Carvana recorded a net loss of $806 million in the fourth quarter

Carvana released its financial statistics for 2022 and disclosed a $1.6 billion net loss overall. Which is more than half of the amount it lost in Q4, when the company disclosed a net loss of $806 million for the period.

Despite a 3% decline in sales from 2021, pre-vehicle profit declined by about 33% as a result of falling used car values following increased OEM manufacturing. When speaking to shareholders, CEO Ernie Garcia and CFO Mark Jenkins stated that 2022 “was the first year Carvana stepped back on the key metrics of retail units sold, total GPU, net income margin, and adjusted E.B.I.T.D.A margin.”

In order to normalize its inventory level, optimize marketing expenditure, and advance its profitability efforts, Jenkins said the firm anticipates selling fewer automobiles in the first quarter of 2023 than it did in the fourth quarter of 2022.

By the second quarter, Carvana said it aims to cut its selling, general, and administrative costs by around $100 million. The company does not anticipate a labor decrease as part of that plan, but those cuts will be “broad-based.”

Shares of Carvana dropped to $9.69 in after-hours trading, down 3.8%. With 425,237 used vehicles sold in 2021, the company is ranked No. 2 on Automotive News’ most current ranking of the top 100 retailers by used-vehicle sales.

• Net sales for the fourth quarter were $2.8 billion, a 24% decrease from the $3.75 billion in the year-ago quarter.
• Carvana’s share of the Q4 net income decreased to $806 million in loss from $89 million in the same quarter last year.
• Retail car sales in Q4 decreased by 23% to 86,977 from 113,016.
• $2,219, a decrease of 51% from the Q4 total gross profit per car
• Net income in 2022 is $13.6 billion, an increase of 6.2% from $12.8 billion in 2021.
• In contrast to the $135 million loss attributed to Carvana in 2021, the net income for 2022 includes a $1.6 billion loss.
• Retail car sales in 2022 were 412,296—a 3% decrease from 425,237 in 2021.
• Total gross profit per vehicle in 2022 is $3,022, a decrease of 33% from $4,537 in 2021.

Did you enjoy this article? Please share your thoughts, comments, or questions regarding this topic by connecting with us at newsroom@cbtnews.com.