CARVANA CO. Annual Report, Year Ended Dec 31, 2022

Carvana Co. (CVNA) operates as an e-commerce platform for buying and selling used cars. For the fiscal year ended December 31, 2022, the company experienced a 3.0% decrease in retail unit sales to 412,296 vehicles, compared to 425,237 in 2021, largely attributed to macroeconomic headwinds such as rising interest rates and inflation impacting consumer demand and affordability. This decline in unit sales, coupled with increased vehicle depreciation and reconditioning costs, led to a significant decrease in gross profit per unit, down 33.4% year-over-year to $3,022. Despite revenue growth driven by an increase in the average selling price of retail vehicles and the acquisition of ADESA, Carvana reported a substantial net loss of $2.9 billion for 2022, significantly wider than the $287 million loss in 2021. This loss was impacted by an $847 million goodwill impairment charge related to the ADESA acquisition and increased interest expenses. The company ended the year with total liquidity resources of $3.9 billion, including cash and equivalents, and availability under revolving facilities, providing a buffer for ongoing operations. However, the substantial debt load remains a key concern for investors.