Core Insights - The article discusses the volatility of used car stocks in 2024 and highlights three companies as potential investment opportunities as consumers increasingly opt for used vehicles over new ones [3][14]. Company Summaries CarMax (KMX) - CarMax reported Q1 2025 results with adjusted earnings per share of 97 cents, exceeding analyst estimates by 2 cents, while revenues were $7.11 billion, falling short by $50 million [4]. - The company sold nearly $21 billion in used vehicles in fiscal 2024 and operates 248 locations across the U.S. [16]. - Despite a 3.1% decline in unit sales and a 2.7% decrease in average retail selling price, CarMax's gross profit margin improved to 81%, leading to a non-GAAP adjusted EBITDA of $50.4 million, a 24% increase year-over-year [17][19]. CarGurus (CARG) - CarGurus operates a digital auto platform without physical locations, reporting a 6% year-over-year increase in average monthly unique users in the U.S. to 34 million, and a 19% increase internationally to 8.6 million [7][8]. - The company generated $187.2 million in Marketplace Revenue in Q1 2024, a 12% increase from Q1 2023, although overall sales declined by 7% to $215.8 million due to drops in wholesale and product revenue [24]. - Analysts favor CARG stock, with 11 out of 14 rating it a buy and a target price of $27.75, approximately 10% higher than its current trading price [25]. Cars.com (CARS) - Cars.com has a market cap of $1.31 billion and reported over 26 million average monthly unique visitors, with 615 million visits in 2023 [21]. - The company derives more than 80% of its revenue from subscriptions, earning about $2,500 per month from each of its 19,500 dealers [22]. - In Q1 2024, Cars.com’s Marketplace Revenue was $187.2 million, a 12% increase year-over-year, while overall sales decreased by 7% to $215.8 million [24].

Core Insights - CarGurus released its 2024 Mid-Year Review, highlighting the growing focus on affordability for consumers in the automotive market [1][3] Market Trends - Consumer search activity indicates a rising demand for affordable vehicles, with used car searches under $10,000 increasing by 26% year-over-year and new car searches under $30,000 up by 36% [2] - The average price of a used car is now $28,496, down 8% year-over-year, while the average price of a new car is $50,214, down 3.3% [4] Inventory and Pricing - New car inventory has increased by 68% year-over-year, while used car inventory has risen by 5%, contributing to moderating prices [4] - Compact sedans are experiencing a surge in demand, with sales up 17% year-over-year, and models like the Toyota Corolla and Honda Civic leading sales increases by as much as 54% [5] Opportunities for Consumers - Nearly 6% of new car listings in the U.S. are 2023 models, providing opportunities for consumers to purchase new vehicles at lower prices, with potential savings of 12% on models like the Ram 1500 [5] - The average price of new electric vehicles (EVs) has declined by 9% from January 2023, now at $63,102, while used EV prices have dropped by 24% to $37,171 [5] Regional Insights - New York, Florida, and Maryland have the highest concentration of affordable used car listings, with 27% of listings in New York priced at $25,000 or under [5]

Core Insights - CarGurus, Inc. is scheduled to participate in a fireside chat at William Blair's 44th Annual Growth Stock Conference on June 4, 2024 [1] - The event will be accessible via a webcast on the company's Investor Relations page, with an archive available for 30 days post-event [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 offers digital retail solutions and the CarOffer online wholesale platform, providing dealerships with tools for pricing, marketing, and selling vehicles [3]

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 William Blair's 44th Annual Growth Stock Conference on June 4, 2024 [1] Company Overview - CarGurus operates as a multinational online automotive platform, enhancing its 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., with additional operations in Canada and the U.K. under the CarGurus brand [3][4] - The company also manages independent online marketplaces, Autolist in the U.S. and PistonHeads in the U.K. [3]

CAMBRIDGE, Mass., May 10, 2024 (GLOBE NEWSWIRE) -- CarGurus, Inc. (NASDAQ:CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today announced that Jason Trevisan, Chief Executive Officer, is scheduled to participate in a fireside chat at the J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference on Monday, May 20, 2024 at 1:50 PM ET. A webcast of the fireside chat will be accessible from the Investor Relations page of the company's ...

