Copart (CPRT) Q4 2024 earnings summary

Executive summary

• Q4 FY2024 revenue rose 7.2% year-over-year to $1.1 billion, with full-year revenue up 9.5% to $4.2 billion, driven by strong unit sales, inventory, and share gains in both insurance and non-insurance segments.

• Q4 gross profit fell 0.9% to $454 million and net income dropped 7.3% to $323 million, while full-year gross profit grew 9.8% to $1.9 billion and net income rose 10.1% to $1.4 billion.

• Expansion of service offerings, such as Title Express, and partnerships like Purple Wave, contributed to growth and operational efficiency.

• Non-insurance business, including fleet, rental, finance, and dealer units, experienced robust volume growth, supporting auction liquidity and buyer crossover.

• Copart sold over 4 million units in the last year and expanded operations to over 250 locations in 11 countries.

Financial highlights

• Q4 service revenues grew 7.1% year-over-year; vehicle sales up 7.7%.

• Q4 operating income declined 8.0% to $360 million; full-year operating income up 5.7% to $1.57 billion.

• Q4 interest income rose 49.2% to $43.5 million; full-year interest income more than doubled.

• Global ASPs declined 5% in Q4 and 3% for the year, but U.S. insurance ASPs outperformed the broader used vehicle market.

• Global service revenue grew over 7% in Q4 and 11% for the year, with international service revenue up 14% in Q4 and 22% for the year.

Outlook and guidance

• Continued investment in infrastructure, technology, and strategic partnerships to support long-term growth and scalability.

• Focus remains on growing and diversifying marketplace businesses and maintaining a conservative capital structure.