🚨🚨🚨WHAT IN THE WORLD???— Paul Huettner, CFA (@Paul_M_Huettner) November 6, 2019
Other Sales & Revenue have NO COSTS associated with them and have 100% gross margin?!?
A full 12% of Q3 and 11% of YTD gross margin comes from sales to related parties.
Without Other Sales & Revenue gross margin drops from 12.56% to 6.46%!!! $CVNA pic.twitter.com/bklnTjIDCR
This is all driven by commission on loan origination and vehicle service contracts.— Paul Huettner, CFA (@Paul_M_Huettner) November 6, 2019
Looks like $CVNA is really in the business of car loan & shady maintenance contract origination business.
2/— Investor Gator 🐊 (@GatorInvestor) November 7, 2019
The biggest achievement in the quarter: pic.twitter.com/I1jSH0Klxu
3/— Investor Gator 🐊 (@GatorInvestor) November 7, 2019
So nice they picked that metric on the one year anniversary of changing it from the previously disclosed % of cars sold bought from other customers [16% in 3Q’18, unknown now]