CVNA - Earnings call transcript Q4 2018

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Operator

Good afternoon, and welcome to the Carvana Fourth Quarter 2018 Earnings Conference Call. All participants will be in a 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 of Investor Relations. ahead. go Please

Michael Levin

simultaneously and The for Andrea earnings ladies gentlemen. also corporate the will and call. section on Investor Thank the posted quarter of us good shareholder on you company's be call this joining note at XXXX on Carvana's Thank the Please Relations investors.carvana.com. you, website that afternoon, webcast fourth fourth website. conference is quarter letter

Financial and Officer. call the are Garcia, Mark today Jenkins, Officer; Chief Joining me on Chief Ernie Executive

results Before would forward-looking that within not detailed actual from material materially and federal actual I and involve market we following the the here. are and discussion discussed that revise including, Factors current of a those cause no be the results Risk Carvana's laws, risks statements otherwise. forward-looking the as based XX-K. that developments new forward-looking in the update cause you to results whether start, opportunities uncertainties Form obligation remind result to Carvana's assumes to them differ like financial found factors may A today, as conference of call to recent and of expectations in discussion differ but or this The of can statements section contains to, securities future Carvana on from limited or most meaning of risks statements that

EBITDA ex-Gift, call basis by discussing ex-Gift be All mentioned are noted. and G&A will some profit, We ex-Gift. otherwise an ex-Gift, SG&A, including non-GAAP unless on measures this EBITDA profit gross financial on us metrics and gross

letter website said, over like And GAAP of directly reconciliations now, with posted Ernie? to on turn those our most find investors.carvana.com. comparable You today, measure to call Garcia. shareholder in the published in Ernie we the that I'd can measures

Ernest Garcia

on nearly since us that by an retail, makes We country. growth X,XXX grew or we growing by the mid-term we're growing opportunity progression the increase goal our of continue be extremely the at and break to the things joining forward year of of for all from us to that this XX,XXX our XXth instead pause U.S. everyone it quality in doing and an $X,XXX proud GPU the provides in fastest on our of and This to is grew year over consumer, in our retailer feat what nearly our a closed fun to excited of XXX%, to April of near for thanks revenue is building another straight incredible the power the anywhere X,XXX another The the reporting of. so public call. the take increase makes and of scale XXXX, public cementing We of built Mike are from an year. either We This a grew technology. the our and We're offering reflect demonstrates to is always completion growth. of because Thanks, quick and We accomplishment far. units an triple-digit results fastest year X,XXX, path the execution, for and automotive customer clearly company year $XXX going beyond. with quarter our Company. listed it organically our we've

since basis We profitability, march and going points points X,XXX continue over XXX towards basis to public. leverage XXXX showing of for

scale daunting context. to like from same here, roughly backwards our building we short two do some, Few we progress X love goal who number drive and long-term here. powerful have grow provides our a incredible per All our XXx We're love selling will of That delivering units it. next forces just growth this of customer helpful it size the the pretty looking customers product some are that but forces. today said, us ago. get we and continue million this letter of X is year. million to cohort. jobs companies sound building If shareholder we interesting Getting the the our plus years to requires the two that. result and but offering That may of speaks we $X market. people last, included into has published the show The generated. trillion are very market of this is by to These penetration XXx customer power statistic acquisition would harder we that charts and excited impressive afternoon, that our penetration and XXXth continued In power to the we charts us a X.X to than undoubtedly the be

encouraging each customer X% in in clearly achieved which a progress penetration growth our The year. way very that well. model a financial trends a cohort's our nearly lights Our the fourth by the progress quarter first to and and for and $XXX market unit continues have to the persisted of acquisition path and Led as in cohorts cost market, in long-term our goals. the CAC consistent Atlanta, leverage quickly underlie

on are markets older than faster Newer average markets. growing

non-Atlanta markets. launch. life home faster ramping in fastest market, penetration, it Alabama both to made it after market became to example XX Atlanta. the and than quarters Phoenix, Atlanta same this the X% that and ramp versus the their markets XX markets Montgomery, only our An fact, months at of took in faster of X.X% Smaller time penetration second Carolina months Charleston, our In continue hitting are South to than XX XX the market larger markets of landmark milestone in its

building. which value is than the those We continue aren't, brand of of we are nearby that to see the ramp are markets think exciting indication markets pre-existing we faster that

our we that today, demographics, There markets will way better geographies, many quality and the more that Part that XXX over structure, published customers brick platform dealers chain companies namely materials deeper incredible of vertical cost, and brick suppliers general mortar finance to information, performance seeing lot the a and mortar and There's us have to cementing sizes. to retail we important results hope buy are most are span our in customer helpful. are this, Effectively finance higher and thoughtful experiences materials of XXX sits in to experiences, review. The that are a we like detail experiences but generate and are expressions. we mass appeal. make and of loans today customer originated are our in into variable you from included generate generated pricing find we to and in different known to loans in and cost vehicles finance market is consistent finance provide our the compelling, company their the that a the and allowing today innovation dive case platform, the in embedded by dealers, their car compared of finance time which platform the lower brick many to and finance for. I would there case, top the we which as we we request our vertical of on automotive attributes we're that simple has they're when our mortar as finance As a our and built on platform are enjoys integration In that exists a our of finance have In posted of including the are belief their partners. in automotive platform, is traditional they advantages fundamental traditional improvements part many has on and companies, the the One dealers. expression businesses. takeaways flows model, such loans all retail powerful the you experiences which

on progress industry-changing of an of build experiences. areas combination to touch these in great each and been of a business now always in great has customer culture through XXXX. world-class strategy made operations, technology, Our a delivering I'll the

content, two made exciting and on the we available Customer-facing carvana.com that app First, internal-facing our are for areas and an and each of on technology; will mobile technology speed, to initiatives. foundation all be usability SEO I'd laying improving redesigning functionality progress progress developing included hope briefly there of launching what over a like our This we time. core pages, ton and has improvements, customer-facing first main inside hit. of

integrating each also Propel, first improving far to the out and of see. exciting as CarXXX product currently as eye roadmaps coming the releases year Carlypso, mind's them continue in we from half integrating, acquired this have on work which broader and and stretching in can of technology of We the front

