Core Insights - The CarGurus 2024 U.S. Consumer Insights Report indicates rising consumer satisfaction and buying power, with more shoppers utilizing online tools for their purchasing decisions [1][6] Group 1: Consumer Trends - Buyer satisfaction has increased, with 79% of car buyers satisfied with their experience, and 35% extremely satisfied, up from 28% in 2023 [3] - Seller satisfaction also rose, with 78% of sellers feeling they received a "good" or "great" deal, an increase from 70% in 2023 [3] - The percentage of buyers making need-based purchases declined from 67% in 2023 to 62% in 2024, while those looking to add a vehicle increased from 27% to 34% [3] Group 2: Online Engagement - A significant shift towards online engagement is noted, with 80% of buyers preferring to handle more steps online, up from 69% in 2023 [4] - 90% of buyers conducted vehicle research online, compared to 81% in 2023, and 87% of sellers were open to selling completely online, an increase from 82% [4] - Despite the preference for online processes, 88% of buyers still preferred to see the car in person before purchase, with 69% wanting to test drive [4] Group 3: Financing Insights - High interest rates have not deterred financing, with only 11% of buyers indicating that rates discouraged them, down from 16% in 2023 [5] - Approximately 53% of buyers financed their purchases, with 37% handling the process online and 34% in-person [5] - A notable increase in dealership financing was observed, with 64% of buyers securing financing at the dealership, compared to 49% in 2023 [5] Group 4: Market Conditions - New car inventory rose by 31% year-over-year, contributing to moderated prices, while average used car prices decreased by 3% [2] - The importance of available inventory in purchase decisions decreased, with only 26% citing it as a top factor, down from 18% in 2023 [2] - Price considerations remained paramount, with 56% of buyers prioritizing price and 30% focusing on financing availability [2]

Core Insights - The defining theme for 2024 is affordability, with a significant increase in demand for used vehicles, particularly Certified Pre-Owned Vehicles, driven by high interest rates and persistent high prices [2] - The new vehicle inventory surged by nearly 31% since the end of 2023, with average prices around $49,000, while the used vehicle market saw a 3% decline in average price to $27,900 [2] - The report highlights the rise of hybrid vehicles, with average prices dropping nearly 10% to $46,600, making them more attractive compared to electric vehicles [3] Market Trends - The used vehicle market is experiencing a shortage of late model year listings due to the semiconductor shortage, with 2021 model inventory down by nearly 22% and 2020 models down by 17% [4] - Demand for larger body styles, especially pickups, remains strong, with models like Chevrolet Silverado 1500 and Ford F-150 being the most viewed in 2024 [5] Future Outlook - Potential impacts of tariffs are a concern, particularly for automakers like Hyundai, Mercedes-Benz, and Kia, which have a high percentage of models made outside North America [6] - The possible end of the New Clean Vehicle Tax Credit could limit EV sales demand in 2025, especially in the used market where one-third of listings are under the $25,000 qualification limit [7] - There is a rising demand for higher-priced models, which may be influenced by potential lower interest rates, expanding buying power for consumers [9]

Core Viewpoint - CarGurus (CARG) shows a promising earnings outlook, with analysts raising their earnings estimates, indicating potential for continued stock momentum [1][2]. Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism about CarGurus' earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, CarGurus is projected to earn $0.49 per share, a 40% increase from the previous year, with a 9.41% rise in the Zacks Consensus Estimate over the last 30 days [4]. - For the full year, the expected earnings are $1.66 per share, representing a year-over-year increase of 34.96%, with a 5.6% increase in the consensus estimate due to three upward revisions [5]. Zacks Rank - CarGurus has achieved a Zacks Rank 2 (Buy), indicating strong potential based on favorable estimate revisions, which historically lead to significant outperformance compared to the S&P 500 [6]. - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown an average annual return of +25% since 2008, highlighting the effectiveness of the Zacks Rank system [3][6]. Stock Performance - CarGurus' stock has increased by 11.1% over the past four weeks due to strong estimate revisions, suggesting further upside potential [7].

