April 29 (Reuters) – Carvana reported a rise in first-quarter profit on Wednesday, as the online retailer benefited from sustained demand for preowned vehicles.
Shares of the company rose about 10% in aftermarket trade.
Demand for preowned vehicles has remained strong as the average new vehicle price in the U.S. hovers around the $50,000 mark, forcing buyers to hunt for more affordable models.
The company’s adjusted gross profit per unit fell by $58 in the first quarter from a year earlier, as it faced higher reconditioning costs and lower shipping fees.
Carvana said it had implemented a series of changes over the past few months, including better labor training and AI-integrated internal tools to improve workforce allocation.
“So far in Q2, we are beginning to see the impact of these efforts,” Carvana said.
Shares of the retailer, known for its towering vehicle vending machines, have risen 67% over the past 12 months.
The company reported a net income of $405 million for the quarter ended March 31, compared with $373 million a year earlier.
Carvana reported a quarterly profit per share of $1.69 based on 148 million Class A shares.
Quarterly revenue climbed to $6.43 billion from $4.2 billion a year earlier.
(Reporting by Nathan Gomes in Bengaluru; Editing by Sriraj Kalluvila)
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