and time efficiently This We and buy progress our improving also buying including our intelligently, to made at a schedule software. buyers deliveries, puts have activity they applications support internal-facing best, complete to customers progress many to more scalability enable in that enhancements and enables and into to including our lot visible underwriting we advocates doing deliver more even us enables over expect by transaction efficiently. time tools delivering that a scalable what less scheduled spend our applications underwriting tool better quickly customer more other that vehicle experiences of aimed us more initiatives logistics and more from to love internal cars our building tasks exceptional tool to with allows a less cars, and analytical and customer at proprietary effort will efficiency a to our through do more enable improvements types, to supporting dynamic software that a advocates used and experiences, our are customers intelligently that us that knowledge further

given before, ability history than In had customer response value standing XXXX, goals. more an size in gives vending operating Now seeing biggest we team's heading is of more and risk date did we've prior. Accordingly, entire single to our we ops, we execution us said and well our the execute. than we're positive the the of market, as machines we to cumulative execution before, believe and to indication our our opened important as as a ever markets our between

doing more an Our investing and quarters triple-digit up XX better, has more impressive. that a and growth done supply is keeping chain extremely complex and any retail purchasing is growth, that simultaneously so Achieving company amazing reinvented while entire straight have all that the of improvement inspection as job advocate but even scalable operationally as difficult automotive centre, in in in and processes. more efficient is company logistics with rare, ours teams

Our of success our done a and tremendous job team credit for deserve outstanding amount has today. they an

and I'll reporting, company better work we culture and the think get on don't want ingredients, and are we believe I two able they convey all walk the These are customer I and or be people Finally, all progress delivering the both. we of see into the pride in interesting to quality Great enable with on front very in work confidence, whenever grateful outlier very in locations people model is and for they it find I people, in has ingredients excited belief and to dedication, fundamental is foundations culture, of comfort, we a great to and These the into potential meaningful. one believe other I are our we am people. something a field that meeting two believe adequately are the great great a and us. problems positive closely But to business experiences. want focus the what and I our a I of building personally building see a and it and are want about. together. great culture We unique touch what intertwined of

change cars. mission We our we to achieve of positioned feel by are

to We are the industry. change positioned

more front will way, been We in believe of will are work have where we there firmly headed, than but of our we our confident and the team along have be ever we're in a destiny. and our we If achieve inevitably Mark. control executes, us in of are goals. bumps we lot

Mark Jenkins

Unless year-over-year you for today. thank us on all are a and Ernie all you, otherwise joining comparisons Thank noted, basis.

an in on a strong year X.XX%, XX% growth penetration Atlanta XXXX accelerated Underlying year. We within our of X.XX% from Retail in Total to units In in reaching QX, XXX%. an growth year QX, this of completed of penetration revenue $X.XX totaled in cohorts. in $XXX.X increase revenue grew increase XXX% of company. reaching market saw growth. another and report cohort the triple-digit quarterly market this harder cohort QX, XX,XXX an XXXX, increase XX,XXX also of with year, totaled the XXXX, increase up triple-digit QX in of XXXX a in it X.XX%. a a than units year previous faced pleased remained million units triple-digit quarter another XXX%. we XXXX company in both retail was replacement Houston comparison second growth The and of totaled trajectory of demand second growth of last and in are growth cohort strong revenue. our an was Retail billion, sold XXXX, year as XXX%. of public a but a nearly XXXX

history, XXXX scalability fastest of believe cohort, the with and product than in the $X,XXX. gross Finally, consumer in our the QX faster which unit exceeding our profit XXXX strong launched cohorts We ramped demonstrates previous start demand and growth our the for our cohort replicability Total and model. in ones. significant per was any the the consistent

the was $XXX. $X,XXX, per unit For total profit increase year, gross of an

financial reflecting year XXXX leverage grown days in made resources, financial we've liquidity main We under available profit to gains five on based, have delivery than existing Since Our and going this a progress an while products. Since and cash gross and was that per liquidity GPU XX.X% times and also two resources quarter. average in increasing more million objectives. towards of gains increasing largest provide auto SG&A capacity our substantial our equivalents, in the was logistics XXXX, holistic growth We strategy. to investors broad line per the and becoming our profitable represents and our $XXX while and investment EBITDA on the year made significant agreements. forward revenue improvement network. of in public units sale, and including most our nearly underlie reducing three company financing with Floor more includes in ago, leaseback capacity unit margin plan expanding retailer. in operating sale than unit a of of X.X%, we ancillary on This $X,XXX years available negative ended the significant goal report $X,XXX. by than picture our We scalability QX, to progress progress resources $X,XXX more and by becoming total in with Plan more which than

flexibility, Floor on our line a maintaining with X, common equivalents stock Class it than time, past Combining paying of to than to balance of $XXX.X view the our means the be optimize two will we capacity down selectively This million we to higher on convertible may and maintain shares. along availability December while cash line. had Plan increase XXst, plan As while of Over we borrowing periods, financial the lower on borrow expense. interest in real periods. in gives in outstanding also we December financial liquidity On complete December XXXX, line past simultaneously preferred had that of more estate A converted picture. the into our resources we issued that XXXX

exchange to information half with providing our our goal decision You on evaluate outlined business market the with give approximately while we fully own. focusing management use the our the The This on and a XXXX. perspective the long-term annual best we in should XXX goals made made model. perspective, our evaluates toward more will to closely shares because quarterly. necessary the to shareholders' guidance the was that financial the move first aligning guidance of a update This experience decision to while is our million runs of year, customer driving long-term basis team have our in primarily business,

look towards significant XXXX, GPU As revenue, we units in we and retail EBITDA margin. expect and growth improved increased

Our retail to sold from XXX,XXX, outlook XX,XXX in for XXX,XXX XXXX. units up is

$X.X Our billion is outlook $X.XX $X.X an increase billion, billion from total in to XXXX. revenue for

move $X,XXX, to beyond. increase reflecting our to parts goal as mid-term gains GPU of to $X,XXX expect to all the transaction We and we across $X,XXX

to GPU progress We to to expect path negative EBITDA revenue. with as margin representing as expand, percent on to growth, to decrease X.X%, we in the Combined meaningful X.X% OPEX to terms profitability. increase expect we improve negative a dollar of our but

made XX acceleration year reflecting to to open achieving In in an a towards expect of XX we XXXX, to openings we markets second market in XX goals. we relative addition, financial progress public opened as the In XXXX. our significant our company,

operating continuing experience. GPU, towards sales, to while expand we increase XXXX, grow to our all improve customer look and As to intend demonstrate rapidly our we footprint, continue leverage,

Operator

[Operator Instructions].

