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Sep 30, 2022
Carvana Q3 2022 Earnings Report
Carvana demonstrated operational progress amidst industry and macroeconomic headwinds.
Key Takeaways
Carvana's Q3 2022 results reflect strong operational progress, including a sequential reduction in Carvana-related SG&A expense by approximately $90 million and sequential improvement in Adjusted EBITDA, despite a challenging industry and macroeconomic environment that led to a decrease in retail units sold and limited progress in SG&A per retail unit sold.
Retail units sold totaled 102,570, a decrease of 8%.
Revenue totaled $3.386 billion, a decrease of 3%.
Total gross profit was $359 million, a decrease of 31%.
Net loss per Class A share was $2.67.
Forward Guidance
Carvana anticipates a sequential reduction in retail units sold and total GPU in Q4 2022, influenced by reduced used vehicle industry demand, increasing benchmark interest rates, higher used vehicle depreciation rates, and the implementation of profitability initiatives. The company aims to manage the business to achieve >$4,000 total GPU and significant Adjusted EBITDA profitability at current volume levels, while also building in flexibility to achieve profitability at higher or lower volume levels.
Positive Outlook
- Strong progress reducing SG&A expenses
- efficiency and cost initiatives
- manage the business to achieve >$4,000 total GPU
- significant Adjusted EBITDA profitability at current volume levels
- building in flexibility to achieve profitability at higher or lower volume levels
Challenges Ahead
- expect a sequential reduction in retail units sold
- expect a sequential reduction in total GPU
- reduced used vehicle industry demand
Historical Earnings Impact
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Avg. Return Before/After Earnings
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