Why did VRM's Q1 2024 EPS miss forecasts so badly?

Vroom's Q1 2024 EPS missed forecasts due to several strategic decisions and operational challenges: 1. **Discontinuation of E-commerce Operations**: Vroom decided to discontinue its e-commerce operations and wind down its used vehicle dealership business to preserve liquidity and optimize stakeholder value. This strategic move resulted in a substantial loss of $80.51 per share, as the company sold substantially all of its used vehicle inventory. 2. **Inventory Liquidation and Wind-down Costs**: The process of liquidating inventory and winding down operations incurred significant costs, which adversely affected the company's financial performance. The company reported a net loss of $141.3 million in the fourth quarter, indicating the substantial expenses associated with these activities. 3. **Operational Inefficiencies**: Vroom faced operational inefficiencies, including a decline in ecommerce units sold and ecommerce gross profit per unit. These inefficiencies likely contributed to the company's financial losses and missed earnings expectations. In conclusion, Vroom's Q1 2024 EPS miss was primarily due to the strategic decision to wind down operations, which resulted in significant losses, and operational inefficiencies. These factors combined to create a challenging financial period for the company.