CV

Carvana Co. stock research

Jun 30, 2024

FY2024 Q2

Carvana (CVNA) Gross Margin — Quarter Ended Jun 30, 2024

Revenue grew relative to both the prior quarter and the same quarter last year, accompanied by a larger increase in gross profit. Cost of revenue also rose but at a slower pace, resulting in an improved gross margin.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue grew relative to both the prior quarter and the same quarter last year, accompanied by a larger increase in gross profit. Cost of revenue also rose but at a slower pace, resulting in an improved gross margin.

  • The strongest observable margin driver is the expansion of gross margin compared to both the preceding quarter and the year-ago period.
  • Gross margin improved sequentially and also compared to the same quarter one year earlier, reflecting a favorable balance between revenue growth and cost management.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

21.0%

Gross profit

$715.0M

Revenue

$3.4B

Cost of revenue

$2.7B

Quarter-over-quarter change

+1.7 pts

Year-over-year change

+4.2 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$2.8B$482.0M$2.3B17.4%
Dec 31, 2023$2.4B$402.0M$2.0B16.6%
Mar 31, 2024$3.1B$591.0M$2.5B19.3%
Jun 30, 2024$3.4B$715.0M$2.7B21.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2024

+1.7 pts

Year-over-year change

Jun 30, 2023

+4.2 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the expansion of gross margin compared to both the preceding quarter and the year-ago period.

Gross margin improved sequentially and also compared to the same quarter one year earlier, reflecting a favorable balance between revenue growth and cost management.

Monitor the company's ability to sustain margin improvement as it continues to execute its profitability initiatives, per the filing discussion.