Vroom, Inc.

Thank you. Ladies and gentlemen, today's conference is scheduled to begin shortly. Please continue to stand by. Again, today's conference is scheduled to begin shortly. Please continue to stand by. And thank you for your patience. Thank you. Thank you. Thank you. Thank you. Thank you. Ladies and gentlemen, thank you for standing by, and welcome to the Vroom Third Quarter 2020 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. If you would like to ask a question during that time, you'll need to press star one on your telephone. Please be advised that today's conference call is being recorded, and if you require any further assistance, please press star zero. I would now like to hand the conference over to your speaker today, Alan Miller, Head of Investor Relations. Thank you, and please go ahead, sir.

Thank you, Chris. Good afternoon, ladies and gentlemen, and thank you for joining us on Vroom's third quarter 2020 earnings conference call. Joining me on this call today are Paul Hennessy, Chief Executive Officer, and Dave Jones, Chief Financial Officer. The discussion today may include forward-looking statements about future events, including the expected impacts related to COVID-19. Also, the company may make some forward-looking statements about their operations, earnings potential, liquidity, and outlook on the call today. These and other forward-looking statements speak only as of the date of this call and are subject to a number of important factors that cause actual results to differ materially from those in the forward-looking statements, including the risks and uncertainties outlined in today's press release. We direct you to the company's most recent SEC filings, including its quarterly report on Form 10-Q for additional discussion and factors that could cause actual results to differ materially from those in the forward-looking statements. The company may also discuss certain non-GAAP financial measures during today's call. You may find a presentation of the most directly comparable GAAP measures and the reconciliation of those measures in today's press release. With that, I'll now turn the call over to Paul. Paul?

Thanks, Alan, and thanks, everyone, for joining Broome's third quarter earnings call. I'd like to start by thanking all of our employees, investors, and board members for all their hard work and support. and building a great customer-centric public company. Looking back on the third quarter, I'm very pleased with our performance. Vroom delivered a record number of e-commerce units and achieved record gross profit. E-commerce units were up 59% year-over-year in the third quarter and 31% sequentially, and gross profit was up 120% year-over-year and 167% sequentially. As we look at what drove our significant growth in units and gross profit, first and foremost, we see that our teams across the company executed against our playbook extremely well. We leveraged our advanced data science to grow our listed inventory to over 12,000 units at the end of the quarter, a record high even compared to pre-pandemic levels, offering our customers outstanding selection and great prices. Vroom was able to generate a significant increase in e-commerce gross profit per unit, to $2,188, up 39% year-over-year and 104% over the second quarter. We have seen demand during the pandemic shift towards lower-priced vehicles, and we have responded to that demand. In doing so, we have demonstrated that we can deliver very strong unit economics over average selling prices in the mid-$20,000 range. This supports our long-range thesis that as we offer lower-priced vehicles, we'll be expanding our demand and conversion while at the same time expanding our unit economics. We continue to add capacity in our reconditioning operations throughout the quarter by adding an additional third-party reconditioning center to our footprint and increasing capacity within our existing locations. We will continue to add capacity to our network as we scale our business, and we are confident that our reconditioning capacity is in excess of our sales plan in the current quarter and throughout next year. Consistent with our hybrid asset light strategy, we were able to successfully expand our reconditioning capacity and our geographic footprint without incurring any debt or CapEx. The demand for Vroom model broadly and the demand for our products and services specifically remains very strong. there are a number of contributing factors. First, we continue to experience what we believe are structural changes in demand for our e-commerce and delivery model. Second, increased inventory drives increased demand and increased conversion, which spins our growth flywheel, as demonstrated by our performance in unit sales growth and improving unit economics. Finally, we've begun to see the early results of our new brand campaign. We launched new spots that showcase Vroom's better way to buy and better way to sell a used vehicle. Our message is clear. With Vroom, you never have to go to a dealership again. Consumers are not only engaging with the brand, but they're also transacting with the brand on both the buy side and the sell side. Our overall customer experience continues to improve. We've made a series of product developments in our e-commerce experience, that streamline the transaction process, reduce friction for our customers, and enhance their overall experience as they engage with the Vroom brand to purchase the vehicle. At the same time, when customers are selling us their car, we continue to improve the service by offering them faster automated appraisals, reduced time in the selling process, and a great free driveway pickup service. Our customers love selling us their car. the feedback from customers who sell us their car is simply extraordinary. So when you think about all of the operational executions I've just mentioned, increased inventory driven by improved data science, expanded capacity and reconditioning, increased brand marketing, strong consumer demand to both buy and sell, and improvement in our overall customer experience, it becomes apparent why our model is so compelling. and we performed beyond our expectations in the third quarter. As we look ahead towards another quarter of significant growth, we'll continue to invest in our business to scale our operations and enhance our customer experience. Our outlook for e-commerce unit sales reflects progression over the fourth quarter of the ongoing expansion of our customer experience team as we ramp up our sales support in anticipation of continued escalating sales growth in the new year. We're also making investments in our proprietary logistics operations to expand and enhance our last mile delivery service for our customers. We will continue to optimize our hybrid asset light approach by levering both our third-party partners and our room-owned operations to rapidly scale our business, maintain our operating flexibility, calibrate our capital expenditures, and position us for substantial growth. And with that, I'll hand over to Dave for further remarks on our financials and our guidance.