Carvana (CVNA) Q1 2024 earnings

• Earnings per share: 23 cents – It was not immediately clear if this was comparable to the expected loss of 74 cents
• he won: $3.06 billion versus $2.67 billion expected

Carvana reported record first-quarter net income of $49 million, compared to a loss of $286 million during the same period a year earlier. It also recorded its best ever performance Adjusted EBITDA was $235 million, compared to a loss of $24 million a year earlier.

The company's gross profit per unit, or GPU, which is closely watched by investors, was $6,432. Carvana's adjusted profit margin for the quarter was 7.7%.

“In the first quarter, we delivered our best results in the company's history, underscoring our firm belief that Carvana's online retail model can drive industry-leading profitability while delivering superior customer experiences,” said Ernie Garcia III, CEO and Chairman of Carvana. Industry leader.” statement.

The results follow a major restructuring the company has undertaken over the past two years to focus on profitability rather than growth, following bankruptcy fears when Carvana stock lost almost all of its value in 2022.

The company's shares have since rebounded. They were up nearly 67% so far this year before the company reported first-quarter results. The stock closed Wednesday up about 5% at $87.09 per share.

In a joint letter to Shareholders Wednesday Garcia and CFO Mark Jenkins said the company is now once again focused on growth, while achieving profitability.

“We are now focused on our long-term phase of driving profitable growth and pursuing our goal of becoming the largest and most profitable auto retailer, buying and selling millions of vehicles,” the shareholder letter said.

For the second quarter, the company said it expects a sequential increase in the year-over-year growth rate in retail units, and a sequential increase in adjusted EBITDA.