Carvana reports cost savings and efficiency gains in an uncertain environment



Carvana We continued to reduce expenses and improve efficiency in the third quarter, resulting in adjusted EBITDA and gross profit per unit (GPU) reaching record levels in the third quarter.

CEO of an online used car retailer; Ernie Garciaexpressed confidence in the company’s business model and the long-term potential of the industry during the company’s quarterly earnings call on Thursday (Nov. 2). Carvana recognizes the potential challenges in the current market environment, but remains optimistic about its long-term goals and opportunities for continued success.

Mr. Garcia emphasized Carvana’s ambition to sell millions of cars and become the largest and most profitable auto retailer. He said Carvana expects sales volumes to decline in the fourth quarter due to normal seasonality and potential industry softening. However, he said Carvana continues to work within the target unit for the next steps in the plan.

“Taken together, we expect these trends to produce another strong quarter, but similar to past fourth quarters, lower industry-wide volumes coupled with higher industry-wide depreciation rates We expect adjusted EBITDA to be lower than we achieved over the past two quarters,” Garcia said. I said during the call.

Chief Financial Officer Carvana said the company’s retail sales declined in the third quarter compared to a year ago, but have since increased. mark jenkins I said during the call.

Carvana’s focus on growth was emphasized throughout the conference call and in supporting materials. Mr. Garcia and Mr. Jenkins emphasized the company’s efforts to improve efficiency, reduce expenses and accelerate growth. They expect continued improvement in operating expenses and unit economics.

“We remain focused on improving operating efficiency and further strengthening our unit economics, and as evidenced by the operating leverage we achieved in the third quarter and our strong infrastructure, we believe that when the time is right, we will “We are extremely well-positioned to return to profitable growth; we are built to support efficient scaling,” Garcia said in an article Thursday. earnings release.

Although executives acknowledge the potential impact of industry trends, including seasonal changes and potential softening, they remain confident in Carvana’s ability to overcome these challenges and achieve its long-term goals. Told.

“We are still a small player in the world’s largest retail market, selling millions of cars and on our way to becoming the largest and most profitable auto retailer,” Garcia said on a conference call. There is,” he said.

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