Online Car Retailer Carvana Beats Revenue and Profit Estimates in Q4, Outlines Growth Projections

Financial Results:

* Revenue: $3.55 billion, a 32% increase YoY, exceeding estimates of $3.34 billion.
* Earnings Per Share (EPS): $0.56, surpassing estimates of $0.31.
* Adjusted EBITDA: $359 million, against expectations of $329.4 million.
* Retail unit sales: 114,379, above estimates of 108,339.
* Adjusted EBITDA margin for the full year: 10.1%, marking Carvana as the most profitable public automotive retailer in US history.

Outlook:

* Significant growth projected in retail unit sales and adjusted EBITDA for 2025.
* Sequential increases in both measures expected in Q1, contingent on a stable economic environment.

Key Points:

* Despite profitability gains, Carvana's stock fell 10% in after-hours trading due to earlier highs.
* Carvana's success in 2024 and 2025 was partially attributed to the pandemic-fueled demand for personal vehicles and online purchases.
* The company faced challenges due to rising used car values in 2022, but implemented cost-cutting measures and inventory management strategies.
* Carvana's recent performance has sparked controversy, with Hindenburg Research raising concerns about its accounting practices, subprime loan book, and underwriting standards.