Vroom’s revenue climbs by 14.1% in the fiscal fourth quarter

Written by: Wajeeh Khan
March 3, 2021
  • Vroom’s revenue climbs by 14.1% in the fiscal fourth quarter.
  • The U.S. company reports £43.46 million of loss in Q4.
  • Vroom forecasts up to 48.69 pence per share of net loss in 2021.

Vroom Inc. (NASDAQ: VRM) said on Wednesday that its adjusted loss in the fiscal fourth quarter came in wider than expected. The company attributed the decline to the ongoing Coronavirus pandemic that has so far infected more than 29 million people in the United States and caused over half a million deaths.

Vroom shares were reported more than 10% down in after-hours trading on Wednesday. The stock is now trading at a per-share price of £27.44 versus £28.62 at the start of 2021. Here’s what you need to know about investing in the stock market online.

Vroom’s Q4 financial results versus analysts’ estimates

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Vroom said that its loss printed at £43.46 million in the fourth quarter, that translates to 32.93 pence per share. In the same quarter last year, it had posted a lower £30.57 million of loss. Adjusted for non-recurring items, the U.S. company lost 31.50 pence per share in Q4.

Vroom said that it generated £290.54 million of revenue in the recent quarter that represents a 14.1% year over year increase. Vroom’s financial report comes a day after AutoZone published its quarterly earnings report.

According to FactSet, experts had forecast the company to record £287.25 million of sales in the fourth quarter. Their estimate for adjusted per-share loss stood at 26.49 pence. CEO Paul Hennessy said on Wednesday:

“Consistent with our relentless focus on data science, we announced the acquisition of CarStory, a leader in AI-powered analytics and digital services for automotive retail, which closed in January 2021. As the used vehicle market continues to embrace the eCommerce model, we will continue to execute our plan and invest in scaling our business and improving our customer experience as we transform the market for buying and selling used vehicles.”

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Vroom’s guidance for fiscal 2021

For fiscal 2021, Vroom now forecasts its per-share net loss to fall in the range of 43.67 pence per share to 48.69 pence per share.

Other prominent figures in Vroom’s earnings report on Wednesday include £655.47 million of full-year eCommerce revenue in 2020 – a 56% annualised growth. Its eCommerce gross profit in 2020 stood at £43.60 million, or 89% higher than the previous year.

Vroom debuted on the Nasdaq Stock Exchange at a per-share price of £30.81 in June 2020 but closed the year at a slightly lower £29.33 per share. At the time of writing, it has a market capitalisation of £4.10 billion.