Fadem question Please Fargo. will Wells go from first come Zach ahead. Our of

Zachary Fadem

could improvement expect sorry of in items? contribute the some expecting to walk the Hey, and near-term you're good thinking of the other of us improvement do drivers financing and from the to improvement XXXX, about morning about GPU much that you you come guys, buckets When that. how through

Ernest Garcia

Sure.

So I'll the lot and big we've touch us and have other sources for opportunity start on talked about GPU some talked some different a about of Analyst the that at we of I'll with buckets then items. Day

see that are our more big program. of cars So, the from buying opportunities finance we customers in in and monetization two expanding

from resources is more that a with and line. think grow provide customers as aspects customers be nice see more an I our feel we we traction some cars business time. obviously XXXX buying It's that really to something in really, started like and where business looking where have we area the offering more of great to experience over we devoted we'll to

cars buying way source you customers or you to customers that course, gross contributor you earn that that transaction are buy cars profitable source reasons, other when and turn from is first, customers wholesale, than them retail a typically from you from into more that for wholesale cars two GPU in from auctions cars a sources. Of then you profit

that's still to expanding two business number one. lots but new place early and expect that's we finance that's is a Obviously where very and a be we Opportunity we opportunity. number we our So we're one feel of program. that doing opportunity stage, see at see testing

program on about. that and that's bit excited a presented the our I today I think think something of very data little we're we quality to-date of

to are by result very expanding of loans down We time loans to cost valuable. as very funds. of number have And our special bringing and model, our performed our over those time a partners look we'll monetize have continue and a over well

I other about over across see the of through the use checkout flow. transport over parts the think of on continuing ones. continuing new talked to time well as to and There leverage you big many to well. existing time as that our infrastructure potentially transaction see we but products talked couple ancillary We've of terms the walked over places areas, expand adding as ancillary In the we opportunities products about We've time I've cars. opportunity, do existing other to we are attachment recondition where

Mark Jenkins

long are customer as want we loans, customers. a to which point a them less showed most defaulting recently that Zach, I monetize that that to can on originating other creating most aside our with Yes, high jump has experience likely more well, in if succeed relative the we customers, have sure monetize over We in that to attention, been public data to the likely is we're of data cars been and could we're consistently default, time, become is platform. think on that better has from really better last and to valuable loans, finance to it's quality today just how there a going as we important their at the I experience are repeat I is helpful. too price hope low is platform has we who position improving presented in a are make been we're but as I they also think great more selling lost it loans putting to it story make better out less which issuers customers we're there on that

a way not over it pays totally that area we where But our integration dividends probably yet serious we a vertical think off that's time. in understood. it paying important is so really is that think And

Zachary Fadem

three penetration helpful. in to on comment used the continue that's industry you trending this could in online do XXXX this and and consumer you category, over color the car been taking five overall And picture, years? on has just how it, in XXXX how any next Got super the just in expect bigger adoption adoption to

Ernest Garcia

in because meant, when question I So U.S. a is you to buy precisely think I exactly still answer what most car the you consumers think specifically don't that's know even say hard online.

what question, know I'm our you if if appealing that them. they enough them if looks that think not I to have ask So something like to the is sure exposure model even is to

to grow continue cohorts. our all steady continues We quickly. to see very very Atlanta of progress across

for we need us of willing number that can market of order I gets see to think to is gains the something separate cars because there's then, we a transactions example. we and higher buy inventory as the happen gains should conversion in we aware to significant we grow get reason completely do. centers kind I we and inspection or additional like more delivery feel continue of don't customers is comfortable And necessarily even time, seeing lot the a the in as really that this do customers what with be more rate that shrink getting online customers on in in And think Atlanta, of add already today. who excited we're actual we of that becoming would dimension of what

that made are customers of haven't remain us. awareness in which public and levels Atlanta nationwide But what we on data customers pretty to do, the aware of low. percentage are been We or research really trying understand

think we there's there. lot so of opportunity a And

the and model And great more a feedback if a good show we our going to And so, more experiences get really is we should customers the we job the to will at tell positive delivering customer be those comfortable. and and execute in time and experiences story up, one keep think customer all is spot.

Zachary Fadem

CarMax ask platform question if just mean just you're slightly I positive brand curious an impact launched that and that -- for to you see as So any driving could Atlanta, differently, seeing a consumer I in if in there category? the awareness were omnichannel

Ernest Garcia

view on enormously largest general that's enormous that which player start market is I about reiterating kind Yes, competition players we market market share, XXX think The have fragmented. this just of X.X% the largest X% would an out, is our share. has

is unique somewhat think across are fairly operationally a scaling retail I business intensive, rapid dynamics verticals. So those different that difficult. It's making also

competition is it than relatively mean verticals. that be all think in So might less those the things, I other important we

point's good one your think though. I a

bit think competitors are effectively one all cars when unclear it's little I selling brand right, pushing which it brands direction a if competition, negative like that also And we brand kind way. the think cemented They're would brand in consumers' advertising one is pushed constant us. start that their buy to minds which out car there of to out as own you pushes They're is number we're two a buying out new for being when online. of out pushing because of cars there, in go and online. a our the

And ultimately so chance that we a think there's that will be positive.

think seen doing in we're any with material there of impacts I the of things. different growth our out in In any very different markets the haven't any we competitors where pleased Atlanta any particular, fourth quarter. first we the but to acceleration see really slight Atlanta. we early couple of months extremely seen saw We've in in growth of a good continue there. trends the XXXX in in It's

in and believe front leader we spot. So we great long continue we we're to much don't building, far that that we're just us too on the see and that concerns a as keep anything

Operator

next question Blair. William Our ahead. of Zackfia comes go Please from Sharon

Sharon Zackfia

was good Hi, I similar A there. X%? if really customer about as size it correspondingly you saw and in encouraging you that acquisition Phoenix you questions, I'm hear couple decreasing the reach ramp afternoon. wondering to costs guess of

Ernest Garcia

customer I at share. think and market market assumptions link So order acquisition a is kind we of general, don't level. individual between a first very break cost reporting inextricable the good But in that it's our out there

we're the to So assumption. cohort in at to be a report good level. But continue general, going would that

Sharon Zackfia

think Can or you than you talk anything specifically other quick the you increase? you being Phoenix unique there, about drove that anything headquartered there did in massive

