01—Abstract
Summary
Summary of the 10-Q filed May 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Carvana Co. (CVNA) reported its first-quarter 2024 financial results, demonstrating a significant turnaround in profitability and operational efficiency.
Total net sales and operating revenues increased by 17.5% year-over-year to $3.06 billiona, driven by a robust 19.0% rise in retail vehicle sales. The company reported a substantial improvement in gross profit, which surged by 73.3% to $591 million, with retail vehicle gross profit experiencing a remarkable 157.3% increase to $283 million. This was underpinned by a significant improvement in retail vehicle gross profit per unit, which more than doubled to $3,080.
Operationally, Carvana saw a 15.9% increase in retail unit sales to 91,878 units. The company also reported positive net income of $28 millionb attributable to Carvana Co., a stark contrast to the net loss of $160 million in the prior year's quarter.
Adjusted EBITDA also saw a dramatic swing, turning positive at $235 millionc from a negative $24 million in Q1 2023, indicating improved core operational performance. While the company still carries a substantial debt load, liquidity remains adequate, with $1.66 billion in committed liquidity resources as of March 31, 2024.
02—Key points
Key Highlights
- Total net sales and operating revenues increased 17.5% to $3.06 billion in Q1 2024.
- Retail vehicle sales rose 19.0% to $2.18 billion, driven by a 15.9% increase in retail unit sales to 91,878.
- Total gross profit surged 73.3% to $591 million, with retail vehicle gross profit up 157.3% to $283 million.
- Retail vehicle gross profit per unit significantly improved, more than doubling to $3,080.
- Reported a net income attributable to Carvana Co. of $28 million, a significant improvement from a net loss of $160 million in Q1 2023.
- Adjusted EBITDA turned positive at $235 million, compared to a negative $24 million in the prior year.
- Committed liquidity resources stood at $1.66 billion as of March 31, 2024, providing adequate financial flexibility.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Carvana Co. kept $0.01.
- Revenue$3.06B100.0%
- Cost of revenue−$2.47B80.7%
- Gross profit$591.0M19.3%
- Operating costs−$457.0M14.9%
- Operating income$134.0M4.4%
- Interest, other & tax−$106.0M3.5%
- Net income$28.0M0.9%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 1, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $3.06B$2.61B | +17.5% |
| Cost of Revenue | $2.47B$2.27B | +9.1% |
| Gross Profit | $591.00M$341.00M | +73.3% |
| SG&A Expenses | $456.00M$472.00M | −3.4% |
| Operating Income | $134.00M-$132.00M | +201.5% |
| Interest Expense | $173.00M$159.00M | +8.8% |
| Net Income | $28.00M-$160.00M | +117.5% |
| EPS (Basic) | $0.05$-0.30 | +115.9% |
| EPS (Diluted) | $0.05$-0.30 | +115.9% |
05—Questions
Frequently Asked Questions
What was Carvana's overall financial performance in the first quarter of 2024?
Carvana demonstrated a strong financial turnaround in Q1 2024. Total revenues increased 17.5% year-over-year to $3.06 billion, and the company achieved positive net income attributable to Carvana Co. of $28 million, a significant improvement from a net loss in the prior year. This performance was driven by increased retail sales and improved gross profit margins.
How did Carvana's operational metrics perform in Q1 2024?
Operationally, Carvana saw a 15.9% increase in retail unit sales to 91,878 vehicles. The company also reported a substantial improvement in gross profit per unit, especially in retail vehicle gross profit per unit, which more than doubled to $3,080. This suggests enhanced efficiency in the company's operations and inventory management.
What is the company's liquidity and debt situation?
As of March 31, 2024, Carvana had $1.66 billion in committed liquidity resources, indicating sufficient financial flexibility. The company's total debt remained substantial at $5.8 billion, but management believes its current working capital and expected cash flows are sufficient to fund operations for at least the next year. The company also reported positive Adjusted EBITDA of $235 million, up from negative $24 million in the prior year, suggesting an improvement in its ability to cover debt obligations.
Are there any significant changes in Carvana's revenue streams or cost structure?
Carvana saw growth across all revenue segments: retail vehicle sales, wholesale sales, and other sales (primarily finance receivables and ancillary products). Other sales and revenues saw a notable 42.2% increase, driven by higher gains on loan sales. The company also highlighted improved cost control, with selling, general, and administrative expenses decreasing year-over-year, and lower vehicle acquisition and reconditioning costs contributing to higher gross profit per unit.
06—Continue