Carvana Co. stock research
FY2024 Q1
Carvana (CVNA) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose more than proportionally, leading to an improved gross margin, as cost of revenue grew at a slower pace.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased compared to both the prior quarter and the same quarter last year. Gross profit rose more than proportionally, leading to an improved gross margin, as cost of revenue grew at a slower pace.
- The primary driver of margin improvement was the favorable relationship between revenue growth and cost of revenue growth, with revenue increasing at a faster rate than cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved from a lower level. Compared to the same quarter one year earlier, gross margin also strengthened significantly.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
19.3%
Gross profit
$591.0M
Revenue
$3.1B
Cost of revenue
$2.5B
Quarter-over-quarter change
+2.7 pts
Year-over-year change
+6.2 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $3.1B | $591.0M | $2.5B | 19.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+2.7 pts
Year-over-year change
Mar 31, 2023
+6.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of margin improvement was the favorable relationship between revenue growth and cost of revenue growth, with revenue increasing at a faster rate than cost of revenue.
Compared to the immediately preceding quarter, gross margin improved from a lower level. Compared to the same quarter one year earlier, gross margin also strengthened significantly.
Monitor the company's ongoing initiatives to align expense structure with unit volumes, as referenced in the management discussion.