Summary
Carvana Co. (CVNA) reported significant revenue growth in the third quarter and first nine months of 2021, with total net sales and operating revenues increasing by 125.4% and 141.0% year-over-year, respectively. This growth was primarily driven by a substantial increase in used vehicle unit sales, which rose by 73.8% and 81.6% for the respective periods. The company also saw strong performance in wholesale vehicle sales and other revenue streams, including gains on finance receivables and ancillary product sales. Despite top-line growth, Carvana continued to experience operating losses, with a net loss attributable to Carvana Co. of $32 million for the third quarter and $46 million for the nine months ended September 30, 2021. Key financial highlights include an increase in total gross profit by 99.6% and 156.9% for the three and nine-month periods, respectively. However, gross profit per retail unit for used vehicles saw a slight decrease in the third quarter, primarily due to higher reconditioning costs and acquisition prices, although it improved year-over-year for the nine-month period. The company continues to invest heavily in growth, as evidenced by the significant increase in selling, general, and administrative expenses, driven by expanded teams and increased advertising spend.
Financial Highlights
41 data points| Revenue | $3.48B |
| Cost of Revenue | $2.96B |
| Gross Profit | $523.00M |
| SG&A Expenses | $546.00M |
| Interest Expense | $48.00M |
| Net Income | -$32.00M |
| Shares Outstanding (Basic) | 423.89M |
| Shares Outstanding (Diluted) | 16.62M |
Key Highlights
- 1Revenue surged significantly, with total net sales and operating revenues up 125.4% in Q3 2021 and 141.0% for the first nine months of 2021 compared to the prior year.
- 2Used vehicle unit sales demonstrated robust growth, increasing by 73.8% in Q3 2021 and 81.6% year-to-date.
- 3Total gross profit saw substantial increases, up 99.6% in Q3 2021 and 156.9% for the first nine months of 2021.
- 4Despite revenue growth, the company reported a net loss attributable to Carvana Co. of $32 million for Q3 2021 and $46 million for the first nine months of 2021.
- 5Selling, General, and Administrative (SG&A) expenses more than doubled year-over-year for both the quarter and nine-month periods, reflecting significant investment in growth initiatives.
- 6The company expanded its population coverage to 80.6% by the end of Q3 2021, up from 73.2% in the prior year, indicating broader market reach.
- 7Carvana has a strong liquidity position, with $1.6 billion in committed liquidity resources as of September 30, 2021, and has been actively managing its debt through new senior note issuances.