News

Carvana reports revenue gain and bigger net loss for 2017 Q1

June 26, 2017

Carvana, a publicly-traded company that offers an economical way to buy used cars using a vending system and has raised millions from investors, reported revenue growth but a significant net loss in its Q1 2017 results.

The report outlined consistent gains in unit sales and revenue each quarter since 2016 Q1.

Retail units sold in 2017 Q1 totaled 8,334, an increase of 120 percent over the past year. Revenue totaled $159.1 million, an increase of 118 percent.

Total gross profit was $9.7 million, an increase of 146 percent, while total gross profit per unit was $1,169, an increase of $123 per unit.

Net loss was $38.4 million, an increase of 122 percent.

Carvana customers search for and buy their desired car online at Carvana.com using a mobile phone or desktop computer. This includes the option of vehicle financing through Carvana, as well as the option to trade in a car.

Once the purchase is complete, customers can choose to have their car delivered directly to their door, or they can elect to pick it up at one of Carvana's massive car vending machines.

At the time of pick-up at the vending machine, the customer receives a large Carvana coin to drop into the custom coin slot, initiating the vending process. The car is then automatically retrieved from the tower and moved through the machine until it reaches a delivery bay where the customer takes possession.