Slides
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Introduction to Carvana June 2025
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©2023 Carvana, LLC Confidential Document 2 Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including statements regarding our future results of operations, financial condition, business strategy, plans, and objectives, are forward-looking statements. These statements may be preceded by, followed by or include the words "aim," "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "outlook," "plan," "potential," "project," "projection," "seek," "can," "could," "may," "should," "would," "will," the negatives thereof and other words and terms of similar meaning. These statements are based on current expectations and projections about future events and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Important factors that could cause actual results to differ materially include, but are not limited to, those described under 'Risk Factors' in our most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, including risks related to market conditions, supply chain disruptions, regulatory changes, and competition. There is no assurance that any forward-looking statements will materialize. You are cautioned not to place undue reliance on forward-looking statements, which reflect expectations only as of this date. We undertake no obligation to update any forward-looking statements, except as required by law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Market and Industry Data This presentation includes information concerning economic conditions, the Company’s industry, the Company’s markets and the Company’s competitive position that is based on a variety of sources, including information from independent industry analysts and publications, as well as Carvana’s own estimates and research. Carvana’s estimates are derived from publicly available information released by third party sources, as well as data from its internal research, and are based on such data and the Company’s knowledge of its industry, which the Company believes to be reasonable. The independent industry publications used in this presentation were not prepared on the Company’s behalf. While the Company is not aware of any misstatements regarding any information in this presentation, forecasts, assumptions, expectations, beliefs, estimates and projects involve risk and uncertainties and are subject to change based on various factors. SAFE HARBOR
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3 OUR MISSION IS TO CHANGE THE WAY PEOPLE BUY CARS. 5
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©2023 Carvana, LLC Confidential Document 4 Q1 2025 SUCCESSFUL EXECUTION
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©2023 Carvana, LLC Confidential Document 5 KEY INVESTMENT HIGHLIGHTS MASSIVE, STABLE, FRAGMENTED MARKET Exceptionally large and inefficient used car market SUPERIOR CUSTOMER EXPERIENCE Simple, seamless and differentiated used car buying experience PROVEN GO-TO-MARKET STRATEGY Demonstrated, capital-light market expansion playbook VERTICAL INTEGRATION & FULFILLMENT Purpose-built vertically integrated platform ROBUST FINANCIAL MODEL Robust financial model supports growth and margin expansion
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©2023 Carvana, LLC Confidential Document 6 INDUSTRY OVERVIEW MASSIVE, STABLE, FRAGMENTED MARKET & Ripe for DisruptionFragmentedMassiveAuto is… $1.2 Tn in 2022 U.S. Sales (1) 22% of U.S. Retail Economy in 2022 (1) 36 MM Used automobile transactions in 2023 (2) 4.3% 2025E – 2029E CAGR (3) 2.3% U.S. Market Share of Largest Dealer Brand (4) <10% Aggregate Market Share of Top 10 Used Auto Retailers (4) 81% Consumers Do Not Enjoy the Car Buying Process (5) 9% Consumers Rated Car Salespeople Highly Trustworthy (6) (1) NADA Data 2023 report (2) Cox Automotive (3) Technavio 2025 U.S. Used Car Market report (4) 2023 Automotive News Top 100 Dealership Groups (5) DealerSocket 2016 Independent Dealership Action report – Represents North American consumers (6) 2019 Gallup Poll (7) Borrell Associates 43,000+ Used Car Dealerships (7)
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©2023 Carvana, LLC Confidential Document 7 DIGITAL ECONOMY IS TRANSFORMING CAR BUYING MASSIVE, STABLE, FRAGMENTED MARKET 86% 61% 52% (1) 2018 Auto Shopping in America Survey (2) CarGurus 2020 Sentiment Survey (3) AutoTrader 2016 Car Buyer Jo urney report of customer purchases involve online research (1) would consider purchasing a car online (2) test drive only one vehicle (3)
