Vroom Results Presentation Deck
reconciliation of non-gaap financial measures
EBITDA and Adjusted EBITDA
We calculate EBITDA as net loss before interest expense, interest income, income tax expense and depreciation and amortization expense and we calculate Adjusted EBITDA as EBITDA
adjusted to exclude acquisition related costs, change in fair value of finance receivables and goodwill impairment charges. Changes in fair value of finance receivables can fluctuate
significantly from period to period and relate primarily to historical loans and debt which have been securitized, and acquired on February 1, 2022 from UACC. Our ongoing business model is
to originate or purchase finance receivables with the intent to sell which we recognize at the lower of cost or fair value. Therefore, these historical finance receivables acquired, which are
accounted for under the fair value option, will experience fluctuations in value from period to period. We believe it is appropriate to remove this temporary volatility from our Adjusted EBITDA
results to better reflect our ongoing business model. Additionally, these historical finance receivables acquired from UACC are expected to run-off within approximately 18 months. The
following table presents a reconciliation of EBITDA and Adjusted EBITDA to net loss, which is the most directly comparable U.S. GAAP measure:
Net loss
Adjusted to exclude the following:
Interest expense
Interest income
(Benefit) provision for income taxes
Depreciation and amortization
EBITDA
Acquisition related costs
Change in fair value of finance receivables
Goodwill impairment charge
Adjusted EBITDA
$
Three Months Ended
March 31,
2022
(in thousands)
(310,459)
$
9,380
(3,952)
(23,240)
7,895
(320,376)
5,653
5,621
201,703
(107,399)
2021
(77,189)
3,812
(2,296)
156
2,906
(72,611)
(72,611)
18 V
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