Ernest Garcia

being an gain. by early of easier to the think I here, So I made advantage had virtue do think which we headquartered awareness

us. think the very also an So advantage it's nearby of other benefited I think is it I Phoenix probably center. inspection

in Phoenix so were cars delivery in on the of quarter order the hit were well. from fourth our the just least parked in as that that probably and at street I times their And those and think down there's fast meant XX% conversion of customers

Sharon Zackfia

would then of wholesale was that commentary And it some wholesale, the only mean Can just that given great. area on than give weaker thought-process the little part have Okay, where I longer-term was around you was probably we expected. bit a that on GPU? maybe

Ernest Garcia

going break into yes. units Sure, margins. I'm then and to that

Let with units. me start

made very I progress pleased with year. think we across we the the are

I think customers. that units the it to we XXX% from grew order in of XXX% by something bought in total

of of there. Some wholesale, kind which a sales flowed item opportunity going just either case, in and line those to But retail of those flow is some through profit depends it flowed there's to through of kind through.

we make continued progress I think expectation the our made I we'll very XXXX. that I like last and was year exceptional in think is significant said, progress

I think at worth when are look kind there's that quarter you in the there. dynamics fourth first some and quarter, keeping the of mind

the different fourth have some due the We effect in to selection quarter customer promotion.

tend we're to season. to out different And The consumer the the of kind from the quarter the non-direct quarters go where some growing and be in easiest have We is tax fourth coming the general, the quarter and customer selection effect first in first inventory quarter most. to inventory grow due channels.

the pricing we that we the downward We're you and maybe percentage going out cars front, we customers, -- and individual these very and very, We're customers. XXX probably in customers a evolving and way we're try that in we're there. super selling we're the still will time moves margin aggregate bucks as We're material or it of that effects these we're bucks to we those and nurture I expect changing buying very But selection over funnel. acquiring very, fast. like at changing think learning in the trend have expectations, growing particular, were not then and we're on through that, the at number. are the by that set the very go on we ways around conversion fast the wholesale on We're -- this And and So make very, funnel something XXX we're grow positive. all to margin tend going channels, pressure business the we're customers, puts from that changing working that levels. changes which way learning underlying cars from means level the customers constantly car in acquired more to which

that constantly going today steady on. I lots think not And are for lots business growth there progress. that of So for and tests in is learning, optimized

would it think and would progress your I And with be quarter-to-quarter be little expectations. it think so I we build think we different so all pleased look we choppier it could If there. at longer look a I these to if the frames, bit with over time very that dynamics, at I in

Sharon Zackfia

this didn't one in for I XXXX national see last what the was shareholder question, the And share Carvana? market letter,

Ernest Garcia

way we calculate that think just XX that about is XX,XXX by I million, X.XX%. shy units divided so put you would the that

Operator

Our from Please Securities. Ron comes ahead. next question of JMP go Josey

Ronald Josey

IRCs some Maybe broader said in about though were the And us for sold the from with a cars think and to follow on thanks Phoenix retail, one a the production consumers the just think strategy, percentage talked just a launching taking Indianapolis, and I then follow-up, in the IRC newer XX% maybe strategy, a buying IRC what broader those Ernie, on or just about quick tell we from on Can are Great, users. adding in then two question. with you talking wholesale of question, past four. production in lines, and XQ? I you only you line cars

course, in Thanks. to tell then four IRCs location units over the you two thinking as and about closer maybe near So then potentially And of being Thank to just the production the reach and us and markets, with IRCs IRCs? the closer production you you're to of the the of you. IRCs how being maybe the build-out million can shipping your here impact call these importance on launch CAPEX. term, it line and time as if just X you times lines consumer about

Ernest Garcia

got one really you man, word. Oh in there that one last

So it's If customer. statistic headwind from right. we're cars retail, for a inventories That the that quarter purchased that inventory, customers, in the customers and consumer so we're your faces smaller from likelihood of bought of headwind on was the selling went of coming That's customer chooses in point a XX%. that any to to that was versus non-direct site inventory, means from were that that XX% generally given to purchase growing channels. the directly percentage a time creates kind that or car from consumers any the growing a

So we're inspection perspective, being we we're From I the in focused calculate of see that I by to extrapolating in we trying stay pleased front really next we're with that headwind. sure we to that especially think on think growth try progress, that light sure that center all cohorts. several out then we're over the And flexibility. in that building the basically of make years

lines the to overall. we're kind and of building I us enables in parts adding Phoenix and country in locations excited shorten excited So Indy. to this times add in be to delivery efficiency additional think different additional We're to it be of in

constant to expect push. be a We this

be inspection will to either centers We both. in new continually acquiring centers, or probably existing many inspection adding cases

that's of some it. think given we'll that way we then estimate of centers in we probably that specifically excited individual the now we're on Phoenix center first and inspection about, think just Carvana $XX for from in laid and needs something which we the time. And And is any right out million built I on And kind see about changes is really in already think point scratch efficient thinking inspection processes. centers CAPEX inspection next in the that about taking our per the driving basis inspection metric into subtle at the of size we that's based line we're learnings million we to center. any every to line. got level we're setting that I Many kind think per and that up there, of the geography that's CAPEX $XX a about most that to

Ronald Josey

you. thank Great,

Operator

of from Bottiglieri question ahead. go Our comes Please Wolfe Research. Chris next

Chris Bottiglieri

improvement couple Hey any for of what these year-over-year gain you financing my you retail of even questions, question. refinancing guys, A on timing back financing taking so if or out thanks was drove to noise unit last relative about so the or really pop transactions, even that significant quarter the this receivables quarter? talk maybe can there on

Mark Jenkins

a that our refinancing basis unit one sold sale, looking QX at So on is on per factor influenced gain loan QX retail transaction.

into refinanced. transaction and in directly our the loans sheet difference we so loans transaction balance were transaction from with QX QX And sold QX the one that the major had some that along from refinancing is refinancing

financing, sold on were higher loans those directly earned because loans. financing so, flow a better And premium much those with we typical forward than our

is so to that to and the also And the seeing purchasers increase year-over-year part you're sale direct of financing. that quarter-over-quarter to better due much with

Chris Bottiglieri

impressive you, my it's And is, obviously certainly primer okay. not is on very improvement well Got the through in first full yet, then question CNLs. guess calls sort I of financing giving but the

like bucket first three are would loans has the the be, across on are bucket, are been consistent improvement pretty you. Thank XX% a on type question you the in my to payer that gain XX%? fee is, receiving buckets And sale driving significant these other that or you are scoring that at seeing you the one still outperformance? So versus your CNL riskiest follow-up looking that for or positive more transactions this of in the then in