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©2023 Carvana, LLC Confidential Document 8 CARVANA’S VISION IS FOCUSED ON PROVIDING OUR CUSTOMERS WITH: Note: 53,000+ total website units as of March 31, 2025 Best Experience Best Selection Best Value 53,000+ cars on the website Lower prices than other brick-and- mortar dealers and never any doc or dealer fees 10 minutes – time in which purchase can be completed after vehicle selection As soon as Same Day car deliveries in select markets SUPERIOR CUSTOMER EXPERIENCE
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©2023 Carvana, LLC Confidential Document 9 A SIMPLE AND SEAMLESS CAR BUYING EXPERIENCE SUPERIOR CUSTOMER EXPERIENCE Note: 53,000+ total website units as of March 31, 2025 Vehicle Search & Discovery From Any Device Trade or Sell – All Online Real-Time, Personalized Financing Seamless Transaction Technology Intuitive vehicle search with 53,000+ vehicles on the website Nearly instantaneous, fully automated contingent trade-in offers Majority of customers have chosen to finance with Carvana Buy a car without leaving your device
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©2023 Carvana, LLC Confidential Document 10 A BETTER WAY TO SELL A CAR SUPERIOR CUSTOMER EXPERIENCE * For the quarter ended March 31, 2025 SIMPLE AUTOMATED CONVENIENT DATA-DRIVEN Three step process: 1. Input license plate or VIN 2. Enter vehicle details, and 3. Answer a few questions You schedule a time that’s convenient for you to drop the vehicle off at a Carvana location or you can schedule a time to have the car picked up using our last-mile delivery network We’ll review and hand you a check on the spot Our artificial intelligence algorithms determine a contingent real-time offer for the customer No haggling Guaranteed for 7 days or 1,000 miles Our vehicle data and valuation technology enables strong gross profit per wholesale unit $1,008 Wholesale Vehicle GPU* $1,009 -$111 $97 $283 $367 $422 $610 $1,116 $580 $888 $996 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 WHOLESALE VEHICLE GROSS PROFIT PER WHOLESALE UNIT
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©2023 Carvana, LLC Confidential Document 11 CREATING DIFFERENTIATED FULFILLMENT EXPERIENCES SUPERIOR CUSTOMER EXPERIENCE (1) As of May 7, 2025 Vending Machine • Scheduled appointments with delivery as soon as the same day in certain markets • Delivered by Carvana-uniformed employee in a branded, custom single or two car hauler, in our markets Carvana Delivery • Operation efficiencies combined with strong branding • 39 vending machines currently operational (1) • Creates a unique video of the experience for customers to share via social media
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©2023 Carvana, LLC Confidential Document 12 DELIVERING SUPERIOR CUSTOMER EXPERIENCES SUPERIOR CUSTOMER EXPERIENCE Carvana will change the way cars are sold. Carvana is the bomb! I never thought car buying could be enjoyable. “““ ” ” ” 6984%221,000+4.7 (1) As of March 31, 2025 (2) Through March 31, 2025, based on respondents to the question (3) Survey performed by Bazaarvoice through March 31, 2025 Rating (1) Net Promoter Score (NPS) (3) Customer Reviews on Carvana.com (1) Would Recommend To A Friend (2)
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©2023 Carvana, LLC Confidential Document 13 PROVEN EXPANSION STRATEGY GROWING UNITS & REVENUE 4 11 23 56 109 161 272 313 316 80%+ Q1 14 Q3 14 Q1 15 Q3 15 Q1 16 Q3 16 Q1 17 Q3 17 Q1 18 Q3 18 Q1 19 Q3 19 Q1 20 Q3 20 Q1 21 Q3 21 Q1 22 Q3 22 Q1 23 Q3 23 Q1 24 Q3 24 Markets Population coverage Enabling Rapid Expansion of Operating Markets Carvana U.S. Population Coverage & Markets at End of Period Note: As of March 31, 2025 Repeatable Market Entry Playbook Active Team of Expansion Advocates CapEx Light Market Launch Connect to Logistics Network Turn on Marketing Program
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©2023 Carvana, LLC Confidential Document 14 SUPPORTED BY PROPRIETARY VEHICLE ACQUISITION ALGORITHM VERTICAL INTEGRATION & FULFILLMENT 53,000+ cars on the website in all markets vs. 11-200 at typical dealers (1) Customer Vehicles Auctions Off-Lease Off-Rental Vehicle Inventory Acquisition Auction & Other Sources Quality Screening Apply Data Optimization • Manheim, ADESA, Smart Auction • Enterprise, Hertz • Customers • Year, Mileage • Vehicle Reporting • Market Data • Carvana Data (clickstream, historical sales) • Expected pricing, recon, and transport • Fit with existing inventory (1) 2019 NIADA Used Car Industry report based on 2018 data Note: 53,000+ total website units as of March 31, 2025
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©2023 Carvana, LLC Confidential Document 15 IN-HOUSE INSPECTION, RECONDITIONING & MERCHANDIZING VERTICAL INTEGRATION & FULFILLMENT Inspection and Reconditioning Photography and Annotation • Ability to buy all car types and recondition them to a consistent car quality • Annual capacity of over 1m units at full IRC utilization* • Robust processes and internal expertise to set up future IRCs as needed • 360-degree, interactive exterior and interior virtual tour of each vehicle • Patented imaging technology • Transparency to the customer through annotation of material defects* Based on 18 IRCs in operation as of March 31, 2025 and acquired ADESA sites
