Carvana Co · Q2 2023 earnings

Briefing

Carvana demonstrated significant progress on its path to profitability, significantly exceeding its goal of driving positive Adjusted EBITDA, both with and without benefits from non-recurring items.

Carvana's Q2 2023 results show a significant step forward on its path to driving positive free cash flow. The company hit records in Total GPU, Adjusted EBITDA, and Adjusted EBITDA margin while also cutting SG&A expenses. Retail units sold totaled 76,530, a decrease of 35%. Revenue totaled $2.968 billion, a decrease of 24%. Total gross profit was $499 million, an increase of 26%.

• Completed step 1 of its plan by achieving positive Adjusted EBITDA.
• Achieved company-record GAAP and Non-GAAP Total GPU of $6,520 and $7,030 respectively, both inclusive of ~$900 of non-recurring benefits.
• Reduced SG&A expenses.
• Net Loss and Adjusted EBITDA of -$105 million and +$155 million, respectively, both inclusive of ~$70 million of non-recurring benefits.

Headline financials

Revenue & EPS history

Looking toward Q3 2023, the company expects similar retail units sold compared to Q2 2023, Non-GAAP Total GPU above $5,000, similar Non-GAAP SG&A expense compared to Q2, and to generate positive Adjusted EBITDA.