Ernest Garcia

say any of So how at loans. the of kind I you at provided given lost think there. that the other look We've Based and we outperformance credit curve issuers on is, kind of band to you first, to or score in I'd in look over time data can tried compare what of market. the you can data that provide look then can the the

help relative think that'll I So try size to to the you credit by band. outperformance

just out. have the are of general, works bands you're from, kind that band on your several because overall in if always the but improvements they from the places the the way time the asking losses credit credit over loss impact higher bands, math those think biggest I which came about credit come have

credit quality And little valuable figure kind the But So that work And finance then, curve. on then I combination obviously of powerful improvements company band. in are a your premiums something out any really general loans we we I high like kind bands in a sense entire credit haven't there the most given where we to doing quality different broke get general always we're very think can in of also the we're be. by the spot loans we're with originating loss the good those how more puts doing to verifications have of that do us structuring, band with in high much those that's at may and can associated a very differences kind associated all across then look and and work, retailer loans. to monetize. also math out loans a all credit originating of think you you we of pricing, that and that scoring, work originating And functionally credit

we're spectrum, across out it bucket. exactly broken we doing the but monetizing general in So, well haven't in each we're how

Chris Bottiglieri

And of one you so quickly bucket great. because a is the you're guess transportation growth Thank I GPU, quick sure very cost exponentially if Okay, can some IRC then quantifiable just and want down, maybe like would inbound growing on any with market opened having and your I of there another on you quantify transportation impact depressing just of you. be retail is one wasn't to temporarily QX there's anything that anything that step of drove the kind helpful? talk

Ernest Garcia

Sure.

change guess, that'll first me help in because thinking that. retail on I think the, hit sequential let So, I GPU the

which first off GPU, Monday promotion that customers in advantage things the couple the obviously our Cyber of impacts take is retail that a the fourth quarter that $X,XXX who promotion, retail there's So, GPU. is for happened impact

the in are is period used year where depreciation the car rates QX highest. Secondly,

retail those that an and impact while also GPU. has faster so inventory And cars depreciate between holding you're acquisition on and sale,

nothing would out of that terms In there logistics inbound call I in particular. costs, there's

upfront. big think listed factors two I the it's that I mainly

Mark Jenkins

Yeah, I'd to that. add

I present some talking probably degree, about think inbound. a isn't but you're number probably the to huge is it effect

build provide and spread effect starting we're then network, to because network, moving lower cars out in kind on longer fill across nationwide as cars out the the is I IRCs, think that outbound country of average. as And entire on pressure we IRC network distances supporting an distances does ship average. fewer the meaningful we with that you're definitely

over will inbound probably on outbound, the be as think I SG&A, but will an be of your So bigger in up which point. time to effect something there well, there effect shows

Chris Bottiglieri

thanks you, appreciate guys, it. Got

Operator

question ahead. Please comes next of Schindler Merrill Bank Lynch. go from America Nat Our of

Nat Schindler

on in other need in get in now in from to do if per wondering a have marketing need really added several spend Atlanta you're effect, the understand at similar as retail looks to on couple unit are What great target was after one do meet units, that where you offline just need thing, able so you're have consumers going occurs to final I commentary IRCs that get just even like gets are on the you charts, your to your hi to to you the one will Do to makes to Yeah, scale made be better? you in suggesting from call units order start you market is seasonally you to year? Atlanta, do in to thing, in it running, to right hitting you weird just why share something couple selling math when basic X.X% be next somewhere to a units all. competitor guys, a guys I a me of to that but it you well. have I One, Secondly, buy there the do And there? something just of doing doesn't roughly these was this time things. Atlanta, last way advertising X% in related, with aren’t or get are, the here there X%, the you days seem units, of guys handle buy look in, and -- there do here what XXX,XXX XXX,XXX selling enough able consumer no, you cars a you sequentially you you're what when But handle share some do particularly XXX,XXX help could beyond being and a can't it, that is question, do in years, finally, tell last you in that QX why downturn remember if to to from order them units X.X%.

Ernest Garcia

There's Okay. lot there. in a

So with start costs. let's customer acquisition

about innings we're see we're bit acquisition can many, generation that think that's brand. kind that we're in can the customer of We over We lot building right, customers little also downward So many ways early true. think that advertising think earlier of brand of cost. in that we're talked a reasons are we being the a awareness drive building there's I factor, think I real-time, a down think we not today, and cohort in we only acquiring for time. evidence sloping of We there's they

continue will probably And there. we so momentum that to natural there's show think some up

we time, that I and simply is to kind understand -- of to way how simplest think push think be just should that the most conversion. over about to compelling down able

order Atlanta take we we X% lead sales, and car nationwide, down to that's site XXX,XXX at if have higher approximately today we suggests the therefore around XX,XXX that we in a and we of of bit. same out any turn that had we if where that market onsite exact significant about quite XXX,XXX time, we share dollars sales and push about acquisition from customer extrapolate the conversion So, with had a cars in XX-day car time, are point alone very increase think would on a cost marketing that our and

car have XXX,XXX of also centers that the the also average year see on network times, across down. would had faster on sales inspection order so delivery that and XX per you'd we'd If push you

it. make we good to particularly way right. path lower that are extrapolate variable that's So costs, really, about to right acquisition already and out kind sense. not our important simplest feel there. a those economics of level going ton rush We're much to customer the so target at the of We now, think where to a a me really don't We're

of is building over time. prospect. it's to pretty the that and a able But we will QX, we push quirk. there brands in little still share, be keep The And evidence think it so pretty clear, bit that's interesting that's can down we if a growing a downturn

that then penetration the basically data we of use data, kind because of to units on. used public any historically to those out etcetera we and to case quarters, or historical market. this total we our a think. registration, rely in either to we the think reporting to quarters that are difficult so little our seasonality can we've at spread or We and that's way sold are we bit in I for define the many And understand look what lagged historical we at seasonality our look months And figure units try across use databases market in is given historical

in our our saw previous in We we historical August talked in the And of years expectations the bump. so locked August into kind our about, was an we in our really the basically of shape August, of We had lack that share time in that a year increase market sales at curve seasonality big embedded and in from last locked forward. IPO. going

up. somewhat And back see that right likely popping it's so and looks continue Atlanta so we down in probably more we that think data like going it's seasonality may to kind isn't of that and QX have now we