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©2023 Carvana, LLC Confidential Document 16 BACKED BY IN-HOUSE LOGISTICS NETWORK VERTICAL INTEGRATION & FULFILLMENT Note: As of May 7, 2025 Carvana Logistics Network • Inspection & reconditioning centers • Hubs • Vending Machines Connected through the hub-and- spoke Carvana Logistics Network Premium Fulfillment Capabilities Control over delivery times enables seamless customer experience Speed of delivery drives conversion Centralized inventory powers broad selection Enables vehicle cost arbitrage across geographies Lower cost than using third-party shipping CARVANA MARKETS, VENDING MACHINES, IRCs, AND ADESA SITES
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©2023 Carvana, LLC Confidential Document 17 RAPID SECULAR GROWTH GROWING UNITS & REVENUE Revenues ($M) Retail Units Sold
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©2023 Carvana, LLC Confidential Document 18 INTEGRATION CREATES COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES Large-scale Reconditioning Internal Logistics Network Proprietary Financing Platform Leading Fulfillment Experience National Consumer Focused Brand Retail Marketplace Physical Wholesale Auction Fully Transactable E-Commerce Experience
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OUR PURPOSE-BUILT, E-COMMERCE MODEL IS HIGHLY DIFFERENTIATED FROM THE TRADITIONAL BRICK-AND-MORTAR MODEL CARVANA E-COMMERCE MODEL TRADITIONAL BRICK-AND-MORTAR MODEL Vehicle Acquisition -National vehicle acquisition strategy -Selection optimized for single large scale inventory -Seamless online transaction with home pickup option for consumer- sourced vehicles -Local vehicle acquisition strategy -Selection optimized for many individual small scale dealership lots -In-person negotiation for customer-sourced vehicles Reconditioning -Large scale inspection and reconditioning centers with manufacturing processes backed by proprietary software -in-sourcing of most key reconditioning functions -Small scale reconditioning shops, limiting fixed cost leverage, labor efficiency, or volume discount opportunities -Some functions outsourced to third-party providers Fulfillment -National first-party fulfillment network optimized by proprietary self- developed technology -Purpose-built home delivery service in more than 300 markets -Outsourced to regional trucking companies of variable efficiency, quality, and timeliness Customer Acquisition -National advertising -Large scale brand building drives long term gains in awareness -Low friction to visit Carvana.com website from desktop or mobile -Local advertising -Small scale leads to reliance on third-party listings sites to generate leads -Higher friction to visit a physical lot Financing -In-house lending platform provides automated terms, proprietary credit scoring and centralized underwriting for all customers -Competitive cost of funds due to large scale platform with multiple monetization strategies -Financing outsourced to third parties, leading to higher costs and outsourced profit margin -Third-party lenders face higher costs, imperfect information about the customer and vehicle, and risk of adverse selection Cost Structure -Higher upfront technology and infrastructure investment, but lower costs at scale -Small scale, site level hierarchy including high cost F&I and sales labor -Outsourced technology turns fixed costs into variable costs COMPETITIVE ADVANTAGES 19
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LEADING TO A MORE CUSTOMER-CENTRIC OFFERING CARVANA E-COMMERCE MODEL CUSTOMER OFFERING BENEFITS Vehicle Acquisition -National vehicle acquisition strategy -Selection optimized for single large scale inventory -Seamless online transaction with home pickup option for consumer- sourced vehicles -Best possible selection due to centralized, large, and diverse inventory pools connected through first-party logistics network -Access to a national market allows Carvana to adjust pricing based on broader market trends rather than local supply and demand fluctuations Reconditioning -Large scale inspection and reconditioning centers with manufacturing processes backed by proprietary software -In-sourcing of most key reconditioning functions -Universal standards result in consistently high quality vehicles -150-point inspection provides transparency and peace of mind -Stand behind quality with 7-day return policy Fulfillment -National first-party fulfillment network