Carvana said it is making strides in getting vehicles ready. The company opened an inspection and reconditioning center near Columbus, Ohio, in the third quarter and has since added another such facility near Orlando, bringing its total to 10. It expects to open an 11th inspection and reconditioning center by year’s end.
In the third quarter, Carvana’s retail vehicle sales grew 39 percent to 64,414. Its revenue rose 41 percent to $1.54 billion.
Carvana reported a net loss of $17.7 million vs. a net loss of $92.2 million in the third quarter of 2019.
The company’s earnings before interest, taxes, depreciation and amortization was $21.3 million vs. a loss of $60.6 million in the third quarter of 2019. That marked the first EBITDA-positive quarter for Carvana since it became a public company in April 2017.
Total gross profit jumped 90 percent to $261 million in the third quarter. Total gross profit per vehicle reached a record $4,056, compared with $2,963 in the third quarter of 2019. Its retail gross profit per vehicle was $1,857, compared with $1,305 in the same period last year.
Carvana’s stock has about doubled since the beginning of 2020, starting at $93.21 on Jan. 2 and closing Friday, Oct. 30, at $185.26. Some analysts, such as Sharon Zackfia of William Blair, see further room for growth.
“While Carvana’s stock has increased more than two-fold year-to-date, we maintain our ‘Outperform’ rating given Carvana’s leading position in digital auto sales, improving profitability, and proven scalability of the model,” Zackfia wrote.
