Carvana Co.

And welcome to the Carvana fourth quarter 2023 earnings conference call. All participants will be in a listen-only mode, and should you need any assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. And if you would like to withdraw your question, please press star, then two. Please also note that this event is being recorded today. I would now like to turn the conference over to Meg Kehan with Investor Relations. Please go ahead.

Thanks, Joe. Good afternoon, ladies and gentlemen, and thank you for joining us on Carvana's fourth quarter and full year 2023 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 fourth quarter shareholder letter is also posted on the IR website. Additionally, we post a set of supplemental financial tables for Q4, which can be found on the events and presentations page of our 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 discussions contain 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 Factors section of Carvana's most recent Form 10-K. The forward-looking statements and risks in this conference call are based upon current expectations as of today, and Carvana assumes no obligation to update or revise them, whether as a result of new developments or otherwise. Our commentary today will include non-GAAP financial metrics. Unless otherwise specified, all references to GPU and SG&A will be to the non-GAAP metrics and all references to EBITDA will be to adjusted EBITDA. 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 website. And with that said, I'd like to turn the call over to Ernie Garcia. Ernie?

Thanks, Meg, and thanks everyone for joining the call. 2023 was an exceptional year for Carvana. It was our best year from a financial perspective by a long way. Full year, GPU was nearly $1,000 better than our previous best in 2021. Our full year adjusted EBITDA per unit was over $900 higher than our previous best, and we have clear visibility to further improvements, as you can see in our outlook. The last two years have been initially characterized as negative for Carvana. In early 2022, we took a quick trip from a company that was perceived to be able to do little wrong to one that was perceived to be able to do little right. That wasn't a fun transition for anyone. In each of our letters since we went public in 2017, we have signed off with, the march continues. The reason is because we believe this statement is a simple reduction of a massively important and generally underappreciated principle. Getting up again and again and relentlessly pushing forward is part of every success story. But that tenacity is easy to claim and hard to achieve. It's hard because the moments when you have to get back up again feel very different in the moment than when they are imagined. They feel different for every stakeholder, and most importantly, they feel different for every member of the team. I will never know exactly what we did right to attract the team that we have, but that combination of things, which undoubtedly includes elements of luck, is almost certainly the most important thing we have ever done as a company. It's very hard for a group to go through a period like the last two years and not disintegrate under the pressure. We didn't disintegrate. We fought, we came together, and we got better. The fact that we got better creates room for the last two years to be re-characterized in the future. Time will ultimately pass judgment on the impact of the last two years on the Carvana story. But my personal take is that it has been our proudest period, and that when the story is written, this period and our team's response will be viewed very favorably. To the Carvana team, there is nothing we can say in words that will convey the gratitude we have for the fight you've always put up. But I hope you know it's real. Thank you. While the success of 23 deserves a moment of reflection, the truth is we still have a lot of marching to do. Our goals are big. From here, the key questions are this. Where are we, where are we going, and how are we going to get there? First, where are we? Today Carvana sits in the strongest position we have ever been in for five reasons. I would ask that you come back to this and evaluate each element for yourself. Number one, our customers love the experiences we deliver and as we execute these experiences are getting even better. Number two, the financial power of our business model is becoming clearer every quarter and is highly differentiated. Across every line item of our income statement there remain many significant opportunities for additional improvement. We plan to get them. Number three, Our infrastructure is simply unmatched. We have built a vertically integrated machine with 6,500 acres of land and over 500,000 parking spots that scalably and cost-effectively gets cars from one customer to another more efficiently than any other machine that serves the same purpose. Number four, competitively, we have never had more separation. As we continue to execute, that gap is getting bigger. And number five, we compete in a trillion-dollar market, and we currently have approximately 1% market share. The potential is obvious. So where are we going? From the early days of Carvana, we have never flinched in our goals. They have been and remain to become the largest and most profitable automotive retailer and to buy and sell millions of cars per year. And finally, how are we going to get there? We're going to continue to march. We are still an ambitious group with big dreams and hustle, We will keep sprinting at our goals to drive as much positive change as we can as quickly as possible as we always have. We are also a group that is constantly learning. Every stage in Carvana's journey teaches us new lessons and adds to our toolkit. As long as that is true, and as long as we always get back up, our best day is always today. The march continues. Mark.