Financial Performance - Q3 2024 Marketplace revenue increased by 15% year-over-year to $204.0 million[3] - Consolidated GAAP Net Income for Q3 2024 was $22.5 million, up 19% year-over-year[3] - Non-GAAP Consolidated Adjusted EBITDA reached $64.9 million, reflecting a 33% increase year-over-year[3] - Total revenue for Q3 2024 was $231.4 million, a 5% increase compared to the previous year[3] - The company reported a consolidated net income of $22.51 million for the three months ended September 30, 2024, compared to $18.97 million in the same period of 2023[19] - Consolidated net income for the three months ended September 30, 2024, was $22,511,000, an increase from $18,973,000 in the same period of 2023, representing a growth of approximately 18.1%[22] - Non-GAAP consolidated net income for the three months ended September 30, 2024, was $47,058,000, compared to $37,515,000 in the same period of 2023, reflecting a year-over-year increase of about 25.5%[23] - The company experienced a net loss attributable to common stockholders of $24.91 million for the nine months ended September 30, 2024, compared to a net income of $54.85 million in the same period of 2023[19] Revenue Guidance - Fourth Quarter 2024 guidance for total revenue is projected between $219 million and $239 million[6] - Full-Year 2024 guidance for total revenue is estimated to be between $885 million and $905 million[6] Dealer Metrics - U.S. Paying Dealers remained stable at 24,561, a 1% increase year-over-year[5] - International Paying Dealers grew by 4% to 7,123[5] - Quarterly Average Revenue per Subscribing Dealer (QARSD) is calculated based on marketplace revenue divided by the average number of paying dealers, indicating product value and return on investment[46] Cash Flow and Assets - The company reported a net cash provided by operating activities of $56,196,000 for the three months ended September 30, 2024, significantly up from $26,350,000 in the prior year, marking an increase of approximately 113.0%[22] - The company’s cash and cash equivalents were $246.75 million as of September 30, 2024, down from $291.36 million as of December 31, 2023[16] - The cash, cash equivalents, and restricted cash at the end of the period was $250,741,000 as of September 30, 2024, down from $366,954,000 at the end of September 30, 2023[22] - The total current assets decreased to $326.64 million as of September 30, 2024, from $391.19 million as of December 31, 2023[16] Expenses and Impairments - Operating expenses for the three months ended September 30, 2024, totaled $155.12 million, an increase from $141.20 million in the same period of 2023[19] - Total cost of revenue and operating expenses for the three months ended September 30, 2024, was $203,924 thousand, down from $219,379 thousand in the same period last year[31] - The company experienced a goodwill and other asset impairment of $16,776,000 for the three months ended September 30, 2024, while there was no impairment recorded in the same period of 2023[23] - The company recognized a goodwill impairment charge of $127.5 million during the nine months ended September 30, 2024[27] Shareholder Actions - The Board of Directors authorized a $200.0 million share repurchase program for fiscal year 2025[1] Operational Metrics - Monthly unique users and sessions are measured using GA4, with adjustments for accuracy, impacting the understanding of user engagement[48][49] - Average monthly unique users are calculated to assess user experience and brand awareness, crucial for marketplace revenue generation[49] - Monthly sessions are defined as distinct visits including visitor actions, providing insights into consumer satisfaction and engagement[50] - Transactions in the Digital Wholesale segment represent unique vehicles processed, serving as a key business metric for growth and revenue insights[47] Financial Measures - The company aims to enhance transparency with respect to metrics used in financial and operational decision-making through the use of non-GAAP financial measures[36] - Consolidated Adjusted EBITDA and Adjusted EBITDA are key measures for evaluating operating performance and strategic decision-making[43] - Free Cash Flow is defined as cash flow from operations after capital expenditures, indicating financial performance and asset maintenance[44] - Non-GAAP gross profit margin is calculated as non-GAAP gross profit divided by total revenue, providing insights into operational efficiency[39]

