Ladies and gentlemen, thank you for standing by, and welcome to the Vroom Analyst and Investor Conference Call. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask the question during this session, you will need to press star then one on your telephone. If you require any further assistance, please press star then zero. I would now like to turn the conference over to your speaker for today, Liam Forret. You may begin. Thank you, operator, and good morning. We are excited to welcome everyone to Vroom's May 2022 Investor Day. Today's virtual meeting is an audio webcast, and the full presentation can be found at ir.vroom.com. Now turning to slide two. Please note that the discussion today includes forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements about Vroom's operations and future financial performance. These and other forward-looking statements are based on management's current assumptions and are neither promises nor guarantees, and are subject to a number of risks, uncertainties, and other important factors that may cause actual results to differ materially. We direct you to the company's most recent SEC filings, including the Risk Factors section of Vroom's most recent Form 10-K for the year ended December 31, 2021, as updated by our quarterly report on Form 10-Q for the three months ended March 31, 2022 for additional discussion of factors that could cause actual results to differ materially. Please note further that today's discussion, including the forward-looking statements, speak only as of the date of this call, and Vroom assumes no obligation to update such statements. The company may also discuss certain non-GAAP financial measures during today's call. You can find a presentation of the most directly comparable GAAP measures and a reconciliation of those measures in the appendix to the management presentation. Now to slide three. Joining us today are Thomas Shortt, Chief Executive Officer, Bob Krakowiak, Chief Financial Officer, Ravi Gandhi, Co-President and Chief Financial Officer of UACC, and Rachel Mahoney, Chief Marketing Officer. Now over to slide four. Here is today's agenda. Over the next few hours, members of our leadership team will be discussing in detail our recently announced business realignment plan, our key initiatives, and our strategies for positioning Vroom for long-term profitable growth. During and at the end of the presentation, there will be short breaks, followed by a live Q&A session with financial analysts. I'd like to now hand the conference over to Thomas Shortt, Chief Executive Officer. Tom. Thank you, Liam, and thank you to all the investors, analysts, Vroommates, and UACC colleagues who are joining us for today's Analyst and Investor Day. Today, we are sharing our long-term roadmap. We believe our roadmap, rooted by our four strategic initiatives, will translate into a profitable business model. This is our route and direction with the goal of arriving at long-term profitability. Our mid-term goal is a break-even business, and our long-term goal is a business that generates 5%-10% EBITDA per unit. In my experience from prior transformations, while the roadmap is the critical starting point to improve financial performance, it's the execution that matters. Executing this route will require the orchestration of all of our Vroommates and UACC colleagues to stay focused on our core strategic initiatives, take calculated risks, fail fast, and drive towards our end goal. Implementing order of magnitude change is rarely a direct route. We will adjust the specifics of this route from time to time when we believe it makes sense to do so in the pursuit of long-term profitability. We will make some wrong turns. When we do, our goal will be to quickly learn from our mistakes and get headed back in the right direction. We do not intend to measure ourselves by our roadmap. We will measure our progress by the forward progress along our route and how it translates into improved customer experience, improved profitability, and improved liquidity. Turning to slide five. Our vision remains unchanged to build the world's premier platform to research, discover, buy, and sell vehicles. Moving to slide six. The U.S. used automotive market is massive and highly fragmented, with low e-commerce penetration compared to other retail categories. We offer a broad assortment of thousands of vehicles with no haggle pricing purchased from your favorite device from anywhere our customers choose, delivering their vehicle right to their driveway. We believe e-commerce penetration will continue as it has in other retail categories. We believe e-commerce penetration is only going one way, and that is up. Like other e-commerce retailers, we believe the key to delivering a compelling e-commerce value proposition and profitable business model is a seamless buying experience, a seamless, efficient, and predictable supply chain with density as a key driver of supply chain economics, and the ability to make credit available to our customers. We believe our four strategic initiatives will position us to capitalize on this significant market opportunity. On slide seven. We've already built a national brand and grown our aided brand awareness each year to 39%. Our brand provides a solid foundation as we realign our business and plan for the future. Moving to slide eight. Over the past several years, we've been focused on driving growth. We grew e-commerce units to approximately 75,000 units. While we've been growth-focused, we have not materially improved unit economics. On slide nine. Accordingly, we have made the choice to slow down. We are slowing down so that we can dramatically improve our customer experience. We plan to live within our means while we prioritize unit economics, profitability, and liquidity over growth. Our roadmap relies on four focused strategic initiatives. First, build a well-oiled transaction machine. Our transaction machine includes titling and registration, selling, e-commerce, and marketing. As we mentioned in our earnings call, our primary focus in the short term is building a well-oiled titling and registration machine. Second, build a well-oiled metal machine. How we buy, move, recondition, sell, deliver, and price vehicles. We intend to maintain third-party partners while also pursuing low capital in-house opportunities in reconditioning, linehaul, and last mile. Our goal is to optimize the end-to-end supply chain by synchronizing how we buy, move, recondition, and deliver vehicles to reduce cycle times, reduce supply chain costs, improve inventory turns, and improve customer delivery times. We intend to build into our pricing engine, our end-to-end supply chain, and UACC captive finance model to improve the customer value proposition while optimizing our unit economics. Third, build a regional operating model leveraging our national brand. We intend to sell nationally, but operate more regionally around our reconditioning centers and transportation hubs. We expect to build density in regions to drive marketing and supply chain economics while improving customer delivery times. We have significant opportunity to reduce the number of miles our vehicles travel while we expect to reduce inbound and outbound transportation costs. Fourth, build our captive finance offering. We are very pleased with our acquisition of UACC and intend to continue to grow their third-party dealer business, as well as grow our captive financing for Vroom customers. We believe we can improve conversion rates and improve unit economics while also improving the customer experience. Moving to slide 10. We have proven we can grow. We will now focus on building a well-oiled machine and then resume growth. On slide 11. These are the key unit economic drivers behind our four strategic initiatives that we believe will build a profitable business model. First, build our captive finance offering. First is our UACC third-party dealer business. The UACC dealer business is already a well-oiled machine. As you'll hear from Ravi in a bit, UACC has a track record of delivering growth and an exceptional customer experience. Continued growth of UACC's dealer business is a key part of our strategy and our objective of maximizing liquidity. We expect UACC to contribute to our EBITDA growth. Second, UACC has already begun to originate loans for Vroom customers, and we intend to expand those loan originations across the credit spectrum to create a full captive. UACC has the ability to fund its loan originations through its three committed warehouse lines, forward flow arrangements, and securitizations, which we intend to deploy strategically to improve our GPPU by improving our product finance margin. Additionally, we expect to improve our GPPU by improving attachment rates of our value-added products, as well as offering additional value-added products to our customers in the future. Moving into building our well-oiled metal machine. We have opportunities to optimize our pricing model through predictive analytics and regionalization. We expect this to improve GPPU by improving vehicle margins. We have opportunities to optimize our assortment, both regionally and nationally. We expect this to improve GPPU by improving vehicle margins, as well as product and finance margins. We have opportunities to synchronize and optimize our end-to-end supply chain by increasing our velocity and optimizing our flow of vehicles. We anticipate this will reduce our miles, reduce our cost per mile, and improve our inventory turns, improving our logistics costs and SG&A, and improving inventory on our balance sheet. Moving to building our well-oiled transaction machine. We have opportunities to improve our sales processes and channel by improving our mix of outsourced versus insourced resources. Through digitization and improvements in our e-commerce site, which we expect to improve our sales costs in SG&A. We expect this will reduce our sales transaction costs per unit. We have opportunities to improve our titling and registration process by streamlining the manual touches, digitizing and automating the processes, and increasing the speed of the overall process, all of which are expected to reduce our titling and registration costs per unit. We have opportunities to improve our marketing effectiveness and return on investment by increasing traffic and improving our conversion, which we expect to reduce our marketing costs per unit. Lastly, we expect the remaining SG&A, our fixed costs, to