Used car e-commerce company Vroom files for IPO

United States News News

Vroom Inc. has filed for its initial public offering Monday, seeking to list on the Nasdaq Global Market under the ticker symbol VRM, according to a Securities and Exchange Commission filing. The New York-based e-commerce company lets people buy and sell used vehicles. Vroom reported a first-quarter net loss of $27.1 million, narrowing from $41.1 million in the year-ago period. Vroom's revenue rose to $375.8 million from $235.1 million a year ago. Vroom's revenue is primarily from its retail vehicle sales, which accounted for $308.7 million in the first quarter. The SEC filing says the company plans to raise $100 million, but that number is often a placeholder that Vroom will update as it gets closer to listing its shares. The company said that the COVID-19 pandemic hurt sales in March and the company reduced its inventory, among other defense measures, as a result. Vroom said it had furloughed roughly a third of its staff and reduced salaries for the remaining workers, including executives. The company said it had $156.4 million in cash and equivalents at the end of April.