Carvana topped Wall Street's top- and bottom-line expectations for the fourth quarter, while guiding for another "strong" year in 2025.Carvana, as it has in the past, gave a broad guidance outlook for this year that includes growth in both retail units sold and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), including sequential increases in both during the first quarter.Here's how the company performed in the fourth quarter, compared with average estimates compiled by LSEG ...

Financial Condition and Capital Structure - The company may need to engage in equity or debt financings to secure additional capital, but future financing may not be available on acceptable terms [89]. - Access to capital markets is crucial for the company, and any decline in funding availability could harm liquidity and financial condition [139]. - The company is obligated to make cash payments to LLC Unitholders under the Tax Receivable Agreement, which could amount to 85% of the tax benefits realized, potentially resulting in substantial cash outflows [153][156]. - The company may incur additional debt in the future, which could further strain financial flexibility and increase risks associated with existing indebtedness [162][163]. - The company may face liquidity issues if cash flows are insufficient to meet debt service obligations, potentially leading to asset sales or restructuring [165][166]. - The company does not intend to pay dividends on its Class A common stock for the foreseeable future, making returns dependent solely on stock price appreciation [169]. - The company had total outstanding debt of $67 million under short-term revolving facilities at December 31, 2024, with a variable interest rate that could change annual interest expense by $1 million for a 100-basis point change in market interest rates [331]. - Interest expense increased by $19 million to $651 million for the year ended December 31, 2024, compared to $632 million for the year ended December 31, 2023, primarily due to increased interest associated with Senior Secured Notes [331]. - The company may issue additional shares of Class A common stock, which could dilute existing stockholder ownership and potentially lower stock prices [174]. - The company is classified as a "controlled company," which allows it to qualify for exemptions from certain corporate governance requirements, potentially affecting stockholder protections [160]. - The Garcia Parties control approximately 84% of the voting power of the company's outstanding capital stock as of December 31, 2024, allowing them to effectively control business operations [170]. - The Garcia Parties can determine the outcome of all matters requiring stockholder approval, which may not align with the interests of other stockholders [172]. - The company has authorized undesignated preferred stock, which could complicate acquisition efforts and affect the market price of Class A common stock [176]. Operational Risks and Challenges - The company has experienced rapid growth historically, but future growth may not be sustainable without a healthy industry and macroeconomic environment [90]. - Significant demands on management and operational resources may arise from continued rapid growth, impacting profitability and customer experience [91]. - Maintaining reputation and customer service quality is critical; any decline could adversely affect consumer trust and sales [92]. - Quarterly and annual operating results may fluctuate due to seasonal car-buying patterns, with sales typically peaking in the first quarter [93]. - A significant portion of expenses are fixed, making period-to-period comparisons of operating results potentially misleading [94]. - The used car marketplace is highly competitive, with pressure from both existing and new companies affecting business operations [96]. - Changes in prices for new and used vehicles could materially impact revenues and results of operations [103]. - The company operates in highly regulated industries, and changes in laws and regulations could adversely affect business and financial condition [108]. - The company is subject to various dealer and finance licensing regulations, which could lead to economic fines or operational restrictions if not adhered to [109]. - The company faces potential legal and monetary liabilities related to the Telephone Consumer Protection Act (TCPA), which could impact customer attraction efforts [110]. - Environmental and transportation regulations, such as the California Zero Emission Vehicle program, may increase operating expenses for the company [112]. - The reliance on internal and external logistics exposes the company to various risks, including rising transportation costs and regulatory compliance challenges [116]. - The company collects and processes sensitive personal information, and any failure to protect this data could harm its reputation and financial results [117]. - Cybersecurity measures are critical for the company, as breaches could disrupt operations and negatively impact financial performance [120]. - The company’s technology infrastructure is hosted in third-party data centers, making it vulnerable to various risks that could impair operations [123]. - Inadequate insurance coverage for inventory and auto liability could adversely affect the company's financial condition and operational capabilities [127]. - The company’s success is heavily dependent on retaining key personnel, and the loss of such employees could significantly hinder business growth [128]. - The company holds shares of Series A convertible preferred stock and warrants in Root, Inc., but as a minority investor, it has limited influence over Root's business operations and may not realize expected benefits from this investment [129]. - The company has previously acquired complementary businesses and technologies, including a wholesale marketplace, but future acquisitions may divert management's attention and disrupt operations [130]. - Risks associated with acquisitions include potential dilution of stockholder equity, unanticipated liabilities, and integration challenges that could adversely affect financial condition [131]. - The company relies on automotive finance receivables for a substantial portion of gross profit, and any decline in sales or pricing of these receivables could significantly impact profitability [137]. - The company assesses customer creditworthiness using proprietary technology, and inaccuracies in data could lead to originating underperforming automotive finance receivables [138]. - Errors in customer contracts could render them unenforceable, potentially leading to significant financial repercussions [141]. - The company is dependent on distributions from Carvana Group to meet tax obligations and debt payments, and any restrictions on these distributions could adversely affect liquidity [148]. - The company may face legal proceedings that could result in substantial monetary damages and affect business operations [133]. - Changes in accounting policies or estimates could materially impact reported financial results and condition [135]. Market and Economic Factors - The company is exposed to inflationary factors affecting vehicle affordability and supply chain costs, although it does not believe inflation has historically had a material effect on its financial condition [334]. - The company plans to expand its online sales platform to include additional complementary products and services, which may involve significant investment and risks [115]. - Future tax benefits from exchanges of LLC Units for Class A common stock may not be fully realized due to changes in tax laws and insufficient taxable income [159]. - The market price of the company's Class A common stock has fluctuated between $41.00 and $260.80 from January 1, 2024, to January 1, 2025, indicating significant volatility [169]. - A 100-basis point increase or decrease in market interest rates would result in a change to annual interest expense of $1 million [331]. - The company has fixed interest rates on long-term debt, minimizing associated risks from changes in market rates [332]. - The company's amended and restated certificate of incorporation includes provisions that may discourage third-party acquisitions and affect stockholder rights [179].

