Core Viewpoint - CarGurus, Inc. will announce its financial results for the quarter ended March 31, 2025, on May 8, 2025, after market close [1] Group 1: Financial Results Announcement - The financial results will be reported in a press release [1] - A conference call and live webcast will be held at 5:00 p.m. Eastern Time on May 8, 2025, for investors and analysts [2] - An audio replay of the call will be available from 8:00 p.m. Eastern Time on May 8, 2025, until 11:59 p.m. Eastern Time on May 22, 2025 [3] Group 2: Company Overview - CarGurus is a leading online automotive platform for buying and selling vehicles, utilizing proprietary technology and data analytics [4] - The company operates in the U.S., Canada, and the U.K., and also manages independent online marketplaces like Autolist and PistonHeads [5]

Company Overview - CarGurus (CARG) shares increased by 11% to close at $27.95, following a notable trading volume that exceeded typical levels, despite a 20.8% loss over the past four weeks [1] - The stock's surge is attributed to a broader market rebound after the Trump administration announced a temporary halt on reciprocal tariffs, alleviating fears of a recession [2] Earnings Expectations - CarGurus is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year increase of 31.3%, with revenues projected at $226.95 million, up 5.2% from the previous year [3] - The consensus EPS estimate for CarGurus has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - CarGurus is part of the Zacks Automotive - Replacement Parts industry, where another company, Mister Car Wash (MCW), saw a 9.3% increase in its stock price, closing at $7.49, despite a -13% return over the past month [4] - Mister Car Wash's consensus EPS estimate has changed by -0.4% to $0.10, representing a 25% increase from the previous year [5]

Core Insights - The first quarter of 2025 has been significantly influenced by tariff news, leading to a shift in consumer urgency and an uptick in new car sales [2] - New car pricing remains a critical challenge, with vehicles priced under $30,000 making up only 13% of inventory, a decrease from 37% in Q1 2020, and average list prices expected to rise by over $3,300 to approximately $52,800 due to tariffs [2] - The used car market offers more options but presents trade-offs in terms of vehicle age and mileage, with the share of used sales under $20,000 dropping from 64% in Q1 2020 to 43% in Q1 2025 [3] Market Trends - Tariffs have triggered a late-month surge in new car retail sales, which increased by nearly 30% month-over-month following tariff announcements [3] - Imported models, particularly compacts and fuel-efficient options priced under $40,000, are in low supply, with popular models like Toyota's RAV4 and Honda's Civic facing inventory challenges [3] - The used electric vehicle (EV) market is growing, with average prices stabilizing around $36,000, and used EVs priced under $25,000 showing strong demand [3] Consumer Guidance - Shoppers are encouraged to utilize platforms like CarGurus for price tracking and inventory comparison to stay informed on market trends [3][4] - Pre-qualification for financing is recommended to enhance buying power and streamline the purchasing process [3] - Expanding the search radius for specific models can help consumers find better prices, as local demand can significantly impact car values [4]

Core Insights - CarGurus has launched a national brand campaign titled "Big Deal" to emphasize the significance of car shopping and the role of its digital tools in helping consumers find the best deals [1][2][3] Company Overview - CarGurus, Inc. (NASDAQ:CARG) is recognized as the fastest-growing automotive shopping site in Canada and operates online marketplaces in the U.K., Canada, and the U.S. [6][9] - The platform provides comprehensive vehicle history, unbiased deal ratings, and various tools to facilitate confident decision-making for buyers and sellers [2][6] Campaign Details - The "Big Deal" campaign aims to reflect the emotional weight of buying or selling a car, acknowledging it as a significant life decision [3] - The campaign will be promoted across TV networks, connected TV providers, and supplemented with digital and social media executions throughout the year [3] Tools and Features - CarGurus offers features such as an easy-to-use app, price drop alerts, and online financing options to enhance the car buying experience [2] - The platform also assists sellers with car pricing tools and the ability to receive instant offers for selling their vehicles online [2]

Core Insights - CarGurus has launched a national brand campaign titled "Big Deal" to emphasize the significance of car shopping and the role of its digital tools in helping consumers find the best deals [1][2][3] Company Overview - CarGurus, Inc. is the fastest-growing automotive shopping site in Canada, providing a platform for buying and selling vehicles with a focus on trust and transparency [6][7] - The company connects buyers to the best deals by offering complete vehicle history, unbiased deal ratings, and various digital tools to facilitate confident decision-making [2][6] Campaign Details - The "Big Deal" campaign aims to reflect the emotional weight of purchasing or selling a car, acknowledging it as a significant life decision [3] - The campaign will be promoted across TV networks, connected TV providers, and supplemented with digital and social media executions throughout the year [3] Tools and Features - CarGurus provides an easy-to-use app, price drop alerts, and online financing options to enhance the car buying experience [2] - The platform also offers car pricing tools for sellers and the ability to receive instant offers for selling vehicles online [2]