grow at a slower rate than revenue in the mid to long term, creating fixed cost leverage over time. We believe if we are successful in driving our four strategic initiatives, we can build a profitable business model. Moving to slide 12. In this next section, we will focus on the UACC third-party dealer business. Unlike some of our competitors, we are fortunate that our UACC business includes their third-party dealer business. In addition to the opportunity for UACC to improve GPPU economics for Vroom by originating loans for Vroom customers. On slide 13, Jim Vagim, CEO and Co-President, and Ravi Gandhi, Co-President and CFO, have built the UACC dealer business into a well-oiled machine. They are very passionate about their business, passionate about our UACC colleagues, and passionate about their third-party dealers. I'm very excited to introduce Ravi Gandhi, UACC's Co-President and CFO. Ravi? Thank you, Tom. Thank you everyone for joining us this morning. The power of UACC is critical to the overall success of the Vroom platform. The synergies created by combining these two platforms are notable. I want to cover the following today. One, give a high-level introduction of UACC. Two, discuss the liquidity and earnings-generating machine that is UACC, including our capital market strategy. Three, explain the benefits this combination will provide to not only Vroom, but also our UACC dealers and customers. Please turn to slide 14. UACC has been in business for over 25 years and has endured many different cycles. The current management team at UACC has been together since 2008, when we were initially brought into UACC as part of a turnaround management team. Today, we have over 550 UACC colleagues, along with over 8,500 dealer partners. Since 2008, we have consolidated and centralized what was a decentralized operation. We have created a top-notch capital markets program that currently includes three large financial institutions, providing 400 million of bilateral long-term warehouse financing. We have completed 13 securitization transactions backed by approximately $2.8 billion of securitized collateral, all with AAA ratings from S&P and DBRS. We developed an automated decision engine which dealers can use to assess credit underwriting for potential obligors. We have a best-in-class servicing operation that maintains a 4.4-star Google rating. Please move to slide 15. UACC generated over $50 million of pre-tax income in 2021 and over $56 million of EBITDA. Our servicing portfolio was approximately $636 million as of December 31, 2021. We have grown our portfolio to over 700 million as of March 31, 2022. This represents a five-year CAGR of approximately 17%. Please move to the next slide. As of March 31, 2022, UACC had just over 120 million of available liquidity. As you can see in the chart, we have consistently grown our available liquidity. I believe it is important to define available liquidity, as I've seen that term used in multiple ways. As of March 31, 2022, we had zero dollars drawn on our $350 million of warehouse facilities. As a result, we had borrowing capacity of $350 million. However, we do not call this amount available liquidity. Available liquidity for us is defined as how much cash can we put on the balance sheet if we were to pledge all eligible receivables to our warehouse lines. Therefore, we had enough eligible receivables to pledge to our warehouse lines such that our March 31, 2022 balance sheet cash would have been just over $120 million. Our actual balance sheet cash was just under $11 million. Prior to 2022, we did not structure our securitizations as gain on sale transactions. As a result, our available liquidity continued to increase, but at a slower rate. It would have increased at a faster rate had we been completing our securitizations with gain on sale structures. Our strategy on capital markets timing and warehouse management will not change. Our goal is to always maintain excess borrowing capacity to withstand tough cycles. There is a cost in doing so, but one that we believe has proven to be more positive in the long run. We expect to access the capital markets more frequently as we increase originations, but we'll do so prudently. We have maintained a deep investor base over the past 12 years. In addition, we'll continue to work with our flow partners. Let's move on to the next slide. Now we get to the really interesting part. How does UACC benefit Vroom, and how does Vroom benefit UACC? As mentioned previously, UACC works with over 8,500 independent dealers nationwide. Just one example is that Vroom currently wholesales thousands of units per month nationwide. We could allow preferred access to our UACC dealers to access this inventory. Win-win. UACC currently works with deep subprime and subprime customers and is able to generate solid earnings and liquidity. We believe, and most folks would agree, that it's easier to move up the credit spectrum than down. As we develop UACC into a captive, we'll leverage our risk technologists and in-house programming development to create profitable finance originations across the credit spectrum and also deliver the customer a seamless experience. We will continue to maintain financial diversity with our flow partners and also utilize the capital markets to maintain additional diversity. We maintain a deep bench of risk technologists that are very familiar with the subprime auto business and will leverage the data scientists from our Vroommates to properly and prudently move up the credit spectrum. This will increase scale and volume and provide a more seamless experience to our customer. Win-win. The customer experience has always been a priority at UACC. Even with a credit-challenged customer, we're able to maintain a very high Google rating with them. We have significant customer experience with over 70,000 current customers and have financed over 300,000 customers since 2012. We will leverage our portable, process-driven call center technology to assist and track call volume and allow for Vroom customers to have a great experience. It is our goal to help our customers build their credit in a positive way to make a better life for themselves. I wanna call out our servicing folks in Fort Worth for doing a wonderful job. As we originate more paper and expand the credit spectrum originations, we'll have the ability to increase our ratings and make sure our customers have a wonderful experience. Win-win. As our UACC-originated customers have a great experience, we can utilize the proprietary data to assist them to buy their next car from Vroom and be more competitive from a financing perspective because of our history with them. They get the best value and car-buying experience all around, from purchase to financing. That will lead to improvements in GPPU and eventually better capital markets execution as we show and prove our collective originations are performing and creating more scale along the way. Win-win-win. UACC has an extensive inside and outside sales force. With a combined group, we can leverage our data and champion and challenge our current sales process in both organizations and collectively share best practices. We'll continue to originate from and grow our third-party dealer base, but we also intend to leverage cross-sell opportunities for our dealers and our existing customer base. Win-win. UACC understands the dealer business. The DMV process is quite decentralized. Certain processes vary quite a bit state by state and even county by county in certain states. Because of our nationwide dealer base, we have extensive experience dealing with the challenges presented by these decentralized processes, even though our operations are centralized. This will lead to better customer service and less operational issues. Win-win. I hope everyone sees the power of UACC and why we believe this combination will be very valuable for the combined Vroom entity. Our 8,500+ dealers and our customer base, we are vertically integrating one large national dealer named Vroom, along with 8,500+ existing independent dealers to provide all our collective customers the best experience and create liquidity and long-term earnings for Vroom. With that, I'd like to hand it over to Liam Harrington. Liam? Thank you, Ravi. Please note that at this time, we are going to take a five-minute break, and then we'll resume our Analyst Day presentation. You will hear music for the next several minutes. Thank you. Good morning again. Welcome back to Vroom's May 2022 Analyst Day. We are now going to resume the presentation with our next presenter, Bob Krakowiak. Bob. Thank you, Liam. Let me begin on page 19 with a quick recap of our first quarter performance. We exceeded our expectations, coming in ahead of our guidance on all of our provided metrics. We delivered a higher level of revenue and e-commerce units than we forecasted. Our e-commerce gross profit per unit, or GPPU, was more than $250 ahead of guidance and significantly higher than our fourth quarter exit rate. We expect to see further improvement in e-commerce GPPU for the full year versus the first quarter. Our adjusted EBITDA loss of $107 million was also ahead of our expectations, thanks to our e-commerce segment results and the benefit from the gain on our first securitization in February. Our February securitization resulted in a gain of $30 million. This gain was related solely to legacy UACC originations and speaks to the earnings power of the acquired business. Next, let's take a look at slide 20. Slide 20 gives you a perspective on how our future quarterly adjusted EBITDA run rate will be positively impacted by our announced realignment plan and the elimination of non-recurring customer experience and operational costs that we expect to curtail by the end of this year. As you can see from the slide, our implied average quarterly adjusted EBITDA run rate, excluding non-recurring items for Q2- Q4, is forecasted to significantly improve by approximately $30 million versus our $107 million loss reported in the first quarter. Now please turn to slide 21. I would like to go into some detail on selected working capital accounts on our balance sheet. Beginning with cash and cash equivalents, we ended the quarter with over $600 million. We also ended the quarter with $197 million of restricted cash. We pledged 10% of our floor plan inventory as restricted cash with our floor plan lender. We expect to reduce our floor plan inventory during the balance of the