Shares of Vroom Inc. rallied more than 12% in after-hours trading Wednesday after the online used-car retailer reported a narrower-than-expected first-quarter loss and sales that came above forecast, saying demand for its online car-buying model remains strong.
Vroom VRM, -3.99% said it lost $77.2 million, or 57 cents a share, in the quarter, compared with a loss of $41 million, or $4.85 a share, in the year-ago quarter. Adjusted for one-time items, Vroom lost 57 cents a share, compared with 32 cents a share a year ago.
Sales rose 57% to $591 million, including an e-commerce sales jump of 81%, Vroom said.
Analysts surveyed by FactSet had expected Vroom to report a GAAP loss of 62 cents a share and an adjusted per-share loss of 63 cents a share on sales of $517 million.
“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,” Chief Executive Paul Hennessy said in a statement.
Vroom guided for sales between $618 million and $640 million in the second quarter, and a net loss between 58 cents and 51 cents. The analysts polled by FactSet expect sales of $600 million and a GAAP loss of 44 cents for the quarter.
Vroom wil continue to invest in growing inventory, expanding its capacity to recondition vehicles, and in logistics “to deliver an attractive offering for our customers and demonstrate improvement in our unit economics over time,” it said.
Shares of Vroom ended the regular trading day down 4%.
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