NYSE$CVNA

Carvana Co · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Carvana experienced significant growth and profitability, achieving record net income and Adjusted EBITDA margins.

Carvana's Q2 2024 was a landmark quarter, marked by substantial unit growth and record profitability. The company achieved industry-leading Adjusted EBITDA margins and generated $48 million in net income and $355 million in Adjusted EBITDA. Carvana sold over 100,000 cars, solidifying its position as the second-largest used automotive retailer with 1% market share.

  • Retail units sold increased by 33% year-over-year, totaling 101,440 units.
  • Revenue increased by 15% year-over-year, reaching $3.410 billion.
  • Net income totaled $48 million, with a net income margin of 1.4%.
  • Adjusted EBITDA totaled $355 million, with an Adjusted EBITDA margin of 10.4%.

Headline financials

Total Revenue

$3.41B

Previous: $2.97B+14.9%
EPS

$0.14

Previous: -$0.55+125.5%
Retail Units Sold

101.6K

Previous: 76.5K+32.7%
Adjusted EBITDA

$355M

No prior period
Adjusted EBITDA Margin

10.4%

No prior period
Net Income Margin

1.4%

No prior period
Capital Expenditures

-$40M

Previous: -$50M+20.0%
Free Cash Flow

-$22M

Previous: -$108M+79.6%
Net Income

$18M

Previous: -$58M+131.0%
Operating Income

$259M

Previous: $0.00
Gross Profit

$715M

Previous: $499M+43.3%
Cash & Equivalents

$542M

Previous: $541M+0.2%
Total Assets

$7.17B

Previous: $7.85B-8.7%

Revenue & EPS history

Carvana · Revenue · Quarterly

$3.41B

Q2 2024+14.9%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Carvana expects a sequential increase in retail units in Q3 compared to Q2 and Adjusted EBITDA of $1.0 to $1.2 billion for the full year 2024.

Tailwinds

  • Sequential increase in retail units in Q3 compared to Q2.
  • Adjusted EBITDA of $1.0 to $1.2 billion for the full year 2024.
  • Strong customer demand experienced in Q1 continued into Q2.
  • Expects to grow retail units sequentially in Q3.
  • Being in the very early stage of a many-year period of profitable growth.

Headwinds

  • Environment remains stable.
  • Still remain below our target available website inventory levels.
  • Plan to continue to increase production across the country to match demand and build selection for our customers.
  • Industry-wide declines in retail and wholesale average selling prices as used vehicle prices continue to normalize relative to the rest of the economy.
  • Changes in the fair value of our warrants to acquire Root common stock which negatively impacted Q2.

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 Q2 2024

Historical avgQ2 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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