year, which will reduce our restricted cash requirements and increase our cash and cash equivalents. Additionally, we have also pledged restricted cash to our lending partners due to our delays in the titling and registration process. As we get current and improve the speed of our registration process by executing our improvement initiatives, we expect to continue to reduce these restricted cash balances. In total, we anticipate reducing our restricted cash balance by at least $125 million by the end of this year. This expected reduction in restricted cash results in a dollar-for-dollar improvement in our cash and cash equivalents. Next, our inventory account includes retail inventory, which is funded by our floor plan, as well as wholesale inventory, which has been funded by cash on hand. We finance about 80% of our total inventory using our floor plan facility. With our mix of approximately 80% retail and 20% wholesale inventory, a $100 million reduction in inventory generates a $20 million improvement in working capital. Finally, on the asset side of the balance sheet, we expect our receivables and all other current asset balances to reduce in line with our reduction in sales. On the liability side, we also expect accrued expenses to be reduced in line with our change in revenue. Accrued expenses include items such as marketing, sales taxes on vehicles, compensation and benefits, and vehicle expenses. Accrued vehicle expenses include accrued vehicle freight, warranty reserves, and reconditioning. Additionally, on the liability side of the balance sheet, we also expect deferred revenue to reduce in line with our change in revenue. Deferred revenue consists of payments received prior to delivery from customers or financial institutions. We believe our balance sheet is positioned to generate cash from working capital as we reposition the business to focus on profitable unit economics. Now let's look at slide 22. Slide 22 contains more information regarding the expected cash and cash equivalents at year-end. As I mentioned, we are forecasting approximately $450 million-$565 million of cash and cash equivalents at year-end based on the following items. As of March thirty-first, we had approximately $600 million of cash and cash equivalents. Our full year 2022 guidance implies an adjusted EBITDA loss for Q2 to Q4 of $268 million-$218 million, most of which is expected to be cash. This includes an expected gain on our second securitization of $35 million-$45 million in the second half of the year. We expect our securitization later this year to be almost all UACC originated loans from their existing network of over 8,500 dealers. Next, we expect CapEx to be approximately $35 million-$45 million for the remainder of the year as we continue to invest in developing our captive finance operation and anticipate capital for a dedicated Vroom reconditioning facility. As I previously mentioned, we also expect to partially offset those uses of cash with a transfer of at least $125 million of restricted cash to cash and cash equivalents as we improve our transactional processes and reduce vehicle inventory. In addition, we expect to see improvements in cash flow from UACC financing and working capital initiatives net of realignment plan costs. Approximately half a billion dollars of expected cash and cash equivalents at year-end positions us well as we enter into 2023. With that, I would like to turn it over to Tom to continue our conversation on improving unit economics and operations. Tom. Thanks, Bob. On slide 23, we now want to share with you how we are thinking about unit economic drivers. Slide 24. We start by taking our 2021 and Q1 2022 P&L and divide key line items by our e-commerce units. I'll focus on Q1 2022. Our e-commerce vehicle GPPU was $595. Our e-commerce product GPPU was $1,168. Our total e-com GPPU was $1,763. Our SG&A per unit was $9,364. Other costs per unit were $565. Our total EBITDA, excluding UACC, was -$7,036. UACC's core dealer business was $1,521. For clarity, this is the standalone third-party dealer UACC business divided by Vroom e-commerce units. While not directly related, this helps demonstrate the liquidity UACC brings to the total business. All in with the UACC dealer business, our total EBITDA per unit for Q1 2022 was -$5,515. This is the baseline we are starting as of the beginning of Q2. Moving to slide 25. Now, we would like to walk you through how we believe each of these four strategic initiatives will improve our unit economics. On slide 26, we'll start with building a well-oiled metal machine and our goals to improve vehicle GPPU. On slide 27, our pricing algorithms are developed using 15 years of CarStory data. Our data includes over 230 million VINs and 130 million window stickers. From this massive data set, we build data science models for retail pricing. I would like to walk you through some examples so you can see the power of leveraging this data. Examples of the models we build include the probability of receiving a deposit at different price points for vehicles we sell, and the probability of a customer accepting our offer at different price points for vehicles that we purchase. We leverage our massive data set to build data science models to drive optimized pricing. We have opportunities to optimize prices specific to certain markets, sellers, vehicle conditions, and features. Moving to slide 28. This is an example of how we use CarStory data to build price optimization models. This example is for a specific year, make, model, trim vehicle. On the left chart, on the Y-axis, we have vehicle GPPU. On the X-axis, we have time. On the secondary axis, we have the probability the vehicle will be sold in a week over time at various price points. On the right-hand chart, we have the same information, except the Y-axis shows the vehicle list price. For this vehicle, the optimal price is $22,000 on the right chart, which yields a vehicle GPPU of $3,420, as can be seen on the left chart. That's the optimized list price and vehicle GPPU for this vehicle. This model also demonstrates the price elasticity of this vehicle. If we were to list the price at $20,000 instead of the optimal price at $22,000, we would sell the vehicle faster with a higher probability of sell, but at a lower vehicle GPPU of $1,420. Moving to slide 29. In this example, you can see that a different vehicle has an entirely different profile of GPPU and different elasticity curves. On this vehicle, the optimal GPPU is $1,700. This compares to the vehicle on the prior slide of $3,420. Leveraging these advanced analytics provides us the opportunity to optimize our assortment or the vehicles we choose to purchase and sell by providing data to balance our GPPU mix and our sales velocity, which impacts our balance sheet through inventory terms and our P&L through GPPU and markdowns. On slide 30. In this example, we show several different vehicles, year, make, model, that are at a $29,999 list price point. However, you can see that vehicle number one has more than three times the attach rate for product GPPU than vehicle number nine. Vehicle number 10 and 11 have no attach rate. That's right, zero attach rate and therefore no product GPPU. As a reminder, product GPPU includes finance attach rate and other value-added products. Combining our price elasticity curves with our product attach rates by vehicle provides an additional dimension in which we can optimize our assortment around total GPPU, including vehicle GPPU and product GPPU. On slide 31. Moving from a national operating model to a regional operating model also increases our ability to improve GPPU. In this example, we show a representative vehicle of the same year, make, and model that has a very different purchase and sales price based on region of the country, as well as a national purchase and sale price. You can see that we could purchase this vehicle in Florida for under $28,000 and sell it for a little over $30,000. However, in Texas, we could purchase the same vehicle for around $31,000 and sell it for over $34,000. Today, with our national model, we overpay to purchase vehicles in Florida and California because our national price is higher than the local market. On the other side of the coin, our retail price is too high for conversion in Florida and California. Therefore, in this example, we would end up buying cars in Florida and California that we cannot sell in Florida or California because of the regional market. This causes us to ship vehicles longer distances. On slide 32, in this example, we show how different vehicle price points can generate significantly different GPPU. We have different GPPU profiles across several different dimensions. Each vehicle's price elasticity curve over time, vehicle product attach rates, regional market dynamics, different price points, and more. Our goal is to build pricing and assortment optimization across several of these dimensions to drive vehicle GPPU, product GPPU, improve inventory turns, and reduce markdowns. Moving to slide 33. Our goal is to improve vehicle GPPU up to $1,300 in the long term. Our plan is to walk through the details of our four strategic initiatives and fill in the improvement goal estimates by key economic driver. One down and five to go. I will now turn it over to Ravi to walk you through how our strategic initiative of building our captive finance offering advances our goal to improve product GPPU. Ravi? Thank you, Tom. Please turn to slide 35. We expect steps we are taking to increase the overall finance GPPU. We expect to continue to maintain flow sale partners. However, as shown on this slide, we are moving more finance offerings to our captive, UACC. This should grow our finance GPPU. We expect this to allow for us to have more control in the sale process, less friction dealing with third parties, and allow for us to maximize economics. Please move to slide 36. By utilizing these multiple finance avenues, we expect to be able to increase conversion rates and optimize product GPPU. This should allow for us to constantly review costs and offerings to attain the best combination to optimize the best overall mix and add to overall profitability. Please turn to slide 37. Our goal by building out our captive finance offering is to improve finance and product GPPU by up to $1,300 in the long term. With that, I'd like to pass it back to Tom. Thanks, Ravi. In summary, our goal is to improve total GPPU by up to $2,600 in the long term. On slide 