Vroom Q1 Results Beat Street View; Shares Up 10%

(RTTNews) - Shares of Vroom Inc. (VRM) jumped over 10% in after-hours trading Wednesday after the online used-car retailer reported a first-quarter loss that was lower than Wall Street estimates, driven largely more-than-expected sales growth.

Vroom's first-quarter loss was $77.2 million or $0.57 per share, compared to last year's loss of $41.1 million or $4.85 per share last year. Revenues for the quarter surged 57.3% to $591.1 million from $375.8 million last year.

Analysts polled by Thomson Reuters expected a loss of $0.63 per share and revenues of $518.19 million for the quarter.

Ecommerce revenues increased 81.1% to $422.3 million, as the company reported 15,504 ecommerce units sales, up 96% from a year ago. Wholesale revenue increased 112.4% to $118.0 million.

CEO Paul Hennessy said, "Our strong results were led by robust Ecommerce unit growth of 96%, coupled with accelerating Ecommerce Gross Profit Per Unit through the quarter. Demand for our convenient, online used vehicle shopping experience remains strong in a dynamic environment, and we continue to reap benefits from scaling our hybrid, asset-light model."

Looking forward to the second quarter, Vroom expects loss of $0.58 to $0.51 per share and revenues of $618 million to $640 million. Analysts currently estimate a loss of $0.44 per share and revenues of $600.81 million.

VRM closed Wednesday's trading at $35.41, down $1.47 or 3.99%, on the NYSE. The stock, however, gained $3.70 or 10.45%, in the after-hours trade.