Carvana Announces Industry-Leading Third Quarter 2024 Results
Carvana (CVNA) reported strong Q3 2024 results with net income of $148 million and record Adjusted EBITDA of $429 million. The company achieved 34% year-over-year retail unit growth, selling 108,651 units, and generated total revenue of $3.655 billion (+32% YoY). Notable achievements include a 4.0% net income margin and an industry-leading 11.7% Adjusted EBITDA margin. The company expects Q4 to show increased year-over-year growth in retail units and projects full-year 2024 Adjusted EBITDA to significantly exceed their previous guidance range of $1.0-$1.2 billion.
Carvana (CVNA) ha riportato risultati solidi nel terzo trimestre del 2024 con un utile netto di 148 milioni di dollari e un record di Adjusted EBITDA di 429 milioni di dollari. La società ha registrato una crescita del 34% anno su anno delle unità di vendita al dettaglio, vendendo 108.651 unità, e generando un fatturato totale di 3.655 miliardi di dollari (+32% rispetto all'anno precedente). I risultati notevoli includono un margine di utile netto del 4,0% e un margine di Adjusted EBITDA del 11,7%, leader di settore. L'azienda prevede che il quarto trimestre mostri una crescita anno su anno aumentata nelle unità di vendita al dettaglio e prevede che l'Adjusted EBITDA per l'intero anno 2024 supererà significativamente la loro precedente guida, compresa tra 1,0 e 1,2 miliardi di dollari.
Carvana (CVNA) reportó resultados sólidos en el tercer trimestre de 2024 con un ingreso neto de 148 millones de dólares y un récord de Adjusted EBITDA de 429 millones de dólares. La compañía logró un crecimiento del 34% interanual en unidades de venta minorista, vendiendo 108,651 unidades, y generó un ingreso total de 3.655 millones de dólares (+32% interanual). Logros notables incluyen un margen de ingreso neto del 4.0% y un margen de Adjusted EBITDA del 11.7%, líder en la industria. La empresa espera que el cuarto trimestre muestre un aumento interanual en el crecimiento de las unidades de venta minorista y proyecta que el Adjusted EBITDA para todo el año 2024 supere significativamente su rango de guía anterior de 1.0-1.2 mil millones de dólares.
Carvana (CVNA)는 2024년 3분기 실적을 발표하며 순이익 1억 4800만 달러와 수정 EBITDA 4억 2900만 달러라는 기록적인 실적을 기록했습니다. 이 회사는 연간 기준으로 소매 유닛이 34% 성장하며 108,651대를 판매했고 총 수익 36억 5천5백만 달러(+32% 전년 대비)를 생성했습니다. 주목할 만한 성과로는 4.0%의 순이익 마진과 업계 최고 수준인 11.7%의 수정 EBITDA 마진이 포함됩니다. 이 회사는 4분기 소매 유닛의 연간 성장 증가를 예상하며, 2024년 전체 연도 수정 EBITDA가 이전 안내 범위인 10억에서 12억 달러를 크게 초과할 것이라고 예상합니다.
Carvana (CVNA) a annoncé de bons résultats pour le troisième trimestre 2024 avec un revenu net de 148 millions de dollars et un record de l'EBITDA ajusté à 429 millions de dollars. L'entreprise a enregistré une croissance de 34% des unités de vente au détail d'une année sur l'autre, vendant 108 651 unités et générant un chiffre d'affaires total de 3,655 milliards de dollars (+32% en glissement annuel). Parmi les réalisations notables figurent une marge de revenu net de 4,0% et une marge d'EBITDA ajusté de 11,7% leader dans l'industrie. L'entreprise s'attend à ce que le quatrième trimestre montre une croissance accrue d'une année sur l'autre des unités de vente au détail et prévoit que l'EBITDA ajusté pour l'année entière 2024 dépassera significativement son précédent intervalle d'orientation de 1,0 à 1,2 milliard de dollars.
