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Dec 31, 2023
Carvana Q4 2023 Earnings Report
Carvana reported a decrease in revenue but a significant increase in gross profit and GPU, demonstrating substantial progress towards profitability.
Key Takeaways
Carvana's Q4 2023 results showed a decrease in retail units sold and revenue compared to Q4 2022, but a significant increase in total gross profit and total GPU. The company achieved record fourth quarter Total GPU and record fourth quarter Adjusted EBITDA, highlighting continued progress on its three-step plan for driving positive free cash flow.
Retail units sold totaled 76,090, a decrease of 13% year-over-year.
Revenue totaled $2.424 billion, a decrease of 15% year-over-year.
Total gross profit was $402 million, an increase of 108% year-over-year.
Total gross profit per unit (GPU) was $5,283, an increase of $3,064 year-over-year.
Forward Guidance
For Q1 2024, Carvana expects retail units sold to be slightly up year-over-year and Adjusted EBITDA to be significantly above $100 million, driven by strength throughout the business.
Positive Outlook
- Expects Retail GPU similar to Q4 (with potential for upside)
- Sequential increases in Wholesale GPU
- Sequential increases in Other GPU
- Sequential reduction in SG&A expense per retail unit sold
- Expects to grow retail units sold and Adjusted EBITDA compared to FY 2023
Challenges Ahead
- Macroeconomic and industry environment continues to be uncertain
- Outlook does not anticipate any material one time benefits or costs
- Fourth quarter is typically the weakest quarter for industry-wide used vehicle volume
- Fourth quarter is typically the weakest quarter for retail and wholesale depreciation rates
Historical Earnings Impact
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Avg. Return Before/After Earnings
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