On February 24, Carvana (CVNA) recorded a growing loss in the fourth quarter. Despite the loss and rising costs of used vehicles likely to have a negative effect on the first quarter of 2022, the online car sales platform saw its shares rise 2.34% before the opening bell of this morning.

Results for the 4th quarter of 2021: increasing loss

Carvana said it posted a loss of $89 million in the fourth quarter, or a loss of $1.02 per share. Forecasters were only expecting a loss of around $0.79 per share. By comparison, for the fourth quarter of 2020, the company recorded a loss of $0.41 per share. Quarterly revenue of $3.75 billion in 2021, however, managed to top estimates. The annual loss for the year was $135 million, or $1.63 per share, based on revenue of $12.81 billion.

CEO Comments: Impact of Omicron

During an earnings call, the company’s CEO, Ernie Garcia, pointed out that the end of the fourth quarter was hit hard by the Omicron variant. “At different times, we’ve had up to 30% of our employees in various operational teams called out simultaneously,” Garcia said.

Used Vehicle Price Increases Bring Tough Times

And while the Omicron surge is easing, Carvana is still heavily constrained due to the pandemic and severe winter storms. “These constraints,” added Garcia, “coupled with the recent rapid appreciation in vehicle prices as well as rapidly rising interest rates, have combined to make this a difficult time.”