Carvana (CVNA 16.20, -2.48) has slumped 13.3% in pre-market after delivering an underwhelming quarterly report and guidance.
Carvana allows consumers to purchase used vehicles online, giving users the choice of an in-person pick-up or having the car delivered to their home. The company reported a slightly smaller than expected fourth quarter loss of $0.36 per share on revenue that jumped 148.0% to $265 million, but was still shy of market expectations.
Like fourth quarter revenue, the company's revenue guidance was short of estimates. The company expects that first quarter sales will be between $325 million and $355 million while revenue for the fiscal year is expected between $1.73 billion and $1.83 billion.
During the fourth quarter, the company saw its gross profit per unit increase to $1,619 from $1,184. However net loss also increased, growing 32.0% to $47.20 million. EBITDA margin improved from -30.6%, but remained negative at -15.5%. Average days to sale shrunk to 72 days from 97 days in the third quarter. The company sold 13,517 units, representing year-over-year growth of 141%.
The company ended the quarter with operations in 44 markets, up from 39 markets in the previous quarter.