38, we will now turn to how we intend to build a well-oiled metal machine. Slide 39. This slide articulates our past and for the most part, current end-to-end metal supply chain. We purchase vehicles from customers and others. We transport those purchased vehicles to one of our vehicle reconditioning centers, usually via third-party carriers. We then recondition the vehicle. Once the vehicle is sold, we've traditionally transported the vehicle via third-party to our customer's driveway. This past and current process is slow and high cost. This slow speed reduces our liquidity by requiring significant inventory levels. The speed of a supply chain is critical to driving operational effectiveness, a great customer experience, lower operating costs, and improved inventory terms, improving liquidity. In virtually every transformation I've been a part of, dramatically improving the speed of the supply chain and improving inventory turns has been a key output of optimizing the end-to-end supply chain. In January, we began measuring the speed of our supply chain at each step, as well as the volatility of our supply chain. We are too slow and too volatile, and it is our goal to dramatically increase the speed and decrease the volatility of our metal supply chain. On slide 40. In our future supply chain, which we are building now, our goals are to pick up vehicles we purchase in two days or less, move them cost efficiently on our trucks or with flexible gig workers to our closest logistics hub. When that hub and reconditioning center are co-located, we will recondition the vehicle. If they are not co-located, our goal will be to transport a full truck of vehicles on our own fleet to our vehicle reconditioning center. Key to end-to-end supply chain optimization is measuring the speed and cost of every touch and the speed and cost of every movement. In general, our line haul trucks can hold nine vehicles, depending on the vehicle size. Our goal. 100% full trucks. Our goal is to improve the speed of our reconditioning centers through optimized capacity scheduling, an integrated end-to-end inventory management system, and predictive analytics. When we plan to sell the vehicle close to our VRC, our goal is to deliver the vehicle much faster to our customers. We will focus on measuring the cost and speed of every delivery. When we plan to sell the vehicle from our transportation hubs, our goal will be to transport the vehicles on 100% full Vroom linehaul trucks from the reconditioning center to the hub. Our goal is to dramatically improve the speed of delivery to our customers and the cost of every touch point in the end-to-end supply chain. On slide 41, we mentioned that we started our business as a national business and have built a national brand. Below is an example of our logistics costs. The following examples are actual vehicle sales. We purchased a vehicle in the Pacific Northwest and moved it 81 miles to our reconditioning center at a cost of $283. We sold the vehicle to a customer in Florida. We transported this vehicle from the reconditioning center to the hub via a third-party carrier, 3,000 miles at a cost of $2,035. We then delivered it to our customer in Florida, 115 miles from our hub at a cost of $300, for a total transportation cost of $2,618, traveling 3,196 total miles. This is where building a regional operating model comes into play. We believe we have the opportunity to dramatically reduce the number of miles our vehicles travel, and therefore our transportation costs. Slide 42. We also deliver vehicles up and down the coast. In this example, we purchased this vehicle in the Northeast and sold the vehicle in Florida. We moved the vehicle 1,180 miles for a total cost of $1,537. We have significant opportunities to reduce the miles our vehicles travel and the transportation costs. Slide 43. We also deliver vehicles regionally. In this example, we purchased a vehicle in Georgia and sold it to a customer in Florida. The vehicle traveled 557 miles for a total cost of $473. As you can see, the logistics cost per unit compared to the national model example of $2,618 is approximately an 80% reduction in logistics costs. On slide 44. Finally, we love it when we self-deliver vehicles locally. In this example, we purchased the vehicle from the customer in Southern California and sold it to a customer in Southern California. The vehicle traveled 127 miles for a total cost of $391. Clearly, local and regional deliveries drive unit economics. Slide 45. This slide summarizes our strategic initiative to build a regional operating model. Our goal will be to change our mix of national, coastal, regional, and local deliveries much more toward regional and local, while still offering our customers choice of our national assortment. If we are successful in doing this, we have the opportunity to reduce our total transportation costs in SG&A by up to approximately 50%. On Slide 46. We mentioned on our earnings call that we are pulling several levers at the same time with a bias for action to improve unit economics. In the past, we had experimented with variable shipping fees. We made the decision a couple of months ago to focus on improving unit economics. We implemented a change so that when you search for a vehicle on vroom.com, we sort the vehicles that are closest to your ZIP code at the top of the sort order. The intention here is to drive our mix toward local and regional sales. At the same time, we realize we cannot absorb the cost of transportation for coastal and national shipments. Accordingly, we implemented a variable shipping fee. If the customer selects a vehicle that is far away, we are charging a shipping fee intended to cover the cost of transporting the vehicle. Ideally, we wanna discourage national sales as they take a long time to deliver and are high cost. However, we will continue to offer the customer the choice. It's worth noting that ideation to implementation of this initiative took days and weeks, not months and quarters. We intend to be decisive and take calculated risks. Slide 47. On this chart, you can see that we implemented the variable shipping fee around week 13. The left axis on both charts are indexed to 100 at the beginning of the year. You can see on the left chart that our estimated cost per delivery have been decreasing. On the right-hand chart, you can see that our delivery fees have increased since we implemented the variable shipping fee. We made this decision quickly, and it is improving our unit economics. We also believe this is impacting our unit volume as indicated in our Q1 unit guidance. As we indicated, we intend to focus on unit economics over growth and maximize our liquidity, and this is one example of that. Slide 48. We are investing in building out our Vroom linehaul fleet. This example shows the power of operating our own logistics fleet and optimizing our end-to-end supply chain. Relative to third-party carriers, we believe we can reduce our linehaul costs by 50% to approximately 80% when our trucks are 88% full. Said another way, when we have eight vehicles on a truck. From prior implementations at other very large and smaller companies, I know that once the supply chain is synchronized, companies can operate with excellence on a daily basis, achieving 90%-95% full trucks. It's not easy and it requires accurate data and great analytics and coordination along the supply chain, but I've seen it in action. Slide 49. In this example, we want to demonstrate the power of building a regional operating model combined with our Vroom linehaul fleet. Here, we picked the vehicle up from our customer 67 miles away at a cost of $150. We then moved it from our reconditioning center to our hub 446 miles away on our Vroom linehaul. Note that our cost on our Vroom linehaul was $191 compared to $695 if it went third party, a 70% lower cost. We then delivered the vehicle to our customer 44 miles away from the hub at a cost of $132. In total, we were able to reduce our transportation costs by about 50% for the same number of miles. Our goal is to both reduce the number of miles our vehicles travel as well as the cost per mile. On slide 50. We mentioned our strategic initiative of building a regional operating model and building a well-oiled machine. This slide shows the power of those together. By the end of January, we built very detailed metrics for our metal and title and registration supply chains. For the first time, we could see end-to-end for every step how long our processes took and how much volatility each process had. I've run this play several times before. Even at some of the most well-run companies, I found opportunities to reduce cycle time and reduce cycle time volatility, and therefore cost by orders of magnitude. Creating order of magnitude change isn't easy. What I've learned is that it can't be a multi-year project that we hope to get benefits from in two years. To drive this magnitude of change, we need a vision, our strategic initiatives, detailed metrics and analytics, and then we need to start small and win small. Our organization needs to see success in action. If you do that on a small scale, build out scrappy tech and processes that actually work and deliver the result, and deliver the result in days, weeks, and months, not quarters and years, it creates a culture that believes in the mission because they've seen success, and they know what success looks like, and they know it can be done. On February first, we started a very small pilot. The goal was to deliver vehicles in two days or less, or later, only if requested by the customer. We are doing this in one small geography since February first. Since we implemented this pilot, 20% of the vehicles have been delivered the same day. 59% have been delivered within one single day. 90% have been delivered within two days, and 96% were delivered within target, less than two days or the customer's preference. This means 6% of customers requested the delivery after the two-day window. For our current metal supply chain, this is order of magnitude change. Our team now knows we can do this. They've seen it happen. They've executed it. They know we can do it. We are working on expanding this beyond this geography. This is a good example of how we think about driving order of magnitude change across all aspects of our business. Slide 51. The very best supply chains tend to have the highest inventory turns. You can't have a fast supply chain with high customer service and high