optimized by proprietary self- developed technology -Purpose-built home delivery service in more than 300 markets -Convenient, fast and reliable home delivery -Expands available selection through ability to move cars quickly and cost effectively nationwide Customer Acquisition -National advertising -Large scale brand building drives long term gains in awareness -Low friction to visit Carvana.com website from desktop or mobile -A self-guided, intuitive and easy-to-navigate website design ensures that users can effortlessly browse, buy, or sell vehicles from any device -Uniform experience in all geographic locations Financing -In-house lending platform provides automated terms, proprietary credit scoring and centralized underwriting for all customers -Competitive cost of funds due to large scale platform with multiple monetization strategies -Self-guided, convenient process gives customers ability to shop based on budget, down payment, and monthly payment -Nearly instantaneous financing terms on every vehicle in inventory increases transparency and control Cost Structure -Higher upfront technology and infrastructure investment, but lower costs at scale -Savings can be passed on to the customer through lower prices -Technology investment creates new tools to enhance customer experience COMPETITIVE ADVANTAGES 20
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AND BETTER UNIT ECONOMICS, DRIVEN BY OUR NATIONAL INVENTORY, VERTICAL INTEGRATION, AND SCALE CARVANA E-COMMERCE MODEL UNIT ECONOMICS BENEFITS Vehicle Acquisition -National vehicle acquisition strategy -Selection optimized for single large scale inventory -Seamless online transaction with home pickup option for consumer- sourced vehicles -Inventory model benefits from regional price discrepancies and broad demand for long-tail of used vehicles -Customer-sourcing allows better margin on retail cars acquired from consumers vs. other channels and enables wholesale gross profit Reconditioning -Large scale inspection and reconditioning centers with manufacturing processes backed by proprietary software -In-sourcing of most key reconditioning functions -Scale allows higher capacity utilization, discounts in parts procurement, and lower per unit overhead costs -Vertical integration lowers costs, internalizes third-party profit margins, reduces reconditioning timelines Fulfillment -National first-party fulfillment network optimized by proprietary self- developed technology -Purpose-built home delivery service in more than 300 markets -National logistics network makes inventory available to customers nationwide and enables additional revenue streams -Vertical integration lowers costs, internalizes third-party profit margins, and reduces transport timelines Customer Acquisition -National advertising -Large scale brand building drives long term gains in awareness -Low friction to visit Carvana.com website from desktop or mobile -Scaled national advertising leads to lower costs than local advertising -Model benefits from secular trend towards e-commerce over time Financing -In-house lending platform provides automated terms, proprietary credit scoring and centralized underwriting for all customers -Competitive cost of funds due to large scale platform with multiple monetization strategies -Vertical integration lowers costs, internalizes third-party profit margins, improves quality of customer and vehicle information, eliminates adverse selection, and allows for optimization of terms across entire inventory -Scale improves funding efficiency Cost Structure -Higher upfront technology and infrastructure investment, but lower costs at scale -Customer self service and AI eliminates high cost functions and manual tasks -Centralization of support functions allows for higher capacity utilization COMPETITIVE ADVANTAGES 21
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ALL BACKED BY PROPRIETARY CUSTOM-BUILT TECHNOLOGY CARVANA E-COMMERCE MODEL PROPRIETARY TECHNOLOGY SYSTEMS Vehicle Acquisition -National vehicle acquisition strategy -Selection optimized for single large scale inventory -Seamless online transaction with home pickup option for consumer- sourced vehicles -AI purchasing algorithm informed by realized and expressed consumer demand providing near instantaneous offers -Customers can appraise, schedule pick-up, and sell car in minutes on their mobile device Reconditioning -Large scale inspection and reconditioning centers with manufacturing processes backed by proprietary software -In-sourcing of most key reconditioning functions -CARLI system automates integration of systemized standards for process flow, reconditioning standards, and parts procurement -Patented imaging technology provides interactive interior and exterior virtual tour of vehicle Fulfillment -National