Vending

Carvana ups Q3 2023 earnings against revenue dip, beats expectations

Image: Carvana

November 3, 2023

Carvana, an e-commerce platform for buying and selling used cars that offers a car vending machine, reported an earnings gain against a revenue loss for Q3 2023 compared to the prior year period, surpassing analyst expectations. Following are highlights from a chairman's letter:

• Revenue fell 18% from $3.38 billion in Q3 2022 to $2.77 billion in the quarter ending Sept. 30, 2023.
• Net income rose from a $508 million loss to $741 million in the comparative quarters.
• EPS for Class A common stock rose from a $2.67 loss to $7.05 on a basic basis and from a $2.67 loss to $3.60 on a diluted basis.
• Retail vehicle sales fell 21% from $2.49 billion to $1.95 billion.
• Wholesale revenues fell 12.5% from $697 million to $610 million.
• "Other" sales and revenues rose 8.6% from $197 million to $214 million.
• Retail unit sales fell 21% from 102,570 to 80,987.
• Wholesale unit sales fell 14.4% from 47,763 to 40,886.
• Gross profit per unit rose $2,452 to $5,952.

Shares traded today at $33.64 against a 52-week range of $3.55 to $57.19.

The $2.77 billion in quarterly revenue matched the Zacks Consensus Estimate, while the 127.06% EPS gain from a $2.67 loss to $7,05 beat the consensus EPS estimate of an 85-cent loss, according to Yahoo Finance.

"For the second consecutive quarter, we delivered GPUs that far exceed our 2021 high water marks and generated hundreds of millions of positive net income and adjusted EBITDA despite a challenging industry environment," Ernie Garcia, founder and CEO, said in the letter. "While our focus today remains on continuing to drive operating efficiency and even stronger unit economics, we are incredibly well positioned for a return to profitable growth when the time is right as evidenced by the operating leverage we realized in Q3 and the substantial infrastructure we have built to support efficient scaling."