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Mar 31, 2022
Carvana Q1 2022 Earnings Report
Carvana faced a challenging quarter with external and internal factors impacting financial results, leading to lower GPU and EBITDA margin.
Key Takeaways
Carvana's Q1 2022 results were impacted by industry-wide and company-specific challenges, leading to a net loss of $506 million despite a 56% increase in revenue. The company continues to focus on long-term growth and market share gains.
Retail units sold increased by 14% to 105,185.
Revenue increased by 56% to $3.497 billion.
Net loss increased to $506 million from $82 million.
EBITDA margin decreased to (11.6%) from (1.3%).
Forward Guidance
Carvana has stopped providing specific numeric near-term guidance for the remainder of the year due to current industry trends impacting customer affordability and macroeconomic uncertainty. The company expects meaningful sequential improvement in Q2 vs. Q1 in retail units sold, revenue, total GPU, SG&A per retail unit sold, and EBITDA margin.
Positive Outlook
- Expect to continue to gain significant market share in 2022 through continued growth in retail units and revenue.
- Expect to better align sales with expense levels through a combination of higher sales and expense efficiencies over the next several quarters.
- Expect to continue to improve the efficiency of our logistics network over the next several quarters, speeding delivery times, reducing rescheduling and cancellation rates, and enabling broader inventory selection through increased inventory visibility.
- Expect retail cost of goods sold per unit to return to more normalized levels over the next several quarters as we move further away from Omicron and logistics network disruptions.
- Expect the spreads between loan origination interest rates and benchmark interest rates to return to more normalized levels as we move further away from the rapid increases in Q4 and Q1 and due to changes to our pricing cadence and hedging policy.
Challenges Ahead
Historical Earnings Impact
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Avg. Return Before/After Earnings
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