In This Article:
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Retail Units Sold: 133,898, an increase of 46% year-over-year.
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Revenue: $4.232 billion, an increase of 38% year-over-year.
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Adjusted EBITDA: $488 million, an increase of $253 million, with an 11.5% margin.
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Net Income: Positive for the fifth consecutive quarter.
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Non-GAAP Retail GPU: $3,308, an increase of $97 year-over-year.
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Non-GAAP Wholesale GPU: $964, a decrease of $189 year-over-year.
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Non-GAAP Other GPU: $2,868, an increase of $430 year-over-year.
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Non-GAAP SG&A Expense: $468 million, an increase of 20% year-over-year.
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GAAP Operating Income: $394 million, with a 9.3% margin.
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Carvana Co (NYSE:CVNA) achieved a record adjusted EBITDA margin of 11.5% in Q1 2025, within their long-term target range of 8% to 13.5%.
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The company reported a 46% increase in retail units sold, totaling 133,898, setting a new company record.
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Revenue reached $4.232 billion, marking a 38% increase and a new company record.
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Carvana Co (NYSE:CVNA) has maintained positive net income for the fifth consecutive quarter.
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The company has successfully leveraged SG&A expenses, reducing non-GAAP SG&A expense per retail unit sold by $750.
Negative Points
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Non-GAAP wholesale GPU decreased by $189 year-over-year, primarily due to faster growth in retail units than wholesale vehicle units.
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The company faces potential challenges from macroeconomic factors such as tariffs, which could impact car prices and consumer demand.
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There is concern about maintaining high growth rates and operational efficiency as the company scales to its target of 3 million annual retail sales.
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Carvana Co (NYSE:CVNA) needs to continue investing in customer experience improvements to maintain competitive differentiation.
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The company must manage the balance between growth and margin, prioritizing growth over margin within reasonable ranges, which could impact profitability.
Q & A Highlights
Q: Can you discuss the impact of tariffs on Carvana's short-term financial performance and how you manage pricing and GPUs? A: Ernest Garcia, CEO, explained that while tariffs could potentially increase car prices, they might benefit used cars more than new ones. Carvana focuses on maintaining competitive expenses, revenues, and customer experience. The company adapts to market changes, such as shifts in customer preferences for car types, and aims to share efficiency gains with customers to drive growth.