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Mar 31, 2024
Carvana Q1 2024 Earnings Report
Carvana delivered its best financial results in company history, achieving record Adjusted EBITDA margin and returning to growth.
Key Takeaways
Carvana's Q1 2024 results reflect significant progress in profitability and growth, with record Adjusted EBITDA margin and a return to year-over-year growth in retail units sold. The company achieved net income of $49 million and an Adjusted EBITDA of $235 million, demonstrating the power of its business model.
Achieved record Adjusted EBITDA margin of 7.7%, leading all U.S. publicly traded automotive retailers.
Returned to growth, with retail units sold increasing by 16% year-over-year.
Generated $49 million of net income, including a ~$75 million gain in the fair value of warrants to acquire Root common stock.
Adjusted EBITDA significantly exceeded capital expenditures and interest expense.
Forward Guidance
Looking toward the second quarter of 2024, the company expects a sequential increase in its year-over-year growth rate in retail units and Adjusted EBITDA, assuming a stable environment.
Positive Outlook
- Sequential increase in year-over-year growth rate in retail units.
- Sequential increase in Adjusted EBITDA.
- Comfortably deliver on outlook of year-over-year growth in retail units sold for FY 2024.
- Comfortably deliver on outlook of Adjusted EBITDA for FY 2024.
- Strong results in Q1.
Challenges Ahead
- Guidance assumes a stable environment.
- Do not plan to provide additional full year 2024 updates and will focus on quarterly commentary.
- Retail used vehicle sales were down over 10% since 2019.
- Benchmark interest rates remain at levels not seen in nearly 20 years.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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