inventory turns unless you've reduced your cycle time, reduced your cycle time volatility, and removed as many constraints as possible. That's what end-to-end supply chain synchronization and optimization is all about, reducing cycle time, reducing volatility, and optimizing constraints. Another key behind speeding up our metal supply chain and improving inventory turns is the opportunity to reduce markdowns and improve vehicle GPPU. While last year we benefited from an appreciated market, we know that will ultimately change. By turning our inventory faster, we expect to reduce our markdowns in the long term. Slide 52. We have logistics hubs within approximately 200 miles of 90% of the population. For now, this is where we will focus. As I mentioned in my opening comments, we are going to do what makes sense. In the short to mid-term, we may adjust this landscape in the pursuit of building a regional operating model and improving unit economics. Slide 53. In my experience leading end-to-end supply chain transformations, I found that synchronizing the end-to-end supply chain reduces transportation costs, reduces distribution costs, which I believe reconditioning is a good proxy for that. While at the same time improving customer service, improving delivery times, and speeding up the entire supply chain, which improves inventory turns. It's a beautiful thing when you can get all of those benefits from a single strategic initiative. Our goal as we build a well-oiled metal machine is to reduce our supply chain costs and FCNA by up to $1,300 per unit in the long term. three down and three to go. Slide 54. We will now move to building a well-oiled metal machine. Slide 55. While we are an e-commerce company, the final sale process still requires human touch. We believe that over time, as with other product categories and with improvements in our site experience, and as we implement our core strategic initiatives, that the sales process will require less and less human touch. For now, our goal is to reduce our selling costs by working with our outsourced providers to lower costs and at the same time insource some of our selling resources. Our goal is to reduce our sales cost per unit by up to 35% in the long term. Slide 56. We are making investments to improve our e-commerce experience. We have several initiatives in place to improve our e-commerce site. We have recently appointed a business leader to own the site and site operations and work hand in hand with our tech team to make rapid improvements to our site. As we do, we expect our digital transaction volume to grow significantly in the long term, reducing human touch and therefore cost per unit. Slide 57. Turning to building a well-oiled titling and registration machine. We wanted to share the complexity of this paper supply chain. As we've dissected this process, we realized that we need to optimize the end-to-end paper supply chain. When we purchase a vehicle from a customer, we must first pick it up before we pay it off. If our title supply chain is slow, which it is, that adds lead time to the entire process. There is also a fair amount of paperwork. We need a power of attorney and other critical documents. Once we pick it up, we pay off the lienholder. We then need to physically receive the title from the lienholder or the customer. This process can be very, very complicated. When a customer purchases a vehicle, there is a fair amount of paperwork. We are digitizing as much as possible. The deal needs to be completed before we deliver the vehicle. The new lender provides Vroom with the funding. The title and the registration documents then go to our registration partner in each state to work with the DMV to register the car. Once the car is registered, the lienholder can perfect the lien. This is also a very, very complex process. Both buying vehicles and selling vehicles requires us to work with various state and local DMVs based on complex rules and documents requirements, which are different from state to state. Many of the documents in the paper supply chain require wet ink, and many require notarization. It is a true paper supply chain, the movement of paper across the various parties. We have a stated goal to be the best in class at this process. We are working to streamline processes, automate where we can, and develop a state-by-state best practice to increase our speed and lower our cost and dramatically improve the customer experience. One can imagine a day when our various state partners and DMVs move to a more electronic process, and we are hopeful for that one day. Until then, our goal is to optimize the paper supply chain. Slide 58. Today, our registration process has multiple movements of physical paper and is high touch, slow, inefficient, and high cost. When we were small, this process was less challenging. As we scaled the business and as the processes used by DMVs and other partners have evolved, our processes were challenged to keep up with the growth in transaction volume. Slide 59. We've made several improvements over the last few months to improve the speed of our process, which has resulted in reducing the number of touches. Our goal is to streamline the process, become the best in class at titling and registration, and reduce the number of touches by up to 80%. On slide 60. As we've been working to build a well-oiled titling and registration machine, we wanted to make sure that all the vehicles we have listed for sale have the title in-house. As you can see from the complexity of the paper supply chain, this has been complex. We came up with the idea of a digital title vault. In March, we implemented a process where we scan the analog copy of the title and file the analog title in our physical vault. Our OCR engine or optical character recognition reads the key data from the title. We then database-ize the relevant data from the title, which means we add the relevant data to our databases. Most importantly, we interface it with our listing database and system. Once we have the title physically and digitally vaulted, we list the car for sale. Our digital title vault is designed to ensure that we have titles in-house for all vehicles listed for sale. This is an example of how we are moving fast. We ideated this goal, and within weeks, we had a scrappy system executing the goal with 90% accuracy. We continued to fine-tune until we achieved 97% accuracy with very few requiring manual review. While this was live in a scrappy mode, our tech team built it into our production system within a month. That's how we intend to drive projects and leverage tech. We want to leverage tech in days, weeks, and months, not quarters and years. In summary, our goal is to become the best in class in the entire titling and registration process. On slide 61. Our goal by building a well-oiled sales, titling, and registration machine is to improve unit economics by up to $1,700 in the long term. 4 down and only 2 to go. I would now like to turn it over to Rachel Mahoney, our Chief Marketing Officer. Rachel? Thanks, Tom. As Tom mentioned, we are choosing to slow down. With that comes a reduction in marketing investment to better align our total spend with our volume trajectory. We have been and intend to continue to optimize towards the most efficient channels as we pull back. In addition, we have several initiatives we believe can drive further efficiency now and set us up for profitable growth in the future. If you turn to slide 62, then 63, I'd like to begin by highlighting the strong national brand we've built over the past several years. By positioning Vroom as a better way to buy and sell a car and investing in national marketing, we've nearly doubled our awareness in just a few years. Consumers see and hear our brand, remember it, and choose to come directly to vroom.com, and those consumers are extremely valuable. Consumers that search out our brand directly are predisposed to transact online, and they convert to sale at nearly three times the rate of all other lead sources. By continuing to build our brand and the number of consumers coming directly to vroom.com, we believe we will see leverage and marketing economics over time. Despite slowing our spend, we intend to continue to build our brand. We have an opportunity to drive more impressions through earned media by telling the many positive stories in our business. We also have an opportunity to optimize vroom.com to capitalize on organic searchers looking to buy or sell used vehicles. We have historically been focused on investing in and converting paid search traffic for scale. While we will continue to invest and refine our paid marketing, we will also put attention towards grabbing our fair share of organic traffic, bringing even more high intent consumers to vroom.com. If you go to slide 64, I'd now like to speak to the significant opportunity we have to increase conversion of our existing lead base. As Tom and Robbie discussed earlier, UACC is a powerful part of our platform, and that power continues to be seen here when we look at the potential to convert our existing demand. Our lead volume is heavily subprime, which historically converts at low rates. With the direct integration of UACC into Vroom's platform and the wealth of experience UACC brings in assisting subprime consumers, we believe we can significantly increase the conversion of subprime leads to sale. This allows us to drive conversion among consumers already coming to vroom.com, which creates gains and efficiency without further marketing investment. Now I'd like to turn to slide 65 and discuss further conversion opportunities. Our e-commerce site is the ignition to our entire customer experience. We have been focused on building transactional functionality to allow consumers to seamlessly buy or sell their car online. We will now accelerate our A/B testing and experimentation to drive conversion into and through that process. We have a significant amount of traffic on vroom.com each day, and even simple optimizations to our experience, like the one shown here, can have an impact. If you go to the next slide 66, I also wanted to tie back to what Tom spoke about regarding our regional operating model. As we improve the customer experience and deliver vehicles faster, we will have the opportunity to merchandise these selling points to shoppers on vroom.com. We know speed of delivery is an important driver in e-commerce retail broadly, and we believe it will be a conversion driver for