Core Viewpoint - CarGurus (NASDAQ: CARG) has a positive growth outlook due to its ability to monetize dealers through new product offerings [1] Group 1: Company Analysis - CarGurus is expected to benefit from its recent product rollouts aimed at enhancing dealer monetization [1] - The company is positioned to capitalize on long-term growth potential by focusing on quality offerings at competitive pricing [1]

Company Overview - CarGurus (CARG) currently holds a Momentum Style Score of B, indicating a positive momentum outlook for the company [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, CarGurus shares have increased by 2.38%, while the Zacks Automotive - Replacement Parts industry has declined by 2.28% [7] - In a longer time frame, CarGurus has seen an 11.81% price increase over the past month, outperforming the industry's 9.92% [7] - Over the last quarter, shares have risen by 23.56%, and over the past year, they have gained 68.89%, compared to the S&P 500's increases of 6.44% and 32.19%, respectively [8] Trading Volume - The average 20-day trading volume for CarGurus is 658,360 shares, which serves as a bullish indicator when combined with rising stock prices [9] Earnings Estimates - In the past two months, 3 earnings estimates for CarGurus have been revised upwards, while 1 has been revised downwards, leading to an increase in the consensus estimate from $1.62 to $1.66 [11] - For the next fiscal year, 4 estimates have moved higher, with 1 downward revision during the same period [11] Conclusion - Considering the positive price trends, trading volume, and upward revisions in earnings estimates, CarGurus is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a potential candidate for near-term investment [12]

Core Viewpoint - CarGurus (CARG) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, influencing their buying or selling decisions [4]. Company Performance Indicators - For the fiscal year ending December 2024, CarGurus is expected to earn $1.66 per share, reflecting a 35% increase from the previous year [8]. - Over the past three months, the Zacks Consensus Estimate for CarGurus has risen by 4.1%, indicating a positive trend in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% receiving a 'Strong Buy' or 'Buy' rating [9][10]. - CarGurus' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Core Insights - CarGurus, Inc. is the leading digital auto platform for shopping, buying, and selling new and used vehicles, with a scheduled participation in a fireside chat at RBC's 2024 Global Technology, Internet, Media and Telecommunications Conference on November 19, 2024 [1] Company Overview - CarGurus operates as a multinational online automotive platform that enhances its industry-leading listings marketplace with digital retail solutions and the CarOffer online wholesale platform [3] - The platform provides consumers with confidence in purchasing and selling vehicles, while enabling dealerships to accurately price, market, acquire, and sell vehicles effectively [3] - CarGurus is recognized as the most visited automotive shopping site in the U.S. and also operates marketplaces in Canada and the U.K. under the CarGurus brand, along with independent brands Autolist and PistonHeads [3]

Financial Data and Key Metrics Changes - Consolidated revenue for Q3 2024 was $231 million, up 5% year-over-year, driven by double-digit growth in the marketplace business [34] - Marketplace revenue reached $204 million, reflecting a 15% year-over-year increase, in line with the high end of guidance [34] - Non-GAAP consolidated adjusted EBITDA grew 33% year-over-year to $64.9 million, with a margin expansion of approximately 590 basis points to 28% [39] Business Line Data and Key Metrics Changes - Marketplace revenue growth was driven by a $25 million increase in subscription-based listings revenue, reflecting net dealer ads and greater adoption of value-added products [35] - Listings revenue grew by 15% year-over-year, supported by net dealer ads and migration to higher subscription tiers [15] - Wholesale revenue decreased by 44% year-over-year to $12 million, attributed to a decline in dealer-to-dealer transaction volume [36] Market Data and Key Metrics Changes - International business revenue grew 23% year-over-year, with dealer count and car seat growth up 4% and 20% respectively [35] - The company expanded its traffic share in Canada, experiencing session growth ahead of competitors [12] Company Strategy and Development Direction - The company is focused on building a transaction-enabled platform that leverages consumer data to provide actionable insights for dealer partners [8] - Continued investment in innovation and product pipeline is emphasized, with a strong commitment to enhancing the consumer experience [9][20] - The company aims to deepen connections with consumers while increasing operational efficiency and wallet share among dealers [8][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength of the marketplace business, expecting continued revenue growth despite tougher comparisons in 2025 [44] - The company is committed to enhancing its platform to better serve both dealer partners and consumers through ongoing product innovation [33] - Management noted that the decision to discontinue CG Buy Online was based on a disciplined capital allocation process and a strategic review of market demand [41][50] Other Important Information - The company ended Q3 2024 with $247 million in cash and cash equivalents, an increase of $31 million from the previous quarter [42] - A $200 million share repurchase program was authorized, effective January 2025, reflecting strong cash flow generation [43] Q&A Session Summary Question: Update on brand investment and CG Buy Online discontinuation - Management indicated plans to increase brand marketing efforts in the new year to enhance consumer awareness and support product improvements [48] - The decision to discontinue CG Buy Online was based on a thorough review of capital allocation and market demand [50] Question: Insights on Car Spend growth and product pipeline - Management expressed confidence in the growth pipeline, noting higher dealer engagement and adoption of value-added products [54] - The product pipeline is robust, focusing on upselling and cross-selling opportunities to enhance dealer workflows [56] Question: International business growth trajectory and OpEx increase - Management highlighted strong growth in international markets, driven by effective pricing strategies and product launches [62] - A one-off sales tax impact in Canada contributed to the increase in OpEx, which is expected to normalize [63] Question: Pricing strategy and consumer health assessment - Pricing is based on lead volume and quality, allowing for increased leverage due to strong ROI for dealers [74] - The consumer market showed strength in Q3, with expectations for continued demand despite typical seasonal trends [75]

