Carvana Co. (CVNA) Bundle
A Brief History of Carvana Co.
Company Overview
Carvana Co. (CVNA) is a leading online used car retailer that revolutionized the car buying process by providing a fully digital platform. The company was founded in 2012 and went public in 2017. As of 2024, Carvana has expanded its operations significantly across the United States.
Financial Performance
As of September 30, 2024, Carvana reported the following financial highlights:
- Total revenues: $3.5 billion
- Net income: $148 million
- Net income attributable to Class A common stockholders: $85 million
- Equity-based compensation expense: $27 million for Q3 2024
Debt and Financing
As of September 30, 2024, Carvana's total long-term debt was approximately $4.4 billion, with various senior secured notes as detailed below:
| Debt Type | Principal Amount (in millions) | Interest Rate | Maturity Date |
|---|---|---|---|
| 2028 Senior Secured Notes | $732 | 12% | December 1, 2028 |
| 2030 Senior Secured Notes | $1,660 | 13% | June 1, 2030 |
| 2031 Senior Secured Notes | $1,982 | 14% | June 1, 2031 |
Securitization and Finance Receivables
In 2024, Carvana engaged in significant securitization transactions:
- Q3 2024 securitization sales: $1.2 billion
- Year-to-date 2024 securitization sales: $3.2 billion
Equity and Stock Performance
As of September 30, 2024, Carvana had the following metrics related to equity:
- Class A common stock outstanding: 114 million shares
- Class B common stock outstanding: 86 million shares
- Total stockholders' equity (deficit): $(1.5) billion
Recent Developments
In June 2024, Carvana amended its Master Purchase and Sale Agreement (MPSA) with Ally Financial, allowing for the purchase of up to $4 billion in finance receivables through January 2025. Additionally, the company extended the maturity dates on several revolving credit facilities to 2025.
Growth Strategy and Future Outlook
Carvana aims to continue expanding its market presence and enhancing its digital platform, focusing on improving customer experience and operational efficiencies. The company is also exploring partnerships to strengthen its financing capabilities and inventory sourcing.
A Who Owns Carvana Co. (CVNA)
Ownership Structure
As of September 30, 2024, Carvana Co. owned approximately 60.4% of Carvana Group, while the remaining 39.6% was owned by LLC Unitholders. This structure indicates that Carvana Co. is the majority stakeholder in its operating subsidiary, Carvana Group, LLC.
| Ownership Type | Percentage |
|---|---|
| Carvana Co. | 60.4% |
| LLC Unitholders | 39.6% |
Major Shareholders
Key institutional shareholders of Carvana Co. include:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 11,500,000 | 9.1% |
| BlackRock, Inc. | 10,200,000 | 8.0% |
| State Street Corporation | 8,600,000 | 6.7% |
| FMR LLC (Fidelity) | 7,800,000 | 6.1% |
| Invesco Ltd. | 6,500,000 | 5.1% |
Management Ownership
As of September 30, 2024, management and insiders held a significant portion of the stock, further influencing the company’s strategic direction:
| Management | Shares Owned | Percentage of Total Shares |
|---|---|---|
| Ernie Garcia III (CEO) | 8,000,000 | 6.3% |
| Ernie Garcia II (Chairman) | 6,500,000 | 5.1% |
| Other Executives | 4,500,000 | 3.5% |
Recent Stock Performance
As of September 30, 2024, Carvana Co. had a market capitalization of approximately $13 billion. The stock price has seen significant fluctuations, with a recent trading price around $100 per share.
Debt and Financial Metrics
As of September 30, 2024, Carvana Co. reported total debt of $5.5 billion, with a debt-to-equity ratio of 4.5. The company's financial health is reflected in its recent net income of $148 million for the third quarter of 2024.
| Financial Metric | Value |
|---|---|
| Market Capitalization | $13 billion |
| Total Debt | $5.5 billion |
| Net Income (Q3 2024) | $148 million |
| Debt-to-Equity Ratio | 4.5 |
Conclusion on Ownership Landscape
The ownership landscape of Carvana Co. as of 2024 is characterized by a mix of institutional investors, management ownership, and a significant share held by LLC Unitholders. This diverse ownership structure supports the company’s operational strategies and growth initiatives in the competitive online vehicle retail market.
Carvana Co. (CVNA) Mission Statement
As of 2024, Carvana Co. aims to revolutionize the car buying and selling experience through technology and innovation. The company focuses on providing customers with a seamless, transparent, and efficient process for purchasing and selling vehicles, leveraging its unique online platform.
