Financial Performance - For the three months ended March 31, 2024, CarGurus generated revenue of $215.8 million, a 7% decrease from $232.0 million for the same period in 2023[51]. - Consolidated net income for the same period was $21.3 million, compared to $11.9 million in the prior year, while Consolidated Adjusted EBITDA increased to $50.4 million from $40.8 million[51]. - Total revenue decreased by $16.2 million, or 7%, in the three months ended March 31, 2024, compared to the same period in 2023[121]. - Consolidated net income for the three months ended March 31, 2024, was $21,301,000, compared to $11,866,000 for the same period in 2023, representing an increase of 79%[73]. - Consolidated Adjusted EBITDA for the three months ended March 31, 2024, was $50,398,000, up from $40,787,000 in the same period of 2023, reflecting a growth of 23%[73]. Revenue Breakdown - Marketplace revenue increased by $20.1 million, or 12%, representing 87% of total revenue for the three months ended March 31, 2024, compared to 72% in the same period of 2023[122]. - Wholesale revenue decreased by $9.1 million, or 36%, representing 7% of total revenue for the three months ended March 31, 2024, compared to 11% in the same period of 2023[123]. - Product revenue decreased by $27.2 million, or 69%, representing 6% of total revenue for the three months ended March 31, 2024, compared to 17% in the same period of 2023[125]. - U.S. Marketplace segment revenue increased by $17.4 million, or 11%, to $172.99 million for the three months ended March 31, 2024, representing 80% of total revenue[126]. - Digital Wholesale segment revenue decreased by $36.3 million, or 56%, to $28.58 million, representing 13% of total revenue for the same period[127]. User Engagement - Average monthly unique users reached 42,574 thousand, up from 39,177 thousand in the previous year, with U.S. users at 34,006 thousand and international users at 8,568 thousand[56]. - Average monthly sessions increased to 108,000 thousand, compared to 100,946 thousand in the prior year, with U.S. sessions at 88,286 thousand and international sessions at 19,714 thousand[59]. - The number of paying dealers as of March 2024 was 31,175, slightly down from 31,291 in March 2023, with U.S. dealers increasing to 24,419[61]. Expenses and Costs - Sales and marketing expense increased by $6.7 million, or 9%, to $82.27 million, representing 38% of total revenue[138]. - General and administrative expense increased by $3.1 million, or 13%, to $28.07 million, representing 13% of total revenue[140]. - Overall cost of revenue decreased by $36.1 million, or 47%, to $40.84 million for the three months ended March 31, 2024[128]. - Stock-based compensation expense increased to $15,822,000 in Q1 2024 from $14,977,000 in Q1 2023, indicating a rise of 5.6%[73]. - The provision for income taxes for Q1 2024 was $8,384,000, compared to $6,531,000 in Q1 2023, marking an increase of 28.3%[73]. Cash Flow and Investments - Cash and cash equivalents as of March 31, 2024, were $246.3 million, down from $291.4 million as of December 31, 2023[147]. - Cash generated from operating activities was $52.0 million for the three months ended March 31, 2024, compared to $66.3 million for the same period in 2023[148]. - The company expects to spend an additional $35.2 million on the buildout of its 1001 Boylston Street lease, with $26.3 million committed and unspent as of March 31, 2024[150]. - Net cash used in investing activities was $(13.1) million for the three months ended March 31, 2024, primarily due to $28.7 million in property and equipment purchases[161]. - Net cash used in financing activities was $(83.0) million for the three months ended March 31, 2024, mainly due to $77.4 million for share repurchases[163]. Future Outlook and Strategy - Future strategies may include further market expansion and the development of new digital retail solutions to enhance user engagement and dealer connections[50]. - The company expects general and administrative expenses to fluctuate as it continues to scale its business[104]. - Future investments in product, technology, and development are expected to fluctuate as the company develops new solutions and improves existing platforms[103]. Operational Metrics - Transactions in the Digital Wholesale segment decreased to 10,302 in Q1 2024 from 17,505 in Q1 2023, indicating a significant decline in vehicle processing[63]. - Quarterly Average Revenue per Subscribing Dealer (QARSD) in the U.S. increased to $6,702 from $5,943 year-over-year, while international QARSD rose to $1,882 from $1,550[65]. - The company utilizes proprietary technology and data analytics to enhance the automotive shopping experience, focusing on trust, transparency, and competitive pricing[47]. Compliance and Governance - The Company has identified a material weakness in internal control over financial reporting and is working to remediate it[223]. - The Company was in compliance with all covenants under the Credit Agreement as of March 31, 2024[212].

