residual receivables during value company, economic Bob in to to hold reflect those the adjustments including metrics. fair are will state better certificates current the his

adjusted non-recurring excluding quarter, sequentially. adjusted improved million or costs We by $XX million $XX range we’ve XX% EBITDA our an expectations. the the first During within recognized EBITDA loss approximately of of

of In non-investment the we market grade generating our result of securitization improved sold During $XX residual of $XXX the quarter, $XXX and certificates. for backed million, UACC and rated par securitization, the portfolio additional April, proceeds grade sold securities at XXXX-X approximately a XX% non-investment of securities as securities million the liquidity. performance value of million approximately asset and retained of an

residual we to hold condition, certificate. continue the market current the Given

on securitization. with UACC our I'd strategy like to to comment regard

sheet. balance and market sale, on the intend balance terms, not certificates, we favorable, certificates, transaction residual on right the and to certificates sheet, recognize gain the off residual transaction time. hold a conditions to keep realize we expect the on the the If return have are sell over residual On the these

of that and booked the to During on sold we would've expenses UACC $X residual the the on Have securitization in certificates the the securitization. given certificates; the upfront these million held securitization sheet. from reflected related balance residual been sale upfront quarter, expenses we we remains gain

Excluding have excluding EBITDA our the improved these would upfront by adjusted expenses relating $X quarter costs to for the non-recurring million. securitization,

from benefiting reserves increased unaged inventory sequentially, from E-commerce on per $X,XXX in to GPPU electric vehicle unit gross profit or unit GPPU and taken $X,XXX QX.

days XX% the in last year. XXX compared sold greater quarter were the to first of the held quarter, unit quarter in of third our XX% than fourth of During XX% and year, last

we During earnings our that of majority mentioned expect call, of QX half sell vast the the I aged first to inventory through XXXX. in our

we definition XXX greater from than through aged inventory, As aged days. sell have days tightened than we our to units of XXX greater

to a sales units, in pressure in put on significant second be expect from portion our which aged the quarter. quarter We significant will the second GPPU of

We half year a of show mix unaged we GPPU, as of higher expect sell to the units. back the improved

efficiencies making the our the cost while ramping process continuing reduction initiatives. resume and acquisitions of to progress organization. and roadmap on in up are simultaneously long-term and marketing growth We're We strategic throughout our drive to spend four operational

improvements registration. in make to including transaction and processing, titling continue We

titling and mentioned, best-in-class in to registration. we've our As become goal is

on We will and variable focused to costs. be continue very fixed reducing and have

approximately and cost improvements, organization, fewer the to significantly As of a the result expect we've reductions we're we of across operate January million of in In force result aspects with that we savings. made completed able resources. annualized all April, operational in $XX will

our of we million, million $X at notes for convertible leverage a substantial value $XX reducing base discount. our Finally, repurchase

X. Moving to Slide

lever, we financial strategic first by those been update on profitable GPPU. on quarter slide unit economic initiatives our drivers our progress providing that key believe we've to updates product Day, This four the on we are outlined first quarterly business Investor behind is During and areas. a vehicle and model, our building progress an

the inventory sold first driven second mix a $X,XXX, the of units quarter. was GPPU in XX% QX, similar in the improvement expect we and were sold in aged, $X,XXX reserve sequential quarter of primarily by a units

significant reduction mentioned, we units in second year half GPPU. on I the expect of As of the mix in aged relieving the pressure a

unaged we've which line was XXXX or owned than $X,XXX. to our expectation. Unaged for units with was in days our units GPPU QX to Our GPPU units comparable less GPPU, XXX continue generate

We also in our in engine, we pricing GPPU. continue to unlock to invest increase improvements expect which

UACC product see captive to GPPU develop grow We operations. continue financing and our we as strong

all-in Our costs sequentially. X% per our logistics per costs objective roadmap XXXX our cost and by reduce with we reduced long-term consistent normalized unit logistics to unit,

party in the fourth were accruals released related quarter. third logistics that For comparison purposes, we have excluded certain to

Our inventory.

