CARVANA CO. Quarterly Report for Q3 Ended Sep 30, 2024

Summary

Carvana Co. reported a strong third quarter of 2024, with total net sales and operating revenues increasing by 31.8% year-over-year to $3.655 billion. This growth was driven by a significant increase in retail vehicle sales, up 30.5% to $2.543 billion, supported by a 34.2% rise in retail units sold to 108,651. The company also saw robust performance in its wholesale operations and other revenue streams, contributing to a substantial 67.4% increase in total gross profit to $807 million. This improved profitability was further evidenced by a significant rise in total gross profit per unit, highlighting operational efficiencies and better inventory management. Financially, Carvana strengthened its balance sheet, ending the quarter with $932 million in cash, cash equivalents, and restricted cash, up from $594 million at the beginning of the year. The company continued to manage its debt effectively, reducing total debt outstanding. Despite ongoing investments in growth and infrastructure, the company's liquidity position appears solid, and management expressed confidence in its ability to fund operations for at least the next 12 months.

Key Highlights

• 1Total net sales and operating revenues increased 31.8% to $3.655 billion in Q3 2024.
• 2Retail vehicle sales grew 30.5% to $2.543 billion, driven by a 34.2% increase in retail units sold to 108,651.
• 3Total gross profit surged 67.4% to $807 million, with a 24.8% increase in total gross profit per unit to $7,427.
• 4The company's liquidity position strengthened, with cash, cash equivalents, and restricted cash totaling $932 million at the end of Q3 2024.
• 5Total debt decreased to $5.534 billion from $6.029 billion at the end of 2023.
• 6Wholesale sales and revenues increased by 28.9% to $786 million.
• 7Other sales and revenues, including gains on loan sales and ancillary product commissions, grew 52.3% to $326 million.

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