Carvana Q2 Results – Sales, Revenue Up by Double Digits

Ken Zino of AutoInformed.com on Carvana

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Carvana Co. (NYSE: CVNA), an e-commerce firm for buying and selling used cars, has posted positive Q2 2020 results. Revenue of $1.118 Billion, an increase of 13% Year-over-Year, the result of retail sales of 55,098, an increase of 25%.

“We’ve been leading the market with The New Way to Buy a Car for the last 7 years and now with even more customers moving to online buying, we are seeing more demand than ever before,” said Ernie Garcia, founder and CEO of Carvana.

Q2 2020 Financial Results

  • Retail units sold totaled 55,098, an increase of 25%
  • Revenue totaled $1.118 billion, an increase of 13%
  • Total gross profit was $150 million, an increase of 9%
  • Total gross profit per unit was $2,726, a decrease of $406 [1]
  • Net loss was ($106) million, an increase of 66%
  • EBITDA margin was (6.2%), a decrease from (3.6%) [2]
  • Basic and diluted net loss per Class A share was $0.62 based on 66.3 million shares of Class A common stock outstanding

Q2 2020 Other Results

  • Opened 100 new markets, bringing our end-of-quarter total to 261, covering 73.2% of the U.S. population.
  • Closed two equity offerings, resulting in $1.06 billion of net proceeds.
  • On June 25 launched CarvanaACCESS, a direct-purchase platform, giving wholesale buyers access to a broad selection of Carvana inventory through a centralized platform.

“It is still hard to say exactly how powerful the effects of all of this will be in the long run, but based on the data we see, we believe the long-term opportunity of the business is even larger than we previously thought and that the medium-term opportunity may be materially larger as COVID-19 and its follow on effects have likely accelerated the adoption of ecommerce across retail verticals,” said Garcia.

Carvana’s complete second quarter 2020 financial results and management commentary can be found in its shareholder letter on the quarterly results page of the investor relations website.

Footnotes

[1]  Includes a $0 and $43 impact for the current and prior year period, respectively, from the 100k Milestone Gift

[2]  Includes a 0.0% and 0.3% impact for the current and prior year period, respectively, from the 100k Milestone Gift

About Ken Zino

Ken Zino is an auto industry veteran with global experience in print, broadcast and electronic media. He has auto testing, marketing, public relations and communications expertise garnered while working in Asia, Europe and the U.S.
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