CARVANA CO. 
Carvana's Ernie Garcia reports on his company's performance and strategic direction. According to Garcia, Carvana's financial results reflect internal operational actions more than global economic trends in the United States. Despite a challenging 2022 and 2023, the company has grown rapidly since its inception in 2013, benefiting from an increase in online car buying by consumers.
Garcia points to the last quarter as the best in Carvana's history. He highlights the company's exceptional profit margins, which outperform those of its competitors.
Carvana has set itself apart by simplifying the car-buying process, allowing customers to choose and finance their vehicle online, and by optimising its supply chain to offer access to a national inventory. This strategy enables Carvana to make significant savings on fixed and variable costs, while increasing its monetisation capacity through more complete vertical integration.
The company also takes advantage of its logistics network to buy cars at advantageous prices directly from consumers, offering a fast and convenient service. This approach allows Carvana to adjust prices according to regional variations, benefiting both sellers and buyers.
Faced with concerns about the company's debt, Garcia reassures that Carvana plans to reduce its debt gradually, supported by excellent financial results, including an EBITDA of 235 million dollars in the first quarter, announcing an annual potential of around one billion dollars.
Garcia notes a growing interest in electric vehicles (EVs), which are closely following developments in the new car market. Despite rising borrowing costs and car prices, consumers are tending to opt for older or higher mileage vehicles to save money, although there is a noticeable trend back towards earlier choices.
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