Carvana, the eCommerce platform for buying used cars, announced Tuesday (June 6) its first quarter results, which showed it sold 8,334 cars, an increase of 120 percent.
In a press release announcing the results for the three months ending in March, Caravana said revenue came in at $159.1 million, up 118 percent, and total gross profits were $9.7 million, a rise of 146 percent compared with a year ago. Caravana reported a net loss of $38.4 million in the quarter.
“We are excited to announce record revenue in our first earnings report as a newly public company. Our strong performance this quarter reflects a significant increase in retail units as well as expansion into new markets. During the quarter, we made important enhancements to the customer experience through new product development, resulting in ongoing optimization from website through vehicle delivery,” said Ernie Garcia, Carvana founder and CEO, in a press release announcing the quarterly earnings results. “We continue to see increased consumer adoption of online car buying across our markets, charting a clear path to consistent growth within the $710 billion U.S. used auto market. Carvana’s unique business model includes proprietary technology and assets, like the vending machines, that deliver customer experiences that position us to execute against our aggressive growth plans.”
Looking to the second quarter, Caravana expects more unit and revenue growth from used cars, as well as total gross profit per unit improvement. The company is targeting retail unit sales of between 10,000 and 10,500, total revenue between $193 million and $203 million, and total gross profit per unit of $1,375 to $1,425.
For all of 2017, the company is forecasting retail unit sales of 44,000 to 46,000, an increase from 18,761 in 2016; revenue of between $850 million and $910 million, an increase from $365 million in 2016; and total gross profit per unit of between $1,475 to $1,575, an increase from $1,023 in 2016.