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  "documentTitle": "Carvana Co. (CVNA)",
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  "authorName": "Kerrisdale Capital",
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  "presentationDate": "2024-02-26 00:00:00",
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  "notes": "The chart shows an adjustment to Carvana's GAAP retail GPU to align with CarMax's reporting standards, showing convergence.",
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      "text": "If one adjusts Carvana's ~$2,900 non-GAAP retail GPU reported in 2H23 to account for these definitional differences, we estimate the comparable metric would be ~$2,300, remarkably similar to CarMax, as shown below.",
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      "kind": "chart",
      "text": "Carvana Retail GPU (GAAP) versus CarMax (1)",
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      "text": "Retail GPU: $2,300",
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      "text": "After two years focused on improving efficiency, there are signs that gains in retail per unit economics – a key driver of overall profitability – are slowing.",
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      "kind": "paragraph",
      "text": "In addition, though it failed to garner any mention on the analyst call, the 4Q23 shareholder letter included an interesting section (p.7) comparing definitional differences in Carvana's reported retail GPU versus industry peers.",
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      "text": "1. Adj. CVNA Retail GPU (GAAP) is Carvana's reported GAAP retail GPU adjusted for Kerrisdale estimated differences in accounting for outbound logistics and limited warranty expense as detailed in the company's 4Q23 shareholder letter.",
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      "kind": "source-note",
      "text": "Source: Carvana quarterly shareholder letters, CarMax SEC earnings press releases, Kerrisdale Analysis.",
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      "kind": "title",
      "text": "Retail GPU Improvements Are Running out of Steam",
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