Carvana (US:CVNA)2025-05-07 20:12Sales Performance - Retail vehicle sales reached $3.0 billion for the three months ended March 31, 2025, compared to $2.2 billion for the same period in 2024, reflecting a significant increase [215]. - The number of retail vehicles sold increased by 45.7% to 133,898 during the three months ended March 31, 2025, compared to 91,878 in the same period of 2024 [209]. - Wholesale sales totaled $863 million for the three months ended March 31, 2025, up from $657 million in the same period of 2024 [216]. - Other sales and revenues, including gains on finance receivables and complementary products, totaled $389 million for the three months ended March 31, 2025, compared to $229 million in 2024 [217]. - Retail vehicle sales increased by $805 million to $3.0 billion, a 37.0% increase compared to $2.2 billion in the same period last year [263]. - Total net sales and operating revenues rose by $1.171 billion to $4.232 billion, reflecting a 38.3% increase from $3.061 billion year-over-year [261]. - Retail vehicle unit sales grew by 45.7% to 133,898 units, up from 91,878 units in the same quarter last year [267]. - Wholesale sales and revenues increased by $206 million to $863 million, a 31.4% increase compared to $657 million in the prior year [265]. - Other sales and revenues rose by $160 million to $389 million, a 69.9% increase from $229 million year-over-year [266]. Profitability - Gross profit increased by $338 million to $929 million, a 57.2% increase compared to $591 million in the prior year [261]. - Total gross profit per unit increased to $6,938 in Q1 2025, compared to $6,432 in Q1 2024, showing improved profitability per vehicle sold [235]. - Non-GAAP total gross profit per unit also rose to $7,140 in Q1 2025, up from $6,802 in Q1 2024, highlighting enhanced operational efficiency [237]. - Adjusted EBITDA for Q1 2025 was $488 million, up from $235 million in Q1 2024, resulting in an adjusted EBITDA margin of 11.5% compared to 7.7% in the prior year [287]. Customer Metrics - Customer satisfaction is reflected in an average rating of 4.7 out of 5.0 from over 221,000 surveys since inception [211]. - Average monthly unique visitors rose to 17,421 thousand in Q1 2025, compared to 16,612 thousand in Q1 2024, reflecting a 4.2% increase due to changes in measurement methodology [233]. - Total website units reached 53,707 at the end of Q1 2025, up from 30,694 in Q1 2024, indicating strong growth in vehicle selection available to consumers [234]. Financial Position - Cash and cash equivalents as of March 31, 2025, were $1,858 million, up from $1,716 million at the end of 2024 [296]. - Committed liquidity resources available increased to $3,739 million as of March 31, 2025, compared to $3,595 million at the end of 2024 [296]. - Total liquidity resources amounted to $5,861 million as of March 31, 2025, compared to $5,690 million at the end of 2024 [296]. - Net cash provided by operating activities was $232 million for Q1 2025, a substantial increase from $10 million in Q1 2024 [313]. Expenses - Selling, general and administrative expenses increased by $79 million to $535 million, primarily due to higher employee headcount and associated costs [273]. - SG&A expenses increased to $535 million in Q1 2025 from $456 million in Q1 2024, with SG&A expenses per retail unit decreasing to $3,996 from $4,963 [287]. Economic Conditions - The company experienced no material impact from inflation and high interest rates during Q1 2025, despite ongoing economic challenges [241]. - The average selling price of retail units is influenced by macroeconomic conditions and the mix of vehicles sold, which can lead to fluctuations in revenue per unit [242]. - The company anticipates potential impacts from macroeconomic conditions and the used car market on its business strategy and financial position [326]. - The company faces risks related to consumer demand, global supply chain challenges, and competition in the automotive industry [326]. Other Information - The company has sold 2.3 million retail vehicles and generated $68.0 billion in total revenue since its inception in 2012 through March 31, 2025 [206]. - As of March 31, 2025, the company estimates that 75% of the U.S. population is within 100 miles of an inspection and reconditioning center or auction site [211]. - The company plans to increase the purchase of vehicles from customers to enhance inventory selection and profitability [218]. - The logistics network is designed to efficiently transport vehicles, with capacity to inspect and recondition over 1 million vehicles per year at full utilization [218]. - The company continues to focus on expanding its integrated auto insurance solution with Root, enhancing customer access to insurance products [249]. - Interest expense, net decreased by $34 million to $139 million, down from $173 million in the same period last year [275]. - Other income, net was $122 million, primarily due to a $158 million increase in the fair value of Root Warrants [277]. - Income tax provision changed to a provision of $2 million, compared to a benefit of $1 million in the prior year [278]. - Net income for the three months ended March 31, 2025, was $373 million, compared to $49 million in the same period of 2024, representing a significant increase [287]. - Cash used in investing activities was $35 million in Q1 2025, a decrease of $42 million compared to cash provided of $7 million in Q1 2024, primarily due to a $24 million acquisition of a franchise dealership [315]. - Cash used in financing activities decreased significantly to $53 million in Q1 2025 from $375 million in Q1 2024, a reduction of $322 million, mainly due to lower payments on short-term revolving facilities [316]. - There have been no material changes to contractual obligations or commitments from the previous Annual Report [318]. - There have been no material changes to critical accounting estimates from those described in the most recent Annual Report [322]. - The forward-looking statements reflect the company's views as of the report date, with no obligation to update them publicly [327]. - There have been no material changes to quantitative and qualitative disclosures about market risk from the previous Annual Report [328].