our business as well. Next, on slide 67, I want to highlight a relatively untapped area in our business that we believe has potential to drive efficient customer acquisition in the future. Now in our tenth year of business at Vroom, we have a growing base of customers that we can intelligently communicate with based on their past purchase history, promoting vehicles and offers relevant to their needs. A robust CRM database will allow us to segment and personalize all marketing touch points, which has the potential to not only yield higher conversion and lower customer acquisition costs, but also deliver a better customer experience. To summarize, if you go to slide 68, if we strengthen our brand and traffic, increase conversion, and leverage our growing customer base, we believe we can significantly lower our marketing acquisition costs, improve our unit economics, and set us up to invest in profitable growth in the future. Finally, on slide 69, you can see our marketing goal in building a well-oiled transaction machine is to improve unit economics by up to $1,100 in the long term. I would now like to turn the presentation back to Thomas Shortt to recap our long-term roadmap. Thank you, Rachel. On slide 70, we are almost done. We will now bring it all together. Slide 71. We have one more lever to discuss, our fixed cost. I'd like to share with you how we think about fixed costs. First, I hope by now it's clear that a significant amount of our SG&A is variable costs. Variable costs in supply chain, variable costs in selling, variable costs in titling and registration, and variable costs in marketing. Working with private equity in the past helped me realize that there are very few costs that are truly fixed. Perhaps the leadership team on this call, we are all fixed costs. We view most fixed costs as step function fixed costs, both on the way up and on the way down. For example, most companies would view their corporate headquarters as fixed costs. As part of our business realignment plan, we elected to close our New York and Detroit offices. Our associates in those locations largely voted to work virtually. As needed, we'll leverage co-working sites so the teams can get together. We believe we'll replace our $2 million per year New York office fixed cost with variable costs that may be 10%-15% of the cost of the office. As part of the business realignment plan, we eliminated entire functional departments that were generally viewed as fixed costs. Certainly, facilities and trucks are step function fixed costs. We will be vigilant about our fixed costs, both our operating fixed costs and how we invest in CapEx. For example, we recently had a request to approve new trucks. It was a large order. We definitely plan on expanding our fleet. However, we can maximize our liquidity by not investing CapEx ahead of our need. We approved 15% of that initial order. As we monitor the business, we may approve the next 25% in Q3. Our goal is to prudently invest CapEx. Lastly, we expect to grow our fixed cost at a slower rate than our sales in the long run, which we believe will improve unit economics. On slide 72. If we manage our fixed costs and CapEx the way we just outlined, our goal is to improve our fixed cost per unit by up to $2,500 in the long run. You can see from this slide that a significant amount of our SG&A is variable cost. Variable cost for logistics, variable cost for selling, variable cost for titling and registration, and variable marketing costs. A large portion of our costs are variable, and we intend to be prudent on our fixed costs. Accordingly, the actual number of units required to be EBITDA breakeven seems less relevant to us than staying heads down and focused on implementing our four strategic initiatives. We believe our four strategic initiatives are the right initiatives. These are our long-term goals. Slide 73. On this slide, our goal is to bring it all together. The first two numerical columns on the left show our 2021 and Q1 2022 per unit actuals. The next three columns reference the prior slide number 72 and show our goals to improve unit economics from Q1 2022 over the midterm and long term. The last three columns on the far right indicate what our future economics look like if we achieve our goals. Our midterm model is our breakeven, our 0% EBITDA model, and our long-term goals indicate a business with 5%-10% EBITDA. We believe our four strategic initiatives are the roadmap, and the detailed initiatives we've shared with you today are the route to achieve our long-term goals. We expect your first question to be when is midterm and when is long term? As I mentioned in my opening, in my experience, implementing order of magnitude change is rarely a direct route. Implementing this significant change requires the orchestration of all of our Vroommates and our UACC colleagues to stay focused on our four strategic initiatives. Accordingly, today, we will not define when midterm or long term is. As we mentioned earlier, we do not intend to measure ourselves by our roadmap. We will measure our progress by the execution of our route and how it translates into improved customer experience, improved profitability, and improved liquidity. As we travel this route, the quarterly results of our execution will be reflected in our financial statements. From our quarterly financial statements, one may estimate midterm and long term. Thank you for your time today, and I'll turn the call back over to Liam. Thank you, Tom, and to all our presenters this morning. This concludes our prepared remarks and presentation. We're going to now take another five-minute break, and then we will open the Q&A session to financial analysts. You will hear music for the next several minutes. Thank you. Welcome back to Vroom's May 2022 Analyst Day. Operator, we are now ready to begin the live Q&A session. Please open the call for questions. Thank you. Thank you. Ladies and gentlemen, as a reminder to ask the question, you will need to press star then one on your telephone. To withdraw your question, press the pound key. Again, that's star one to ask the question. Please stand by while we compile the Q&A. Our first question comes from the line of Sharon Zackfia with William Blair. Your line is open. Hi. Good morning. I guess two questions. It was a pretty comprehensive presentation with lots of detail. I guess to help us think about prioritization of all of these initiatives, I mean, what would you view as kind of the lowest hanging fruit in what you outlined that can happen most quickly? As you think about all of these these goals, what would be the most difficult? I apologize, my laptop did die for a few minutes in the presentation. Did you mention wholesale optimization at all within the construct of the profitability goals? Is that something that you're looking to emulate like some of your peers, or is it just further down the road, and there's more important things to work on in the near term? Hi, Sharon, it's Tom. Thank you. We did not comment on wholesale goals. It is further down the road for us on our list. We do have a couple of things we're working on, but in the short term, we don't view them as material. How we think about it, there is a fair amount of low-hanging fruit across several of these initiatives, but when you think about the execution of those, how we think about it is things like pricing that only requires math and decisions. Those are things we can move much faster on than things that require physical changes in processes or tech. I would say all four initiatives are in flight at various stages, and some sub-initiatives in each of those categories are progressing faster than others. I'd say there are some sub-initiatives that we haven't started yet. Okay. I'll pass it along and get back in the queue. Thanks. Thank you. Thank you. Next question comes from the line of Rajat Gupta with J.P. Morgan. Your line is open. Hey, good morning. Thanks for taking the questions. Just a couple. You know, the first one is, you know, when you say medium term or longer term, could you help us, you know, give a, you know, a specific timeframe, you know, maybe 2024-2026? Or, you know, just something of that sort that you're targeting. Relatedly, what any color on the unit assumptions that are underlying, you know, the medium or long-term targets? I have a follow-up. Thanks. Hi, Rajat. Thank you for the question. Yeah, we're not guiding on a timeframe for midterm or long term. How we think about it is some of these initiatives we think we'll be able to execute on faster than other initiatives. I'd say grounded on our midterm model is our breakeven model. The levers that you know some will go ahead. We anticipate that some of the levers will get ahead of midterm before all of the levers are at midterm, and some of them will not go at the same pace. Think of it more as our midterm goals that we know create a breakeven model that we're striving for, and then similarly for the long run. As we developed the models, we did put a fair amount of thought into, based on the data that we have and the initiatives underlying them, what we think realistic opportunities are, and that's really what's on slide 72. Then when it comes to units, one of our goals today was really to articulate that when you look at SG&A, a significant amount of SG&A is variable. Right now, we don't believe that the number of units is super determinative in terms of when you can break even. Got it. And maybe a question, you know, more on the near term, but by near term, I mean, like, you know, next six- 12 months, you know, into 2023. Are there any scenarios you could lay out for us on how you manage, you know, different economic environments? You know, it seems like the starting point for a potential economic downturn this time is very different from prior ones. You know, rates are rising. You know, used car prices are starting at a 40% above normal level. You know, the auto lending environment has still remained pretty strong. How would you manage a potentially faster than expected used car price decline in a downturn and also maybe, you know, the securitization markets getting tougher at the same time? You know, maybe like any color you could share on, you know, what the GPU or, you know, EBITDA or cash implications could be in different scenarios. You know, say used car pricing down 10% from today or 20% from today in the next 12 months. How do you build cushion to manage such an environment? Thanks. Yeah. Thanks. Appreciate