Online used-vehicle seller Vroom said Wednesday that decreased demand and uncertainty around vehicle pricing in the early stages of the COVID-19 pandemic led the company to reduce inventory in the first half of the second quarter.
Vroom’s second-quarter net loss widened to $63.2 million from $33.3 million during the same period last year. Adjusted earnings before interest, taxes and other adjustments in the quarter dropped to a loss of $39 million from a loss of $29.8 million.
Revenue slipped 3 percent to $253.1 million. It was Vroom’s first quarterly earnings report since going public in June.
“I am pleased with our results for the second quarter, in which we performed substantially ahead of our growth plan, and I am encouraged by both the continued validation of the Vroom model and the performance of our employees in a tough environment,” Vroom CEO Paul Hennessy said in a statement.
Vroom’s total e-commerce revenue increased 45 percent to $175.6 million in the quarter.
“We believe we continue to be well positioned to navigate the challenges presented by the COVID-19 crisis and take advantage of shifting consumer buying and selling patterns in favor of e-commerce,” Hennessy said.
Shares in Vroom were down 12.1 percent to $60.67 in midday trading Thursday. Its stock had gotten off to a speedy start after its initial public offering.
Vroom said it expects third-quarter revenue of $268 million to 290 million. Analysts, on average, had expected a forecast of $344.6 million, according to Refinitiv data. Vroom forecast gross profit for the third quarter of $16 million to 18 million.
Reuters contributed to this report.