in think at the I there's those cohorts. look cohorts, you any many, if markets many of other

third those QX. blended think But And to And we do cars the buy assumptions together much, more scale. to a any at. in driving seasonality brick it's look I of And are what's seeing basically that's from nuance so then what to curve much that's all and in need quarter. with us more mortar cars, versus and simpler you're different bigger than dealers interesting customers the get

auction. there's many I through no, think the is many, go answer cars

million cars order the through on something auction something go year. like it's every think that that I of XX

volume through is a of auction. there So goes that lot

to buy cars want the answer that we from to more is do customers, absolutely. Now,

entire way try other customer. about and of then are sales switching switch car I through possibly chain an then used that, then think that cost the with happens then all about much that loans cost how think And a the customers, and roll dealer into we think you can there's that do think try of having us. at each and the auction simple to whole this we chain. with remove that we another mechanism fee transactions very as is, trading keep prices. that the as consumers is And way and a basically they lot model and the market dealer this as an to transport as that used in getting cars from purchase to we the extremely so finance we that complex I And ultimately auction and through result, look very then fair experiences, transports a to if a the to

they've repeat So and customers. default performance more and great to likely become got less to likely are

a to would more is accurate, continue that definitely going that necessity. cars are invest is we in customers, So I but from to that think our agree necessarily we not buying

Nat Schindler

Okay.

If your prime of old of auction cars, XX what with car? sweet you used the year the roughly to percentage spot in the at vehicle million look kind the pretty of are three five

Ernest Garcia

I auction I want not caveat about my are don't of you with cars know there, that of would less this I and sales certain car guess and the believe. going believe the so but XX% we that. U.S. than five to proportionate that I exact to in I for old somewhat answer distribution, so year believe I'm is cars through

Operator

Steve comes Our next question go of from ahead. Dyer Craig-Hallum. Please

Steven Dyer

taking question. for Thanks my

receivable guidance? guidance in for would around GPU sort any your that to there assumption or relates in all of incremental the it sale additional was another be there this and As year,

Mark Jenkins

sure. Yes,

hit that. can I So

it we make we part of pool program. QX fixed monetization do finance that I think when ongoing the in endeavor to financing first first announced transaction, to we that provided we an refinancing expected some commentary additional and would our

performance Obviously, transactions. use to of I we'll seen to and ability holds of everyone those we've the think for true We make so have think And and do loan to those we'll a continue them think involved look going we types that lot our that an types platform, continue forward. I of with think still quality today. of the transactions to sense

Steven Dyer

GPU that what general your play what improvement per transactions thinking to this year, or so may these is $XXX I that? in as guess Given unit role

Mark Jenkins

to of past we transaction think transition better guidance financing, additional I particularly two specific from plan finance that forward -- GPU. so gross sense far, available we've efficient when look don't said, fixed is we're like pool flow will you looking way line a Sure, we financing economics on less and on impact the break have GPU which give of fixed these funds, a years, total do those to time positive do so consistent pool But the which over of to down you items. cost our terms refinancing of with done effective I realize did is continued And is at efficient. GPU We which in financings more to profit.

Steven Dyer

there presumably so is Okay, in this something year. it for

of Just up a inventory you're you line question in me almost little equity that sequentially, that? your I help on you mean inventory, your taking was using about like around a I noticed or more as think Plan now, bit your Floor Is Plan was XX% a sort debt XX% sequentially. hit are revolver Floor vehicles

Ernest Garcia

and growth so Sure, the then first hit inventory the talk lines. let me Plan Floor

seasonality the of of inventory no different. advance QX positive year in year. we preparation started first building of the demand in the next first So was grow typically inventory the in This XXXX. for in half half We

as would upon to draw As management on perspective, have to much Floor minimize sense using line availability past. available line, think We Plan expect expense. strategy, it financial than an more forward Floor is the as relates we that's to it management when Floor maintain interest us the to line the inventory our expense interest possible looking but the assets from to, a Plan we Plan we line marked to available in as to makes like that keep from

Steven Dyer

CAC of more national, a by those me, when And it expenses Okay. more I or corporate or lot just advertising, one was how kind Thanks. guess allocate per because so specifically just then as difficult are national of from impression it metric costs are the really many them the to give cohort always was of relates I of do you to cohort that level? any profitability

Ernest Garcia

all advertising the national And straightforward. obviously is our so Sure. are very the in half of order channels main is Yes, That's then that allocating, We've is order about and so local of terms half of on channel. national because before. our the local. talked of TV on

way For we on national cohort. a based population within allocate is the cable,

spend so population. our their national And TV the we out based take cohorts of allocated on

Operator

that please yourself question time, and In the one of ask you we limit interest one to follow-up.

come ahead. question Morgan Sinkevicius go next of will from Our Stanley. Please Armintas

Armintas Sinkevicius

have would either raise further you anticipation free you thank question. at ahead, do free debt point but burn quarter think in flow I your know burn for this presumably the look there? you to what's the of about you $XXX the the million for thought Great, and how taking financing? flow cash cash When process and or availability, plus I need some at equity quarters

Ernest Garcia

Sure.

or equity we debt other standard financing which raise the So, past our we've based over don't accessed few than plan many asset to times years.

think inventory the drawn our a was this key that have is and with question, Plan we Floor haven't points respect there, couple financeable earlier as availability with mentioning, on at Floor fully I one, obviously of there. line time our Plan line to but I

case large well real is assets financing as financed. of point which estate in historically make as Those we've of The of would leases of or our that with finance other the of use a I very we hard about sort second assets, key hauler financing CAPEX haulers. some equipment types assets include portion sale or leaseback cash is

And of sale commitments. some place basis. of on endeavor we had $XXX $XX well on do estate our unpledged go-forward master balance We had as a leaseback QX in million a smaller real end million agreement so we as sheet. sale leaseback other that approximately At sitting the

good so And inventory you're on think to feel working balance our Plan for historical we the I our capital when combination looking Floor our about think the at sheet, liquidity then and I for capital hard access assets position. line of

Armintas Sinkevicius

taking question. the Okay, for you thank

Ernest Garcia

you. Thank

Operator

Rick come go will Nelson question from of next Please Stephens. Our ahead.