Group 1 - The Q4 earnings season has seen momentum stocks suffer significant declines even with minor earnings misses [1] - CarGurus, the largest online marketplace for used cars, experienced a substantial rebound rally prior to recent earnings reports [1] Group 2 - Gary Alexander has extensive experience in technology sectors, contributing insights that shape industry trends [1]

Company Overview - CarGurus, Inc. (CARG) is a global online automotive platform that connects buyers and sellers in the automotive market [1] Industry Position - CarGurus is recognized as the industry-leading listing marketplace, offering both digital retail solutions and the CarOffer online wholesale platform [1]

Q4 2024 Earnings Presentation February 20, 2025 Cautionary Note Regarding Forward-Looking Statements This presentation includes forward-looking statements. Other than statements of historical facts, all statements contained in this presentation, including statements regarding our transformation to a transaction-enabled platform; industry trends; our market and brand awareness; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and ef ...

Financial Data and Key Metrics Changes - Full year marketplace revenue increased by 14% year-over-year, with revenue growth accelerating throughout the year [8] - Annual consolidated adjusted EBITDA grew by 26% year-over-year, reaching $51 million, with margins expanding over 600 basis points to nearly 28% [11] - Fourth quarter consolidated revenue was $229 million, up 2% year-over-year, driven by a 15% increase in marketplace revenue to $210 million [38][39] - Non-GAAP consolidated gross profit for Q4 was $199 million, up approximately 14% year-over-year, with a gross margin of 87% [42] Business Line Data and Key Metrics Changes - Marketplace business reported an annual consolidated adjusted EBITDA of $266 million, up 35% year-over-year [11] - Digital Wholesale segment ended the year with an $18 million adjusted EBITDA loss, reflecting declines in transaction volume [12] - Subscription-based listings revenue grew by $25 million year-over-year, reflecting new and existing dealers subscribing at Marketplace [38] Market Data and Key Metrics Changes - International business revenue increased by 23% year-over-year, with significant operating profit expansion [9] - Global accounts grew to 32,010 dealers, up 326 dealers sequentially, indicating market share growth [39] - OEM advertising business returned to double-digit year-over-year expansion, reflecting the replenishment of new car supply [10] Company Strategy and Development Direction - The company plans to continue investing in product innovations and enhancing the value proposition for dealers [13] - Focus on integrating offerings into dealers' daily workflows to strengthen market leadership [13] - Emphasis on rebuilding and integrating the Digital Wholesale segment, with a focus on improving operations and refining product market fit [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to replicate domestic success in international markets [9] - The company anticipates continued growth in the Marketplace segment, with guidance for Q1 2025 revenue growth between 12% and 14% year-over-year [49][78] - Management noted that dealers are currently in a wait-and-see mode regarding potential tariffs, focusing on normal operations [102] Other Important Information - The company ended Q4 with $304 million in cash and cash equivalents, an increase of $57 million from the previous quarter [47] - A $200 million share repurchase program was announced, effective January 2025 [48] Q&A Session Summary Question: Insights on Digital Deal and financing functionality - Management highlighted the pilot program for direct credit applications, which integrates with dealer financing systems to enhance consumer experience and lead conversion [58][59] Question: Impact of tariffs on the business - Management indicated that while tariffs could affect new car affordability, the immediate focus remains on operational performance and dealer engagement [62][63] Question: Drivers behind dealer additions and Marketplace revenue growth - Management attributed strong dealer additions to the company's reputation for delivering ROI and providing unique insights that enhance dealer profitability [70][72] Question: Consolidation of dealer spending towards high-yielding marketplaces - Management noted ongoing consolidation among dealers, with a trend towards focusing on fewer, high-yield partners [84][87] Question: Status of CarOffer platform turnaround - Management described the turnaround as being in early innings, with ongoing improvements in operations and product market fit [105][113] Question: Trends in OEM advertising and future expectations - Management expressed optimism about the OEM advertising business, citing strong audience growth and improved targeting capabilities [120][121] Question: Marketing strategy and channel preferences - Management indicated a shift towards online video and television marketing, moving away from traditional performance marketing [127][129] Question: Role of AI in enhancing customer experience - Management sees significant opportunities in AI applications to improve existing products and create new ones, enhancing dealer workflows [135]

Core Viewpoint - CarGurus reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, and showing an increase from $0.35 per share a year ago, indicating a 10% earnings surprise [1][2] Financial Performance - The company posted revenues of $228.54 million for the quarter ended December 2024, which was 0.79% below the Zacks Consensus Estimate, but an increase from $223.12 million year-over-year [2] - Over the last four quarters, CarGurus has surpassed consensus EPS estimates four times and topped revenue estimates twice [2] Stock Performance - CarGurus shares have increased approximately 4.4% since the beginning of the year, compared to a 4.5% gain in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.43 on revenues of $235.22 million, and for the current fiscal year, it is $1.90 on revenues of $977.58 million [7] - The trend of estimate revisions for CarGurus is mixed, which could change following the recent earnings report [6] Industry Context - The Automotive - Replacement Parts industry, to which CarGurus belongs, is currently ranked in the top 36% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]