first-party fulfillment network optimized by proprietary self- developed technology -Purpose-built home delivery service in more than 300 markets -Centralized scheduler optimizes network, hauler and labor utilization -Systems that standardize vehicle receiving, storing, staging and loading at all network locations Customer Acquisition -National advertising -Large scale brand building drives long term gains in awareness -Low friction to visit Carvana.com website from desktop or mobile -Robust testing of marketing spend over the last 10+ years -Products that nurture customers over time -AI to reduce transaction friction Financing -In-house lending platform provides automated terms, proprietary credit scoring and centralized underwriting for all customers -Competitive cost of funds due to large scale platform with multiple monetization strategies -Scorecard trained on data from 10+ years and over $30B of loan originations -Digital financing interface provides terms and ability to sort by budget in a fraction of a second -AI automates key underwriting tasks Cost Structure -Higher upfront technology and infrastructure investment, but lower costs at scale -Integrated systems for customer service, title and registration, digital communication, and other functions to create a streamlined experience -High volume of data and technology focus enable AI leadership COMPETITIVE ADVANTAGES 22
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©2023 Carvana, LLC Confidential Document 23 PROGRESS TOWARDS OUR FINANCIAL OBJECTIVES COMPETITIVE ADVANTAGES 1. Net Income margin in FY 2023 benefited from a one-time gain on debt extinguishment of ~$878 million. 2. Net income margin in FY 2024 benefitted from ~$115 million associated with positive changes in the fair value of our warrantsto acquire Root common stock. 3. Net Income margin in Q1 2025 benefitted from a $158 million associated with positive changes in the fair value of our warrants to acquire Root common stock. 4. Adjusted EBITDA is defined as net income (loss) plus income tax (benefit) provision, interest expense, other operating expense, net, other expense (income), net, depreciation and amortization expense in cost of sales and SG&A expenses, goodwill impairment, share-based compensation expense in cost of sales and SG&A expenses, loss on debt extinguishment, and restructuring expense in cost of sales and SG&A expenses, minus revenue related to our Root warrants and gain on debt extinguishment. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total revenues. For additional information on Adjusted EBITDA and other Non-GAAP financial metrics referenced in this letter, please see the financial tables at the end of this presentation and our Q1 2025 supplemental financial tables posted on our investor relations website. 5. EBITDA margin is calculated as net income (loss) plus income tax (benefit) provision, interest expense, and depreciation and amortization expense, divided by revenues. Long Term Target FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q1 2025 YoY Revenue Growth 180% 135% 128% 101% 42% 129% 6% -21% 27% 38% - Gross Profit 5.3% 7.9% 10.1% 12.9% 14.2% 15.1% 9.2% 16.0% 21.0% 22.0% 15 - 19% Advertising 7.4% 6.5% 5.7% 5.2% 5.1% 3.7% 3.6% 2.1% 1.7% 1.7% 1.0 - 1.5% SG&A ex. Advertising and D&A 21.1% 18.2% 14.9% 13.7% 13.7% 11.3% 15.0% 12.9% 10.8% 9.9% 4.5 - 5.5% D&A 1.3% 1.3% 1.2% 1.0% 1.3% 1.0% 1.5% 1.7% 1.2% 1.0% 0.5 - 1.0% SG&A Total as % of Revenue 29.8% 26.0% 21.7% 20.0% 20.2% 15.9% 20.1% 16.7% 13.7% 12.6% 6 - 8% Net Income (loss) margin -25.5% -19.1% -13.0% -9.3% -8.3% -2.2% -21.3% 1.4%1 3.0%2 8.8%3 - Adjusted EBITDA Margin4 -23.0% -16.1% -9.2% -5.2% -4.0% 0.5% -7.7% 3.1% 10.1% 11.5% - EBITDA Margin5 8 - 13.5% LONG TERM FINANCIAL GOALS
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©2023 Carvana, LLC Confidential Document 24 SIGNIFICANT GROWTH OPPORTUNITIES COMPETITIVE ADVANTAGES Drive Revenue Growth in Existing Markets Enter New Key Geographical Markets Innovate and Extend Technology Leadership Improve Brand Awareness Develop New Products
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©2023 Carvana, LLC Confidential Document 25 KEY INVESTMENT HIGHLIGHTS COMPETITIVE ADVANTAGES MASSIVE, STABLE, FRAGMENTED MARKET Exceptionally large and inefficient used car market SUPERIOR CUSTOMER EXPERIENCE Simple, seamless and differentiated used car buying experience PROVEN GO-TO-MARKET STRATEGY Demonstrated, capital-light market expansion playbook VERTICAL INTEGRATION & FULFILLMENT Purpose-built vertically integrated platform ROBUST FINANCIAL MODEL Robust financial model supports growth and margin expansion (1) Edmunds.com 2019 Used Vehicle Market report (2) Metrics as of or through March 31, 2025 (3) Through March 31, 2025, ba sed on respondents to the question (4) 2021 Automotive News Top 100 Dealership Groups $840B 84% 80%+ 18 21% ~2% 4.7/5.0 2nd 39 2.3M 2019 U.S Used Car Sales (1) Customers who would recommend to a friend (3) U.S. Population Coverage (2) Five Year Unit CAGR (2) Existing Carvana IRCs (2) Largest dealer brand market share in the US (4) Average Customer Rating (2) Largest used car dealer in the US (2) Existing Vending Machines (2) Retail Units Sold Since Inception (2)
