Carvana Co. (NYSE:CVNA) Q3 2019 Earnings Conference Call Transcript
Nov 06, 2019 • 05:30 pm ET
Good afternoon, and welcome to the Carvana Third Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded.
I would now like to turn the conference over to Mike Levin, Vice President, Investor Relations. Please go ahead.
Thank you, Gary. Good afternoon, ladies and gentlemen. And thank you for joining us on Carvana's third Quarter 2019 earnings conference call. Please note that this call will be simultaneously webcast on the Investor Relations section of the Company's corporate website at investors.carvana.com. The third quarter shareholder letter is also posted on the IR website. Joining me on the call today are Ernie Garcia, Chief Executive Officer; and Mark Jenkins, Chief Financial Officer.
Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the federal securities laws, including but not limited to Carvana's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here.
A detailed discussion of the material factors that cause actual results to differ from forward-looking statements can be found in the Risk Factors section of Carvana's most recent Form 10-K and Form 10-Q, The forward-looking statements and risks in this conference call are based on current expectations as of today, and Carvana assumes no obligation to update or revise them whether as a result of new developments or otherwise.
Our commentary today will include non-GAAP financial measures, including but not limited to ex-Gift measures that exclude the impact of the 100,000 Milestone Gift to our employees. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our shareholder letter issued today, copy of which can be found on our Investor Relations website. Please note that all gross profit, SG&A and EBITDA metrics mentioned by us on the call today are on an ex-Gift basis.
And now with that said, I'd like to turn over the call to Ernie Garcia. Ernie?
Thank you, Mike, and thanks everyone for joining the call. Q3 was another great quarter for us on our mission to change the way people buy cars. It was our 23rd straight quarter of triple-digit revenue growth. We also saw a nearly 250% growth in the number of cars we bought from our customers, 250%. As a result of that growth, we bought 70% as many cars from our customers as we sold to them, and we sourced 31% of our retail cars from other Carvana customers.
Our rapid growth in both cars bought and sold led to total transaction growth of 143% in the quarter, which is the fastest rate of growth we have seen since late 2017. That may not sound like that long ago, but at that time, we were a business roughly one-fourth the size of the business we are today. It's pretty exciting to still be growing as fast as we are at the scale of over $1