Online car retailer and e-commerce company Vroom Inc. (VRM) posted its quarterly reports for the second quarter of the year in which the company posted huge share loss than it was expecting.
For the second quarter ending June 30, Vroom posted a net loss of 34 cents per share against the 7 cents per share loss analysts were expecting for the New York based company.
The company’s chief executive officer Paul Hennessy attributed the significant loss to huge demand decline and uncertainty around pricing of cars since many players in the industry were forced to significantly cut down inventories in the quarter.
In the quarter Vroom sold 1,110 cars, a number indicating a 60.2% decline in comparison to what the company sold in a similar period last year.
Nonetheless, revenue of Vroom’s e-commerce unit increased by 45.2%, the company says this increase was partly due to a demand increase in delivery services caused by increased online orders since clients weren’t able to physically visit the stores.