Prime Highlights:
Carvana exceeded Wall Street’s Q4 expectations, reporting earnings of 56 cents per share versus the expected 29 cents.
Q4 revenue reached $3.55 billion, a 46% year-over-year increase, surpassing expectations of $3.31 billion.
Key Background:
Carvana, the Tempe, Arizona-based online used car retailer, has reported strong performance in the fourth quarter of 2024, surpassing Wall Street’s expectations. The company is also forecasting another “strong” year in 2025, with continued growth in both retail units sold and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
For the fourth quarter, Carvana posted earnings per share (EPS) of 56 cents, significantly outperforming the anticipated 29 cents. Revenue for the quarter reached $3.55 billion, up 46% from the same period in 2023 and surpassing analyst expectations of $3.31 billion. Full-year revenue for 2024 amounted to $13.67 billion, a nearly 27% increase compared to $10.77 billion in 2023.
The company reported adjusted EBITDA of $1.38 billion for 2024, with net income of approximately $404 million. For the fourth quarter, Carvana’s adjusted EBITDA was $359 million, and net income was $159 million, a substantial improvement from a $200 million loss in the same quarter of 2023. This marks a notable turnaround for the company, as it posted a per-share loss of $1 during Q4 2023.
In terms of unit sales, Carvana sold a record 416,348 vehicles in 2024, reflecting a 33% increase from the previous year. Additionally, the company’s gross profit per unit for the fourth quarter and the full year increased by nearly $1,400, reaching $6,671 and $6,908, respectively.
CEO and co-founder Ernie Garcia expressed optimism about Carvana’s future, noting that with only about 1% of the market share, the company is positioned for continued expansion and improvement. Carvana’s stock saw a slight dip of 1% in regular trading but is up roughly 40% in 2025, following a nearly 285% surge in 2024. Looking ahead, Carvana’s strong performance and strategic growth initiatives suggest it is well-positioned for further success in 2025.
