Click to Enlarge.
Carvana Co. (NYSE: CVNA), an e-commerce firm for buying and selling used cars, has posted positive Q2 2020 results. Revenue of $1.118 Billion, an increase of 13% Year-over-Year, the result of retail sales of 55,098, an increase of 25%.
“We’ve been leading the market with The New Way to Buy a Car for the last 7 years and now with even more customers moving to online buying, we are seeing more demand than ever before,” said Ernie Garcia, founder and CEO of Carvana.
Q2 2020 Financial Results
- Retail units sold totaled 55,098, an increase of 25%
- Revenue totaled $1.118 billion, an increase of 13%
- Total gross profit was $150 million, an increase of 9%
- Total gross profit per unit was $2,726, a decrease of $406 [1]
- Net loss was ($106) million, an increase of 66%
- EBITDA margin was (6.2%), a decrease from (3.6%) [2]
- Basic and diluted net loss per Class A share was $0.62 based on 66.3 million shares of Class A common stock outstanding
Q2 2020 Other Results
- Opened 100 new markets, bringing our end-of-quarter total to 261, covering 73.2% of the U.S. population.
- Closed two equity offerings, resulting in $1.06 billion of net proceeds.
- On June 25 launched CarvanaACCESS, a direct-purchase platform, giving wholesale buyers access to a broad selection of Carvana inventory through a centralized platform.
“It is still hard to say exactly how powerful the effects of all of this will be in the long run, but based on the data we see, we believe the long-term opportunity of the business is even larger than we previously thought and that the medium-term opportunity may be materially larger as COVID-19 and its follow on effects have likely accelerated the adoption of ecommerce across retail verticals,” said Garcia.
Carvana’s complete second quarter 2020 financial results and management commentary can be found in its shareholder letter on the quarterly results page of the investor relations website.
Footnotes
[1] Includes a $0 and $43 impact for the current and prior year period, respectively, from the 100k Milestone Gift
[2] Includes a 0.0% and 0.3% impact for the current and prior year period, respectively, from the 100k Milestone Gift
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Carvana Q2 Results – Sales, Revenue Up by Double Digits
Click to Enlarge.
Carvana Co. (NYSE: CVNA), an e-commerce firm for buying and selling used cars, has posted positive Q2 2020 results. Revenue of $1.118 Billion, an increase of 13% Year-over-Year, the result of retail sales of 55,098, an increase of 25%.
“We’ve been leading the market with The New Way to Buy a Car for the last 7 years and now with even more customers moving to online buying, we are seeing more demand than ever before,” said Ernie Garcia, founder and CEO of Carvana.
Q2 2020 Financial Results
Q2 2020 Other Results
“It is still hard to say exactly how powerful the effects of all of this will be in the long run, but based on the data we see, we believe the long-term opportunity of the business is even larger than we previously thought and that the medium-term opportunity may be materially larger as COVID-19 and its follow on effects have likely accelerated the adoption of ecommerce across retail verticals,” said Garcia.
Carvana’s complete second quarter 2020 financial results and management commentary can be found in its shareholder letter on the quarterly results page of the investor relations website.
Footnotes
[1] Includes a $0 and $43 impact for the current and prior year period, respectively, from the 100k Milestone Gift
[2] Includes a 0.0% and 0.3% impact for the current and prior year period, respectively, from the 100k Milestone Gift
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.