Carvana delivers 416k vehicles in 2024, becomes fastest-growing auto retailer

Overview

Carvana delivered a record-breaking 2024, achieving its highest profitability and strongest growth in retail unit sales. The company reported a 33% increase in total retail units sold, net income of $404m, and an adjusted EBITDA margin of 10.1%, marking a turnaround from previous challenges. In Q4, retail unit sales surged 50% YoY, while gross profit per unit (GPU) reached $6,671, reflecting operational efficiencies and improved cost controls.

The company remains focused on scaling operations while enhancing customer experience through AI-powered automation and logistical improvements.

Q4 2024 vs. Q4 2023:

• Revenue recorded a value of $3.55bn (+46% YoY), driven by a 50% rise in retail unit sales to 114,379 units.
• Gross profit has an almost double value of $763m (+90% YoY), supported by cost optimizations and improved vehicle pricing.
• Net income rose to $159m, a turnaround from a ($200m) loss in Q4 2023.
• Adjusted EBITDA totaled $359m, with adjusted EBITDA margin of 10.1% (vs. 2.5% in Q4 2023), reflecting operational discipline.
• Gross Profit Per Unit (GPU) was $6,671, up $1,388 YoY, supported by:
  • Retail GPU reached to $3,226 (+14.7% YoY), benefiting from lower vehicle depreciation rates and reduced logistics & reconditioning costs.
  • Wholesale GPU increased to $674 (+28.1% YoY), aided by stronger wholesale vehicle pricing.
  • Other GPU was $2,771 (+42.5% YoY), fueled by higher financing spreads and loan sales.

Full-Year 2024 highlights:

• Total revenue increased to $13.67bn (+27% YoY), reflecting higher sales volumes and gross profit expansion.
• Retail unit sales recorded a value of 416,348 (+33% YoY), making Carvana the fastest-growing public automotive retailer.
• Net income experienced a major expansion, reaching $404m (+170% YoY), driven by revenue growth and cost improvements. In the same way, diluted EPS increased to $1.59 (+112% YoY).
• Adjusted EBITDA totaled $1.38bn, the highest in company history, with adjusted EBITDA margin of 10.1% (vs. 3.1% in 2023).
• Gross Profit Per Unit (GPU) was $6,908, up $1,397 YoY, reflecting a higher share of premium-priced vehicles and enhanced efficiency in reconditioning and logistics.
• SG&A per unit reduced by $1,240 YoY, optimizing marketing and operational expenses.
• Advertising cost per unit fell to $550 (-25% vs. 2023), due to improved brand awareness.
• Overhead expense per unit decreased by $550 YoY, reflecting economies of scale.

Carvana expects continued profitability and accelerated growth in 2025, driven by retail expansion, operational efficiencies, and AI-driven automation. The company anticipates double-digit increases in retail unit sales, supported by enhanced inventory selection and faster fulfillment. Adjusted EBITDA is expected to surpass 2024 levels, benefiting from higher sales volumes and cost efficiencies. Capital expenditures of ~$140m will focus on integrating 10-12 additional ADESA sites, while AI-powered tools will streamline customer service and inventory management, reducing delivery time by 20% YoY. Carvana remains committed to financial discipline, strategic investments, and long-term shareholder value.

After reporting the results, but also after February 21st, which seems to have brought quite significant declines on the main American stock exchanges, CVNA shares seem to end this trading week with a price on a downward trend, which decreased by approximately -18% in just a few days, although the reports showed that the main results beat analysts’ estimates.

Author: Ionuț-Adrian Lazar