Retail

Carvana lifts Q3 2021 revenue, widens loss

Image provided by Carvana.

November 8, 2021

Carvana, an e-commerce platform for buying used cars that delivers cars to customers with a massive, coin-operated vending machine, improved its Q3, 2021 revenue and widened its net loss over the prior year's comparable quarter, according to a shareholder letter.

The company reported a 125% increase in retail revenue from $1.54 billion in Q3, 2020 to $3.48 billion for the quarter ending Sept. 30, 2021.

Net loss rose from $18 million to $68 million for the comparable quarters.

Basic and diluted net loss per Class A share was 38 cents.

The company delivered 111,949 retail units, an increase of 74% compared to 64,414 units in Q3, 2020.

The rise of the Delta variant negatively impacted production volume in Q3. But despite those challenges, inventory increased to an average of 16,400 units in Q3 from 12,800 units in Q2.

The $3.48 billion in quarterly revenue missed analyst expectations by $220 million, while the GAAP EPS of a 38-cent loss missed expectations by 11 cents, according to Seeking Alpha.

Shares traded at $297.89 Friday against a 52-week range of $182.06-$376.83.

"The third quarter was another great quarter for Carvana. We delivered over 110,000 cars to our customers growing 74% versus a year ago and continued laying the foundations necessary to sell over 2 million cars per year," Ernie Garcia, founder and CEO of Carvana, said in a press release. "Despite the complexities of managing through all the change of the last two years, our team has continually executed and persevered as we bought and sold over three times as many cars from our customers in the third quarter as we did in the third quarter of 2019."

The company expects Q4 revenue growth to be more closely aligned with retail unit growth than in Q3.

For an update on how the coronavirus pandemic has affected kiosks, click here.