Online used-vehicle retailer Carvana Co., in its first quarterly report as a publicly traded company, reported a sharply wider net loss in the first three months of the year on costs related to expansion.
Carvana, perhaps best known for its vehicle "vending machine" towers in four markets, lost $38.4 million in the quarter ended March 31, compared with a $17.3 million loss a year earlier. Revenue surged 118 percent from a year earlier to $159.1 million.
The company pinned the red ink on its push into several new markets, including openings in Philadelphia and Virginia Beach, Va., during the quarter. Carvana operated in 23 markets at the end of the first quarter, up from 11 a year earlier.
"We continue to see increased consumer adoption of online car buying across our markets, charting a clear path to consistent growth within the $710 billion U.S. used auto market," Carvana CEO Ernie Garcia said in a statement.