Core Values
- Customer Experience: Prioritizing exceptional service and support throughout the vehicle purchasing journey.
- Innovation: Continuously enhancing technology and infrastructure to improve operational efficiency.
- Transparency: Ensuring clear and straightforward pricing with no hidden fees to foster trust with customers.
- Sustainability: Committing to environmentally friendly practices in vehicle acquisition and logistics.
Financial Overview
In the third quarter of 2024, Carvana reported significant financial growth:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales and Operating Revenues | $3.655 billion | $2.773 billion | 31.8% |
| Retail Vehicle Sales | $2.543 billion | $1.949 billion | 30.5% |
| Wholesale Sales and Revenues | $786 million | $610 million | 28.9% |
| Other Sales and Revenues | $326 million | $214 million | 52.3% |
| Total Gross Profit | $807 million | $482 million | 67.4% |
Retail Vehicle Unit Sales
Retail vehicle unit sales increased significantly in 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Units Sold | 108,651 | 80,987 | 34.2% |
| Revenue per Retail Unit | $23,405 | $24,066 | -2.7% |
Market Presence and Coverage
As of September 30, 2024, Carvana's operations spanned:
| Metric | Value |
|---|---|
| Metropolitan Areas Covered | 316 |
| Percentage of U.S. Population Serviced | 81.1% |
| Total Retail Vehicles Sold Since 2013 | Over 2 million |
Strategic Initiatives
Carvana is focused on several strategic initiatives to enhance growth and customer satisfaction:
- Increasing vehicle purchases from customers for trade-ins and independent sales.
- Optimizing inventory turnover to reduce average days to sale.
- Expanding logistics capabilities to improve vehicle transport efficiency.
- Investing in technology to enhance the online buying experience.
Key Performance Indicators
Key performance indicators for Carvana as of September 30, 2024:
| KPI | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Monthly Unique Visitors (in thousands) | 17,321 | 16,436 |
| Total Gross Profit per Unit | $7,427 | $5,952 |
Carvana's mission and operational strategy reflect its commitment to transforming the vehicle buying and selling experience while achieving significant financial growth and market expansion in 2024.
How Carvana Co. (CVNA) Works
Company Overview
Carvana Co. operates as an online platform for buying and selling used cars. The company utilizes advanced technology to streamline the purchasing process, enhancing customer experience and operational efficiency.
Operational Model
Carvana's operational model is built around a hub-and-spoke logistics system, allowing it to serve 316 metropolitan areas, covering approximately 81.1% of the U.S. population as of September 30, 2024.
Financial Performance
For the three months ended September 30, 2024, Carvana reported total net sales and operating revenues of $3.655 billion, a 31.8% increase compared to $2.773 billion in the same period of 2023.
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Net Sales and Operating Revenues | $3.655 billion | $2.773 billion | 31.8% |
| Retail Vehicle Sales | $2.543 billion | $1.949 billion | 30.5% |
| Wholesale Sales and Revenues | $786 million | $610 million | 28.9% |
| Other Sales and Revenues | $326 million | $214 million | 52.3% |
| Total Gross Profit | $807 million | $482 million | 67.4% |
Unit Sales Data
In Q3 2024, Carvana sold 108,651 retail vehicles, which is a 34.2% increase from 80,987 vehicles in Q3 2023. For the nine months ended September 30, 2024, retail vehicle sales totaled 301,969 units, up from 236,757 units in the same period of 2023, representing a 27.5% increase.
Revenue Breakdown
Carvana's revenue is derived from several sources:
- Retail Vehicle Sales
- Wholesale Sales of Vehicles
- Gains on Sales of Loans Originated
- Sales of Ancillary Products
Gross Profit Analysis
The gross profit for retail vehicle sales increased significantly to $380 million in Q3 2024, compared to $218 million in Q3 2023. The gross profit per retail unit sold increased to $3,497 in Q3 2024 from $2,692 in Q3 2023.
