The company's stock fell roughly 98% last year as it overspent to gain sales and increase vehicle inventory amid weakening demand.
The company last year announced plans to achieve a positive adjusted EBITDA this year, however pulled that guidance due to "current industry and macroeconomic conditions." Carvana last reported a positive adjusted EBITDA of $20 million during the third quarter of 2021. Wall Street was watching for additional steps in the restructuring of the company as well as improvements in total gross profit per unit, specifically. GPU was $4,303, an increase of 52% compared to the first quarter of 2022.
For the first quarter, Carvana reported a net loss of $286 million, down from a loss of $506 million a year earlier. On an adjusted basis, the company lost $24 million, down from a loss of $348 million a year earlier and narrower than its $291 million loss during the fourth quarter.