Q2 2024 Carvana Co Earnings Call Transcript
Key Points
- Carvana Co (CVNA) achieved positive net income for the second consecutive quarter, setting new company records for adjusted EBITDA, adjusted EBITDA margin, and GAAP operating income.
- Retail units sold increased by 33% year-over-year, demonstrating strong demand and effective operational execution.
- Revenue increased by 15% year-over-year, despite industry-wide declines in vehicle selling prices.
- Non-GAAP total GPU reached $7,344, a new company record, driven by fundamental gains in several areas.
- Carvana Co (CVNA) has significant physical capacity and real estate to handle much higher volumes, indicating strong potential for future growth.
- Revenue growth lagged behind the increase in retail units sold due to declines in vehicle selling prices.
- Non-GAAP wholesale GPU decreased by $124 year-over-year, indicating some challenges in the wholesale segment.
- Non-GAAP other GPU decreased by $239 year-over-year, partly due to changes in loan origination and credit tightening.
- The company is still operating below its target inventory levels, which could limit sales growth in the near term.
- There are concerns about the impact of seasonality on future quarters, which could affect profitability and sales volumes.
Good day, and welcome to the Carvana Second Quarter 2024 Earnings Call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Meg Kehan, Investor Relations. Please go ahead.
Thank you, Brenda. Good afternoon, ladies and gentlemen and thank you for joining us on Carvana's second quarter 2024 earnings conference call. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at investors.carvana.com. The second quarter Shareholder Letter is also posted on the IR website. Additionally, we posted a set of supplemental financial tables for Q2, which can be found on the Events and Presentations page of our IR website.
Joining me on the call today are Ernie Garcia, Chief Executive Officer; and Mark Jenkins, Chief Financial Officer.
Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the
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