Achieves positive Net Income margin and
industry-leading Adjusted EBITDA margin while growing retail units
16% year-over-year
Sets new Q1 records on key profitability
metrics: Net Income $49 million; Adjusted EBITDA $235 million
Carvana expects sequential increases in YoY
retail unit growth rate and Adjusted EBITDA in Q21
Carvana Co. (NYSE: CVNA), the leading e-commerce platform for
buying and selling used cars, today announced financial results for
the quarter ended March 31, 2024. Carvana’s complete first quarter
2024 financial results and management commentary can be found by
accessing the company’s shareholder letter on the quarterly results
page of its Investor Relations website.
“In the first quarter, we delivered our best results in company
history, validating our long-held belief that Carvana’s online
retail model can drive industry-leading profitability while
delivering industry-leading customer experiences. We reached new Q1
milestones for all key profitability metrics while also growing 16%
year over year,” says Ernie Garcia, Carvana Founder and Chief
Executive Officer. “With these strong results, significant
fundamental margin opportunities ahead, and a nationwide
infrastructure that can support multiples of our current scale, we
have never been more confident in our opportunity to become the
largest and most profitable automotive retailer and to buy and sell
millions of cars."
Q1 2024 Highlights
In Q1 2024, Carvana sold 91,878 retail units (+16% YoY) for
total revenue of $3.061 billion (+17% YoY) while reaching new
profitability milestones, including:
- Record Q1 Net Income of $49 million2 and Net Income margin of
1.6%
- Record Adjusted EBITDA of $235 million
- Record 7.7% Adjusted EBITDA margin, higher than all U.S.
publicly traded automotive retailers in Q1
- Record GAAP Operating Income of $134 million
- Record Q1 Total Gross Profit per Unit (“GPU”) of $6,432
(+$2,129 YoY) and Non-GAAP Total GPU of $6,802 (+$2,006 YoY)
In addition, Carvana’s Adjusted EBITDA now significantly exceeds
capital expenditures and interest expense, and the company plans to
pay cash interest on its 2028 and 2030 Senior Secured Notes on both
semiannual payment dates in 2025.
Outlook
Looking toward the second quarter of 2024, Carvana expects the
following as long as the environment remains stable:
- A sequential increase in its year-over-year growth rate in
retail units, and
- A sequential increase in Adjusted EBITDA1
With strong results in Q1 and outlook for Q2, Carvana expects to
comfortably deliver on its outlook of year-over-year growth in
retail units sold and Adjusted EBITDA for FY 2024.
_______________
1 In order to clearly demonstrate our progress and highlight the
most meaningful drivers within our business, we continue to use
forecasted Non-GAAP financial measures, including forecasted
Adjusted EBITDA. We have not provided a quantitative reconciliation
of forecasted GAAP measures to forecasted Non-GAAP measures within
this communication because we are unable, without making
unreasonable efforts, to calculate one-time or restructuring
expenses. These items could materially affect the computation of
forward-looking Net Income (loss).
2 Net income included a ~$75 million gain in the fair value of
Carvana’s warrants to acquire Root common stock. This gain did not
impact GPU or Adjusted EBITDA.
Conference Call Details
Carvana will host a conference call today, May 1, 2024, at 5:30
p.m. ET (2:30 p.m. PT) to discuss financial results. To participate
in the live call, analysts and investors should dial (833) 255-2830
or (412) 902-6715. A live audio webcast of the conference call
along with supplemental financial information will also be
accessible on the company's website at investors.carvana.com.
Following the webcast, an archived version will also be available
on the Investor Relations section of the company’s website. A
telephonic replay of the conference call will be available until
Wednesday, May 8, 2024, by dialing (877) 344-7529 or (412) 317-0088
and entering passcode 4829760#.
Forward Looking
Statements
This letter contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements reflect Carvana’s current
expectations and projections with respect to, among other things,
its financial condition, results of operations, plans, objectives,
strategy, future performance, and business. These statements may be
preceded by, followed by or include the words "aim," "anticipate,"
"believe," "estimate," "expect," "forecast," "intend," "likely,"
"outlook," "plan," "potential," "project," "projection," "seek,"
"can," "could," "may," "should," "would," "will," the negatives
thereof and other words and terms of similar meaning.
