Carvana Co. stock research
FY2023 Q4
Carvana (CVNA) Gross Margin — Quarter Ended Dec 31, 2023
Revenue less cost of revenue yields gross profit, and gross margin is the ratio of gross profit to revenue. Compared to the prior quarter, revenue and gross profit were lower with a slightly lower gross margin, while versus the same quarter last year, revenue was lower but gross profit was substantially higher and cost of revenue lower, resulting in a significantly improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue less cost of revenue yields gross profit, and gross margin is the ratio of gross profit to revenue. Compared to the prior quarter, revenue and gross profit were lower with a slightly lower gross margin, while versus the same quarter last year, revenue was lower but gross profit was substantially higher and cost of revenue lower, resulting in a significantly improved gross margin.
- The strongest observable margin driver is the year-over-year improvement in gross profit relative to revenue, with gross profit higher and cost of revenue lower compared to the same quarter last year.
- Revenue decreased both sequentially and year-over-year, while gross profit decreased from the prior quarter but increased sharply from the year-ago quarter. Cost of revenue decreased in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter but improved markedly from the same quarter last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
16.6%
Gross profit
$402.0M
Revenue
$2.4B
Cost of revenue
$2.0B
Quarter-over-quarter change
-0.8 pts
Year-over-year change
+9.8 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% |
| Dec 31, 2023 | $2.4B | $402.0M | $2.0B | 16.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-0.8 pts
Year-over-year change
Dec 31, 2022
+9.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the year-over-year improvement in gross profit relative to revenue, with gross profit higher and cost of revenue lower compared to the same quarter last year.
Revenue decreased both sequentially and year-over-year, while gross profit decreased from the prior quarter but increased sharply from the year-ago quarter. Cost of revenue decreased in both comparisons, resulting in a gross margin that weakened slightly from the prior quarter but improved markedly from the same quarter last year.
Monitor the company's ability to secure financing given noted credit market volatility and its history of losses, as highlighted in the filing.