Carvana’s (CVNA) stock is up 33% after the used car retailer reported its first ever quarterly profit.
The company announced a profit of $450 million U.S. for all of 2023. A year earlier, in 2022, it reported a loss of $1.59 billion U.S.
Additionally, Carvana forecast a profit for the current first quarter that will be above $100 million U.S.
To achieve profitability, Carvana has cut costs by trimming inventory and reducing its advertising budget in recent months.
The company, which allows customers to buy cars online, proved popular during Covid-19 lockdowns but had struggled coming out of the pandemic.
Carvana also said in its forecast that it expects the number of used vehicles it sells in the first quarter of the year to be higher than last year.
The company reported retail gross profit per unit of $2,812 U.S., representing a nearly seven-fold increase from the final quarter of 2022.
Prior to today (Feb. 23), Carvana’s stock had gained 420% over the last 12 months and was trading at $52.41 U.S. per share.
