Carvana Co · Q1 2023 earnings

Briefing

Carvana's Q1 2023 performance reflected progress on its profitability plan, achieving best-ever first-quarter GPU and Adjusted EBITDA margins, and completing Q2 SG&A reduction goals early.

Carvana's Q1 2023 results showed a 25% decrease in revenue to $2.606 billion and a 25% decrease in retail units sold to 79,240. However, the company achieved a 14% increase in total gross profit to $341 million and significant improvements in GPU and Adjusted EBITDA margins. The company is on track to achieve positive Adjusted EBITDA in Q2 2023.

• Achieved company-best first quarter GPU and Adjusted EBITDA margins.
• Completed Q2 SG&A reduction goal one quarter early.
• Retail units sold totaled 79,240, a decrease of 25%.
• Revenue totaled $2.606 billion, a decrease of 25%.

Headline financials

Revenue & EPS history

Carvana expects a reduction in retail units sold in Q2 2023 compared to Q1 2023. They anticipate Non-GAAP Total GPU above $5,000, with Non-GAAP Retail GPU above $2,000, Non-GAAP Wholesale GPU above $1,000, and Non-GAAP Other GPU above $2,000. Non-GAAP SG&A expense is expected to be similar to Q1, and the company expects to generate positive Adjusted EBITDA in Q2 2023.