Carvana Co.

Good afternoon and welcome to the Carvana second quarter 2021 earnings conference call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by the zero. After today's presentation, there'll be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. please limit yourself to one question and one follow-up. Please note that this call is being recorded. I'd now like to turn the conference over to Mike Levin, Vice President of Investor Relations. Please go ahead.

Thanks so much. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's second quarter 2021 earnings conference call. Please note that this call will be simultaneously webcast on the Investor Relations section of the company's corporate website at investors.carvana.com. The second quarter shareholder letter is also posted on the IR website. Joining me on the call today are Ernie Garcia, Chief Executive Officer, and Mark Jenkins, Chief Financial Officer. Before we start, I would like to remind you that the following discussion contains forward-looking statements within the meaning of the federal securities laws, including but not limited to Carvana's market opportunities and future financial results that involve risks and uncertainties that may cause actual results to differ materially from those discussed here. A detailed discussion of the material factors that cause actual results to differ from forward-looking statements can be found in the risk factor section of Carvana's most recent Form 10-K and Form 10-Q. The forward-looking statements and risks in this conference call are based on current expectations as of today, and Carvana assumes no obligation to update or revise them, whether as a result of new developments or otherwise. Unless otherwise noted on today's call, all comparisons are on a year-over-year basis. Our commentary today will include non-GAAP financial measures. Reconciliations between GAAP and non-GAAP metrics for our reported results can be found in our shareholder letter issued today, a copy of which can be found on our investor relations website. And now with that said, I'd like to turn the call over to Ernie Garcia. Ernie?

Thanks, Mike, and thanks, everyone, for joining the call. The second quarter was a landmark quarter for Carvana and one that will always play a central role in our story. It was the first quarter we delivered over 100,000 cars to our customers. It was our first quarter of over $3 billion in revenue. It was the first quarter we achieved $5,000 total GPU. It was the first quarter we hit 100 million EBITDA, and it was our first quarter of positive net earnings. It was also the first quarter we made the Fortune 500 list. And to top it all off, we're now one of the four fastest companies to ever make the list organically, along with Amazon, Google, and Facebook. Those are some pretty great headlines. And they demand that we take a step back for a minute to put it all in context. Five years ago, the year before we went public, we sold 18,000 cars in the full year. We just sold over five times that many in a single quarter. Five years ago, our total GPU was $1,000. This quarter, it was $5,000. Five years ago, we lost 25 cents for every dollar of revenue we made. This quarter, we made money for the first time. That's a lot of progress in a short amount of time. When we evaluate that progress, sometimes we all have a tendency to zoom in too far and miss what really makes it all possible. So I want to try to tell the simplest version of our story that I can. When we started eight and a half years ago, we were a bunch of ambitious kids with a shocking amount to learn. With the benefit of hindsight, it is now clear we had no idea what we were getting into. But we did know a couple things. We knew customer preferences were changing. We knew technology was evolving. We knew the traditional way of buying a car had changed less than it should have. We believed we could do better for our customers. We knew that we were working for them. And we had a plan. We also knew we had a great team. We knew how to get the best out of each other. We knew how to spot people that could make us better. We knew how to have fun. We believed in what we were doing. We knew we could figure out the rest along the way. And we didn't know how to quit. Those were important things to know. That simple knowledge got us to today, and today's a pretty good day. Along the way, we've learned a lot. One of the important lessons is that everything worth doing is hard, so doing worthwhile things means there are often more hard days than easy ones. From here, I hope we don't get complacent. I hope we keep fighting. I hope we take on the hard days and keep doing things worth doing. I hope we keep learning. And I hope that we never let the new lessons crowd out the things that we knew at the beginning. It seems like that might be the classic mistake that people make over time. I hope we avoid it, and I believe that we will. If we do, our future is bright. The things that were true at the beginning are all still true today. Customer preferences will always change, and technology will always evolve. As a result, there will always be opportunity. We're nowhere near realizing the potential that we saw from the beginning, and additional potential reveals itself all the time. We'll keep chasing it, and as long as we keep our eyes open wide enough, we'll never catch it. The march continues. Mark.