CVNA Q3 2021 Earnings

Call Details

• Call Title: Carvana Q3 2021 Earnings Call
• Date: November 4, 2021 at 9:30 PM UTC
• Management Team:
  • Mike Levin (Vice President of Investor Relations)
  • Ernie Garcia (Chief Executive Officer)
  • Mark Jenkins (Chief Financial Officer)

Call Summary

Financial Performance

• Retail units sold totaled 111,949 in Q3, representing a 74% year-over-year increase.
• Total revenue was $3.48B in Q3, representing a 125% year-over-year increase.
• Retail gross profit per unit (GPU) was $1,769 in Q3, which was down $88 sequentially.
• Wholesale GPU was $420 in Q3, up $154 year over year, driven by record wholesale unit volume.
• Other GPU was $2,483 in Q3, an increase of $550 year over year driven by finance execution and larger average loan size.
• EBITDA margin was positive 0.2% for Q3, marking the second consecutive quarter and trailing 12-month positive EBITDA.

Guidance

• The company expects to complete a record year in 2021 for retail units, revenue, total GPU, and EBITDA margin.
• For Q4, retail unit growth is expected to be governed primarily by the company’s operational capacity.
• The company expects revenue growth in Q4 to be more closely aligned with retail unit growth than it was in Q3.
• The company expects total GPU for the full year to be in the low to mid 4000s, with a seasonal decline in Q4 versus Q3.
• The company expects a seasonal pattern in SG&A per retail unit in Q4 and expects close to break-even EBITDA margin for the full year.
• The company reiterated its plan to open eight new inspection/reconditioning centers (IRCs) by the end of 2022.