Shares of Carvana (NYSE: CVNA) were surging by almost 25% in after-hours trading on Thursday after the online used-car dealer reported significant progress in its cost-cutting initiatives.

Carvana stock plunged last year, as fears of a bankruptcy torpedoed the stock as sales growth slowed and losses mounted. However, the company pledged to cut costs and streamline the business, and it seems to have done just that.

Revenue in the first quarter fell 25% to $2.61 billion, which edged out estimates of $2.60 billion, but that revenue decline was by design as the company scaled back advertising and other spending and shifted its focus from growth to profitability.

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Source Fool.com