Auto NewsMotorcycleRacing NewsTechnology

Carvana Fourth Quarter Earnings: Plunge in Sales Widens Loss to $806 Million

Carvana sold 412,296 units for the full year, down 3.0% from 2021. Annual profit per vehicle was $3,022, down $1,515 from 2021.

In a letter to shareholders, Carvana CEO Ernie Garcia and CFO Mark Jenkins said, “From a short-term perspective, it’s clearly been a very difficult year.” , was the first year that we took a step back in our key metrics of retail units sold, total GPUs, net profit margin and adjusted EBITDA margin.”

On Carvana’s earnings call Thursday, Jenkins said he expects sales in the first quarter of 2023 to be lower than in the fourth quarter of 2022. This is as we work to normalize inventory sizes, optimize marketing spend and advance profitability initiatives.

Carvana reduced inventory by 27% in the fourth quarter and plans to continue reducing inventory in the first quarter, according to a letter to shareholders.

The letter says it is not expected to see a “meaningful gain” in retail gross margin per vehicle sold in the first quarter, but the benefits of reducing inventory size will be seen later. It is possible that it will be “revealed” in the quarter.

Carvana said it aims to reduce selling, general and administrative expenses by about $100 million by the second quarter. While these cuts will be “extensive,” the letter says the company does not expect any job cuts as part of its plans.

carvana strain It fell 3.8% to $9.69 in after-hours trading.

The company is second car news recent list With 425,237 used cars sold in 2021, it is one of the top 100 retailers ranked for used car sales.

  • Q4 net revenue: $2.8 billion, down 24% from $3.75 billion a year ago.
  • Q4 net income: Loss of $806 million attributable to Carvana. His $89 million loss attributed to Carvana in the same period last year.
  • Retail Vehicles Sold in Q4: 86,977, down 23% from 113,016.
  • Q4 gross margin per vehicle: $2,219, 51% down.
  • 2022 net income: $13.6 billion. In 2021 he increased 6.2% from $12.8 billion.
  • 2022 net profit: $1.6 billion loss attributable to Carvana compared to $135 million loss attributable to Carvana in 2021.
  • Sales volume in 2022: 412,296 units. Down 3% from 425,237 in 2021.
  • Total Gross Margin per Vehicle in 2022: $3,022, down 33% from $4,537 in 2021.

https://www.autonews.com/earnings-reports/carvana-q4-earnings-losses-widen-806-million-sales-plunge Carvana Fourth Quarter Earnings: Plunge in Sales Widens Loss to $806 Million

Back to top button