Carvana Co. stock research
FY2023 Q1
Carvana (CVNA) Gross Margin — Quarter Ended Mar 31, 2023
In the current quarter, revenue was lower than both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter and the year-ago quarter. Cost of revenue decreased at a greater rate than revenue, leading to a gross margin that improved from both comparison periods.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
In the current quarter, revenue was lower than both the prior quarter and the same quarter last year, while gross profit was higher than the prior quarter and the year-ago quarter. Cost of revenue decreased at a greater rate than revenue, leading to a gross margin that improved from both comparison periods.
- The strongest observable margin driver is the change in cost of revenue relative to revenue, which resulted in a higher gross profit despite lower revenue. This shift in the relationship between cost and revenue drove the gross margin higher.
- Compared to the immediately preceding quarter, revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
13.1%
Gross profit
$341.0M
Revenue
$2.6B
Cost of revenue
$2.3B
Quarter-over-quarter change
n/a
Year-over-year change
+4.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $2.6B | $341.0M | $2.3B | 13.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+4.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue, which resulted in a higher gross profit despite lower revenue. This shift in the relationship between cost and revenue drove the gross margin higher.
Compared to the immediately preceding quarter, revenue was lower, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was lower, gross profit was higher, and gross margin improved.
Monitor whether the gross profit dollar amount can be sustained or grow as revenue trends change, given the company's stated focus on profitability initiatives.