E x h i b i t 9 9 . 1 Annual Results 1 2024 Highlights FINANCIAL RESULTS EFFICIENCY & SCALABILITY CUSTOMER EXPERIENCE • Achieved record company-level profitability for full year 2024 ◦ Net income of $404 million, Net income margin of 3.0% ◦ GAAP Operating income of $990 million, GAAP Operating margin of 7.2% ◦ Adjusted EBITDA of $1.378 billion, Adjusted EBITDA margin of 10.1% • Returned to significant retail unit growth ◦ Retail units sold of 416,348, a 33% increase year-over-year • Delivered substantial co ...

Carvana Co. CVNA will release its fourth-quarter financial results, after the closing bell, on Wednesday, Feb. 19, 2025.Analysts expect the Tempe, Arizona-based company to report quarterly earnings at 29 cents per share, compared to a year-ago loss of $1.00 per share. Carvana projects quarterly revenue of $3.31 billion, compared to $2.42 billion a year earlier, according to data from Benzinga Pro.The company has beaten analyst estimates for revenue in three straight quarters and five of the last 10 quarters ...

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Carvana (CVNA) is slated to release fourth-quarter 2024 results on Wednesday, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 24 cents per share and $3.33 billion, respectively.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.The earnings estimate for the fourth quarter of 2024 has moved south by a cent over the past 30 days. In the year-ago quarter, the company had incurred a loss of $1/share. The Zacks Consensus Est ...

The upcoming report from Carvana (CVNA) is expected to reveal quarterly earnings of $0.24 per share, indicating an increase of 124% compared to the year-ago period. Analysts forecast revenues of $3.33 billion, representing an increase of 37.4% year over year.Over the last 30 days, there has been an upward revision of 5.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of ...

The market expects Carvana (CVNA) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

Carvana's (CVNA 1.42%) stock chart resembles a roller coaster. But despite the ridiculous amounts of volatility, the shares have been a huge winner, soaring 187% in the past five years.The business has been getting on better financial footing in recent times, gaining investors' confidence once again. If you missed the ride, you're probably wondering what type of returns are possible.With that being said, where will Carvana stock be in five years?Higher volumeCarvana made a name for itself by completely rede ...

Which of these e-commerce platforms has a brighter future?When Carvana (CVNA 0.34%) went public in 2017, the bulls claimed it could become the "Amazon (AMZN -4.05%) of used cars." It streamlined the car buying process with its online marketplace that delivered cars straight to the customer's door.But Carvana went through some wild swings after its market debut. It went public at $15, closed at a record high of $370.10 on Aug. 10, 2021, then plummeted to its all-time low of $3.72 on Dec. 27, 2022. At the tim ...