Carvana (CVNA) veröffentlichte starke Ergebnisse für das 3. Quartal 2024 mit einem Nettoeinkommen von 148 Millionen Dollar und einem Rekord von bereinigtem EBITDA von 429 Millionen Dollar. Das Unternehmen erzielte ein Wachstum der Einzelhandelsverkaufszahlen von 34% im Jahresvergleich und verkaufte 108.651 Einheiten, was zu einem Gesamterlös von 3,655 Milliarden Dollar (+32% im Jahresvergleich) führte. Zu den bemerkenswerten Erfolgen zählen eine Nettoeinkommensspanne von 4,0% und eine branchenführende bereinigte EBITDA-Marge von 11,7%. Das Unternehmen erwartet, dass das 4. Quartal ein erhöhtes jährliches Wachstum bei den Einzelhandelsverkaufszahlen zeigt und rechnet damit, dass das bereinigte EBITDA für das Gesamtjahr 2024 erheblich über dem bisherigen Leitfaden von 1,0-1,2 Milliarden Dollar liegen wird.
- Record Adjusted EBITDA of $429 million with industry-leading 11.7% margin
- Net income of $148 million with 4.0% margin
- 34% YoY growth in retail units sold (108,651 units)
- 32% YoY revenue growth to $3.655 billion
- Record GAAP Operating Income of $337 million
- Raised full-year 2024 Adjusted EBITDA guidance above $1.2 billion
- None.
Insights
Carvana's Q3 results showcase remarkable financial performance with
The company's vertical integration strategy is yielding significant operational leverage, evidenced by
The upward revision of full-year 2024 Adjusted EBITDA guidance above
The used car market dynamics are shifting favorably for Carvana's e-commerce model. The
The integration of physical infrastructure through ADESA with digital capabilities creates a unique competitive advantage in inventory sourcing and distribution. This hybrid model enables better inventory management and pricing optimization, important for maintaining margins in the cyclical automotive retail sector.
Delivers Net Income of
Drives industry-leading
For Q4, Carvana expects a sequential increase in YoY growth rate for retail units; for full year 2024, Carvana expects Adjusted EBITDA significantly above the high end of previous
“Carvana’s exceptional results underscore our position as the fastest-growing and most profitable automotive retailer,” said Ernie Garcia, Carvana founder and CEO. “Our progress in Q3 further highlights the strength of our vertically integrated business model and also begins to demonstrate the power of our unique infrastructure, including the ADESA network. As we integrate our operations and tap our national footprint, we are not only driving efficient growth, but also improving customer experiences, reducing costs, and strengthening our wholesale platform. With just
Q3 2024 Highlights
Carvana’s strong results in Q3 continue to demonstrate the differentiated benefits of its vertically-integrated business model2. In Q3 2024, Carvana sold 108,651 retail units (+
-
Net Income of
and Net Income margin of$148 million 4.0% -
Record Adjusted EBITDA of
$429 million -
Record Adjusted EBITDA margin of
11.7% , a new all-time best for public automotive retailers -
Record GAAP Operating Income of
$337 million
Outlook
Looking toward the fourth quarter, Carvana expects the following as long as the environment remains stable:
- A sequential increase in its year-over-year growth rate in retail units sold, and
-
Adjusted EBITDA significantly above the high end of its previously communicated range of
to$1.0 for the full year 2024.1$1.2 billion
Conference Call Details
Carvana will host a conference call today, October 30, 2024, at 5:30 p.m. ET (2:30 p.m. PT) to discuss financial results. To participate in the live call, analysts and investors should dial (833) 255-2830 or (412) 902-6715. A live audio webcast of the conference call along with supplemental financial information will also be accessible on the company's website at investors.carvana.com. Following the webcast, an archived version will also be available on the Investor Relations section of the company’s website. A telephonic replay of the conference call will be available until Wednesday, November 6, 2024, by dialing (877) 344-7529 or (412) 317-0088 and entering passcode 9979887#.
________________________
1 In order to clearly demonstrate our progress and highlight the most meaningful drivers within our business, we continue to use forecasted Non-GAAP financial measures, including forecasted Adjusted EBITDA. We have not provided a quantitative reconciliation of forecasted GAAP measures to forecasted Non-GAAP measures within this communication because we are unable, without making unreasonable efforts, to calculate one-time or restructuring expenses. These items could materially affect the computation of forward-looking Net Income (loss).
2 For additional details please see the “Benefits of Carvana's Differentiated Business Model” presentation on our Investor Relations website. Information on our website is not incorporated by reference into this release.
Forward Looking Statements
This letter contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with respect to, among other things, its financial condition, results of operations, plans, objectives, strategy, future performance, and business. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning.
