Online used-vehicle retailer Carvana Co. continued to expand in the second quarter, launching in nine new markets. It also more than doubled revenue, but it widened its net loss as a result of the expansion.
The Phoenix company’s net loss widened to $51.3 million from $38.9 million a year earlier, even as revenue grew 127 percent to $475.3 million, the retailer said in a letter to shareholders released after markets closed Wednesday.
Carvana’s retail vehicle sales more than doubled in the quarter, and profit per vehicle hit a record-high $2,173.
Records: Total gross profit was a record high, more than tripling to $49 million, compared with $16 million the year earlier. Total gross profit per vehicle, including retail and wholesale, increased 43 percent to $2,173.
Sales: Carvana’s retail sales surged 111 percent from the year earlier to 22,570 vehicles.
Days’ supply: The company also lowered its average days to sale to 66 days, from 105 in the same period last year and 70 days in the first quarter.
“We achieved these results while opening 9 new markets and 4 new car vending machines, and Carvana’s network now covers half of the U.S. population,” Ernie Garcia, Carvana co-founder and CEO, said in the company’s earnings release.
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