Financial Data and Key Metrics Changes - Quarterly revenue was USD 9.7 billion, up 4.9% year-over-year, and adjusted diluted EPS was USD 9.50, up 17% [5][17] - Same-store revenues for the quarter increased 7.7%, with total gross profit increasing 3.2% despite normalization of front-end gross profit units (GPUs) [6][7] - Adjusted SG&A as a percentage of gross profit was 67.9% compared to 66% a year ago, with North America's adjusted SG&A flat sequentially at 64.8% [17][18] Business Line Data and Key Metrics Changes - New retail revenue grew 5.5%, with units up 2.5%, while new GPU was USD 2,867, down USD 348 sequentially [7] - Used retail revenue increased by 11.8% year-over-year, driven by a 6.3% increase in unit growth and higher average selling prices [7][8] - After-sales revenue increased 3.9%, with gross profit rising 9.1% and margins expanding to 58.4%, up 280 basis points year-over-year [9] Market Data and Key Metrics Changes - Vehicle inventory and carrying costs improved, with new day supply at 52 days, a decrease of 11 days sequentially [9] - Financing operations income was USD 19 million in the quarter, with a net interest margin of 4.6%, up 70 basis points year-over-year [19] - The used car market showed strong performance, with value segments delivering a 22.3% unit increase year-over-year [8][36] Company Strategy and Development Direction - The company aims to capture market share and increase customer loyalty, focusing on high ROI used vehicles and after-sales services [6][12] - Strategic acquisitions remain a core pillar, with a target of USD 2 billion in acquisition revenue for 2025 [13][14] - The company is simplifying its tech stack and increasing sales efficiency through digital platforms, enhancing customer experience [10][12] Management's Comments on Operating Environment and Future Outlook - Management highlighted strong top-line growth across all business lines, with a focus on execution and cost control [5][6] - The company is optimistic about future performance, expecting to convert momentum into share gains and sustained cost efficiency [6][12] - Management acknowledged challenges in the UK market but emphasized ongoing improvements in productivity and cost management [18][30] Other Important Information - The company repurchased 5.1% of outstanding shares at an average price of USD 312, prioritizing share buybacks due to stock trading at a discount [12][21] - Driveway Finance Corporation continues to build a stable earnings base with healthy spreads and disciplined underwriting [11][19] Q&A Session Summary Question: Discussion on EV inventory and sales - Management noted that electrified vehicles constituted 43% of total new car mix, with significant sales driven by federal credits and manufacturer incentives [24][25] Question: UK market conditions and cost efficiencies - Management discussed labor cost impacts and ongoing initiatives to improve productivity and market share in the UK [27][28] Question: Overview of the used market and subprime impact - Management highlighted opportunities in the used car market, particularly in the value auto segment, which is less affected by subprime issues [34][35] Question: UK regulatory environment for EVs - Management indicated that growth in the UK is currently driven by ICE vehicles rather than electrified ones, with expectations of more regulations in the future [40][41] Question: U.S. EV sales and profitability - Management acknowledged that margins on EVs are lighter, but emphasized strong customer loyalty and repeat purchases in the EV segment [49][52] Question: M&A opportunities and targets - Management confirmed a hard target of USD 2 billion in acquisitions for the year, with a focus on maintaining return thresholds [70][71] Question: Used performance and future expectations - Management expressed confidence in continued positive comps in used vehicle sales, citing a strong focus on quality and customer experience [78][81]