Rick Nelson

question well. as my taking for Thanks

on is person the coming shareholder first a confident these in basis, tax extent time that you impact January in how quarter refunds. the about there and letter some as mentioned So, the business? data opposed on lower you every of in the delay the that refunds how in suggesting so XXXX, per comment are delays To a might are

Ernest Garcia

Sure.

this tax on going So lot there's think I a season. probably

probably there's would think there specifics I more the time uncertainty of all at today normally than be the year. about this

through So let me that. walk to try

their as tax primarily the tax And lower have have and think probably will they seems essentially that's understanding get income a result on to people that change best ability kind they of is it XXXX lower. will withholdings be research their I increase refunds. easily. be to the some that driven aggregate refund change, who like seen And higher and that filers change, of therefore the overall more law our by we dollars withholdings the law going recent based

that credit. then something ultimate As the credit. are tax part of was correlate law dollars look the those kind well at Historically, to you there of of tax in the best tax are laws and tax the increase the changes released as the called kind child that credit an though, kind purchase child tax and credits income of relationship of tax have tax that vehicles, if earned

number of today be higher. and potentially those Our belief based on banks even and is we've will a research that similar from that seen

that with low most are probably think certainty. of be higher. will will kind be refunds highly that taxing We probably overall that think refunds we So with correlated lower the the response the

We certainty. there delayed low see then we it are total also happening government been what when feel puts the undoubtedly and so out to can year-over-year kind like degree, drops And we is data that like. dollars some can relatively with of the watch look

drop it's somewhat bit. was There sizable lease today. been delayed undoubtedly actually So a

season think similar tax more than year. usually confidence exactly learning delayed think our I high going with to So guess we even in would delayed, with kind be much and seasonally better know, how there to this to be maybe we're don't refund be But low of but probably there's confidence overall. it's bit I it's still a uncertainty little is going it's

Rick Nelson

buyer this you affects the kind more buyer? do than so think of the prime And subprime

Ernest Garcia

I the that kind tax which average and incomes. tax credit think child historically on the associated lower first tax car correlated income have refunds of are the most with are purchases earned quarter with credit,

to of income higher So I more lower income immediate the response tax terms in the impact it than the population does refund. population think probably

Operator

from Please Citi. go of comes question Jones next ahead. Our Nick

Nicholas Jones

going dive taking a or I back IRCs, can deeper a question. days days focus shifts the kind want shift for you in a five on a of upside your there third of footprint to is it seven what be my is a to so work, thanks possible Hi, asking little like shift and week to XXX,XXX XX% is add capacity? I'm at I guess even a kind what two week on to unit day,

Ernest Garcia

way three. have even include think include per running week. in an Those could do based shifts two we that line on and you plans immediate any The and shifts five seven. for We days We're those given that over five can is production, on six plans, table is on given it within days so days that line, we option also immediate believe do per our or but And to or opportunity that transitioning time week planning beyond Sure. that day But we're weekend the is five the shifts is and today infrastructure think we're per two to in per and building, there point mentioned, any then as from aren't today. that shifts two expand which half future to the per don't focused I some week. great. at expanding

Nicholas Jones

quick year? Monday the Cyber Black how Friday, One did follow-up, weekend Okay. this go

Ernest Garcia

didn't as It than say it would bit fine. and XXXX XXXX as better XXXX. well and went a little went I go it

basically was largest guided XXXX XXXX. XXXX go better nearly well to and basically was XXXX. as the as guidance bit of little was range, probably or we range a of And it driver it somewhere between for not and but kind play the than uncertainty XXXX would when guidance think our think XXXX for went I there out. QX, how that I promotion exactly the And around

driver it much of kind We reason major promotion sales effort So the of a think that real-time it went thoughts a than building online because as our it buying. more with promotion we running like I I fine. any and don't think think associates about that of have about us changed. brand is

And so we think valuable. that's

this will fine it at sales shorter length it great. we kind it was the and think to so wasn't evaluate through length how And of year, I many drove that long continue but

Operator

Our from next Baird. Please of comes Robert Sebastian W. question Colin ahead. go

Unidentified Analyst

Hi, it's Colin. Ben on for

the on as bias XXXX questions, those? leverage imply your advertising market offset across is versus or two GPU you relates guys unit does to your growth some older a given investments And first, logistics have are the seeing cohorts, of contribution Just how it basis versus profitable kind then there are the that you're guide, toward the cohorts other? secondly, a improvement, prioritizing one that

Ernest Garcia

I then Sure. experiences in I then customer reduce our SG&A. priorities growth GPU are to drive deliver mean would and general, and to think and unit I say,

in think general, it. I think we that's So how about

probably our fair expenses of the kind it's transaction a and business think to way somewhat about are I across to complete markets. think a similar

about level, about been the significant. when we the and and compare you question look has us rest Atlanta that the at confident reasonable that at how always where okay, to But then our that markets there is, not example fair very where company how allocating older the because is very economics if CAC and feeling expenses say down for profitable and question have is nationwide, it's are profitable. And allocations gets the about So answer are you're the of probably improves our profitability going. Atlanta much country obviously we're very, with to then many

Unidentified Analyst

Thanks.

Operator

Wedbush Basham question next Seth Please ahead. Our go comes Securities. from of

Seth Basham

give expected you you your question highly the but to are can on drove as a What units, more margin little relative as trying low Friday and those Thanks first color a a your seems bit investments, bridge lot understand evening. My It miss please results quarter, quite etc? good wasn't is little else in relatively to to good Black around the EBITDA expectations. expectations, relative like better incremental the to discounted. your

Mark Jenkins

Sure. Yes.

relative primary expectations lower the was associated the and margin revenue So the EBITDA lower units those with that also lower was to our driver of units.

additionally previous that our on calls, we've some team ones incremental about and investing similar well to in technology at network. talked made we as our as logistics here home addition, office the investments In includes

Seth Basham

you XXXX? rate investments Got a growth expect relative about forward, do in and think when it, you rate XXXX much that to slower of going

Mark Jenkins

investments guidance. XXXX into expectations Sure, future so incorporated our our all of are of about all

very think about that I excited the think I we've overall we're shown. leverage

basis points to, by Ernie expense that relative A to alluded XXXX. I year-over-year. accelerated we EBITDA of in portion significant made which think margin XXXX, of actually XXX driven improvement was leverage year-over-year

XXXX, I operating we expect gains we gains forward look think further further as leverage profitability. also but to GPU obviously march we towards as

Operator

of FBR. next question Please Our go Sameet B. comes ahead. Riley, from Sinha

Sameet Sinha

much. you Yes, very thank

density higher. previously that is your increasing and going of will capital be of it be about So your It network increasing part density, to be it is like efficiency it's part look Ernie, you seems spoken this year is sometimes about at you've as expansion to going expansion.