CAMBRIDGE, Mass., May 10, 2024 (GLOBE NEWSWIRE) -- CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today announced that Jason Trevisan, Chief Executive Officer, is scheduled to participate in a fireside chat at the J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference on Monday, May 20, 2024 at 1:50 PM ET. A webcast of the fireside chat will be accessible from the Investor Relations page of the company’ ...

Financial Data and Key Metrics Changes - The company ended the first quarter at the high end of its forecasted revenue, with consolidated revenue of $216 million, down 7% year-over-year, primarily due to lower wholesale and product volumes [33] - Non-GAAP consolidated adjusted EBITDA grew 24% year-over-year, achieving the highest first quarter EBITDA margin in the last three years [8][57] - Non-GAAP gross profit was $176 million, up 10% year-over-year, with a non-GAAP gross margin of 82%, up from 69% in the prior year quarter [36] Business Line Data and Key Metrics Changes - Marketplace revenue was $187 million for the first quarter, up 12% year-over-year, driven by continued strength in subscriptions, with net new monthly recurring revenue (MRR) growing 28% year-over-year [54] - Wholesale revenue was $16 million for the first quarter, down 36% year-over-year, due to a decline in dealer-to-dealer transaction volume [55] - Product revenue was $12 million for the first quarter, down 69% year-over-year, reflecting a decline in Instant Max Cash Offer transactions [35] Market Data and Key Metrics Changes - International QARSD achieved the strongest year-over-year growth since the first quarter of 2022, reflecting positive momentum in renewals in the UK and Canada [34] - The company reported a 30% year-over-year growth in available listings, ending the quarter with approximately 20% more available inventory than its next closest automotive competitor [49] Company Strategy and Development Direction - The guiding principle for 2024 is "intelligent acceleration," focusing on leveraging the marketplace business and integrated data ecosystem to grow profitably [7] - The company aims to provide more value to dealers, improve consumer experience, enable digital transactions, and rebuild digital wholesale [9] - The introduction of new products and insights, such as the inventory acquisition recommendations tool, is expected to enhance dealer performance and retention [46][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing growth of the marketplace business, expecting second quarter revenue to be in the range of $202 million to $222 million, with continued momentum in QARSD and dealer count [38][89] - The company is optimistic about the international markets, reporting a 24% revenue growth year-over-year and plans to launch new products to capitalize on this segment [90] Other Important Information - The app continues to be the number one automotive app in terms of downloads, generating more than a quarter of total leads, with app users averaging more than three sessions per week [28] - The company ended the first quarter with $246 million in cash and cash equivalents, a decrease of $66 million from the end of the fourth quarter, primarily due to share repurchases [58] Q&A Session Summary Question: Can you help us unpack the 30% inventory lift you saw in the quarter? - Management indicated that the inventory expansion was driven by market macro increases and decreases, with a modest growth in paying dealers [19] Question: Can you talk about the investments you're making in marketing with the core app infrastructure? - The focus is on product and tech improvements, with significant results seen in app engagement and features [20] Question: Can you share the monthly trend if you saw strength building throughout the quarter? - Management noted that they do not discuss current quarter trends but highlighted strong performance in the first quarter [106] Question: How should we think about the sustainability of QARSD growth over the next several quarters? - Management expressed confidence in the sustainability of QARSD growth, driven by new dealer acquisitions and upgrades to higher subscription tiers [98] Question: What are the expectations for the international business in the next few quarters? - Management is optimistic about international growth, with plans to launch new products and expand partnerships [90]

May 9, 2024 1 This presentation includes "forward-looking statements." The words "aim," "anticipate," "believe," "could," "estimate," "expect," "goal," "guide," "intend," "may," "might," "plan," "potential," "predicts," "projects," "seeks," "should," "target," "will," "would," and similar expressions and their negatives are intended to identify forward-looking statements. In particular, statements in this presentation regarding our transformation to a transaction-enabled platform; industry trends; our marke ...

CarGurus (CARG) reported $215.8 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 7%. EPS of $0.32 for the same period compares to $0.26 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $217.29 million, representing a surprise of -0.69%. The company delivered an EPS surprise of +10.34%, with the consensus EPS estimate being $0.29.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how t ...

CarGurus (CARG) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.34%. A quarter ago, it was expected that this online auto shopping platform would post earnings of $0.35 per share when it actually produced earnings of $0.35, delivering no surprise.Over the last four quarters, the co ...