Carvana Co. (NYSE:CVNA) shares surged almost 30% in premarket trading Thursday after it announced improved second quarter guidance.
The used car firm revealed it now expects to achieve adjusted EBITDA above $50 million in the second quarter, while non-GAAP total gross profit per unit is likely to be above $6,000, representing a new company record and a more than 63% improvement compared to the second quarter of 2022.
In addition, Carvana stated that it sees loans sold or securitized quarter-to-date totaling approximately $2 billion, compared to $1.3B sold or securitized quarter-to-date as of May 4th, 2023.
The company said its strong performance in the first quarter of 2023 was driven by a continued focus on operational efficiencies.
"Our record-breaking 2023 first quarter is evidence that our strategy is working, and our updated Q2 2023 outlook demonstrates that our progress continues to positively impact the business even faster than expected," says Ernie Garcia, Carvana Founder and CEO.
"The team's persistent focus on driving profitability has resulted in significant savings and efficiencies, and this work will persist as we continue to execute our plan."
Carvana shares are currently trading around the $19.73 mark after closing Wednesday's session at $15.53, up 5%.