to of, Now start we you'll kind have would say about to think accordingly? kind need do part you one and you year, the expectations That's if more that next you look to question. our of year probably just next expansion are adjusted of just

by Secondly, XX,XXX. profit about a XX,XXX about I'm the your looking gross units year-over-year, basis by question business, if retail year-over-year on increased is, on just

X,XXX that's that So Monday, down to anything about composition more XX%, you is Cyber incremental say, unit down the but gross profit there like maybe maybe point a can it or anything was let's to? is little in specific that's year-over-year,

Ernest Garcia

Okay.

first question. start let's with the So,

the basically year to going going that I be on be more are or capital efficient. right, the logistics of many open that are to little of to of network So top you're added still a bit we're the going we think existing most markets markets which this will open

out CAPEX have I to company. a looking at think year. required opening will don't per But I the we're that pretty a I super kind open we market the low, Now know that's markets is and general this in so material think we do of CAPEX lower directionally when that difference zooming that

But go bit I to there. covering getting expansive in our Pacific the Northwest is us North pretty is we us for kind it and add more room of still don't network now There's to of most think country. little up forward, of a go middle up some lot looking room farther the to a have country. logistics and the the to for

bit that I markets think probably are So a be in will even after of in are probably But happen. kind CAPEX. more think will going necessarily change, to noticeable I heavier but is know markets that opening that be that these I directionally don't do little a XX XXXX we if

we system all allows density I us think more that these penetration can up build their conversion which sales allows then carry to the build sales into up time sales. times. centers inspections us increases to of ramp basically market drives build to inventory, Driving most or just that markets having of shipping over more requires important and inspection kind up is us and more also up then decreases to that the continue centers driving

way board up for we those we're in building the next the opening there reiterate network, years in most terms just think repeatable that so the terms good over playbook in across the in several the logistics and way we things important the up feel markets, out terms we look that feedback the as that. we're of of We to the really a opening that And way feel we IRCs. positive are I about model have the of are

those to well. We are constantly and all difficult as different obviously in improving scalable it's dimensions, very highly replicate

feeling second mind you apologize do you to restating totally that. then are and we get about trying I I all what are question not really So And good that? I'm but sure at, the followed

Sameet Sinha

replace maybe take what will know I you will offline, Actually another sure. just question. I that Yeah, just with it

usually Now is not you promotions, and can that, helpful? competitors have experience have to whether it not talk had with your going of because middling do would that that something two about that you have of most or quarters Monday are if you be of kind Cyber evaluate to so such

Ernest Garcia

it Sure, so a start level. high really let's

So right. at to company, level promotional high think super a want we generally don't a I be

of I been has think long over a that very period beaten retail time. not a the price lot of bad pretty notion something of that up is

participate price. maintain we want of the want don't that, to we integrity so to And in

for benefits other online with because costs super be the always promotion. been important of and way not a it's retailers running Monday that our that that of think has we think so Cyber the to us story promotional. telling exception to we outweigh associated single And being an

and a how time. thought that's we measure we we thought over as longer something We so And effort. it of It's more about something real that about period it. in measure will brand a building time

learning consistently how we do think absolutely are these right. promotions, I to about

six a year of one Given these event now several of experience a of day are and and running we XX we do order the on company promotions. now promotions we're the year that old have days

kind efficient to get learn And that very at so of we're continuing quickly. and more

are less don't yet. important a long-term trying think answers to And I promotions always makes we're as the We're mean think we're well to quite or advantage position options have open through known brands known going not take keep will of and sense it does to better lens does that in this because whether a keep many a or become about their those mean our promotions. there. I large the of evaluating think we we better that very know we questions brand own promotions

terms run in not. it's again. and again evaluating than longer-term stone expectations year, to I will for in we promotion more lens want just that the keep through decisions wouldn't your think We next of make likely to a the And So should likely put can. but we be best we're what

be promotion mind not which any scale are worse goes given the to decision. in year, better that's a just our or making XX% at is not going that We -- that changed we're by not

Operator

go ahead. Please Consumer will Research. last from Edge The come Derek Glynn question of

Derek Glynn

question. taking my Thanks for

at vehicles the of your how point grow you own think acquired would from As to auctions, that you opportunity number it sense long-term? do operate some customers, about onsite wholesale make

Ernest Garcia

in as I and of So we're think of also got do as so clear really front front and a of opportunities of building in a to lot opportunities to all while of stay can trying us focused we we've advantage huge lot us. taking of the

in opportunity complexity the to particular I immediate think of unlikely just is exciting be us that given future, an the opportunity for anytime operational it.

auctioning will like work instant on data their intensive can clear wholesale down believe also be slow feel we we suggested of time. buying very, think that are I them. more which we've But to complexity of less are auctions fast on not lot over and are continue much time. out of that us got that XX% plan partners now through and on immediate that's not those a that and very order Mannheim I operational kind there's suggested that it's with the opportunities think may more think much the great and we scalable to has to online want there I horizon and the over be of about I grow relationships data again there we buyers our with taking

So of we that's where today. kind are

Derek Glynn

then XXXX growth had in sense. makes just to looking growth used And look you back as single-digit should lastly, we or retail you that sustainable in it, is Got pricing, do that out XXXX to decelerate? think mid expect we rate

Ernest Garcia

-- think model think unit-driven dollar-driven. being about I I of to first it's think best instead of the as all, probably

products at our in we're a We a market wholesale are them buying market. and retail selling

really price. And so what matters more so the spread is than

are and what through then material. like probably to income are to GPU There may impact some And I it's don't flows that super think that as think of think price about so impacts, statement. opposed an best units and up I going but our they kind have

of changes also transaction retail or price progress think they on we that. of mix subtle if saw I XXXX, don't will balance drove of of kind clear and at think looking I lower to drove more time some crystal both in the progress in And that Depending vehicle had more out we think average ARPU throughout other selling time yet. cars you're some up. to parts ARPU, play is expensive how able cost over we and be I then over the that make expect cars

going I we're to we we trying scale biggest to So our should that think customers think try that possibly just they in we're of be on. that and keep going and focused love to at do that's order to what first we can the put cars front

Operator

The session. conference question-and-answer our concluded. has concludes also you attending This for our presentation. now Thank

now may disconnect. You

Carvana (CVNA) 27 Feb 192018 Q4 Earnings call transcript