Carvana Showcases Proprietary Technology and Infrastructure Supporting Efficient, Scalable Operations During Investor Tour

Rhea-AI Summary

Carvana (NYSE: CVNA), a leader in e-commerce for used cars, recently hosted institutional investors and analysts at its Rocklin, CA Inspection and Reconditioning Center (IRC). The event showcased the proprietary technology and infrastructure that drive Carvana's efficiency and scalability, including the CARLI app-based inventory management system. Analysts from J.P. Morgan, William Blair, Needham, and Wedbush noted Carvana's widening competitive advantage, technological advancements, and improved processes, all contributing to profitable growth. The event followed a similar tour at Carvana's Haines City, FL IRC in November 2023, with significant progress observed in both reconditioning and logistics.

Positive

• Carvana's proprietary CARLI app-based inventory management system has reduced reconditioning cost variations across sites.
• Analysts noted that Carvana's technology and process improvements contribute to a widening competitive moat and profitable growth.
• Carvana's infrastructure supports its goal of buying and selling millions of cars per year.

Negative

• None.

PHOENIX--(BUSINESS WIRE)-- Carvana Co. (NYSE: CVNA), the leading e-commerce platform for buying and selling used cars, hosted institutional investors and analysts for a tour of its Rocklin, CA Inspection and Reconditioning Center (IRC) on Tuesday, June 25, 2024. The event provided an in-depth look at the proprietary technology, processes and infrastructure underlying Carvana’s reconditioning and fulfillment operations.

Summarizing the event, J.P. Morgan wrote, "We believe CVNA’s competitive moat continues to widen in the used car space, with operating leaders well aligned on importance of continuous improvement, and more importantly, long-term vision and culture, that should bode well for the company’s performance during periods of market volatility in the future."

During the tour, members of Carvana’s leadership team described the facility’s operations, demonstrated the suite of tools the company has built to support each step, and spoke to the drivers of realized and potential efficiency gains.

"CARLI, the company’s proprietary app-based inventory management system, underpins everything behind the scenes with apps for every step of vehicle processing,” William Blair noted. “Given the digitization of all processes, CARLI has materially reduced reconditioning cost variations across sites."

This event was a follow up to a similar deep dive at the company’s Haines City, FL IRC in November 2023, and participants were able to see how the operations have progressed in that time period, contributing to Carvana’s return to profitable growth.

“The company has made significant additional technology- and process-driven improvements in reconditioning and logistics in the past six months since our last IRC tour,” Needham noted. “We see CVNA's software platform as an unappreciated and widening competitive moat, set to drive continued profitable growth.”

The event also highlighted Carvana’s infrastructure and the important role it plays in enabling the company’s aspiration to buy and sell millions of cars per year.

“CVNA has developed plans to scale across all areas of the operation uniformly as they grow sales. With much stronger processes, procedures and technology, we believe that CVNA is positioned well to support faster growth,” Wedbush continued.

For more information about Carvana’s financial results and business progress, please visit http://investors.carvana.com.

About

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240627761023/en/

MEDIA:

Carvana Communications

press@carvana.com

INVESTORS:

Carvana Investor Relations

Mike McKeever

investors@carvana.com

Source: Carvana

FAQ

What did analysts say about Carvana's competitive advantage?

Analysts from J.P. Morgan, William Blair, Needham, and Wedbush noted that Carvana's technology and process improvements contribute to a widening competitive moat, enhancing the company's efficiency and scalability.

What technology supports Carvana's vehicle processing?

Carvana's CARLI app-based inventory management system supports every step of vehicle processing, reducing reconditioning cost variations and enhancing efficiency.

When was the investor tour at Carvana's Rocklin, CA IRC held?

The investor tour at Carvana's Rocklin, CA Inspection and Reconditioning Center was held on June 25, 2024.

How has Carvana's reconditioning and logistics improved?

Carvana has made significant technology- and process-driven improvements in reconditioning and logistics over the past six months, contributing to its return to profitable growth.

What is Carvana’s goal for its operations?

Carvana aims to support faster growth and buy and sell millions of cars per year through strengthened processes, procedures, and technology.