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©2023 Carvana, LLC Confidential Document 26 APPENDIX
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©2023 Carvana, LLC Confidential Document 27 NON-GAAP MEASURES Adjusted EBITDA; Adjusted EBITDA margin; Adjusted EBITDA per retail unit; Gross profit, non -GAAP; Retail gross profit, non-GAAP; Wholesale vehicle gross profit, non-GAAP, Wholesale marketplace gross profit, non-GAAP; Other gross profit, non-GAAP; Total gross profit per retail unit, non-GAAP; Retail gross profit per retail unit, non-GAAP; Wholesale vehicle gross profit per retail unit, non- GAAP; Wholesale marketplace gross profit per retail unit, non-GAAP; Other gross profit per retail unit, non-GAAP; SG&A expenses, non-GAAP; and Total SG&A expenses per retail unit, non-GAAP The above measures are supplemental measures of operating performance that do not represent and should not be considered an a lternative to net income (loss), gross profit, or SG&A expenses, as determined by GAAP. Adjusted EBITDA is defined as net income (loss) plus (minus) income tax provision (benefit), interest expense, net, other (in come) expense, net, other operating expense, net, depreciation and amortization expense in cost of sales and SG&A expenses, share -based compensation expense in cost of sales and SG&A expenses, loss on debt ex tinguishment, and restructuring expense in cost of sales and SG&A expenses, minus revenue related to our Root Warrants. Adjusted EBITDA margin is Adjusted EBITDA as a percentage of total reve nues. Adjusted EBITDA per retail unit is Adjusted EBITDA divided by retail vehicle unit sales. Gross profit, non-GAAP, Retail gross profit, non -GAAP, Wholesale vehicle gross profit, non -GAAP, Wholesale marketplace gross pro fit, non-GAAP, and Other gross profit, non -GAAP are defined as the respective GAAP gross profits plus depreciation and amortization expense in cost of sales, and share -based compensation expense in cost of sales, minus revenue related to our Root Warrants. Total gross profit per retail unit, non-GAAP, Retail gross profit per retail unit, non -GAAP, Wholesale vehicle gross profit per retail unit, non-GAAP, Wholesale marketplace gross profit per retail unit, non -GAAP, and Other gross profit per retail unit, non-GAAP are the respective gross profits, non -GAAP divided by retail vehicle unit sales. SG&A expenses, non-GAAP is defined as GAAP SG&A expenses minus depreciation and amortization expense in SG&A expenses, and share -based compensation expense in SG&A expenses. Total SG&A expenses per retail unit, non-GAAP is SG&A expenses, non -GAAP divided by retail vehicle unit sales. We use these non-GAAP measures to measure the operating performance of our business as a whole and relative to our total revenue s and retail vehicle unit sales. We believe that these metrics are useful measures to us and to our investors because they exclude certain financial, capital structure, and non -cash items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations, in part because they may vary widely across time and within our industry independent of the performance of our core operations. We believe that excluding these items enables us to more effectively evaluate our performance period -over-period and relative to our competitors. These non -GAAP measures may not be comparable to similarly titled measures provided by other companies due to potential differences in methods of calculations. A reconciliation of Adjusted EBITDA to net income (loss), Gross profit, non -GAAP to gross profit, Retail gross profit, non -GAAP to retail gross profit, Wholesale vehicle gross profit, non -GAAP to wholesale vehicle gross profit, Wholesale marketplace gross profit, non -GAAP to wholesale marketplace gross profit, Other gross profit, no n-GAAP to other gross profit, and SG&A expenses, non -GAAP to SG&A expenses, which are the most directly comparable GAAP measures, and calculations of Adjusted EBITDA margin, Total gross profi t per retail unit, non-GAAP, Retail gross profit per retail unit, nonGAAP, Wholesale vehicle gross profit per retail unit, non -GAAP, Wholesale marketplace gross profit per retail unit, nonGAAP, Other gross profit per retail unit, non -GAAP, and Total SG&A expenses per retail unit, non-GAAP is as follows:
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