Segment Information

9 Months Ended

Sep. 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 September 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 September 30, 2019
	Ecommerce		TDA		Wholesale		Consolidated
Revenues from external customers	$	178,113	$	103,106	$	59,054	$	340,273
Gross profit	$	8,774	$	6,650	$	247	$	15,671
	Three Months Ended September 30, 2020
	Ecommerce		TDA		Wholesale		Consolidated
Revenues from external customers	$	221,761	$	37,272	$	63,972	$	323,005
Gross profit	$	19,304	$	2,798	$	3,343	$	25,445
	Nine Months Ended September 30, 2019
	Ecommerce		TDA		Wholesale		Consolidated
Revenues from external customers	$	388,921	$	281,603	$	165,705	$	836,229
Gross profit	$	21,823	$	18,830	$	875	$	41,528
	Nine Months Ended September 30, 2020
	Ecommerce		TDA		Wholesale		Consolidated
Revenues from external customers	$	630,501	$	150,901	$	170,469	$	951,871
Gross profit	$	40,789	$	9,144	$	1,506	$	51,439

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

	Three Months Ended September 30,						Nine Months Ended September 30,
	2019			2020			2019			2020
Segment gross profit	$	15,671		$	25,445		$	41,528		$	51,439
Selling, general and administrative expenses		50,934			61,127			131,209			167,418
Depreciation and amortization		1,517			1,191			4,551			3,239
Interest expense		3,797			2,259			9,903			6,382
Interest Income		(1,190	)		(1,289	)		(4,454	)		(3,960	)
Revaluation of preferred stock warrant		373			—			515			20,470
Other income, net		(44	)		(26	)		(75	)		(111	)
Loss before provision for income taxes	$	(39,716	)	$	(37,817	)	$	(100,121	)	$	(141,999	)