Carvana achieves record fourth-quarter net income of $159 million

In the fourth quarter of 2024, Carvana, a leading online car retailer based in the United States, reported impressive financial results, exceeding Wall Street's expectations. The company generated revenue of $3.55 billion, significantly higher than the anticipated $3.31 billion, marking a 46% increase from the $2.42 billion earned during the same quarter the previous year. This remarkable revenue growth speaks to the company's ability to adapt and thrive in a competitive landscape, where consumer demand for online vehicle purchasing continues to increase. For the entire year of 2024, Carvana recorded an impressive total revenue of $13.67 billion, a nearly 27% rise from $10.77 billion in 2023, and closed 2024 with substantial adjusted EBITDA of $1.38 billion and net income of around $404 million. Notably, the fourth quarter net income of approximately $159 million represents a significant turnaround from a loss of $200 million during the same period in the prior year, indicating the company's successful efforts to improve profitability. During 2024, Carvana sold 416,348 retail vehicles, an increase of roughly 33% year-over-year, which underscores the company's strong market presence and operational efficiency. The gross profit per unit also saw a significant uptick, reaching $6,671 for the fourth quarter and $6,908 for the full year, up nearly $1,400 from 2023. These figures not only highlight Carvana's operational improvements but also illustrate its growing footprint in the automotive retail market, as CEO Ernie Garcia mentioned that the company holds just about a 1% market share today. Despite these positive results, the company's shares fell more than 10% in after-hours trading following the earnings announcement, attributed to high investor expectations combined with a somewhat vague forecast for 2025. Analysts pointed out that while the outlook remains positive, it lacked specificity, which could have contributed to the negative reaction in the stock market. Nevertheless, Carvana continues to emphasize that it is just at the beginning of its journey to revolutionize the way people buy and sell cars.