Vroom, Inc.

Good day. Thank you for standing by and welcome to the room first quarter 2021 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 on your telephone. If you require any further assistance, please press star 0. Thank you. I would now like to hand the conference over to your speaker today, Mr. Alan Miller, Investor Relations Officer. The floor is yours.

Thank you, Alex. Good afternoon, and thank you for joining us on Vroom's first quarter 2021 earnings conference call. Joining us on the call today are Paul Hennessy, Chief Executive Officer, and Dave Jones, Chief Financial Officer. Please note that this call will be simultaneously webcast on the investor relations section of the company's corporate website at ir.broom.com. The first quarter earnings release is also posted on the IR website. Before we begin, please note that the discussion today includes forward-looking statements within the meaning of the federal securities laws, including but not limited to statements about Broom's operations and future financial performance. These and other forward-looking statements are subject to a number of risks, uncertainties, and other important factors that may cause actual results to differ materially from those in such statements. We direct you to the company's most recent SEC filings, including the risk factors section of Broome's most recent Form 10-K for the year ended December 31, 2020, as updated by our quarterly report on Form 10-Q for the three-month ended March 31, 2021, for additional discussion of factors those in the forward-looking statements. Please note further that today's discussion, including the forward-looking statements, speak only as of the date of this call, and Vroom assumes no obligation to update such statements based upon future developments or otherwise. The company may also discuss certain non-GAAP financial measures during today's call. You can find a presentation of the most directly comparable GAAP measures in reconciliation of those measures in today's press release. And with that, I'll kick it over to Paul. Paul?

Thanks, Alan. And thanks, everyone, for joining Vroom's first quarter 2021 earnings call. I'd like to start by thanking all of our employees, investors, and board members for all of their hard work and support in building a great customer-centric public company. Vroom executed well in the first quarter. Our e-commerce units exceeded our expectations and were up 96% year over year. Our e-commerce gross profit also exceeded our expectations and was up 123% year over year. But executing well means not only delivering great growth in units and gross profit, it also means strong execution across our four key pillars of demand and marketing, supply and reconditioning, logistics, and sales and sales operations. By focusing on these four key pillars, we're building a strong foundation for sustainable scale. From a demand and marketing perspective, we continue to be enthusiastic about the level of demand that exists in the marketplace, as well as our ability to generate demand for our business model. Demand for both buying cars from Broom and selling cars to Broom remains high. We are building a nationwide brand that is increasingly known for buying and selling used vehicles, and we're pleased at our continued upward trend in brand awareness. We're confident that as increased demand flows into our business, we are well positioned to convert that demand as evidenced by our growth in Q1 and guidance for accelerating growth in Q2. From a supply and reconditioning perspective, I'm also pleased with our performance. We believe our current inventory level is sized appropriately and is healthy for the market. We not only generated e-commerce gross profit per unit beyond our expectations in Q1, we also see continued improvement in our unit economics going into Q2. We are currently experiencing unprecedented market conditions caused in part by shortage of microchips and delays in new car manufacturing, which increases demand for used vehicles, putting downward pressure on supply and upward pressure on pricing. In this market, we're particularly pleased to be in a position to integrate and leverage the data and data science teams at CarStory, along with its AI-powered analytics. As used vehicle supply is constrained and wholesale pricing is high in traditional channels, we're very well positioned to acquire vehicles from consumers, and I'm bullish on our trajectory for consumer sourcing. Over the past three quarters, we've experienced strong sequential improvement in acquiring inventory from consumers, increasing as a percentage of retail sales from 31% in Q3 of 2020 to 41% in Q4 of 2020, to 54% in Q1 of 2021. While historically Vroom has always had a strong mix of vehicles acquired from consumers, we are demonstrating that we have executed well in scaling our consumer acquisitions platform. Supply will continue to be a focus and area of investment for Vroom, particularly given the uncertainty over the duration of the current supply and pricing market. We continue to increase both the number of our reconditioning facilities and our overall capacity. In Q1, we added five third-party reconditioning facilities for a total of 24 and expanded our capacity at many of our existing facilities. Our hybrid asset light approach to reconditioning continues to provide us with capacity and agility. We believe that we are well positioned to not only handle our projected 2021 volume, but are also scaling our capacity to handle sales growth and volume in advance of meeting it for 2022. I'm pleased with all of the improvements we've made in terms of capacity, quality, and cost, and we'll continue to invest to build scaled capacity. With regard to logistics, we executed well in our rollout of last mile locations. In Q1, we added 10 locations and delivered over 16% of e-commerce units via our last mile service. we remain on track to achieve our goal of delivering a run rate of 50% of our e-commerce units via our last mile service by year end. It's rewarding for our customers and our company to see our brand displayed nationally on television in places like the Super Bowl, but it's even more rewarding when we see our brand displayed locally on trucks, delivering customers a great vehicle and a great driveway experience. We've mentioned our investments in sales and sales support operations, which include investments in people, process, and tech. We're continuing to invest in people to mitigate bottlenecks, in our processes to remove friction and increase sales flow, and in technology to automate, improve customer experience, and drive conversion. We executed well across all three of these areas in Q1. We hired, trained, and coached hundreds of new people We streamlined our processes and expanded our sales capacity, and we deployed technology to reduce manual efforts and drive customer experience. But we still have more to do. I'm pleased with our current improvements, but not yet satisfied. We will continue to invest in sales and sales operations for the foreseeable future. I'm appreciative of all of the outstanding work from our employees and our valued third-party partners. to enable us to execute well across our platform. In short, we are experiencing strong demand, record e-commerce sales, improving inventory health and unit economics, increasing reconditioning capacity, expanded last mile deliveries, growing sales and sales support resources. We are well positioned to deliver triple digit e-commerce unit growth and over 200% aggregate gross profit growth in 2021. And with that, I'll hand over to Dave for further remarks on our financials and our guidance. Dave?