registration in titling improvement and improved a Our sequentially. in processes resulted XX% inventory turns

and we we to As acquisitions inventory vehicle mentioned ramping continue sequential in previously, are terms. growth improve unit our facilitate expect unit to to quarters,

roadmap sales consistent We of long-term Our with January XX% our selling of to per this per our XXXX fully our reduce transitioned third-party costs. costs provider from year, reduced unit, costs sequentially. end objective the sales of and unit as we

third Our fourth of sale for last support fourth year. titling compared of and mentioned quarter costs. to in the XX% the In quarter, end were sale progress At units QX, and titling, we over the available or quarter registration of the our pending registration, XX% significant processes. in XX% and in our

our long-term sequentially. per and unit Consistent objective roadmap titling, support registration XXXX XX% costs we to with our reduced and costs unit, reduce per

million of on as balance $XX restricted result previously within improvement. the was sheet the released continued trapped was Additionally, that of a our quarter cash

marketing For marketing spend to costs, sequentially we our forward. unit million facilitate increased $X.X growth going

cost force cost reductions and costs $XX XXXX to April in that completed XX% are unit, consistent this savings, long-term For we objective of fixed annualized our in per deliver sequentially. unit an fixed roadmap additional reduce of cost per our year, reduced with fixed expected to January we and million

term advanced advantage functional continue team and pricing, title will and supply believe assets, business tech in unit assets chain and we product our data the team, Lastly, analytics provide tech competitive a and registration, margin build that costs. to across analytical conversion, and assets, teams long

to to have X, that Vroommates past Slide to the over significant colleagues the year. take I a improvements moment our delivered and recognize UACC Moving want

issues continue costs GPPU our caused to losses and absorbing non-recurring registration gain despite our XXXX. securitization by Excluding and in reduce pressure legacy titling we significant

sell We reductions. continue aged as cost unit to the on focus expect per we GPPU pressuring that is to see and continued through inventory improvement

in of over reduction reduced adjusted XX from XXXX have annualized our a QX only months. million in SG&A million of to QX annualized $XXX $XXX We $XXX XXXX, million of in

down While our the beginning we road and we we continue continue improving roadmap, are growth variable our to long-term at make where on of progress reducing we to costs. while fixed and operations resume turn the are

expected are consistent route the which be the uphill long-term QX we While in back are in majority with we the expect as GPPU our normalize delivering of to and through GPPU inventory, when QX unaged from year sell our roadmap. currently is of GPPU sales half our aged vehicles, for to

first discuss I'll Now, greater turn the detail. Bob. quarter to over result it to Bob in

Thanks, I'll the with start X. performance otherwise are our quarter a summary financial against on prior of comparisons Slide noted. All Tom. unless

have at value the on adjusted EBITDA we As Tom in of call, include completed start securitization recast residual holding adjustments of by to our the receivables January. fair mentioned metrics the finance the certificates

adjustments, those fair as would this, significant adjusted to was as for no portfolio of applied a when felt previously value finance accounting primarily health appropriate from our we to opposed for under subject adjustments fair accounting they pre-acquisition value such to exclude to receivables Due sale are portfolio. longer accounting. We be it EBITDA to only the share

of included to slowed a transactions declined million XXX% we GPPU decreased on revenue in strategy, the of e-commerce execution. increased reconciliation X% to appendix change this focus as of the with units $XXX We operational intentionally E-commerce X%. our Consistent Total $X,XXX. have presentation.

through and inventory we impact we expected taken that through This quarter inventory as aged offset was previously as we were listed released for sale. aged XXXX reserves the in we of the by selling call, of inventory. sold a realized benefit not fourth the discussed As earnings negative impact up vehicles QX freed during

costs higher million and non-recurring The excluding securitization $X UACC related our loss, was wholesale to improvement growth costs, million operating partially both by unit reduced e-commerce securitization. improved and at by EBITDA XXXX in January, lower for of expenses Adjusted profit $XX driven offset channels, $XX million. volume

we and objectives and pursue the four costs strategic key we to our side, expense fixed further On three reduced continue variable as our initiatives. focused operating

of the our status performance completed sheet an to UACC, to quarter off-balance securitization on first, in Turning would third of the I XXXX. provide like and update

fourth XXXX the consistent rates anticipated than during experiencing with increasing As the portfolio. is on market, higher losses mentioned UACC earnings call, default across our quarter

liquidity cash, securitization first and order no this In the to elected the servicing profile. impact have financial change we our each this fees transaction, in our was now broom's adjustment Due not accounting the consolidate retroactive month quarter. a treatment did decision material in purposes, or risk on for statements. we on support to waive to There accounting

