Core Insights - CarGurus, Inc. reported a 15% year-over-year growth in Marketplace revenue for Q4 2024, reaching $210.2 million, and a total revenue of $228.5 million, which is a 2% increase from the previous year [2][4] - The company achieved a consolidated GAAP net income of $45.9 million for Q4 2024, with a Non-GAAP Consolidated Adjusted EBITDA of $76.4 million, reflecting a 25% increase year-over-year [2][4] - International revenue grew by 26% year-over-year, and OEM Advertising revenue also saw double-digit growth [2][4] Financial Performance - Q4 2024 Marketplace Revenue: $210.2 million, up 15% YoY; Total Revenue: $228.5 million, up 2% YoY [4] - Q4 2024 GAAP Net Income: $45.9 million; Non-GAAP Adjusted EBITDA: $76.4 million, up 25% YoY [2][4] - Full Year 2024 Total Revenue: $894.4 million, down 2% YoY; Gross Profit: $738.9 million, up 13% YoY [4][21] Operational Highlights - The U.S. Marketplace segment revenue for Q4 2024 was $193.4 million, a 15% increase YoY, while the Digital Wholesale segment revenue dropped by 55% [5][23] - The number of U.S. Paying Dealers remained stable at 24,692, with a 2% increase, while International Paying Dealers grew by 11% to 7,318 [5][23] - The company reported a significant margin expansion, with a gross margin of 87% for Q4 2024, an increase of 1,176 basis points [4][21] Future Guidance - For Q1 2025, CarGurus expects total revenue to be between $216 million and $236 million, with Marketplace revenue projected between $209 million and $214 million [6][7] - Non-GAAP Consolidated Adjusted EBITDA guidance for Q1 2025 is set between $60 million and $68 million, with Non-GAAP EPS expected to range from $0.41 to $0.47 [7][8] Strategic Outlook - The CEO emphasized the company's focus on product innovation and enhancing dealer ROI, which has led to increased engagement and market share [3] - CarGurus aims to leverage data-driven insights and competitive intelligence to strengthen its market leadership in 2025 [3]

Core Insights - CarGurus (CARG) is expected to report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of 42.9% [1] - Revenue is anticipated to be $230.37 million, which is a 3.3% increase from the same quarter last year [1] - The consensus EPS estimate has been revised downward by 4.6% in the past 30 days, indicating a reassessment by analysts [1][2] Revenue Estimates - 'Revenue- Marketplace' is projected to be $211.01 million, representing a year-over-year increase of 15.8% [4] - 'Revenue- Wholesale' is expected to be $10.45 million, indicating a significant decline of 52.5% from the prior-year quarter [4] - 'Revenue- Product' is estimated at $9.12 million, reflecting a decrease of 51.5% from the year-ago quarter [4] Dealer Metrics - Total 'Paying Dealers' is forecasted to reach 31,934, up from 30,935 in the same quarter last year [5] - 'Paying Dealers - U.S' is estimated at 24,678, compared to 24,318 reported in the same quarter last year [5] - 'Paying Dealers - International' is projected to be 7,222, an increase from 6,617 in the previous year [5] Stock Performance - CarGurus shares have shown a return of +5.2% over the past month, outperforming the Zacks S&P 500 composite's +4.7% change [6] - The company holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the overall market in the near future [6]

Core Insights - CarGurus (CARG) is positioned to potentially continue its earnings-beat streak, having a history of exceeding earnings estimates, particularly in the last two quarters with an average surprise of 13.87% [1][3] Earnings Performance - In the last reported quarter, CarGurus achieved earnings of $0.45 per share, surpassing the Zacks Consensus Estimate of $0.42 per share, resulting in a surprise of 7.14% [2] - For the previous quarter, the company was expected to report earnings of $0.34 per share but delivered $0.41 per share, leading to a surprise of 20.59% [2] Earnings Estimates - Recent estimates for CarGurus have been trending upward, with a positive Earnings ESP (Expected Surprise Prediction) indicating a strong likelihood of an earnings beat [3][6] - The current Earnings ESP for CarGurus stands at +4%, reflecting increased analyst optimism regarding its near-term earnings potential [6] Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time, suggesting a high probability of exceeding consensus estimates [4][6] - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [5]

Core Points - CarGurus, Inc. will release its financial results for Q4 and the fiscal year ending December 31, 2024, after market close on February 20, 2025 [1] - A conference call and live webcast will be held on February 20, 2025, at 5:00 p.m. Eastern Time to discuss the financial results [2] - An audio replay of the conference call will be available from 8:00 p.m. Eastern Time on February 20, 2025, until March 6, 2025 [3] Company Overview - CarGurus is a leading online automotive platform for buying and selling vehicles, utilizing proprietary technology and data analytics to enhance the automotive shopping experience [4] - The company operates online marketplaces in Canada and the U.K., and also manages independent brands like Autolist and PistonHeads in the U.S. and U.K. respectively [5]

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 make informed decisions [1][2][3] - The campaign aims to resonate with the emotional aspects of buying or selling a car, acknowledging it as a major life decision [3] Company Overview - CarGurus is the most visited site for shopping, buying, and selling new and used cars in the U.S., with a focus on providing comprehensive vehicle history and unbiased deal ratings [2][7] - The platform offers various tools such as price drop alerts and financing options to enhance consumer confidence during the purchasing process [2][5] - CarGurus operates in multiple countries, including Canada and the UK, and manages independent online marketplaces like Autolist and PistonHeads [7] Marketing Strategy - The "Big Deal" campaign will be promoted across TV networks and connected TV providers, supplemented by digital and social media initiatives, including influencer programs [3] - The campaign reflects the company's commitment to supporting consumers throughout their car-buying journey, reinforcing trust and transparency in the automotive shopping experience [2][7]

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 make informed decisions [1][2][3] - The campaign aims to resonate with the emotional aspects of buying or selling a car, highlighting the importance of making the right choice during this significant life event [3] Company Overview - CarGurus, Inc. is the leading online platform for buying and selling vehicles, recognized as the most visited car-shopping site in the U.S. [2][7] - The platform provides comprehensive vehicle history, unbiased deal ratings, and additional tools like price drop alerts, enhancing consumer confidence in their purchasing decisions [2][5] - CarGurus operates in multiple markets, including Canada and the UK, and also manages independent online marketplaces such as Autolist and PistonHeads [7][8] Campaign Details - The "Big Deal" campaign will be promoted across various TV networks and connected TV providers, supplemented by digital and social media initiatives, including influencer programs [3] - The campaign reflects the emotional weight of car transactions while showcasing CarGurus' tools that facilitate the buying and selling process [3]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information should not be interpreted as recommendations or advice for any financial actions [1]. - The content is not tailored to individual financial situations or needs, highlighting the necessity for users to apply their own discretion [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - Users are encouraged to perform their own research before making investment decisions, particularly regarding instruments they do not fully understand [1].

Core Insights - CarGurus, Inc. is scheduled to participate in the 27th Annual Needham Growth Conference on January 15, 2025, at 11:45 AM ET, with CFO Elisa Palazzo speaking [1] - A webcast of the event will be available on the company's Investor Relations page, with an archive accessible for 30 days post-event [2] Company Overview - CarGurus is a leading online automotive platform for buying and selling vehicles, recognized as the most visited automotive shopping site in the U.S. [3] - The company operates in multiple countries, including Canada and the U.K., and manages independent online marketplaces such as Autolist and PistonHeads [3] - CarGurus utilizes proprietary technology, search algorithms, and data analytics to enhance trust, transparency, and competitive pricing in the automotive shopping experience [3]

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]