CVNA Q1 2024 Earnings

Call Details

• Call Title: Carvana Q1 2024 Earnings Call
• Date: May 1, 2024 at 9:30 PM UTC
• Management Team:
  • Meg Kehan (Investor Relations)
  • Ernie Garcia (Chief Executive Officer)
  • Mark Jenkins (Chief Financial Officer)

Call Summary

Financial Performance

• The company reported adjusted EBITDA margin of 7.7% in Q1 2024, a new company record.
• Adjusted EBITDA was $235 million in Q1 2024, which the company described as a first-quarter record.
• GAAP operating income was $134 million in Q1 2024, which the company labelled a new company record.
• Revenue increased by 17% year over year and by 26% sequentially in Q1 2024.
• Retail units sold increased by 16% year over year and by 21% sequentially in Q1 2024.
• Non-GAAP total GPU was $6,802 in Q1, a sequential increase of $1,072 and a first quarter record.
• Non-GAAP retail GPU was $3,211 in Q1 versus $2,970 in Q4, and wholesale GPU was $1,153 versus $881 in Q4.
• Non-GAAP SG&A expense was $390 million in Q1 versus $376 million in Q4, producing a nearly $700 reduction in SG&A expense per retail unit sold sequentially.

Guidance

• The company expects a sequential increase in the year-over-year growth rate of retail units sold in Q2 2024 versus Q1 2024.
• The company expects adjusted EBITDA dollars to increase sequentially in Q2 2024 versus Q1 2024.
• The Q2 outlook assumes that the external environment remains stable and does not anticipate material one-time benefits or costs.
• The company expects to comfortably deliver on its full-year 2024 outlook of year-over-year growth in retail units sold and adjusted EBITDA.
• Guidance provided was directional rather than quantified for Q2, with no Q2 unit or EBITDA dollar targets disclosed on the call.
• The company reiterated that the change in fair value of root warrants does not impact adjusted EBITDA.