Shares of the company, known for its car vending machines, were up 12.9% after the bell.
The outlook comes days after Carvana said it would lay off around 2,500 staff, or 12% of its workforce, as part of its drive to return to profitability after poor quarterly results.
Demand for used cars has declined due to soaring prices and a shortage of supply. Carvana said it did not observe typical seasonal demand during the first quarter of this year.
Carvana, which recorded about $220 million in capital expenditures for the first quarter, plans to trim its budget each quarter until it hits about $50 million in the fourth. It plans to maintain that figure every quarter, so it could post a “significant” positive EBITDA for 2023.
The company also said it would rapidly reduce its selling, general and administrative costs per car sold and maintain a balance between sales volumes and headcount.
Carvana raised $1.25 billion in a stock offering last month, with its shares having since lost more than half their value.