Summary
Carvana Co. (CVNA) reported strong top-line growth in its third quarter of 2020, with net sales and operating revenues increasing by 41.0% year-over-year to $1.54 billion. This growth was primarily driven by a 38.5% increase in used vehicle sales, fueled by a 38.8% rise in unit sales to 64,414 vehicles, supported by the company's expansion into new markets and increased brand awareness. Despite the revenue growth, the company continued to operate at a net loss, with a net loss attributable to Carvana Co. of $7.1 million for the quarter. However, gross profit saw a significant increase of 90.0% to $261.3 million, driven by improvements in per-unit gross profit across all segments, particularly used vehicles and wholesale. The company also highlighted its strong liquidity position and successful equity offerings during the period, positioning it for continued investment in growth initiatives. Management emphasized the company's resilience and adaptability in the face of the COVID-19 pandemic, noting a strong rebound in demand during the third quarter after initial impacts. Carvana's e-commerce model, offering "touchless" delivery, was highlighted as a key differentiator and enabler of safe transactions. The company expanded its market coverage significantly, reaching 261 markets by the end of the quarter. Despite the ongoing net losses, the substantial increase in revenue, gross profit, and per-unit profitability, coupled with robust market expansion and a healthy cash position, indicates positive operational momentum for Carvana.
Financial Highlights
42 data points| Revenue | $1.54B |
| Cost of Revenue | $1.28B |
| Gross Profit | $262.00M |
| SG&A Expenses | $269.00M |
| Interest Expense | $20.00M |
| Net Income | -$7.00M |
| EPS (Basic) | $-0.02 |
| Shares Outstanding (Basic) | 350.02M |
| Shares Outstanding (Diluted) | 350.02M |
Key Highlights
- 1Total net sales and operating revenues surged 41.0% to $1.54 billion in Q3 2020 compared to Q3 2019.
- 2Used vehicle sales increased by 38.5% to $1.29 billion, driven by a 38.8% increase in unit sales to 64,414.
- 3Total gross profit increased by a substantial 90.0% to $261.3 million, with significant per-unit gross profit improvements across all segments.
- 4The company expanded its market reach significantly, opening 115 new markets in the first nine months of 2020, reaching a total of 261 markets by September 30, 2020.
- 5Carvana raised substantial capital through equity offerings during the first nine months of 2020, strengthening its liquidity position.
- 6The company's cash and cash equivalents increased significantly to $173.7 million as of September 30, 2020, from $76.0 million as of December 31, 2019.
- 7Despite revenue growth and improved gross margins, Carvana Co. reported a net loss of $7.1 million for the quarter, though this was an improvement from a net loss of $30.1 million in the prior year's quarter.