that question, Rajat. The way we think about it is there is a wealth of opportunities for us to go after just inside of our business, regardless of what happens externally. That's really what we're focused on over the next 12 months or so, you know, as we guided in our last earnings call, as we guided units down, it's because we are really focused on building a well-oiled machine. I think when you think about the external market factors for used car prices, what we're seeing today is a relatively stable market, and that's what the third-party data that we're reading seems to indicate. New car inventories are still low. Our key initiative around improving the speed of the supply chain to improve our inventory turns is one of the things we are focused on, and we believe that would help in the event that there is a significant decline in used car prices. That's one that we're really focused on in the short term. Rajat, this is Bob. I just wanted to add to Tom's comments that you know we talked about it on the call last week as well. We are absolutely committed to living within our means, you know, and you know we're keeping our finger on the pulse of what's happening in the economic environment on a daily basis, and you would expect us to respond accordingly as we you know as we manage to our midpoint cash goal at the end of the year to have a half a billion dollars of liquidity. The only other thing I'd add to that is how we're thinking about this is heads down, build these well-oiled machines. Even if there is an economic downturn, we believe that the market is so massive and e-commerce penetration is so low that there will still be ample opportunity for us to grow when we're ready to grow. That's how we're thinking about it. Yeah, Ravi, I don't know if you want to add anything about UACC managing through cycles as well? Sure. On the securitization side, we'll continue to manage as we have in the past, which is always maintain a significant amount of excess borrowing capacity. You know, if there's a tough, difficult time in the capital markets, be able to withstand that as we have in the past, even though there's an additional cost to do that. Understood. Great. Thank you, and good luck. Thank you. Thanks, Rajat. Thank you. Our next question comes from the line of Zachary Fadem with Wells Fargo. Your line is open. Hey, guys. It's Sam Reid filling in for Zach here. Thanks so much for taking my question. Understand you're a bit unit agnostic and totally appreciate that. That said, I wanted to maybe approach the unit question in a slightly different way. You know, do you at least have a sense as to what the minimum number of units you need in order to get to your goals? Then I guess more broadly, how should units play out over the long term, and where do units along with top line growth fall in your priority pecking order? Thanks so much. Can you repeat just the last part of your question, please? Yeah. No, just more where do units along with, you know, top line growth more broadly fall in your pecking order of priorities? Yeah. Kind of, it's indicative in our guidance last quarter, which is we're not super focused on unit growth at all right now. I'd probably say it's last in our priority, and that we're really focused on building the well-oiled machine to produce the right unit economics. As we do that, then we'll move towards growing with the appropriate unit economics. That's how we're thinking about it. We're really not focused on units in the short term. Got you. No, that's super helpful. Maybe just squeezing one more in here. You know, can you give us a little bit more detail on how reconditioning capacity looks in the near term as you know, maybe transition away from ADESA? You know, just walk through some additional thoughts on the process and how you think it's gonna play out, you know, and anything we should be mindful of as we're modeling the business out as well. Thanks so much. Yeah. Thank you. Appreciate that question. Reconditioning, we feel like we're in good shape now. We feel like we're on track to exit the ADESA locations. We've got great partners, plus we have our own reconditioning capacity. Frankly, with what we're doing with units and our focus on profitability, we probably have more capacity than we need at the current time. When we decide it's the appropriate time to grow, we'll be thoughtful in terms of ensuring that we have additional capacity. We feel very good about the partnerships that we have today, as well as we mentioned last quarter. We are exploring opening another low capital reconditioning center of our own. As we indicated in the presentation today, we're gonna be very prudent with how we invest fixed costs. We're gonna be very thoughtful about when we would do that. Gotcha. No, that's really. Thank you. That's really helpful. Thanks so much, guys. Thank you. Thank you. Our next question comes from the line of Colin Sebastian with Baird. Your line is open. All right, thanks. Good morning, everybody. Appreciate the presentation. The per unit savings look quite compelling, at least on paper. Maybe hoping you could drill down a little bit more in maybe one or two of the areas to understand what's required, or what the costs you're incurring today versus, you know, how you can extract those savings. Maybe helpful for me would be in the title and registration process with that $1,700 improvement per unit. Could you put a finer point maybe on what the costs are today, and then, you know, how exactly you get $1,700 of savings in those, in that specific process? I think. You did touch on this, but maybe just going through that again in a little more detail might help put some context around the numbers that are on the paper. Thanks. Hi, Colin. It's Tom. Thanks for the question. One, just to clarify, the $1,700 dollar bucket includes selling, titling, and registration. We do not plan on sharing current costs within SG&A. In future quarters, we're not gonna change our presentation. We wanted to give you a sense for what's in SG&A because we believe that we wanted to make clear that a significant amount of it is SG&A. Between selling, titling, and registration, we do believe there's a long-term opportunity of up to $1,700 if we're successful in executing our initiatives. It really comes down, and we only spent a couple minutes on the slides, but it's a very manual, tedious process that has been challenging for us. We've just developed ideas on how we can automate certain steps, digitize certain steps, and really increase the speed of both selling, titling, and registration and how it connects with our e-commerce site to make things more fluid and self-service. Really that's the essence behind if we remove all those touches and all those steps, our costs go down just from external BPO resources, internal resources, postage and mailing, phone calls, et cetera. We have fairly detailed plans that if we're successful, we believe that that's the long-term potential. Okay. On the pricing side, could you just talk a little bit more about that, what that means? It sounds like that means overall prices are going up a little bit. In addition to that, you layer on the additional variable shipping costs, passing through that to consumers. Can you talk about what that means, you know, overall on an average pricing basis as you look ahead? Yeah. I can share how we're thinking about it. One, and it's worth noting, the four initiatives that we've described today, we'll be talking about those for the next few years because we view these initiatives on a continuum. I think that the opportunity in pricing, when you think about all the different dimensions that we can optimize pricing, inventory turn velocity, and unit economics around, I think we'll be working on those for years to come. In the short term, we've done things like just made decisive decisions. We can't afford to ship a car all the way across country and eat the cost of all of that. We've made decisive actions on what we're gonna do. As it relates to pricing, we've developed more models recently to help us think differently about pricing and how competitive we are in the market. As we see those things, we're making those changes. They're relatively easy to make because it's just math and putting it in the system compared to titling and registration, where we have multiple parties that we need to make improvements to the process. Colin, just the one thing. This is Bob. One thing that I wanted to add to it is, you know, we're working both sides of the equation as well. We're working on the acquisition side as well, on the acquisition pricing, and that's been, you know, that's been an important change in terms of some of the things that Tom has been driving with the team as well. We've been just a different philosophy about how we're purchasing our vehicles as well. Yeah. It will take time when we talk about assortment optimization. That's an initiative that we're just beginning, and that will take several times, and that's one that I think we'll be working on for several years with the goal of getting incremental improvements each year as we find new dimensions to optimize our assortment regionally. Okay, got it. Thank you very much. Thank you, Colin. Thank you. Our next question comes from the line of Naved Khan with Truist. Your line is open. Hi. Thanks. This is Robert Zeller. I'm from Naved Khan. Thanks for taking the question. It looks like Vroom has done a really good job of getting customers in the door previously. If the company is gonna be pulling back on S&M costs and combined with the title and registration issues that it had recently, what gives you all confidence that consumers are going to turn to Vroom organically now? Hey, Robert. Thanks for the question. I'll start off and then maybe turn it over to Rachel to add some additional color. We have a significant amount of traffic that already comes organically to Vroom that we're not converting today for several reasons. One of which she mentioned is a huge amount of our traffic is for the subprime customer, and our conversion of that traffic is not where we'd like it to be. We believe with the power of UACC and their ability in subprime, that that can increase the conversion of our subprime customers. Rachel, anything you'd like to add? Yeah. I would just say that, you know, what we've seen is the value proposition for the brand is really strong, and we won't stop investing to tell that story and message either through paid