CARVANA CO. Annual Report, Year Ended Dec 31, 2017

Carvana Co. (CVNA) reported significant year-over-year revenue growth in its 2017 10-K filing, driven primarily by a substantial increase in used vehicle sales. The company expanded its market presence, doubling the number of operational markets from 21 to 44, which directly correlated with a 135.9% increase in retail unit sales. Despite this top-line growth, Carvana continued to operate at a net loss, with losses widening compared to the previous year, largely due to increased selling, general, and administrative expenses associated with its aggressive expansion strategy. The company successfully completed its Initial Public Offering (IPO) in May 2017, raising significant capital, and also secured additional funding through the sale of convertible preferred stock. This capital is being utilized to fuel further market expansion, technology investments, and general corporate purposes. Carvana's business model relies on scaling its e-commerce platform and vertically integrated supply chain to achieve economies of scale and improve profitability per unit over time, though significant investments are still being made.