Carvana Co. (NYSE:CVNA) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:30 pm ET

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Carvana Co. (NYSE:CVNA) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Carvana Fourth Quarter 2019 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

I would now like to turn the conference over to Mr. Mike Levin, Vice President of Investor Relations. Please go ahead.

Executive
Michael Levin

Thank you, Sean. Good afternoon, ladies and gentlemen. Thank you for joining us on Carvana's fourth quarter and full year 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 fourth 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. 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. Unless otherwise noted on today's call, all comparisons are on a year-over-year basis.

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. A 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 the call over to Ernie Garcia. Ernie?

Executive
Ernie Garcia, III

Thanks, Mike and thanks for that extremely lively reading of the Risk Factors. We appreciate it. Thanks to everyone else for joining the call. 2019 was another incredible year for Carvana with broad based gains in all key operational and financial metrics. In the shareholder letter, we once again published our key metrics and our updated cohort graph. Please take a moment to look over these charts. The story they tell is compelling. It's a story of extreme growth consistently sustained over a long period of time. The magnitude and consistency of these results are only possible because we have built a better business model that delivers the best customer experiences available when buying or selling a car. 2019 was our sixth straight year of triple-digit revenue growth with over 177,000 cars delivered to