Carvana Beats Revenue and Profit Estimates in Q4
Key Highlights
* Revenue of $3.55 billion, up 32% YoY and exceeding estimates
* EPS of $0.56, also surpassing expectations
* Adjusted EBITDA of $359 million, beating forecasts
* Record annual revenue of $13.67 billion, up 33% YoY
* Record adjusted EBITDA of $1.378 billion, with a margin of 10.1%
Outlook
* Anticipates significant growth in retail units sold and adjusted EBITDA for 2025
* Sequential increase in both retail units sold and adjusted EBITDA in Q1
Background
* Carvana's early pandemic success fueled by increased demand for personal vehicles and remote car purchases
* Rising used car values led to inventory challenges and increased spending
* Subsequent price declines impacted sales and resulted in significant discounts
* Cost-cutting measures and debt refinancing led to profitability in 2023
Controversy
* Hindenburg Research has accused Carvana of questionable accounting practices and underwriting standards
* Hindenburg has since ceased operations
About Carvana
* Online car dealer focused exclusively on used cars
* Sells and delivers vehicles remotely through automated-tower dealerships