Core Insights - CarGurus, Inc. reported better-than-expected third-quarter financial results and provided FY24 guidance with EPS expectations above estimates [1][2] Financial Performance - The company reported quarterly earnings of $0.45 per share, surpassing the analyst consensus estimate of $0.42 [2] - Quarterly sales reached $231.358 million, exceeding the analyst consensus estimate of $223.537 million [2] Management Commentary - CEO Jason Trevisan highlighted the acceleration in Marketplace revenue growth and the company's focus on cost efficiency, which contributed to operating efficiencies [2] - The company aims to enhance its value proposition for dealer partners through actionable insights and tools, driving adoption and retention on its platform [2] Future Guidance - For FY2024, CarGurus expects adjusted EPS in the range of $1.67 to $1.73, compared to estimates of $1.64 [2] - Projected sales for FY2024 are between $885 million and $905 million, slightly above the previous estimate of $883.61 million [2] Stock Performance - Following the earnings announcement, CarGurus shares increased by 4.9%, trading at $35.00 [2] Analyst Ratings and Price Targets - Oppenheimer analyst Jed Kelly maintained an Outperform rating and raised the price target from $32 to $44 [2] - DA Davidson analyst Tom White maintained a Neutral rating and increased the price target from $26.5 to $38.5 [2] - JP Morgan analyst Rajat Gupta maintained an Overweight rating and raised the price target from $36 to $40 [2] - Needham analyst Chris Pierce maintained a Buy rating and increased the price target from $27 to $39 [2] - The consensus price target for CarGurus is $32.7 based on ratings from 16 analysts, with a high of $44 and a low of $15 [3]

Core Viewpoint - CarGurus reported a revenue of $231.36 million for Q3 2024, marking a 5.4% year-over-year increase and exceeding the Zacks Consensus Estimate by 3.75% [1] Financial Performance - Earnings per share (EPS) for the quarter was $0.45, up from $0.34 a year ago, representing a surprise of 7.14% compared to the consensus estimate of $0.42 [1] - Total paying dealers reached 31,684, slightly above the average estimate of 31,542 [3] - U.S. paying dealers numbered 24,561, compared to the estimated 24,534 [3] - International paying dealers totaled 7,123, exceeding the average estimate of 6,946 [3] Revenue Breakdown - Marketplace revenue was reported at $204.02 million, surpassing the estimated $201.52 million, reflecting a 14.7% increase year-over-year [3] - Wholesale revenue was $12.11 million, slightly above the average estimate of $11.86 million, but down 44.3% year-over-year [3] - Product revenue reached $15.23 million, significantly higher than the estimated $9.13 million, but down 23% year-over-year [3] Stock Performance - CarGurus shares have increased by 7.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 3.2% [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [4]