Carvana, the online auto retailer, announced impressive first-quarter sales figures on Wednesday that surpassed expectations and ushered in a profitable quarter. The results come after the company implemented a significant restructuring strategy aimed at prioritizing profitability over growth due to concerns of bankruptcy in 2022.

The company reported record-breaking net income of $49 million for the first quarter, a notable turnaround from the $286 million loss incurred during the same period last year. Carvana also achieved an all-time-high adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $235 million, a considerable improvement from the $24 million loss reported a year earlier.

Carvana's performance beat market estimates, with earnings per share (EPS) of 23 cents, compared to an expected loss of 74 cents. Additionally, the company's revenue surged to $3.06 billion, exceeding the projected $2.67 billion.

Investors reacted positively to Carvana's strong performance, with the company's shares soaring by over 30% during after-hours trading on Wednesday. So far this year, prior to the release of the first-quarter results, Carvana's stock had already soared by approximately 67%. The stock closed on Wednesday up 5% at $87.09 per share.

A joint letter from Carvana CEO and Chairman Ernie Garcia III and Chief Financial Officer Mark Jenkins assured shareholders that the company remains committed to long-term profitable growth. The letter stated, "We are now focused on our long-term phase of driving profitable growth and pursuing our goal of becoming the largest and most profitable auto retailer, buying and selling millions of cars."

Looking ahead to the second quarter, Carvana anticipates a sequential increase in its year-over-year growth rate in retail units, as well as a rise in adjusted EBITDA.

Carvana's success in achieving record sales and profitability during the first quarter underscores the company's belief in its online retail model, which aims to deliver both industry-leading profitability and exceptional customer experiences. Through its strategic restructuring efforts, Carvana has demonstrated its ability to adapt and grow, securing a more stable position in the market following the turbulence experienced in 2022.

As Carvana focuses on sustaining profitable growth, the company appears poised to solidify its standing as a major player in the auto retail industry, while generating robust financial returns for its stakeholders.