Forward-looking statements include all statements that are not
historical facts, including expectations regarding our operational
and efficiency initiatives, our strategy, expected gross profit per
unit, forecasted results, potential infrastructure capacity
utilization, efficiency gains and opportunities to improve our
results, including opportunities to increase our margins and reduce
our expenses, potential normalization of inventory, potential
benefits from new technology, and our long-term financial goals and
growth opportunities. Such forward-looking statements are subject
to various risks and uncertainties. Accordingly, there are or will
be important factors that could cause actual outcomes or results to
differ materially from those indicated in these statements. Among
these factors are risks related to: the larger automotive
ecosystem, including consumer demand, global supply chain
challenges, and other macroeconomic issues; our ability to utilize
our available infrastructure capacity and realize the expected
benefits therefrom, including increased margins and lower expenses;
our ability to scale up our business; our ability to raise
additional capital and our substantial indebtedness; our history of
losses and ability to maintain profitability in the future; our
ability to effectively manage our historical rapid growth; our
ability to maintain customer service quality and reputational
integrity and enhance our brand; the seasonal and other
fluctuations in our quarterly operating results; our relationship
with DriveTime and its affiliates; the highly competitive industry
in which we participate, which among other consequences, could
impact our long-term growth opportunities; the changes in prices of
new and used vehicles; our ability to normalize our inventory or
acquire desirable inventory; our ability to sell our inventory
expeditiously; and the other risks identified under the “Risk
Factors” section in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2023.
There is no assurance that any forward-looking statements will
materialize. You are cautioned not to place undue reliance on
forward-looking statements, which reflect expectations only as of
this date. Carvana does not undertake any obligation to publicly
update or review any forward-looking statement, whether as a result
of new information, future developments, or otherwise.
Use of Non-GAAP Financial
Measures
To supplement the consolidated financial measures, which are
prepared and presented in accordance with GAAP, we also refer to
the following non-GAAP measures in this press release: Adjusted
EBITDA; Adjusted EBITDA Margin; Gross Profit, non-GAAP; and Total
gross profit per retail unit, non-GAAP.
Adjusted EBITDA is defined as net income (loss) plus income tax
provision (benefit), interest expense, other operating expense
(income), net, other expense (income), net, depreciation and
amortization expense in cost of sales and SG&A, goodwill
impairment, share-based compensation expense in cost of sales and
SG&A, and restructuring expense in cost of sales and SG&A
expenses, minus revenue related to our Root Warrants and gain on
debt extinguishment. Adjusted EBITDA margin is Adjusted EBITDA as a
percentage of total revenues.
Gross profit, non-GAAP is defined as GAAP gross profit plus
depreciation and amortization expense in cost of sales, share-based
compensation expense in cost of sales, and restructuring expense in
cost of sales, minus revenue related to our Root Warrants. Total
gross profit per retail unit, non-GAAP is Gross profit, non-GAAP
divided by retail vehicle unit sales.
We believe that these metrics are useful measures to us and to
our investors because they exclude certain financial, capital
structure, and non-cash items that we do not believe directly
reflect our core operations and may not be indicative of our
recurring operations, in part because they may vary widely across
time and within our industry independent of the performance of our
core operations. We believe that excluding these items enables us
to more effectively evaluate our performance period-over-period and
relative to our competitors.
For the Three Months
Ended
(dollars in millions, except per unit amounts) Mar 31,
2023 Mar 31, 2024 Net income (loss)
$
(286
)
$
49
Income tax benefit
(2
)
(1
)
Other income, net
(3
)
(87
)
Interest expense
159
173
Operating income (loss)
(132
)
134
Other operating expense, net
1
1
Depreciation and amortization expense in cost of sales
44
39
Depreciation and amortization expense in SG&A expenses
49
43
Share-based compensation expense in SG&A expenses
15
23
Root warrant revenue
(5
)
(5
)
Restructuring expense
4
-
Adjusted EBITDA
$
(24
)
$
235
Total revenues
$
2,606
$
3,061
Net income (loss) margin
(11.0
)%
1.6
%
Adjusted EBITDA margin
(0.9
)%
7.7
%
Gross profit
$
341
$
591
Depreciation and amortization expense in cost of sales
44
39
Root warrant revenue
(5
)
(5
)
Gross profit, non-GAAP
$
380
$
625
Retail vehicle unit sales
79,240
91,878
Total gross profit per retail unit
$
4,303
$
6,432
Total gross profit per retail unit, non-GAAP
$
4,796
$
6,802
About Carvana (NYSE: CVNA)
Carvana’s mission is to change the way people buy and sell cars.
Over the past decade, Carvana has revolutionized automotive retail
and delighted millions of customers with an offering that is fun,
fast, and fair. With Carvana, customers can choose from tens of
thousands of vehicles, get financing, trade-in, and complete a
purchase entirely online with the convenience of home delivery or
local pick up in over 300 U.S. markets. Carvana’s vertically
integrated platform is powered by its passionate team, unique
national infrastructure, and purpose-built technology. Carvana is a
Fortune 500 company and is proud to be recognized by Forbes as one
of America’s Best Employers.
For more information, please visit www.carvana.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240501541597/en/
Investors: Carvana Mike McKeever investors@carvana.com
or
Media: Carvana press@carvana.com
Carvana (NYSE:CVNA)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
Carvana (NYSE:CVNA)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024