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Table of Contents COMPENSATION DISCUSSION AND ANALYSIS This Compensation Discussion and Analysis (“CD&A”) describes our executive compensation objectives and design, our compensation-setting process, our executive compensation program components, and the decisions made in 2018 with respect to our chief executive officer and our four other most highly compensated executive officers for the year ended December 31, 2018, who have been designated as our “named executive officers” under Item 404 of Regulation S-K (“NEOs”): NAMED EXECUTIVE OFFICER POSITION Ernest Garcia III Chief Executive Officer Mark Jenkins Chief Financial Officer Benjamin Huston Chief Operating Officer Ryan Keeton Chief Brand Officer Daniel Gill Chief Product Officer This CD&A may contain statements regarding future individual and company performance targets and goals. These targets and goals should not be understood to be statements of management’s expectations or estimates of results or other guidance. We specifically caution investors not to apply these statements to other contexts. EXECUTIVE SUMMARY COMPANY PERFORMANCE HIGHLIGHTS 2018 was a successful year for Carvana. We had another year of triple-digit growth in unit retails sold and revenue, while making significant progress in our gross profit per unit and EBITDA margin. Our growth has few historical precedents and makes us one of the fastest-growing technology, consumer, or retail companies at our scale. The highlights of our 2018 performance include: * 113% increase in retail units sold, from 44,252 to 94,108; * 128% revenue growth, from $859 million to $1.96 billion; -19- HOUSE_OVERSIGHT_024327