Carvana Co. · NYSE:CVNA
Carvana — William Blair Growth Stock Conference 2019
23 slides from Carvana's conference presentation, Jun 6, 2019
Slide 1: William Blair Growth Stock Conference
William Blair Growth Stock Conference June 6, 2019
Slide 2: Forward-Looking Statements
Long Term FY 2017 YTD 2018 Target Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Carvana’s current expectations and projections with respect to, amon
Slide 3: Our mission is to change the way people buy cars
OUR MISSION IS TO CHANGE THE WAY PEOPLE BUY CARS. 5 5 3
Slide 4: 93% YoY Growth 99% YoY
93% YoY Growth 99% YoY Growth 114% YoY Growth ($M) 110% YoY Growth 4
Slide 5: Large scale reconditioning, national consumer-focused brand, e-commerce platform
NATIONAL CONSUMER FOCUSED BRAND FULLY LARGE SCALE TRANSACTABLE RECONDITIONING E-COMMERCE EXPERIENCE INTERNAL LOGISTICS PROPRIETARY FINANCING NETWORK PLATFORM LEADING FULFILLMENT EXPERIENCE 5
Slide 6: $764B 1.8% 96% 4.7/5.0 1.94% 128% 200K+
$764B 1.8% 96% 4.7/5.0 124 1.94% 7 18 128% 200K+ 6
Slide 7: Customer inputs license plate or VIN and answers a few questions
Customer inputs license plate or VIN and answers a few questions Our artificial intelligence algorithms determine offer for the customer in real-time We pick up the car using our last-mile delivery network Our vehicle data and valuation technology enable strong profit per unit 7
Slide 8: Simple, instant, quality offers
OCARVANA SIMPLE, INSTANT, QUALITY OFFERS EASIEST AND STRESS-FREE WAY TO SELL A CAR AREAL OFFER. WE PICK UP YOUR CAR. GET PAID ON THE SPOT. rv O SELL YOUR THREE STEP PROCESS 1. Enter License Plate or in Input Vehicle Details 3. Answer a few Questions SELLITRADE © Realofferinless than 2 minutes = _MIC
Slide 9: Competitive and quality offers
@CARVANA SIMPLE, INSTANT, QUALITY OFFERS COMPETITIVE & QUALITY OFFERS GET A REAL OFFER * Guaranteed for 7 days or 1,000 miles * No Haggling aad 2014 Nissan Murano LE Sport Utility 4D * No lowballs
Slide 10: Convenient pickup options
OCARVANA SIMPLE, INSTANT, QUALITY OFFERS CONVENIENT PICKUP OPTIONS $10,483 Youset your pickup foratime suse we'll do a quick review and hand convenient for you ..... you a check on the spot! 10
Slide 11: Acquisition Channels and Disposition Channels
Acquisition Channels Disposition Channels Trade-Ins Retail Sales Vehicles acquired from customers Vehicles that meet our retail parameters as part of a retail transaction are reconditioned and sold on the website Sell to Carvana Wholesale Sales Vehicles acquired from customers Vehicles that do not m
Slide 12: Total Vehicles Purchased From Customers
Total Vehicles Purchased From Customers (1) Customer Vehicles Purchased vs. Retail Units (2) 232% YoY Growth 12
Slide 13: Quarterly Wholesale Gross Profit per Wholesale Unit
Quarterly Wholesale Gross Profit Annual Wholesale Gross Profit per Wholesale Unit (ex-Gift)* per Wholesale Unit (ex-Gift)* 13
Slide 14: Retail sourcing, wholesale sales and total GPU
RETAIL SOURCING WHOLESALE SALES TOTAL Used Industry 38 – 52% 55 – 65% ~100%+ Ratio of Vehicles purchased Leader of Retail Units Sourced Ratio of Wholesale Units from customers to from Customers to Retail Units retail units sold Profit per Unit $500 – 1,000 $500 – 1,000 $500 – 1,000 Incremental per c
Slide 15: 2 minutes
2 minutes Customer inputs license plate or VIN and answers a few questions 232% Our artificial intelligence algorithms determine offer for the customer in real-time 4.9 / 5.0 We pick up the car using our last-mile delivery network $456 Our vehicle data and valuation technology enable strong profit p
Slide 16: Appendix
@CARVANA APPENDIX
Slide 17: Gross Profit ex-Gift and Gross Profit per Unit ex-Gift
Long Term FY 2017 YTD 2018 Target 100K Milestone Gift Gross Profit ex-Gift and Gross Profit per Unit ex-Gift 17
Slide 18: EBITDA ex-Gift and EBITDA Margin ex-Gift
Long Term FY 2017 YTD 2018 Target EBITDA ex-Gift and EBITDA Margin ex-Gift 18
Slide 19: EBITDA Margin (ex-Gift)
2014 2015 2016 2017 2018 Q1 2019 ($15,238) ($36,780) ($93,112) ($164,316) ($254,745) ($82,596) ($13,425) ($32,568) ($84,867) ($145,089) ($194,367) ($56,031) EBITDA Margin (ex.-Gift) (32.2%) (25.0%) (23.2%) (16.9%) (9.9%) (7.4%) 19
Slide 20: Non-GAAP Financial Reconciliation
@CARVANA Non-GAAP Financial Reconciliation Three Months Ended March 31, 2019 Gross Profit per Asp __Less: Gift ex Gift _UnitexGift Used vehicle unit sales 36,766 Wholesale vehicle unit sales 6,701 Sales and operating revenues: Used vehicle sales, net s 683,829 $ —s 683,829 ‘Wholesale vehicle sales 3
Slide 21: Non-GAAP Financial Reconciliation
Non-GAAP Financial Reconciliation Three Months Ended December 31, 2018 Gross Profit per ——GAAP___ Less: Gift___Ex-gift__Unitex-Gift__ Used vehicle unit sales 27.750 Wholesale vehicle unit sales 4.717 Sales and operating revenues: Used vehicle sales, net s 526,798 $ —s 526,798 Wholesale vehicle sales
Slide 22: Non-GAAP Financial Reconciliation
@CARVANA Non-GAAP Financial Reconciliation Gross Profit per ex-Gift Unit ex-Gift Used vehicle unit sales Wholesale vehicle unit sales Sales and operating revenues: Used vehicle sales, net $s 486.269 $ —s§$ 486.269 Wholesale vehicle sales 21.440 - 21.440 Other sales and revenues. including $6,696 fro
Slide 23: Non-GAAP Financial Reconciliation
OCARVANA Non-GAAP Financial Reconciliation ‘Year Ended December 31, 2018 Gross Profit per Used vehicle unit sales 94,108 Wholesale vehicle unit sales 15,125 Sales and operating revenues: Used vehicle sales, net S 1,785,045 $ — S$ 1,785,045 Wholesale vehicle sales 73,584 - 73,584 Other sales and reve