Carvana Q2 2023 Earnings Report
Key Takeaways
Carvana's Q2 2023 results show a significant step forward on its path to driving positive free cash flow. The company hit records in Total GPU, Adjusted EBITDA, and Adjusted EBITDA margin while also cutting SG&A expenses. Retail units sold totaled 76,530, a decrease of 35%. Revenue totaled $2.968 billion, a decrease of 24%. Total gross profit was $499 million, an increase of 26%.
Completed step 1 of its plan by achieving positive Adjusted EBITDA.
Achieved company-record GAAP and Non-GAAP Total GPU of $6,520 and $7,030 respectively, both inclusive of ~$900 of non-recurring benefits.
Reduced SG&A expenses.
Net Loss and Adjusted EBITDA of -$105 million and +$155 million, respectively, both inclusive of ~$70 million of non-recurring benefits.
Carvana
Carvana
Carvana Revenue by Segment
Forward Guidance
Looking toward Q3 2023, the company expects similar retail units sold compared to Q2 2023, Non-GAAP Total GPU above $5,000, similar Non-GAAP SG&A expense compared to Q2, and to generate positive Adjusted EBITDA.
Positive Outlook
- Expect similar retail units sold in Q3 2023 compared to Q2 2023.
- Expect Non-GAAP Total GPU above $5,000 in Q3 2023.
- Expect similar Non-GAAP SG&A expense in Q3 compared to Q2.
- Expect to generate positive Adjusted EBITDA in Q3 2023 for the second consecutive quarter.
- See upside to the Total GPU and Adjusted EBITDA numbers.
Challenges Ahead
- The macroeconomic and industry environment continues to be uncertain.
- Providing a conservative outlook given the early date of this earnings call within the quarter.
- Expect the environment remains stable.
Revenue & Expenses
Visualization of income flow from segment revenue to net income