Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

18. Segment Information

The Company has three reportable segments: Ecommerce, Wholesale, and Retail Financing. No operating segments have been aggregated to form the reportable segments.

The Company determined its operating segments based on how the chief operating decision maker (“CODM”) reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews revenue and gross profit for each of the reportable segments. Gross profit is defined as revenue less cost of sales incurred by the segment. The CODM does not evaluate operating segments using asset information as these are managed on an enterprise-wide group basis. Accordingly, the Company does not report segment asset information. As of June 30, 2023 and December 31, 2022, long-lived assets were predominantly located in the United States.

The Ecommerce reportable segment represents retail sales of used vehicles through the Company’s ecommerce platform, revenue earned on vehicle financing originated by UACC or the Company's third-party financing sources and sales of value-added products associated with those vehicles sales. The Wholesale reportable segment represents sales

of used vehicles through wholesale channels. The Retail Financing reportable segment represents UACC’s operations with its network of third-party dealership customers, including the purchases and servicing of vehicle installment contracts. Revenues within the "All Other" category consist of retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicles sales and the CarStory business.

Information about the Company’s reportable segments are as follows (in thousands):

	Three Months Ended June 30, 2023
	Ecommerce		Wholesale			Retail Financing		All Other		Total
Revenues from external customers	$	138,225	$	30,800		$	42,128	$	14,025	$	225,178
Gross profit	$	12,189	$	(3,993	)	$	34,068	$	3,737	$	46,001
	Three Months Ended June 30, 2022
	Ecommerce		Wholesale			Retail Financing		All Other		Total
Revenues from external customers	$	321,632	$	82,901		$	32,121	$	38,783	$	475,437
Gross profit	$	33,509	$	(1,934	)	$	28,720	$	6,062	$	66,357

	Six Months Ended June 30, 2023
	Ecommerce		Wholesale			Retail Financing		All Other		Total
Revenues from external customers	$	273,858	$	44,695		$	74,116	$	28,976	$	421,645
Gross profit	$	22,223	$	(3,931	)	$	59,842	$	6,672	$	84,806
	Six Months Ended June 30, 2022
	Ecommerce		Wholesale			Retail Financing		All Other		Total
Revenues from external customers	$	996,995	$	222,885		$	79,808	$	99,524	$	1,399,212
Gross profit	$	67,828	$	(4,686	)	$	73,682	$	11,173	$	147,997

The reconciliation between reportable segment gross profit to consolidated loss before provision (benefit) for income taxes is as follows (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2023			2022			2023			2022
Reconciliation to consolidated total revenue
Total reportable segment revenue	$	211,153		$	436,654		$	392,669		$	1,299,688
All Other revenues		14,025			38,783			28,976			99,524
Consolidated total revenue	$	225,178		$	475,437		$	421,645		$	1,399,212
Reconciliation to consolidated loss before (benefit) provision for income taxes
Total reportable segment gross profit	$	42,264		$	60,295		$	78,134		$	136,824
All Other gross profit		3,737			6,062			6,672			11,173
Selling, general and administrative expenses		86,955			152,990			183,492			340,984
Depreciation and amortization		10,304			10,039			20,835			17,895
Impairment charges		1,353			3,407			1,353			205,110
Gain on debt extinguishment		(10,931	)		—			(19,640	)		—
Interest expense		8,938			9,533			18,857			18,913
Interest Income		(4,921	)		(3,935	)		(10,863	)		(7,887	)
Other loss, net		20,236			9,156			31,476			21,514
Consolidated loss before provision (benefit) for income taxes	$	(65,933	)	$	(114,833	)	$	(140,704	)	$	(448,532	)