NYSE$CVNA

Carvana Co · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Carvana had an exceptional third quarter with record performance in key financial measures, driven by a differentiated business model and customer-centric approach.

Carvana reported a strong Q3 2024 with significant year-over-year growth. The company achieved record profitability, driven by its unique business model and focus on customer experience. Revenue increased by 32% to $3.655 billion, and the company reported a net income of $148 million.

  • Retail units sold increased by 34% year-over-year, totaling 108,651 units.
  • Revenue increased by 32% year-over-year, totaling $3.655 billion.
  • Total gross profit increased by 67% year-over-year, reaching $807 million.
  • GAAP Operating income reached $337 million, marking an increase of $289 million.

Headline financials

Total Revenue

$3.66B

Previous: $2.77B+31.8%
EPS

$0.64

Previous: -$0.50+228.0%
Retail Units Sold

108.7K

Previous: 81.0K+34.2%
Adjusted EBITDA

$429M

No prior period
Adjusted EBITDA Margin

11.7%

No prior period
Net Income Margin

4.0%

No prior period
Capital Expenditures

-$67M

Previous: -$69M+2.9%
Free Cash Flow

$18M

Previous: $713M-97.5%
Net Income

$85M

Previous: $782M-89.1%
Operating Income

$337M

Previous: -$3M+11333.3%
Gross Profit

$807M

Previous: $482M+67.4%
Cash & Equivalents

$871M

Previous: $544M+60.1%
Total Assets

$7.37B

Previous: $7.03B+4.9%

Revenue & EPS history

Carvana · Revenue · Quarterly

$3.66B

Q3 2024+31.8%vs Q3 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Forward guidance

Carvana expects a strong finish to 2024, anticipating an increase in year-over-year growth rate in retail units sold and Adjusted EBITDA significantly above the previously communicated range for the full year.

Tailwinds

  • Sequential increase in year-over-year growth rate in retail units sold
  • Adjusted EBITDA significantly above the high end of the previously communicated range for the full year 2024
  • Strong customer demand similar to Q1 and Q2
  • Operational focus to realize further fundamental gains from scale
  • Continued integration with ADESA to unlock positive feedback

Headwinds

  • Expect retail revenue per retail unit sold of ~$21k, a change from ~$23.4k in both Q3 2024 and Q4 2023
  • Seasonality in Retail GPU to be more similar to average seasonality in 2018 through 2021 than our seasonality in 2022 and 2023
  • Seasonality in Wholesale Gross Profit Dollars to be similar to our average seasonality in 2018 through 2023
  • Thank You cash bonus to thousands of operations and corporate employees across the company that will impact Adjusted EBITDA by approximately $10 million in Q4.
  • Net Income margin declined by 22.7% (from 26.7%) on a year-over-year basis due to the non-recurring impacts of our corporate debt exchange in Q3 2023

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 Q3 2024

Historical avgQ3 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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