Summary
Carvana Co. (CVNA) reported its first quarter 2021 results, showing substantial revenue growth driven by a significant increase in used vehicle sales. Total net sales and operating revenues more than doubled year-over-year, reaching $2.25 billion, largely fueled by a 86.7% increase in used vehicle sales. The company also saw a significant jump in wholesale vehicle sales and other sales and revenues, which include gains from financing receivables. Despite the top-line growth, the company's net loss widened to $82 million compared to $184 million in the prior year, and a net loss attributable to Carvana Co. of $36 million, indicating ongoing investments in growth. Key financial developments include a robust increase in vehicle inventory and significant growth in property and equipment, reflecting continued investment in infrastructure. The company also raised substantial capital through debt issuance, increasing its total debt by over $700 million sequentially to $2.45 billion net. This strong revenue growth, combined with strategic investments, positions Carvana to capture a larger share of the online used car market, though investors should monitor the increasing net loss and debt levels.
Financial Highlights
41 data points| Revenue | $2.25B |
| Cost of Revenue | $1.91B |
| Gross Profit | $338.00M |
| SG&A Expenses | $397.00M |
| Interest Expense | $30.00M |
| Net Income | -$36.00M |
| EPS (Diluted) | $-0.09 |
| Shares Outstanding (Basic) | 390.51M |
| Shares Outstanding (Diluted) | 390.51M |
Key Highlights
- 1Total net sales and operating revenues surged by 104.5% year-over-year to $2.25 billion, driven primarily by an 86.7% increase in used vehicle sales to $1.8 billion.
- 2Used vehicle unit sales grew significantly by 76.4% to 92,457 units compared to the same period last year.
- 3Wholesale vehicle sales more than tripled, increasing by 200.0% to $240 million, indicating expanded inventory acquisition strategies.
- 4Other sales and revenues, including gains on finance receivables and VSC/GAP sales, saw a substantial increase of 279.6% to $205 million.
- 5Total gross profit increased by 144.9% to $338 million, although used vehicle gross profit per unit decreased by 23.4% to $1,211, attributed to costs associated with scaling reconditioning capacity.
- 6Total debt increased significantly to $2.45 billion net, up from $1.72 billion at the end of 2020, largely due to new senior note issuances.
- 7Net cash used in operating activities increased substantially to $532 million, reflecting investments in inventory and working capital.