media or earned media. We think there's opportunity to continue to tell that story. As we mentioned, our awareness in the market, while growing, is about half of top competitors, so there's tons of upside there. Then the other thing I would say is just on our organic search traffic, we've really been focused, and heavily skewed towards paid search right now. We know based on some of our analytics that there's just a lot of opportunity for us to improve our website to grab some more of the organic traffic share. We feel about building the brand and getting more organic traffic share that there's upside there. Robert, just I want to add one thing. I just want to make sure that everybody understands that we continue to spend on marketing, although we have reduced it. We talked about this on the call, on the earnings call, that we're focusing on the higher ROI areas with respect to our marketing spend. I want to make sure that everybody understands that we are still investing in the customer, but we're just doing it with the highest payback that we have available to us. Okay. Thank you. Thank you. Next question comes from the line of Seth Basham with Wedbush Securities. Your line is open. Thanks a lot and good morning, and thanks for the presentation. You hinted at this. Can you clarify which levers in your plan will scale fastest, like pricing versus those that will scale slowest? Yeah. Hey, Seth. It's Tom. I think the end-to-end supply chain to roll that out fully, that takes a fair amount of time. The way we think about each of these initiatives is like the regional operating model pilot. We'll start getting benefits on each of the initiatives, but in terms of it being what I would say a well-oiled machine end to end, we view that as taking a couple of years. Some of the pricing things that we talked about, we think we can make improvement on those faster, but I also think we'll be improving those for several years and continue to get benefit each year from those. Selling, titling, registration, we are completely focused on titling and registration, and we're hopeful that that we see improvements there much faster. We think selling will take a bit longer, and we think marketing's a long-term improvement initiative as well. That can give you a little bit of color, if that helps. Yeah, that is helpful. Just a corollary question is, now which pieces of the plan do you have the most confidence in versus less confidence? Would it be the stuff that you see visibility to improving in the very near term, you have the most confidence in? Yeah. I would say that we tried to articulate in the deck, the opportunities that we see, like reducing miles, ensuring that we're priced competitively. I think we have confidence in all of our initiatives that they're the right initiatives. Our goal would be to show the execution of those in our quarterly financial statements. All right. Fair enough. One last question, if I may. Looking more at the near term, the balance of 2022 from a marketing standpoint, what are we expecting from a traffic and conversion standpoint? Yeah, I think we won't comment on specific numbers, but in terms of traffic, like Bob mentioned, we'll continue to invest, and so we expect to see, you know, traffic increase, though at a slower rate than it has in the past. From a conversion standpoint, I think, you know, we laid out opportunities across a couple of different initiatives, the website, but as well, you know, excuse me, through UACC. While we haven't given specific time frames to those initiatives are starting now. You know, we expect or we believe we'll see some yield from that in the near term. Thank you. Thank you. As a reminder, ladies and gentlemen, that's star one to ask the question. We have a follow-up question from the line of Sharon Zackfia. Your line is open. Hi. Just a quick question, I think. On the long-term goal to get product GPPU to the $2,400-$2,500 range, did you talk about, and did I miss kind of what the implied capture is, for direct lending within that? Yeah. Just for clarity, the product GPPU is 1,300 in the long term goal on slide 72, and then the vehicle GPPU, which would be pricing, shipping fees, et cetera, is 1,300. For the pricing, 1,300. How much is related to the lending to UACC? Yeah. We're not breaking out how much is related to UACC versus value-added products. We are very focused on integrating UACC into the business. As we've indicated, they're already originating loans to Vroom customers. Sorry. The $2,400-$2,500 I was referencing was not just the improvement, it would be the actual profit per car? Yeah. I only ask because that would be approaching kind of where Carvana and CarMax are, who have a significant amount of capture, you know, in their captive finance. I think it's helpful to kind of know where you expect to go long term in terms of the percent of loans you expect to be financed internally versus third party. Yeah. Over the long term, we would expect to have a you know, a comparable ratio to Carvana or CarMax and move as many of our customers through the captive lending platform as we possibly can. That, we're starting with the subprime side. We've gotten off to a strong start on subprime originations, and we started there with UACC, and then we're gonna work our way through the credit spectrum as we continue to integrate the business. Okay. Then one clarifying question. Just on the implied quarterly run rate for the EBITDA loss, are you inferring that that would be as well kind of what you would see for an EBITDA loss in the second quarter? Or are you just doing simple math there for a full year divided by three? I'm not giving any guidance for the second quarter, Sharon. I'm just saying if you just. Okay. If you just take what we've implied and you adjust out the non-recurring expenses that we're going to incur this year, this is just the average of our performance net of those two items. It's just math. Okay, great. Just wanted to clarify that. Thank you. Yep. Sharon, I just wanna make sure that we clarified. If you look at slide 73, in the middle is the per unit improvement. If I'm focused on long-term high end of the range, the e-commerce vehicle GPPU goal would be to improve $1,300. The product GPPU goal would be to improve 1,300. The total of those two is 2,600. Then on the far right is what the per unit future goal would be. It'd be 1,895 for vehicle gross profit and 2,468 for product. Yeah, I see that. I was talking about the long-term e-commerce product gross profit per unit, which was the $2,368-$2,468. I think we're on the same page. Okay? Thank you. Yeah. Thanks, Sharon. Thank you. We have a follow-up from the line of Colin Sebastian with Baird. Your line is open. Thanks. You may have actually hit on this, but maybe for Rachel. In terms of how quickly you can pivot on the marketing side, and any more specific information on which channels you're using, you know, more offline or traditional versus some of the more performance programmatic online channels, what's working the best, what's the most cost effective for you? I think some of that detail might be helpful. Thank you. Yeah. Thank you. I can tell you that we've already started making shifts, you know, earlier this year, a couple of months ago, into the higher ROI channels. We continue to employ a full marketing mix, offline, online, third-party programmatic. I won't get into specifics around the breakdown, but, essentially, we look at it as a full marketing mix, knowing we have, you know, the opportunity to bring people top of funnel still but also convert them through. You know, as we've said, we're just focused on making sure that we're pushing the highest ROI channels and shifting further dollars there. That's already. We've already started making those shifts, and are actively working that. Okay, thank you. Thank you. I have a follow-up from the line of Rajat Gupta with J.P. Morgan. Your line is open. Oh, great. Thanks for the follow-up. You know, Tom, yeah, as you and your team execute on these targets, what would you believe will be Vroom's competitive moat, you know, say, five-10 years from now? You know, a lot of initiatives around, you know, GPPU that you highlighted and getting there. I mean, looks like a lot of the large independent and franchise dealers already have similar GPP economics today. You know, also things like OCR, you know, 15-20 minute checkout process, you know, regional shipping. I mean, all of them already have that today. Curious, like what's the end goal here, you know? And what would you view will be your, you know, advantageous position, you know, once you execute or once you hit these targets? Yeah. Thanks for that question,Rajat. I think connecting all of these on a large scale, regionally and nationally. If we achieve our goal of being best in class at titling and registration across the country, the ability to have a very large assortment of vehicles transported cost effectively via our own line haul, and the ability to deliver a very large assortment fast to our customers. I think the elements that Rachel's working on in terms of CRM and building, you know, things like the lifetime value of the customer as well as the power of UACC and their financing model. When you connect the data of all those things, we think there's an opportunity to really become part of the customer's life cycle in buying and selling vehicles over time. Like, does that infrastructure also allow you to go into more adjacencies? Is that an area, you know, that it will allow you to explore into, you know, maybe third party sales or like some logistics play or something of that sort? Yeah, we've definitely thought of plays like, you know, fulfilled by Amazon that they have and things like that, but they're not currently on our roadmap. We think we have to build these well-oiled machines first. To your point, there are other adjacencies that we think we could explore down the road once we build this foundation. Got it. Great. Thanks for the call. Thank you. Thank you. There are no further questions in the queue. I would now like to turn the call back over to Liam Harrington for closing remarks. Thank you, operator, and thank you again to everyone that participated in today's call. This concludes our presentation and Q&A session. Thomas Shortt will now provide his closing remarks. Tom. Thank you everyone for your time today, and we look forward to sharing our second quarter results with you in early August. Thanks, and have a fantastic day.