Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

18. Segment Information

As part of the Realignment Plan, initiated in the second quarter of 2022, the Company streamlined TDA's operations and closed its service center. The Company also reevaluated its reporting segments based on relative revenue and gross profit and significance in the Company's long term strategy. As a result of the quantitative analysis, the Company determined to no longer report TDA as a separate segment. The Company now presents three reportable segments: Ecommerce, Wholesale, and Retail Financing. The Company reclassified TDA revenue and TDA gross profit for the comparative period from the TDA reportable segment to the “All Other” category to conform to current year presentation. 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, 2022 and December 31, 2021, 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, fees earned on vehicle financing originated by UACC or our 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, 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
	Three Months Ended June 30, 2021
	Ecommerce		Wholesale			Retail Financing		All Other(1)		Total
Revenues from external customers	$	579,663	$	128,108		$	—	$	54,119	$	761,890
Gross profit	$	49,638	$	8,516		$	—	$	4,974	$	63,128

	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
	Six Months Ended June 30, 2021
	Ecommerce		Wholesale			Retail Financing		All Other(1)		Total
Revenues from external customers	$	1,001,971	$	246,132		$	—	$	104,905	$	1,353,008
Gross profit	$	81,475	$	8,234		$	—	$	9,595	$	99,304

(1)The Company reclassified TDA revenue and TDA gross profit from the TDA reportable segment to the “All Other” category to conform to current year presentation.

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,
	2022			2021			2022			2021
Reconciliation to consolidated total revenue
Total reportable segment revenue	$	436,654		$	707,771		$	1,299,688		$	1,248,103
All Other revenues		38,783			54,119			99,524			104,905
Consolidated total revenue	$	475,437		$	761,890		$	1,399,212		$	1,353,008
Reconciliation to consolidated loss before provision for income taxes
Total reportable segment gross profit	$	60,295		$	58,154		$	136,824		$	89,709
All Other gross profit		6,062			4,974			11,173			9,595
Selling, general and administrative expenses		152,990			123,898			340,984			232,764
Depreciation and amortization		10,039			3,058			17,895			5,900
Impairment charges		3,407			—			205,110			—
Interest expense		9,533			3,880			18,913			7,692
Interest Income		(3,935	)		(2,062	)		(7,887	)		(4,358	)
Other loss (income), net		9,156			(33	)		21,514			(48	)
Consolidated loss before provision for income taxes	$	(114,833	)	$	(65,613	)	$	(448,532	)	$	(142,646	)