Regardless of a disappointment on headline earnings, Carvana (NYSE:CVNA) shares surged over 10% greater in Thursday’s prolonged session.

The Arizona-based on-line auto retailer reported widening losses, lower-than-expected gross sales, and an erosion in gross revenue per unit (GPU). Gross revenue per unit fell $1,752 from the prior 12 months quarter to $3,368 resulting from a myriad of impacts that included a $51 affect from a compensation reward to CEO Ernie Garcia III and workers reductions in Could.

“The used automobile business continues to face excessive used automobile costs, rising rates of interest, and different macroeconomic pressures,” a shareholder letter learn. “We consider the components presently impacting used automobile business gross sales are transitory, and sooner or later, the headwinds we have now seen this 12 months will flip into tailwinds.”

Given the optimism, the corporate maintained its full-year outlook that anticipates important discount in debt and bills in addition to the achievement of over $4,000 complete GPU and important optimistic EBITDA in FY 2023.

Shares of the heavily-shorted eCommerce firm rose 10% greater shortly after the print.

Learn extra on the firm’s turnaround technique.