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William Blair 45th Annual Growth Stock ConferenceJune 4, 2025 ©2025 Carvana, LLC
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©2023 Carvana, LLC Confidential Document 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 10K and Quarterly Reports on Form 10Q, 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 Companyʼs industry, other participants in that industry, the Companyʼs markets, and the Companyʼs competitive position that is based on a variety of sources, including information from independent industry analysts and publications, as well as Carvanaʼs own estimates and research. Carvanaʼs 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 Companyʼs knowledge of its industry, which the Company believes to be reasonable. The independent industry publications used in this presentation were not prepared on the Companyʼs 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. 2 Safe Harbor
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©2023 Carvana, LLC Confidential Document 3 Q1 2025 Financial Highlights In Q1 we set a new company retail unit sales record 133,898) while driving strong profitability: ● Net income of $373 million, Net income margin of 8.8% ● GAAP Operating income of $394 million, GAAP Operating margin of 9.3% ● Adjusted EBITDA of $488 million, Adjusted EBITDA margin of 11.5%
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©2023 Carvana, LLC Confidential Document 4 Best Offering Drives Industry-Leading Growth and Margins We have always believed in the long term earnings power of our vertically integrated business model. Growing retail units sold 46% year-over-year while also generating an Adjusted EBITDA margin 2x the industry average among public automotive retailers makes the power of our model and appeal of our offering clearer than ever. 1 All data points are as of Q1 2025 or most recently reported quarter
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©2023 Carvana, LLC Confidential Document 5 Driver #1 Continually Improve Customer Offering Since our inception, we have been striving to deliver a customer offering characterized by being fun, fast, and fair. In recent years, our ongoing efficiency initiatives have positively impacted the customer experience by allowing: ● Faster delivery options (including same day), ● More intuitive merchandising, ● More streamlined self-service tools AI chat), ● Simplified transaction processes We still see significant opportunities for further fundamental gains across our business, driving continued improvement in our offering and further competitive differentiation.
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©2023 Carvana, LLC Confidential Document 6 Driver #2 Increase Awareness, Understanding, and Trust U.S. ECommerce Adoption1 Early Growth: 2017 to 2021 Return to Growth: 2024 to 2025 Online used vehicle sales are still in an early state of adoption, and we are in the relatively early stages of building awareness, understanding, and trust of our product and brand. Over time, we will continue to communicate our value proposition to consumers through advertising, word of mouth, and even better experiences. We are here 1% of market) 1 E-commerce adoption data sourced from Federal Reserve Bank of St. Louis Economic Data FRED) and U.S. Census Bureau.
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©2023 Carvana, LLC Confidential Document 7 Driver #3 Selection and Other Drivers of Positive Feedback As we grow, our inventory expands, we add inventory pools in more locations, and our logistics network density increases. This increases selection, improves delivery speed, and lowers logistics costs. These dynamics drive positive feedback as they further enhance the customer offering and allow us to invest more in Drivers #1 and #2. Early Growth: 2017 to 2021 Return to Growth: 2024 to 2025 Significant Whitespace to Grow Selection 1 Unique YMMTCO (year, make, model, trim, color, and odometer) combinations nationwide based on online used vehicle listings as of 5/31/2025.
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©2023 Carvana, LLC Confidential Document 8 Consistently Driving Adjusted EBITDA Margin within our 2018 Long-Term Financial Model Range 4 straight quarters between 8 13.5% (range of LT model) Adjusted EBITDA Margin and GAAP Operating Income to Adjusted EBITDA ● We have delivered four consecutive quarters of Adjusted EBITDA Margin within our Long-Term Financial Model Range of 8 13.5%. ● Our Adjusted EBITDA is high quality as demonstrated by our strong conversion of Adjusted EBITDA into GAAP Operating Income.
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©2023 Carvana, LLC Confidential Document 9 With our November 2018 long-term margin goals achieved, we set a new management objective in May: Sell 3 million retail units per year at an Adjusted EBITDA margin of 13.5% within 5 to 10 years. Our Next Objective
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©2023 Carvana, LLC Confidential Document 10 2018 Results and Our Long-Term Financial Model Goals In November 2018, we set a goal of generating 8% to 13.5% EBITDA margins as part of our long-term financial model. We achieved this margin goal for the first time in Q2 2024 and achieved it for the fourth consecutive quarter in Q1 2025. Quarterly Retail Units Sold At that time, we were 20% points away from the low end of target range and 1/6th of todayʼs size. 5.7x growth Adjusted EBITDA Margin 20 pts
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©2023 Carvana, LLC Confidential Document 11 Q1 2025 Results and Our Next Objective In May 2025, we set our next goal of selling 3MM retail units per year at a 13.5% Adjusted EBITDA margin. 5.6x growth goal Quarterly Retail Units Sold Adjusted EBITDA Margin
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©2023 Carvana, LLC Confidential Document 12 Growing With More Locations Than Ever Before Grow into existing infrastructure: ● YTD have added 6 new production locations and by year-end, expect to have 34 36 at $2 to 3MM in capex per site ● Heading into 2026, we will still have over 30 locations to integrate ● While each integrated site provides incremental retail unit output, per site capacity is less than that of a Carvana IRC ● In 2022 we estimated that $1B in CapEx would be required to reach 3MM in annual capacity
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©2023 Carvana, LLC Confidential Document 13 Built to Scale ● We have increased weekly production output by 80 units per week with an average of 23 production sites in the last 12 months. This equates to approximately 4 units per week per facility. ● With more production locations, the average weekly production additions per location required to achieve our goal is lower, other things being equal.
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©2023 Carvana, LLC Confidential Document 14 Our Strategy is Working
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©2023 Carvana, LLC Confidential Document 15 Non-GAAP Financial Measures As appropriate, we supplement our results of operations determined in accordance with U.S. generally accepted accounting principles (“GAAPˮ) with and discuss forward looking guidance with certain non-GAAP financial measurements that are used by management, and which we believe are useful to investors, as supplemental operational measurements to evaluate our financial performance. These measurements should not be considered in isolation or as a substitute for reported GAAP results because they may include or exclude certain items as compared to similar GAAP-based measurements, and such measurements may not be comparable to similarly-titled measurements reported by other companies. Rather, these measurements should be considered as an additional way of viewing aspects of our operations that provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements included in publicly filed reports in their entirety and not rely solely on any one, single financial measurement or communication. We refer to the following non-GAAP measures in this presentation: Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is defined as net income (loss) plus income tax provision (benefit), interest expense, net other operating expense (income), 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, 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. 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.
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©2023 Carvana, LLC Confidential Document 16 Non-GAAP Financial Measures
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©2023 Carvana, LLC Confidential Document 17 Non-GAAP Financial Measures