Carvana Co · Q2 2022 earnings

Briefing

Carvana's priorities shifted to focus on profitability through operating efficiency and reducing expenses.

Carvana's Q2 2022 results showed progress in retail units sold, revenue, and total GPU, with reductions in SG&A dollars and improved EBITDA margin. The acquisition of ADESA U.S. was completed, expanding the logistics network and reconditioning capacity. The company is adapting to industry challenges and aims for efficiency to capitalize on future improvements.

• Drove meaningful sequential improvement in retail units sold, revenue and total GPU, while simultaneously reducing total SG&A dollars.
• Made tremendous progress this quarter by acquiring ADESA U.S., significantly increasing the scope of our logistics network and reconditioning capacity.
• The used vehicle industry continues to face high used vehicle prices, rising interest rates, and other macroeconomic pressures.
• We are adapting to the current environment quickly and using it as an opportunity to become more efficient.

Headline financials

Revenue & EPS history

Carvana expects sequential improvements in SG&A per retail unit sold in Q3 vs. Q2 and again in Q4 vs. Q3, aims for a Q4 stretch goal of $4,000 SG&A per retail unit sold (excluding certain items), and anticipates a return to >$4,000 total GPU and significant positive EBITDA in FY 2023.