In to portfolio liquidity used January at selling completed initially the of proceeds residual and to rated BB and to securitization year, pay of market growth the the UACC. warehouse continue Due down we our certificates. and another provide this we hold notes conditions, elected to notes facilities

we sold non-investment by grade $XX the improved liquidity and securities During April, million.

the hold to continue We residual certificates.

on receivables the and related hold As this result, as income a recognize we residual from risk, the remains debt our the on we balance finance and credit P&L. expense sheet securitization the

up balance If will our interest we the anticipated monitor leverage. decide of XX face the further the our million, first notes in million markets of improvement liquidity liquidity value remain to make decision securitization best on the we of by maximizing year closely we our stakeholders. to and In quarter, strengthening $X for market repurchase continue economic We focused to and to million our improve convertible sheet. our conditions reducing the our the portion we residual sell and end securitization, $XX

release titling we $XX cash the balance of as and over sheet registration result in Additionally, improved million processes. on restricted a

reduced EBITDA, approximately to quarter which Let's liquidity. as XXXX a bridge X, inventory was well impact within on inventory million as of profit aged to reserves inventory we sequentially us improved as selling release quarter impact well by through our a E-commerce of margins first adjusted hand $X sold inventory from excluding aged $X non-recurring to million. move quarter, gross fourth on cash costs, the headwind. sales approximately an million, offsetting and significantly by negative reducing Slide the that provides XXXX estimated as $X The allowed

the through to vehicles by Wholesale we profit these growth As expect market as sell and in sequentially, to impacts issues overall these aged related losses $X mentioned million primarily approximately inventory tighten improved improved previously, we terms. wholesale and improvements from periods. prior driven abate reduced

the cost reduce addition and fixed organization. as structure e-commerce efficiencies we our and growth In to we drive improvements wholesale profit, throughout continue in our variable to

for in to the recently quarter we reduction late full the benefit that excluding our approximately reduction total, include like results do announced of force or quarter In the January, $XX quarter, I note late improved costs non-recurring not first April. by million. our in EBITDA, adjusted in announced of the would

full liquidity, to fourth temporarily six the over our as facility dip Moving ages first inventory to We in earnings invest the us to floor the to the XXXX value call, quarter plan retail against balance of does anticipated requiring in a not during those vehicles, quarter outlined in inventory provide months, our higher as cash and balances. inventory. cash ability our due cash borrow

resolve balance We headwind, to as primarily age through during we we titling sell year expect inventory. cash registration on to $XX of of the cash related the to the released million legacy initiatives this issues. recover half this Offsetting and first sheet, the of trapped

a we reducing from leverage. We conditions as expectations. discount market which the to opportunistically value indebtedness notes continue factors subject million face our was of and in of $XX the quarter reduce $X to and to $XXX cash our on time at our of Next, within outstanding equivalence notes repurchase our million convertible repurchase may million, sheet to end, resulted for time balance cash These range availability.

million Additionally, approximately lines. been the these first down have We earnings it to understand warehouse business used the At source was against lines of us give $XXX of liquidity at of pay than million our of there to from would a in combined completed liquidity. draw transactions available like liquidity. is end additional with as would two could which important the quarter, $XX one UACC create balance mention total to available we greater liquidity to I recently cash at UACC, April UACC. incremental that

securities securitization First, challenging conditions, despite the for January $XX the non-investment million. market we from sold grade

which resulting approximately a included on available proceeds $XX not $XXX to repo million risk on million sheet in XXst. the $XX the in liquidity portion incremental balance completed focused We of remain our transactions, of total we retention securitizations, liquidity. million Both in Additionally, of liquidity. on vertical improve financing opportunities our these available of are March capturing

year Slide to and outlook cash let's cash Next, turn our equivalent XX. on full

our XXXX ending expected expense. quarter $XXX during fourth million. we discussed XXXX balance modest call, is cash interest by our As EBITDA and XXXX of loss driven a cash to million $XXX equivalent for plus This expect primarily

in equivalence. are expectations with remain registration year-end expected Continued the up approximately and along currently balance progress sheet. on titling and cash other to on trapped for on free cash million $XX cash initiatives We track our with cash

an $XX With $XX respect for potential an incremental liquidity, generated the from repo to residual overall we selling million the a with certificates. million from additional financing

liquidity another ending Additionally, were we result. in year, complete would later to as improve our securitization if the a

I'll closing attention to Thank you this that, turn Tom a for and morning. few it for time With Tom? your back remarks.

