Carvana Co. reported a $38.9 million net loss in the year's second quarter, more than double the loss recorded in the same period a year ago, as revenue escalated 142 percent for the online used-vehicle retailer.
Carvana has experienced growing pains from purchasing rival startup Carlypso and expanding into new cities. The company, which went public in April, says profits are on the horizon. It has operated at a loss since its founding in 2012.
"We are seeing tremendous growth in both our existing and new markets as we continue our rapid expansion nationwide. We also increased our gross profit per unit, both sequentially and as compared to last year," Carvana CEO Ernie Garcia said in a statement. "We are scaling our business to meet the growing demand."