- Carvana Co (NYSE:CVNA) reported a first-quarter FY23 sales decline of 25.8% year-on-year to $2.61 billion, beating the consensus estimate of $2.60 billion.
- EPS of $(1.51) beat the estimate of $(2.00).
- Gross profit for the quarter rose 12.6% at $341 million. The gross margin for the quarter expanded 450 basis points to 13%.
- Adjusted gross profit per unit (GPU) increased 61% to $4,796.
- Adjusted EBITDA loss for the quarter was $(24) million compared to a loss of $(348) million last year. The adjusted EBITDA margin improved by 910 basis points to (0.9)%.
- Retail units sold totaled 79,240, representing a decrease of 25% year-over-year.
- Net loss margin was -11%, representing an improvement of 3.5% year-over-year.
- Inventory was down 21% sequentially. Advertising spend was reduced by 64% year-over-year.
- Carvana said it recently launched three new car “vending machines” in New York, Texas, and Illinois. Since the beginning of the second quarter, the company has sold or securitized approximately $1.3 billion of loan principal.
- Outlook: Carvana looks to achieve a positive adjusted EBITDA in Q2FY23.
- Price Action: CVNA shares are trading higher by 27.4% at $9.18 on the last check Friday.
Dow Tumbles Over 400 Points; Investor Optimism Declines
The CNN Money Fear and Greed index showed a decline in the overall sentiment among US investors.