Thanks, Bob.

and three since year pivoted and marks key well Turning XX. our as objectives as initiatives. business Yesterday to changes leadership focused four one announced Slide we the strategic

May introduced roadmap. our we Additionally, long-term last XXth,

I unchanged, incredibly last accomplished profitable unchanged, remain what that over initiatives they pursue building proud as team business. Our we roadmap our remain and months. I'm four anticipate of has and XX long-term strategic the will

We have cash and every our reduce drive costs, debt. business the and experience, reduce transformed decrease of to fixed our improve rate customer our operational aspect virtually our efficiencies, improve burn variable processes,

each our map. I do, our goals. do to believe on our on we of as our as well-positioned we and four and our mid initiatives pursue to look updating still transformation to map execute long-term I work you quarter, XXXX, a strategic long-term have long-term we our road and business lot forward road peruse are resume growth While continue in we progress

your questions. for ready time for we you and today operator, are Thank

[Operator Instructions].

Gupta line JPMorgan comes question from Rajat first Chase. Our the of of

for Great. Good morning thanks questions. and taking the

of Just run firstly risks and as get impact inventory, one-time expenses here the announced that the some quarter, on well what the like you factors rate at age the the as were impacted that the once second securitization the EBITDA guidance first recently. quarter looking accounting and through for and could

loss arriving the assumption? loss and for half couple follow clarify year. that, million million quarterly a EBITDA to to Is ups. rate that EBITDA a of of Just rate, are second to at I a wanted We something $XX fair close have $XX this

Rajat. with pretty math right line Great, your Yes, disclosed. much question. is much for Thanks what have the in for we

And our that is quarter. netted those If gain balance EBITDA that on million, reason debt a million. first be $X adjusted in in sheet balance at sale. within quarter against in the our to first transaction million because you issuance look of was we that that the is currently the we costs would a comments $XX did spend that sheet had discuss had costs, off that, on $XX we reported We the those transaction that

the was then that the risk to talked X benefit. talked that, only million you So in other we things first months and of where months couple didn't we some of the addition those that per dollars that's January Tom the talked of a we have And And $XX X-month benefit adjustment. one quarter. that $X about, a of million take we if million in had month the about, about get

an So we as benefit. expect that ongoing

force of announced and will the And savings reduction then see in $XX we we and that that. obviously benefit April, million annual was additional an in

in worth approximately item that take forward. $X.X right times going that in million delta $X,XXX that the the that impacted QX that a We of thinking as vehicles. was because will right $X.X million and final correct. selling our if we're months now that the the, That's mentioned and well benefit couple range you see we're the about X,XXX right way of you're then GPPU benefit Tom that at XX% $X of the it. $X,XXX of to full what that's then And you seeing looking GPPU that's And you're, of units, million. you benefit And get about the talked the gets aged are that

SG&A, reduce unit you're absolute to be it growth curious, growth or level on a basis with like is And economics to you that is further of on opportunity there about what's beyond curious, -- just Or going lend the poor message more leveraging mentioned, after Just done expenses, dollars as going well? that? forward. improving I'm like the the an there? just

that natural we kind attrition or obviously it's do keep of those, continue happens. it we're exceptions and with focused the down, everything per have those in there's possible the we think growth, attrition to if resume our we have goal on as operating actually, Rajat, costs And few Yeah, organization about levers we way do both we're think, goes three a the productivity to unit that that cost of same, when that drive replace we not business. to our we going throughout roles, we'll

that costs our do well are getting We several as that. that months there arms as in to several we've initiatives have around spent place non-people

