NYSE$CVNA

Carvana Co · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Carvana delivered its best financial results in company history, achieving record Adjusted EBITDA margin and returning to growth.

Carvana's Q1 2024 results reflect significant progress in profitability and growth, with record Adjusted EBITDA margin and a return to year-over-year growth in retail units sold. The company achieved net income of $49 million and an Adjusted EBITDA of $235 million, demonstrating the power of its business model.

  • Achieved record Adjusted EBITDA margin of 7.7%, leading all U.S. publicly traded automotive retailers.
  • Returned to growth, with retail units sold increasing by 16% year-over-year.
  • Generated $49 million of net income, including a ~$75 million gain in the fair value of warrants to acquire Root common stock.
  • Adjusted EBITDA significantly exceeded capital expenditures and interest expense.

Headline financials

Total Revenue

$3.06B

Previous: $2.61B+17.5%
EPS

$0.24

Previous: -$1.51+115.9%
Capital Expenditures

-$18M

Previous: -$32M+43.8%
Free Cash Flow

$10M

Previous: -$192M+105.2%
Net Income

$28M

Previous: -$160M+117.5%
Operating Income

$134M

Previous: -$168M+179.8%
Gross Profit

$591M

Previous: $341M+73.3%
Cash & Equivalents

$252M

Previous: $488M-48.4%
Total Assets

$6.98B

Previous: $8.65B-19.2%
Stock-Based Comp

$22M

Previous: $15M+46.7%

Revenue & EPS history

Carvana · Revenue · Quarterly

$3.06B

Q1 2024+17.5%vs Q1 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Looking toward the second quarter of 2024, the company expects a sequential increase in its year-over-year growth rate in retail units and Adjusted EBITDA, assuming a stable environment.

Tailwinds

  • Sequential increase in year-over-year growth rate in retail units.
  • Sequential increase in Adjusted EBITDA.
  • Comfortably deliver on outlook of year-over-year growth in retail units sold for FY 2024.
  • Comfortably deliver on outlook of Adjusted EBITDA for FY 2024.
  • Strong results in Q1.

Headwinds

  • Guidance assumes a stable environment.
  • Do not plan to provide additional full year 2024 updates and will focus on quarterly commentary.
  • Retail used vehicle sales were down over 10% since 2019.
  • Benchmark interest rates remain at levels not seen in nearly 20 years.
  • Many other automotive retailers are seeing reduced profitability.

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 2024

Historical avgQ1 2024

+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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