Core Insights - CarGurus (CARG) is expected to report quarterly earnings of $0.42 per share, reflecting a 23.5% increase year-over-year [1] - Analysts forecast revenues of $223.01 million, indicating a 1.6% year-over-year growth [1] - The consensus EPS estimate has been adjusted downward by 3.8% over the past 30 days, showing a reassessment by analysts [1] Revenue Estimates - 'Revenue- Marketplace' is projected at $201.52 million, representing a 13.3% year-over-year increase [4] - 'Revenue- Wholesale' is expected to reach $11.86 million, indicating a significant decline of 45.5% from the previous year [4] - 'Revenue- Product' is estimated at $9.13 million, reflecting a decrease of 53.9% compared to the prior-year quarter [4] Dealer Metrics - The consensus estimate for 'Paying Dealers - Total' is 31,542, up from 31,191 a year ago [5] - 'Paying Dealers - U.S' is estimated at 24,534, compared to 24,368 in the same quarter last year [5] - 'Paying Dealers - International' is projected at 6,946, slightly up from 6,823 a year ago [5] Stock Performance - CarGurus shares have increased by 5.1% in the past month, outperforming the Zacks S&P 500 composite, which rose by 0.7% [5] - The company holds a Zacks Rank 4 (Sell), indicating expectations of underperformance relative to the overall market in the near term [5]

Core Insights - CarGurus has launched a new digital retail solution called CarGurus Digital Deal in Canada, aimed at enhancing connections between dealers and purchase-ready shoppers [1][2] - The solution allows consumers to start their financing applications online, book appointments, and initiate trade-ins before visiting the dealership, streamlining the buying process [2][3] Company Overview - CarGurus is a multinational online automotive platform that facilitates buying and selling vehicles, leveraging proprietary technology and data analytics to enhance trust and transparency in the automotive shopping experience [5] - The company operates in multiple countries, including the U.S., U.K., and Canada, and is recognized as the fastest-growing automotive shopping site in Canada [5][6] Product Features - CarGurus Digital Deal enables a three-step process for consumers to build personalized finance applications that are submitted directly to participating dealerships [2][3] - The solution is integrated with dealer finance portal platform CreditApp, allowing customization with dealers' preferred lender networks [3] Market Impact - The introduction of Digital Deal is expected to connect dealers with higher-converting leads, facilitating faster and more efficient sales across over 15,000 vehicle listings in Canada [3] - Dealers have reported that the solution simplifies the buying process and improves engagement with shoppers, leading to higher conversion rates [4]

Core Viewpoint - CarGurus, Inc. will announce its financial results for Q3 2024 on November 7, 2024, after market close, followed by a conference call for investors and analysts [1][2] 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 [3] - The company operates in the U.S., Canada, and the U.K., and is recognized as the most visited automotive shopping site in the U.S. [3][4] - CarGurus also manages independent online marketplaces such as Autolist in the U.S. and PistonHeads in the U.K. [3]

Core Insights - CarGurus has officially opened its new global headquarters in Boston, emphasizing its commitment to the region and modern workplace needs [1][2] - The new office spans approximately 225,000 square feet and consolidates nearly 1,000 employees from two separate locations in Cambridge [2] - The headquarters is designed to foster collaboration and innovation, featuring flexible workspaces and amenities that support a hybrid work culture [3][4] Company Overview - CarGurus is the leading digital platform for buying and selling vehicles, recognized for its industry-leading listings marketplace and digital retail solutions [5] - The company operates in the U.S., Canada, and the U.K., providing a trusted automotive shopping experience through proprietary technology and data analytics [5][6] - CarGurus is noted as the most visited automotive shopping site in the U.S. as of Q2 2024 [5]

Core Insights - The Q3 2024 Quarterly Review by CarGurus highlights a shift in consumer demand towards more affordable vehicles amid economic uncertainty and high interest rates [1][2] Group 1: Consumer Trends - Consumers are becoming more prudent with their spending, leading to increased demand for affordable cars, particularly in the price segments of $20,000 to $30,000 for new vehicles and $15,000 to $20,000 for used vehicles, which accounted for 43% and 59% of annual sales growth respectively [2] - The used car market is seeing significant growth in sales for vehicles priced at $30,000 and under, while sales of cars over $30,000 have declined [2] Group 2: Market Dynamics - Hybrids are outperforming electric vehicles (EVs) in 2024, with new hybrids making up nearly 11% of total retail sales compared to 4% for EVs, and hybrid retail sales volumes have increased by nearly 44% year-over-year [3] - There is a growing inventory of aging new cars on dealer lots, with about 58,000 listings being two years or older, representing a nearly 58% increase compared to pre-COVID averages [3] Group 3: Economic Influences - The upcoming presidential election may negatively impact vehicle sales demand, as historical data shows declines in sales during election years [3] - Recent interest rate cuts are expected to have a muted immediate effect on affordability, as auto loan rates typically follow longer-term treasury rates rather than the short-term Federal Funds Rate [3]

