Carvana Co. stock research
FY2024 Q4
Carvana (CVNA) Gross Margin — Quarter Ended Dec 31, 2024
In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue all increased, with gross profit rising more than cost of revenue, leading to an improved gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
In the current quarter, revenue and gross profit both decreased compared to the previous quarter, while cost of revenue remained stable, resulting in a slightly lower gross margin. Compared to the same quarter last year, revenue, gross profit, and cost of revenue all increased, with gross profit rising more than cost of revenue, leading to an improved gross margin.
- The strongest observable driver of the gross margin change was the relationship between gross profit and cost of revenue. The year-over-year gross margin improvement was driven by a larger proportional increase in gross profit relative to cost of revenue.
- Sequentially, gross margin weakened slightly due to a decline in revenue while cost of revenue remained unchanged. Year-over-year, gross margin improved significantly as gross profit grew faster than cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
21.5%
Gross profit
$763.0M
Revenue
$3.5B
Cost of revenue
$2.8B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
+4.9 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, 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% |
| Dec 31, 2024 | $3.5B | $763.0M | $2.8B | 21.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.6 pts
Year-over-year change
Dec 31, 2023
+4.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of the gross margin change was the relationship between gross profit and cost of revenue. The year-over-year gross margin improvement was driven by a larger proportional increase in gross profit relative to cost of revenue.
Sequentially, gross margin weakened slightly due to a decline in revenue while cost of revenue remained unchanged. Year-over-year, gross margin improved significantly as gross profit grew faster than cost of revenue.
Monitor the company's ability to obtain debt financing given the volatility in credit markets as noted in the filing.