We a have a team and of focused our on contracts. non-people lot driving down costs

mentioned back while costs. on we entered we we're contracts very previously that into, still think focused those reducing I

said combination we think quarter, those to our the cost we of last So sequentially each reduce three per plan unit. is quarter our

kind or that three we're on there's that. achieve very focused so levers of to And there four

selling like selling reductions, to you you're you're with the the with it maybe of you given least of at trying even now to the likely seems EBITDA in to then, come which that low likely breakeven. or to reduction, where hanging chunk units higher the we of close attrition, from next to likely the likely of cost slow right be And I done seems remaining number leg and come just terms or to be mean, me like to now more were to like it said need amount resume you growth, Xx fruit major get from dollar are and

to So have and given to the there million -- timeline to in XX you and burn the having I'm second any curious ultimately that and the costs like get and more to half. XX without rate what's the million EBITDA there liquidity add get

Yeah, Rajat, day. every we great customer and about one it's a talk literally

it. about So we here's think how

the is first cash operations the the to Our the business. to while minimize structure we cost burn improve of and business goal continue of

inventory. rate, very we where to we point -- And would come continued the so it we had on put our that pressure, would a if not March. would we too were so inventory, close strong To much pressure having at we concerned enough

to acquisition So our a the on brakes actually working because which systems for year et we're the has really put plus, reconditioning or on cetera. almost been was vehicles our buying keep only bit little working, last we idle, engine enough

wanted we cars can't because We're responsibly. paused we And little right, acquisitions our we really margins going sell that sure we we roadmap. have to of make a a not the make because to bit to we at to buy had lot grow in long-term need

in the April took of faster month June. out kind the And expected. throughout we growth and actually and So now than I figured resuming part equation May of we that again we're

that so, same And levers the got that our the the is say, grow on we at this we've to way But quarter we we're about right we do responsibly. would year. continue things it that those going all very doing, get plan time. believe each to sequentially can to it based we're think And

per at same While continue have your our to cost we down point, time, to unit. drive the to

in year of cost next think which levers getting want this at the the same structure model going I'm year the to there then really right, of soon, a think step strong right. up to in point growing is then growth I will and optimizing about acceleration those next all when year think real time, into But whole I we of be getting higher as a And the QX rate. growth. point at or responsibly, is And a QX really will imagine year

then was today, is had about we to I the we just what that want so on side, I liquidity Rajat, add to important thing the financing about quarter. repo too, talked And talked one incremental Yes. last think's

second by XX, financing. our That's the securitization, $XXX that $XX page potential you'll upwards million able you the that liquidity if also $XX include we're half favorable the another repo of we midpoint another to that the million in go execute are out to markets year, not of see come does the improved could of well. if of to could million if amount So as see of we've liquidity

wanted that you just I about as So sure were that to thinking make well.

comes William Zackfia [Operator the Blair. line of from Sharon of Instructions] question next Our

my I But GPU I'm voice. given to assuming come to so apologize understand ask the reserve the I have from second alluded to for this the you quarter. the down something week, I worsen that quarter. me. sequentially that quarter I pressure the you EV in wanted can hopefully about that GPU benefited first will first

could you that see the of there in that be that clarify would helpful. second kind any whether If quarter, benefit and is reserve we'll

good Yes, morning, Sharon.

feeling earlier, through not expect we we're pleased work unit. with as the where We QX directionally H as to around And getting H the be you're Sorry, GPU on very QX would is mentioned own I our inventory. well. we're

And we unit. unit H would through pretty QX. selling And our in a GPPU sell and then QX as we're expecting we'll aged on QX. And like similar increase and primarily and QX really expect so, to as be GPPU QX just in we sizable pretty

composition Okay. skewed higher acquisition few reset the that past somewhat And the you've like UACC base in what customer the public, over when you've inventory after to your you've kind prime now unit more on looks I company of of demographic wanted the then done done years. income. it Obviously, volumes, went the and changed touch

could us customer for look some idea you if of and So psychographics? what the give like really today Vroom does demographics the

Yes.

definitely entire from mix seeing prime are really credit mix a to We shift across primarily spectrum. a the better

I the traffic. job all a better converting think the has enabled do with much to combination subprime UACC of us really

a If are had a business of traffic then, from presentation, come customers. significant most mix. our with back recall Investor of you consistent better from seeing our prime strategy sub-prime but proportion our we our customers, predominant Day was And

that of we seeing rates And the of other normalized initial really rate. come at we -- across mix entire are We prime acceleration that the back our with interest shocking more One had mix a entire of ago. the down, we are the have from have of the kind spectrum off, things the slowed of the But pleased customers to was credit prime rate customers now the kind across increases, really leveled a year of spectrum better than sensed we levels.

