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Jun 30, 2024
Carvana Q2 2024 Earnings Report
Carvana experienced significant growth and profitability, achieving record net income and Adjusted EBITDA margins.
Key Takeaways
Carvana's Q2 2024 was a landmark quarter, marked by substantial unit growth and record profitability. The company achieved industry-leading Adjusted EBITDA margins and generated $48 million in net income and $355 million in Adjusted EBITDA. Carvana sold over 100,000 cars, solidifying its position as the second-largest used automotive retailer with 1% market share.
Retail units sold increased by 33% year-over-year, totaling 101,440 units.
Revenue increased by 15% year-over-year, reaching $3.410 billion.
Net income totaled $48 million, with a net income margin of 1.4%.
Adjusted EBITDA totaled $355 million, with an Adjusted EBITDA margin of 10.4%.
Forward Guidance
Carvana expects a sequential increase in retail units in Q3 compared to Q2 and Adjusted EBITDA of $1.0 to $1.2 billion for the full year 2024.
Positive Outlook
- Sequential increase in retail units in Q3 compared to Q2.
- Adjusted EBITDA of $1.0 to $1.2 billion for the full year 2024.
- Strong customer demand experienced in Q1 continued into Q2.
- Expects to grow retail units sequentially in Q3.
- Being in the very early stage of a many-year period of profitable growth.
Challenges Ahead
- Environment remains stable.
- Still remain below our target available website inventory levels.
- Plan to continue to increase production across the country to match demand and build selection for our customers.
- Industry-wide declines in retail and wholesale average selling prices as used vehicle prices continue to normalize relative to the rest of the economy.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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