When Carvana Co. (NYSE: CVNA) reported its fiscal first-quarter financial results after the markets closed on Tuesday, it was the first public earnings report since the company came public in late April. This online-only used car dealer posted a net loss of $0.28 per share and $159.1 million in revenue, compared with consensus estimates from Thomson Reuters that called for a net loss of $0.29 per share and $157.7 million in revenue.
During the quarter, Carvana sold a total of 8,334 retail units, an increase of 120% from the same period last year. At the same time, revenues grew by roughly the same amount.
In terms of guidance for the second quarter, the company expects to see revenues in the range of $193 million to $203 million and retail unit sales in the range of 10,000 to 10,500. Consensus estimates are a net loss of $0.29 per share and $184.28 million in revenue.
For the 2017 full year, Carvana expects to see revenues between $850 million and $910 million and retail unit sales in the range of 44,000 to 46,000 (an increase of 18,761 from 2016). The consensus estimates call for a net loss of $1.10 per share and $854.29 million in revenue for the year.
Ernie Garcia, Carvana founder and CEO, commented:
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. 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.
Shares of Carvana traded up 18% at $11.25 on Wednesday, with a consensus analyst price target of $17.33 and a 52-week range of $8.14 to $13.94.