I reported the previous post. Didn’t finish it, and the formatting was a mess. Sorry. Try again:
I note this was broached back in 2019. Not much since then that I can find. Carvana is not a SAAS stock at all. What grabbed my attention was the YoY numbers I saw online. For example, revenue:
(USD) Mar-21 Y/Y Dec-20 Y/Y Sep-20 Y/Y Jun-20 Y/Y Revenue 2.24B 104.46% 1.83B 65.50% 1.54B 40.99% 1.12B 13.40% Net income -36M 40% -63.34M 53.98% -7.08M 76.45% -40.83M 100.91% Net profit -1.60% 70.70% -3.47% 6.97% -0.46% 83.27% -3.65% 77.18% margin Operating -59M 57.25% -98.81M 0.98% -6.57M 90.27% -89.73M 110.46% income Net change 86M 218.52% 132.79M 1229.87% -169.96M 357.22% 221.25M 442.18% in cash Cash on hand 370M 410.80% 300.81M 295.72% 173.7M 82.96% 246.3M 512.68% Cost of 1.91B 98.80% 1.58B 64.74% 1.28B 33.98% 968.13M 14.11% revenue
So last year’s June qtr they had YoY growth of 13.4%, then Sept quarter 40.99%, then Dec qtr 65.5%, and then March at 104.46%. That’s moving in the right direction. However, net income growth seems to be going the wrong direction, and is all negative. Net profit is also negative, and YoY is all over place. But they seem to be accumulating cash. I’ll have to dig deeper to see if that is from debt or additional public offerings, or someplace else.
Also, cost of revenue is going up. From what I can tell, that may be in large part due to expansion. It costs money to build/acquire office space, and hire people. And they seem to be expanding a lot.
The reason I post this is that some of the numbers seem to be worthy of Saul-like consideration, and others don’t. Is this perhaps a pre-Saul-numbers stock? That is, are they in the early stages of becoming a Saul-stock, or are they just flailing about? Looking at the Y/Y numbers per quarter (since there may be seasonal effects, so I think it is better to compare to last year’s quarter), they seem to be growing revenue, improving their income, and generating cash. But overall they’re still in the red.
It will also be interesting as this year plays out to see Y/Y numbers since 2020 was definitely an aberration. Not sure a lot of people were car shopping last year.
1poorguy (no position in CVNA; I do know someone who works there, but that wouldn’t get me to buy or even tout their stock, it just made me look)