Forward-looking statements include all statements that are not historical facts, including expectations regarding our operational and efficiency initiatives and gains, our strategy, expected gross profit per unit, forecasted results, including forecasted Adjusted EBITDA, potential infrastructure capacity utilization, efficiency gains and opportunities to improve our results, including opportunities to increase our margins and reduce our expenses, trends or expectations regarding inventory, expected customer patterns and demand, potential benefits from new technology, anticipated benefits of integrations, and our long-term financial goals and growth opportunities. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Among these factors are risks related to: our ability to utilize our available infrastructure capacity and realize the expected benefits therefrom, including increased margins and lower expenses; the benefits from our initiatives relating to ADESA; our ability to scale up our business; the larger automotive ecosystem, including consumer demand, global supply chain challenges, and other macroeconomic issues; our ability to raise additional capital and our substantial indebtedness; our history of losses and ability to maintain profitability in the future; our ability to effectively manage our rapid growth; our ability to maintain customer service quality and reputational integrity and enhance our brand; the seasonal and other fluctuations in our quarterly operating results; our relationship with DriveTime and its affiliates; the highly competitive industry in which we participate, which among other consequences, could impact our long-term growth opportunities; the changes in prices of new and used vehicles; our ability to effectively manage our inventory or acquire desirable inventory; our ability to sell our inventory expeditiously; and the other risks identified under the “Risk Factors” section in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. Carvana does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise.
Use of Non-GAAP Financial Measures
To supplement the consolidated financial measures, which are prepared and presented in accordance with GAAP, we also refer to the following non-GAAP measures in this press release: Adjusted EBITDA and Adjusted EBITDA Margin.
Adjusted EBITDA is defined as net income plus income tax (benefit) provision, interest expense, other operating expense, net, other expense, net, depreciation and amortization expense in cost of sales and SG&A expenses, share-based compensation expense in cost of sales and SG&A expenses, and loss on debt extinguishment, minus revenue related to our Root Warrants and gain on debt extinguishment. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues.
We believe that these metrics are useful measures to us and to our investors because they exclude certain financial, capital structure, and non-cash items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations, in part because they may vary widely across time and within our industry independent of the performance of our core operations. We believe that excluding these items enables us to more effectively evaluate our performance period-over-period and relative to our competitors.
For the Three Months Ended | |||||||
(dollars in millions, except per unit amounts) | Sep 30, 2024 | Sep 30, 2023 | |||||
Net income | $ |
148 |
|
$ |
741 |
|
|
Income tax (benefit) provision |
|
(1 |
) |
|
29 |
|
|
Interest expense |
|
157 |
|
|
153 |
|
|
Other expense, net |
|
29 |
|
|
3 |
|
|
Loss (Gain) on debt extinguishment |
|
4 |
|
|
(878 |
) |
|
Operating income | $ |
337 |
|
$ |
48 |
|
|
Other operating expense, net |
|
1 |
|
|
1 |
|
|
Depreciation and amortization expense in cost of sales |
|
33 |
|
|
42 |
|
|
Depreciation and amortization expense in SG&A expenses |
|
40 |
|
|
45 |
|
|
Share-based compensation expense in cost of sales |
|
1 |
|
|
- |
|
|
Share-based compensation expense in SG&A expenses |
|
23 |
|
|
18 |
|
|
Root warrant revenue |
|
(6 |
) |
|
(6 |
) |
|
Adjusted EBITDA | $ |
429 |
|
$ |
148 |
|
|
Total revenues | $ |
3,655 |
|
$ |
2,773 |
|
|
Net income margin |
|
4.0 |
% |
|
26.7 |
% |
|
Adjusted EBITDA margin |
|
11.7 |
% |
|
5.3 |
% |
About Carvana (NYSE: CVNA)
Carvana’s mission is to change the way people buy and sell cars. Over the past decade, Carvana has revolutionized automotive retail and delighted millions of customers with an offering that is fun, fast, and fair. With Carvana, customers can choose from tens of thousands of vehicles, get financing, trade-in, and complete a purchase entirely online with the convenience of home delivery or local pick up in over 300 U.S. markets. Carvana’s vertically integrated platform is powered by its passionate team, unique national infrastructure, and purpose-built technology. Carvana is a Fortune 500 company and is proud to be recognized by Forbes as one of America’s Best Employers.
For more information, please visit www.carvana.com.
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Investors:
Carvana
Mike McKeever
investors@carvana.com
or
Media:
Carvana
press@carvana.com
Source: Carvana
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