NYSE$CVNA

Carvana Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Carvana faced a challenging quarter with external and internal factors impacting financial results, leading to lower GPU and EBITDA margin.

Carvana's Q1 2022 results were impacted by industry-wide and company-specific challenges, leading to a net loss of $506 million despite a 56% increase in revenue. The company continues to focus on long-term growth and market share gains.

  • Retail units sold increased by 14% to 105,185.
  • Revenue increased by 56% to $3.497 billion.
  • Net loss increased to $506 million from $82 million.
  • EBITDA margin decreased to (11.6%) from (1.3%).

Headline financials

Total Revenue

$3.5B

Previous: $2.25B+55.8%
EPS (adj)

-$2.89

Previous: -$0.46-528.3%
Retail Units Sold

105.2K

Previous: 92.5K+13.8%
Wholesale Units Sold

50.3K

Previous: 26.0K+93.1%
Capital Expenditures

-$220M

Previous: -$82M-168.3%
Free Cash Flow

-$480M

Previous: -$118M-306.8%
Net Income

-$260M

Previous: -$36M-622.2%
Operating Income

-$450M

Previous: -$67M-571.6%
Gross Profit

$298M

Previous: $338M-11.8%
Cash & Equivalents

$247M

Previous: $370M-33.2%
Total Assets

$7.59B

Previous: $3.82B+98.6%

Revenue & EPS history

Carvana · Revenue · Quarterly

$3.5B

Q1 2022+55.8%vs Q1 2021
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

Carvana has stopped providing specific numeric near-term guidance for the remainder of the year due to current industry trends impacting customer affordability and macroeconomic uncertainty. The company expects meaningful sequential improvement in Q2 vs. Q1 in retail units sold, revenue, total GPU, SG&A per retail unit sold, and EBITDA margin.

Tailwinds

  • Expect to continue to gain significant market share in 2022 through continued growth in retail units and revenue.
  • Expect to better align sales with expense levels through a combination of higher sales and expense efficiencies over the next several quarters.
  • Expect to continue to improve the efficiency of our logistics network over the next several quarters, speeding delivery times, reducing rescheduling and cancellation rates, and enabling broader inventory selection through increased inventory visibility.
  • Expect retail cost of goods sold per unit to return to more normalized levels over the next several quarters as we move further away from Omicron and logistics network disruptions.
  • Expect the spreads between loan origination interest rates and benchmark interest rates to return to more normalized levels as we move further away from the rapid increases in Q4 and Q1 and due to changes to our pricing cadence and hedging policy.

Headwinds

  • High used vehicle prices impacting industry-wide used vehicle sales.
  • Rapid increases in benchmark interest rates placing further pressure on affordability for customers.
  • Increases in gasoline prices, continued higher economy-wide inflation, and dampening of consumer sentiment further impacting used vehicle buyers.
  • Omicron and severe weather events caused significant and persistent disruptions in our logistics network.
  • No longer providing specific numeric near-term guidance for the remainder of the year due to current industry trends impacting customer affordability and macroeconomic uncertainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+8.0%

Avg return

Earnings day

+6.8%

Avg return

5 days after

+12.7%

Avg return

30 days after

62%

23 / 37 earnings

Positive

+40.7%

Q1 2017

Best reaction

-35.0%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.3%-4.4%-8.1%
Q4 2025+16.3%-10.1%-22.2%
Q3 2025-8.4%-12.5%+5.8%
Q2 2025+17.0%+5.1%+11.5%
Q1 2025+10.2%+13.1%+31.8%
Q4 2024-12.1%-21.3%-32.2%
Q3 2024+18.5%+8.3%+24.8%
Q2 2024+15.6%+6.8%+18.8%
Q1 2024+40.5%+48.3%+20.6%
Q4 2023+40.1%+62.8%+74.0%
Q3 2023+24.2%+31.5%+35.4%
Q2 2023+17.4%+16.2%-1.5%
Q1 2023+26.7%+67.6%+121.8%
Q4 2022-20.5%-6.5%-18.7%
Q3 2022-35.0%-45.4%-40.1%
Q2 2022+34.6%+18.7%-9.5%
Q1 2022-18.3%-20.2%-67.0%
Q4 2021+34.2%+27.6%+13.1%
Q3 2021-1.2%-1.8%-13.3%
Q2 2021+4.5%+11.8%-0.7%
Q1 2021-11.7%-14.8%-0.3%
Q4 2020-0.5%+10.5%-9.1%
Q3 2020-8.7%-5.9%+22.7%
Q2 2020+33.8%+14.1%+12.2%
Q1 2020+13.6%+17.1%+34.7%
Q4 2019-14.7%-20.8%-52.9%
Q3 2019-10.3%-4.9%+6.0%
Q2 2019+21.2%+31.1%+39.9%
Q1 2019+5.9%-12.4%-11.0%
Q4 2018+10.8%+3.9%+43.4%
Q3 2018+14.3%-2.3%-20.7%
Q2 2018+8.4%+13.8%+30.4%
Q1 2018+7.2%+8.9%+44.3%
Q4 2017-6.3%-3.2%+25.2%
Q3 2017-10.4%-13.3%+34.6%
Q2 2017-2.6%-12.1%+1.0%
Q1 2017+40.7%+47.8%+124.2%
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015

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