Group 1: Vertex, Inc. (VERX) - Vertex, Inc. is a tax technology solutions provider with a Zacks Rank of 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 9.4% over the last 60 days [1] - The company has a PEG ratio of 6.57, significantly lower than the industry average of 44.22, and possesses a Growth Score of B [1] Group 2: CarGurus, Inc. (CARG) - CarGurus, Inc. operates as an online automotive marketplace and holds a Zacks Rank of 1 [2] - The Zacks Consensus Estimate for its current year earnings has risen by 11.7% over the last 60 days [2] - The company has a PEG ratio of 1.04, slightly above the industry average of 1.01, and possesses a Growth Score of A [2] Group 3: Unilever PLC (UL) - Unilever PLC is a fast-moving consumer goods company with a Zacks Rank of 1 [2][3] - The Zacks Consensus Estimate for its current year earnings has increased by 5.5% over the last 60 days [2] - The company has a PEG ratio of 1.94, lower than the industry average of 2.90, and possesses a Growth Score of B [3]

Group 1: Okta, Inc. (OKTA) - Okta is an identity solutions company with a Zacks Rank 1, indicating strong performance potential [1] - The Zacks Consensus Estimate for Okta's current year earnings has increased by 7.5% over the last 60 days [1] - Okta has a PEG ratio of 1.26, significantly lower than the industry average of 4.89, and possesses a Growth Score of B [1] Group 2: CarGurus, Inc. (CARG) - CarGurus operates as an online automotive marketplace and also holds a Zacks Rank 1 [2] - The Zacks Consensus Estimate for CarGurus' current year earnings has risen by 11.7% over the last 60 days [2] - CarGurus has a PEG ratio of 1.04, slightly below the industry average of 1.08, and has a Growth Score of A [2] Group 3: Pilgrim's Pride Corporation (PPC) - Pilgrim's Pride is a producer of fresh and frozen meat products, carrying a Zacks Rank 1 [3] - The Zacks Consensus Estimate for Pilgrim's Pride's current year earnings has increased by 12.7% over the last 60 days [3] - Pilgrim's Pride has a PEG ratio of 0.21, which is significantly lower than the industry average of 0.46, and possesses a Growth Score of A [3]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Summary: CarGurus (CARG) - CarGurus currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 1 (Strong Buy), suggesting strong potential for outperformance in the market [3] - Over the past week, CarGurus shares increased by 4.22%, while the Zacks Automotive - Replacement Parts industry saw a decline of 0.11% [5] - In a longer timeframe, CarGurus shares rose by 17.81% over the past quarter and 74.09% over the last year, significantly outperforming the S&P 500's increases of 5.62% and 34.34%, respectively [6] - The average 20-day trading volume for CarGurus is 755,533 shares, indicating a bullish trend when combined with rising stock prices [7] Earnings Outlook - In the past two months, 6 earnings estimates for CarGurus have been revised upwards, increasing the consensus estimate from $1.45 to $1.62 [9] - For the next fiscal year, 4 estimates have moved up while 2 have been revised down, reflecting a generally positive earnings outlook [9]

Group 1: KT Corporation - KT Corporation is a telecommunications and platform services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 3.9% over the last 60 days [1] - The company has a PEG ratio of 0.73, which is lower than the industry average of 1.04, and possesses a Growth Score of B [1] Group 2: CarGurus, Inc. - CarGurus, Inc. is an online automotive marketplace with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 11.7% over the last 60 days [2] - The company has a PEG ratio of 1.05, slightly below the industry average of 1.08, and possesses a Growth Score of A [2] Group 3: Pilgrim's Pride Corporation - Pilgrim's Pride Corporation is a producer of fresh and frozen meat products with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 12.7% over the last 60 days [3] - The company has a PEG ratio of 0.21, significantly lower than the industry average of 0.47, and possesses a Growth Score of A [3]