Carvana Provides Updates On Operating Plan And Capital Structure; Says Despite Continued Focus On Profitability Initiatives And Unit Economics, Carvana Grew Retail Units By 16% YoY; In Q1, Non-GAAP GPU Increased 42%, Non-GAAP SG&A Per Unit Decreased 17%, And Adjusted EBITDA Margin Increased 860 BPS

Author: Benzinga Newsdesk | June 06, 2024 01:19pm

Operating Plan

One year ago, Carvana launched an internal plan that identified opportunities to strengthen unit economics over a 12-month period. This effort drove progress across every team, resulting in:

Efficiency-driven growth. Despite continued focus on profitability initiatives and unit economics, Carvana grew retail units by 16% YoY in Q1, driven in part by improvements in conversion and customer experience.
Substantial YoY improvements in unit economics. In Q1, non-GAAP GPU increased 42%, non-GAAP SG&A per unit decreased 17%, and Adjusted EBITDA Margin increased 860 bps.
Industry-leading Adjusted EBITDA margin. In Q1, Carvana delivered its best financial results in company history, driving industry-leading 7.7% Adjusted EBITDA margin and reaching its goal of becoming the most profitable auto retailer for the first time by this measure.
Significant cash flow progress. Adjusted EBITDA in Q1 was $235 million while capital expenditures and non-PIK interest expense was only $48 million.
- Further momentum in Q2. The company reiterated its expectation of a sequential increase in its YoY growth rate in retail units and a sequential increase in Adjusted EBITDA in Q2.

Posted In: CVNA