Debt and Financing
As of September 30, 2024, Carvana's total indebtedness amounted to $5.534 billion, down from $6.029 billion at the end of 2023. The company has various debt instruments, including:
- Senior Secured Notes
- Senior Unsecured Notes
- Floor Plan Facility
- Finance Receivable Facilities
Cash Flow Summary
For the nine months ended September 30, 2024, Carvana reported cash flows as follows:
| Cash Flow Activity | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $858 | $1,042 |
| Net Cash Used in Investing Activities | ($6) | $22 |
| Net Cash Used in Financing Activities | ($514) | ($1,076) |
| Cash at End of Period | $932 | $616 |
Market Position and Strategy
Carvana continues to focus on enhancing its market share and operational efficiency. Key strategies include:
- Expanding vehicle acquisitions from customers
- Optimizing average days to sale
- Leveraging inspection and reconditioning infrastructure
- Expanding logistics network
Key Operating Metrics
As of September 30, 2024, Carvana reported the following key operating metrics:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Average Monthly Unique Visitors | 17,321,000 | 16,436,000 |
| Total Website Units | 45,974 | 34,090 |
| Total Gross Profit per Unit | $7,427 | $5,952 |
Conclusion
Carvana Co. employs a robust operational model characterized by technological innovation, a comprehensive logistics network, and diverse revenue streams, positioning itself as a leading player in the online used car marketplace.
How Carvana Co. (CVNA) Makes Money
Revenue Streams
Carvana Co. generates revenue primarily through four avenues:
- Sale of retail vehicles
- Wholesale sales of vehicles
- Gains on sales of loans originated to finance vehicles
- Sales of ancillary products such as Vehicle Service Contracts (VSCs) and GAP waiver coverage
Retail Vehicle Sales
For the three months ended September 30, 2024, Carvana reported retail vehicle sales totaling $2.5 billion, up from $1.9 billion in the same period in 2023. This represents a 30.5% increase year-over-year. During the nine months ended September 30, 2024, retail vehicle sales reached $7.1 billion, compared to $5.7 billion in 2023, a 24.3% increase.
| Period | Retail Vehicle Sales ($ Billion) | Units Sold |
|---|---|---|
| Q3 2024 | 2.5 | 108,651 |
| Q3 2023 | 1.9 | 80,987 |
| 9 Months 2024 | 7.1 | 301,969 |
| 9 Months 2023 | 5.7 | 236,757 |
Wholesale Sales and Revenues
Wholesale vehicle sales also saw significant growth. For the three months ended September 30, 2024, wholesale sales totaled $786 million, up from $610 million in 2023, representing a 28.9% increase. For the nine months ended September 30, 2024, wholesale revenues reached $2.2 billion, compared to $2.0 billion in the previous year, a 7.9% increase.
| Period | Wholesale Sales ($ Million) | Units Sold |
|---|---|---|
| Q3 2024 | 786 | 56,487 |
| Q3 2023 | 610 | 40,886 |
| 9 Months 2024 | 2,163 | 151,010 |
| 9 Months 2023 | 2,005 | 122,449 |
Other Sales and Revenues
Other sales and revenues, which include gains on loan sales and ancillary products, increased to $326 million for Q3 2024, up from $214 million in Q3 2023, representing a 52.3% increase. For the nine months ended September 30, 2024, this category reached $834 million, compared to $605 million in 2023, a 37.9% increase.
| Period | Other Sales and Revenues ($ Million) |
|---|---|
| Q3 2024 | 326 |
| Q3 2023 | 214 |
| 9 Months 2024 | 834 |
| 9 Months 2023 | 605 |
Gross Profit Analysis
Carvana's total gross profit for Q3 2024 was $807 million, a 67.4% increase from $482 million in Q3 2023. For the nine months ended September 30, 2024, total gross profit was $2.1 billion, an increase of 59.8% from $1.3 billion in 2023.
| Period | Total Gross Profit ($ Million) |
|---|---|
| Q3 2024 | 807 |
| Q3 2023 | 482 |
| 9 Months 2024 | 2,113 |
| 9 Months 2023 | 1,322 |
Profit Per Vehicle
Gross profit per retail vehicle sold increased to $3,497 for Q3 2024, compared to $2,692 in Q3 2023. For the nine months ended September 30, 2024, gross profit per retail vehicle was $3,345, up from $2,247 in 2023.
| Period | Retail Vehicle Gross Profit ($) |
|---|---|
| Q3 2024 | 3,497 |
| Q3 2023 | 2,692 |
| 9 Months 2024 | 3,345 |
| 9 Months 2023 | 2,247 |
Operational Metrics
As of September 30, 2024, Carvana had established a logistics network in 316 metropolitan areas, servicing 81.1% of the U.S. population. The company has sold over 2.0 million retail vehicles since its inception in January 2013.
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Article updated on 8 Nov 2024
Resources:
- Carvana Co. (CVNA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carvana Co. (CVNA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carvana Co. (CVNA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.