Carvana Co. stock research
FY2024 Q3
Carvana (CVNA) Gross Margin — Quarter Ended Sep 30, 2024
Revenue increased while cost of revenue rose less proportionally, leading to higher gross profit and an improved gross margin. The quarter-over-quarter and year-over-year comparisons both show a stronger gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue increased while cost of revenue rose less proportionally, leading to higher gross profit and an improved gross margin. The quarter-over-quarter and year-over-year comparisons both show a stronger gross margin.
- Gross margin improved compared to both the prior quarter and the same quarter last year, driven by revenue growth that outpaced the increase in cost of revenue. The stronger margin reflects a larger share of revenue flowing through to gross profit.
- Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue rose at a slower rate. Compared to the same quarter one year earlier, all metrics improved as well, with gross margin showing a notable strengthening.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
22.1%
Gross profit
$807.0M
Revenue
$3.7B
Cost of revenue
$2.8B
Quarter-over-quarter change
+1.1 pts
Year-over-year change
+4.7 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $2.4B | $402.0M | $2.0B | 16.6% |
| Mar 31, 2024 | $3.1B | $591.0M | $2.5B | 19.3% |
| Jun 30, 2024 | $3.4B | $715.0M | $2.7B | 21.0% |
| Sep 30, 2024 | $3.7B | $807.0M | $2.8B | 22.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+1.1 pts
Year-over-year change
Sep 30, 2023
+4.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved compared to both the prior quarter and the same quarter last year, driven by revenue growth that outpaced the increase in cost of revenue. The stronger margin reflects a larger share of revenue flowing through to gross profit.
Compared to the immediately preceding quarter, revenue, gross profit, and gross margin were all higher, while cost of revenue rose at a slower rate. Compared to the same quarter one year earlier, all metrics improved as well, with gross margin showing a notable strengthening.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate will influence gross margin trends.