CVNA - 2 Things to Know About Carvana's Improved Outlook
2023-06-10 06:55:00 ET
Shares of online used car seller Carvana (NYSE: CVNA) rocketed higher last week after the company updated its outlook for the second quarter. Carvana now expects to report adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) of at least $50 million, compared to a previous outlook calling for positive adjusted EBITDA. The company also sees its non-GAAP (generally accepted accounting principles) total gross profit per unit metric exceeding $6,000, which would be a new record and up 63% year over year.
While the market cheered this improved outlook, there are two very important things to know.
What is adjusted EBITDA? To calculate EBITDA, take a company's net income and add back interest, taxes, depreciation, and amortization. The "adjusted" part involves backing out even more expenses, often stock-based compensation.
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2 Things to Know About Carvana's Improved Outlook