Carvana Co. reported significant financial growth for the fiscal year ending December 31, 2024, with total revenues reaching $13.7 billion, a 26.9% increase from $10.8 billion in 2023. The company’s retail vehicle sales alone surged by 28.8% to $9.7 billion, driven by a 33.1% rise in retail units sold, totaling 416,348 vehicles. This growth reflects Carvana's strategic focus on enhancing its e-commerce platform for buying and selling used cars, which has positioned it as a leading player in a fragmented market.
The company also noted a substantial increase in gross profit, which rose by 66.8% to $2.9 billion, compared to $1.7 billion in the previous year. Retail vehicle gross profit per unit improved to $3,312, up from $2,385 in 2023, attributed to lower average days to sale and reduced vehicle acquisition costs. However, the average revenue per retail unit sold decreased slightly by 3.2% to $23,252, influenced by a higher proportion of retail marketplace units sold.
In terms of operational metrics, Carvana's average monthly unique visitors increased to 17.2 million, up from 15.8 million in 2023, indicating enhanced customer engagement. The company also expanded its inventory, listing over 53,000 vehicles on its platform by year-end, compared to 33,075 in the previous year. This growth in inventory and customer traffic is expected to further bolster sales and market share, which currently stands at approximately 1% of the used vehicle retail market, estimated at 36 million transactions in 2023.
Strategically, Carvana has focused on improving operational efficiency and profitability, particularly following a shift in 2022 and 2023 towards cost management amid challenging economic conditions. The acquisition of ADESA US Auction in 2022 has also expanded its reconditioning capacity, with six auction sites now operational as inspection and reconditioning centers. Looking ahead, Carvana aims to leverage its logistics network and technology to enhance customer experience and drive further growth, while maintaining a focus on profitability and operational efficiency.
The company’s outlook remains cautiously optimistic, with management emphasizing the importance of adapting to market conditions and consumer preferences. Carvana plans to continue investing in technology and infrastructure to support its growth initiatives, while also navigating the complexities of the used vehicle market and potential economic fluctuations.
About CARVANA CO.
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