“During the year, we delivered more cars to our customers than we had in our entire prior history combined, but it isn’t just the percentage growth that is noteworthy. At this scale that growth rate means we sold an incremental 83,000 cars this year,” said Ernie Garcia, President, Chief Executive Officer and Chairman, on the earnings call. “That is the most organic growth of any automotive retailer ever in the U.S. This year we expect another year of market-leading growth. The powerful unit economics inherent in our model continue to show up consistently. In 2019, we increased GPU by $750. Even more remarkably, it was our sixth straight year of over $400 of improvement in that metric. This year we expect to notch our seventh.”
Noting that existing Carvana markets grew by 84 percent, he said, “The company’s four oldest markets each more than three years old grew by 50 percent and our oldest cohort of Atlanta grew by 18 percent. Our cohort growth was broad based with many markets crossing key milestones.”
However, expenses didn’t come down enough for the Street and Carvana was torched in many cases. For example, as reported by Forbes, auditor Grant Thornton wrote that “management believes” it can meet its financial obligations through February 2021.
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