Carvana, the Leading Operator of an E-Commerce Platform for Buying and Selling Used Cars, Has Announced Its Financial Results for the Fourth Quarter and Fiscal Year 2023. The Company Sold 312,847 Vehicles Last Year, with Total Sales of $10.771 Billion, Representing Record Numbers. Although Carvana Is Still Not Operating at a Profit, the Latest Financial Statement Is Encouraging.

In the fourth quarter of 2023, Carvana sold 76,090 vehicles, generating a revenue of 2.424 billion US dollars, representing a decrease of 15 percent compared to the same period last year. However, this was in line with analysts' expectations. Additionally impressive was the record gross profit of 5,511 US dollars per sold unit and the adjusted gross profit of 5,984 US dollars per vehicle. The net income amounted to 150 million US dollars, boosted by a profit-sharing in debt reduction. The sustainable operating cash flow before taxes (EBITDA) was 339 million US dollars.

Upon closer examination of the earnings per share, it becomes clear that Carvana still reported a loss of 1 US dollar per share. This exceeded the expectations of analysts, who had anticipated a loss of 0.85 US dollars. Nevertheless, the company emphasized that it is on the best path to profitability.

Despite the Uncertain Macroeconomic and Industry-Specific Environment, Carvana Expects an Increase in Retail Units Year-Over-Year for the First Quarter of 2024 and an Adjusted EBITDA of Over 100 Million US Dollars. This is Based on Initial Results in the First Quarter, with the Company Anticipating a Similar Gross Profit Per Unit as in the Fourth Quarter. Furthermore, Carvana Plans Growth in Sold Retail Units for the Entire Fiscal Year 2024 as well as an Increase in Adjusted EBITDA compared to the Previous Year.

CEO Ernie Garcia Emphasized That 2023 Was an Extraordinary Year for Carvana, Marked by Efficiency Gains and Record Profits. He Further Explained That the Company Is Stronger Than Ever and Has Begun to Demonstrate the Benefits of Its Vertically Integrated Approach in Terms of Profitability, Efficiency, and Customer Experience. Carvana’s Long-Term Goal Is to Become the Largest and Most Profitable Car Dealer and to Buy and Sell Millions of Cars.

The news from Carvana caused excitement at the NYSE on Friday. Investors temporarily sent the stock soaring by 34.04 percent to $70.62, marking a new 52-week high. This shows that the company is on a promising path and enjoys the confidence of investors.