It currently Are you it. Got cut about last quarter. then meaningfully like kind there come of in have back year. feel about well? sales kind need fixed XXXX you to sounds need think XXXX. will talked as do any that Anything into of mean, business? liquidity we've know I And liquidity you incremental have first bring growth? And next I that to you lot the a accelerating to cost question drive you enough as if for the as

every that in. have significant of that we some improvement cost to cost, So as working cost can we I still earlier to the people the we changed truly have one. With I'll And think reduce take that completely legacy non-people aspect of first regard have fixed business. opportunity to continue we we then are mentioned pretty terms through in cost, the we believe we fixed have

get we from information really -- of at which from to streamline all to helped HR to amount fixed close functions we speed has the The our our accounting books.

to things made have decline, we with may or structural that think so And some to we like it will other we we think look grow we continue can DNO, grow that costs generally, on. up changes of insurance exception to relatively cost things. shrink go flat and got where the our have maintain versus it. base can we And fixed we fixed even a But

of available $XX the what million to just about as idea the you million around range of $XX year. I Yes. of end and a of $XXX are quarter of look about are liquidity. talked little at quarters question with of question, many at the And into when then talked first to We how liquidity we your of you that end second $XXX and of upwards could performance look like to we at. we year Sharon, the rate an earlier looking respect run Rajat's our with looking bit at enter the million million that XXXX. the That gives end

So was hopefully that beneficial. additional disclosure

Yes.

the to The going the other what add are think that just Because variable healthy, at markets the is securitization, securitization they're I'd we about when Sharon way look to we be?

can generate invest, cash they're pull over that forward. we when and gain not return And a earn earn sale, as we we we favorable, time. that on

And they more so, the long what markets. better to to XXXX favorable are securitization obviously, got now time we've and the the liquidity. between happens for a But see our

-- more Sharon, in just as one room available I facilities we -- I add, the just our want pull an would like then have UACC That's thing ability flexibility. terms well. guess there's to to us had people basis. make that understand that moved fully to Sharon, sure that warehouse down on to I cash And at to of

up is JPMorgan. a question next Our follow of from question Rajat Gupta

market shareholders bankrupt and you to get expenses or wait return at arrive I had end Would in would line recover business, but realize rather And of at to you're this that the the decision you dropped being come answering, up going to to you growing the sooner break perhaps than previous question, even that this need middle credit off or the scaling business? my point, might to to cash later? longer credit? for the make anyways. liquidate thanks have was recover? more when path What it like the Sorry, for ask to what to

our of on all plan QX we that that and going in number kind day very responsible run we're stakeholders. stakeholders year return. to what's place And you we're every and the create to the of continue for to And to maximum And things. the be literally focus math what be doing to focus growth. improving with rate would a did going normalized best have on our the throughout We

And of that right every for focused we're goal maximize it's to our going so look our something is at obviously, we all that, is day. on plan plan and really our continue to And but return now, on stakeholders.

committed. the it's in looking the stakeholders any our add getting ramping we'll to thing up this made just growth work minimizing we've scenario. to we've engine. that posted managing to progress. keep with interest work that terms with really at back pleased and one do we're you with any I under ramping Rajat, burn, with front structure of still our living Yes within the our we're way But and And fully a up. the -- the best in of now We're all responsibly, pleased scenario, that our our made of that on progress far, under that line. progress means We're lot cost to the would But cash at is, so respect is got business to we've of do respect in the

like now Shortt turn to conference Sir? closing would the I back Tom for to remarks.

of day, Thank Have appreciate rest we'll and I quarter. talk today. you, a fantastic your your you everyone. time to next

for call. This conference you Thank today's participating. concludes

disconnect. now may You