Segment Information

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Segment Information

13. Segment Information

The Company has three reportable segments: Ecommerce, TDA, and Wholesale. 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 December 31, 2019 and June 30, 2020, the Company did not have any assets located outside of the United States.

The Ecommerce reportable segment represents retail sales of used vehicles through the Company’s ecommerce platform and fees earned on sales of value-added products associated with those vehicle sales. The TDA reportable segment represents retail sales of used vehicles from TDA and fees earned on sales of value-added products associated with those vehicle sales. The Wholesale reportable segment represents sales of used vehicles through wholesale auctions.

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

	Three Months Ended June 30, 2019
	Ecommerce		TDA		Wholesale			Consolidated
Revenues from external customers	$	120,953	$	85,413	$	54,531		$	260,897
Gross profit	$	7,295	$	6,101	$	449		$	13,845
	Three Months Ended June 30, 2020
	Ecommerce		TDA		Wholesale			Consolidated
Revenues from external customers	$	175,568	$	26,604	$	50,921		$	253,093
Gross profit (loss)	$	7,219	$	931	$	(543	)	$	7,607
	Six Months Ended June 30, 2019
	Ecommerce		TDA		Wholesale			Consolidated
Revenues from external customers	$	210,808	$	178,497	$	106,651		$	495,956
Gross profit	$	13,049	$	12,179	$	629		$	25,857
	Six Months Ended June 30, 2020
	Ecommerce		TDA		Wholesale			Consolidated
Revenues from external customers	$	408,740	$	113,628	$	106,497		$	628,865
Gross profit (loss)	$	21,486	$	6,346	$	(1,838	)	$	25,994

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

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2020			2019			2020
Segment gross profit	$	13,845		$	7,607		$	25,857		$	25,994
Selling, general and administrative expenses		43,692			47,911			80,275			106,291
Depreciation and amortization		1,501			1,083			3,034			2,049
Interest expense		3,388			1,297			6,106			4,123
Interest Income		(1,415	)		(715	)		(3,264	)		(2,671	)
Revaluation of preferred stock warrant		60			21,260			142			20,470
Other income, net		(12	)		(53	)		(31	)		(86	)
Loss before provision (benefit) for income taxes	$	(33,369	)	$	(63,176	)	$	(60,405	)	$	(104,182	)