Carvana Co. stock research
FY2023 Q3
Carvana (CVNA) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and cost of revenue both declined compared to the prior quarter and the same quarter last year, but gross profit decreased less proportionally, resulting in an improved gross margin. The gross margin strengthened versus both the immediately preceding quarter and the year-ago quarter, reflecting a favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and cost of revenue both declined compared to the prior quarter and the same quarter last year, but gross profit decreased less proportionally, resulting in an improved gross margin. The gross margin strengthened versus both the immediately preceding quarter and the year-ago quarter, reflecting a favorable relationship between revenue and cost of revenue.
- The strongest observable margin driver is the movement of cost of revenue relative to revenue, as cost of revenue declined more sharply than revenue, widening gross profit as a share of revenue.
- Compared to the prior quarter, gross margin was higher, while revenue and gross profit were lower. Compared to the same quarter one year earlier, gross margin was substantially higher, with revenue and gross profit both lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
17.4%
Gross profit
$482.0M
Revenue
$2.8B
Cost of revenue
$2.3B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+6.8 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% |
| Jun 30, 2023 | $3.0B | $499.0M | $2.5B | 16.8% |
| Sep 30, 2023 | $2.8B | $482.0M | $2.3B | 17.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.6 pts
Year-over-year change
Sep 30, 2022
+6.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the movement of cost of revenue relative to revenue, as cost of revenue declined more sharply than revenue, widening gross profit as a share of revenue.
Compared to the prior quarter, gross margin was higher, while revenue and gross profit were lower. Compared to the same quarter one year earlier, gross margin was substantially higher, with revenue and gross profit both lower.
Monitor the trajectory of cost of revenue relative to revenue, as further divergence could sustain or widen the gross margin improvement.