Financial Performance - 1Q'24 Marketplace Revenue increased by 12% YoY to $187.2 million, while QARSD growth accelerated to 14% YoY, reaching $5,664[2][22] - Consolidated net income for 1Q'24 was $21.3 million, representing an 80% increase YoY, and Non-GAAP Adjusted EBITDA was $50.4 million, up 24% YoY[21][22] - CarGurus reported revenue of $215.8 million for the three months ended March 31, 2024, a decrease of 6.9% compared to $232.0 million for the same period in 2023[41] - The GAAP gross profit for the same period was $175.0 million, resulting in a gross profit margin of 81%, up from 67% in the prior year[41] - Non-GAAP gross profit was $176.2 million, with a non-GAAP gross profit margin of 82%, compared to 69% in the previous year[41] - Consolidated net income for March 2024 was $21,301,000, representing an increase of 79.5% compared to $11,866,000 in March 2023[54] - Gross profit for March 2024 was $174,961,000, an increase of 12.9% from $154,980,000 in March 2023[51] - Non-GAAP consolidated adjusted EBITDA for the three months ended March 31, 2024, was $50,398,000, up from $40,787,000 in the same period of 2023, reflecting a growth of 23%[56] - Non-GAAP consolidated adjusted EBITDA margin improved to 23% for the three months ended March 31, 2024, compared to 18% in the same period of 2023[56] User Engagement - U.S. Average Monthly Unique Users increased by 6% YoY to 34.0 million, while international users grew by 19% YoY to 8.6 million[4] - Average monthly unique users across the company's websites is a critical indicator of user experience and brand awareness, impacting marketplace revenue[63] Dealer Metrics - Total paying dealers remained stable at 31,175, with U.S. paying dealers at 24,419 and international paying dealers at 6,756, reflecting a 0% and (2%) change respectively[4] - The number of paying dealers is a key metric, indicating the value proposition of marketplace products and the effectiveness of sales and marketing strategies[62] Cash Flow and Equity - Cash and cash equivalents at the end of the period were $246.3 million, down 21% from the previous quarter[22] - CarGurus generated $51.9 million in net cash from operating activities, down from $66.3 million in the prior year[41] - The company reported a non-GAAP free cash flow of $17.8 million, significantly lower than $60.5 million in the same quarter of 2023[41] - Total stockholders' equity decreased to $568.4 million as of March 31, 2024, from $616.9 million at the end of 2023[34] - Cash, cash equivalents, and restricted cash at the end of the period were $249,128,000, down from $471,681,000 at the end of March 2023[54] Future Guidance - For Q2 2024, the company provided guidance for total revenue between $202 million and $222 million, with marketplace revenue expected to be between $189 million and $194 million[5] - Future guidance excludes macro-level industry issues that could materially affect dealer and consumer behavior[5] Segment Performance - Digital Wholesale Segment Revenue decreased by 56% YoY to $28.6 million, with an operating loss of $10.3 million[4][22] - Digital wholesale revenue decreased significantly to $28,577,000 in March 2024 from $64,836,000 in March 2023, a decline of 55.9%[52] Operational Insights - The company aims to deepen connections with consumers and strengthen partnerships with dealers, enhancing service value[2] - The company emphasizes the importance of QARSD as a key performance indicator, reflecting the value proposition of its products to paying dealers[47] - Transactions within the Digital Wholesale segment are defined as the number of vehicles processed, which is a significant driver of revenue in this segment[64] - The company emphasizes the importance of non-GAAP financial measures for evaluating operational performance and making strategic decisions[58] - The company has provided reconciliations of non-GAAP measures to GAAP measures to enhance transparency for investors[59] Expenses - Operating expenses totaled $148,677,000 in March 2024, up from $140,921,000 in March 2023, reflecting a 5.5% increase[51] - Stock-based compensation expense was $15,822,000 for the three months ended March 31, 2024, compared to $14,977,000 in the same period of 2023, an increase of 5.6%[56] Taxation - The provision for income taxes increased to $8,384,000 for the three months ended March 31, 2024, from $6,531,000 in the same period of 2023, indicating a rise of 28%[56]

Investors are always looking for stocks that are poised to beat at earnings season and CarGurus, Inc. (CARG) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because CarGurus is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indic ...

CAMBRIDGE, Mass., April 18, 2024 (GLOBE NEWSWIRE) -- CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, announced it will issue a press release reporting financial results for the first quarter ended March 31, 2024, after the close of the market on May 9, 2024. CarGurus will host a conference call and live webcast to discuss those financial results for investors and analysts at 5:00 p.m. Eastern Time on May 9, 2024. To access the ...

Orbon Alija/E+ via Getty Images In my view, there's no better time to bet on solid turnaround names than during a period of market volatility and expensive valuation multiples. Contrarian plays like these, in my view, are more insulated from the whiplashes in the stock market driven by macro factors like interest rates, and investors can buy with confidence knowing they are investing in businesses with firm footing and a more than reasonable valuation. CarGurus (NASDAQ:CARG) fits the bill perfectly here ...

CAMBRIDGE, Mass., April 08, 2024 (GLOBE NEWSWIRE) -- CarGurus (NASDAQ:CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles1, today released its Quarterly Review for Q1 2024, giving buyers, sellers, and dealers a view into the key trends influencing pricing, inventory, and demand for new and used vehicles so far this year. "Rebounding inventory and moderating prices are fueling pent-up demand in spite of high interest rates. Our research shows sales for both ...

Through the past several months, buying a car — used or new — has been, to put it mildly, out of reach.Inflation has run rampant. Loans themselves — where there were loans to be gotten — were expensive. And as detailed here, delinquencies have been on the rise.For many of the online platforms seeking to transform car buying, and financing across the ecosystem, the journey’s been a rough and rocky road. Yet earnings season shows that if the industry has not exactly turned a corner, then at least the engines ...

Key PointsThe vehicle market will soon see a newfound wave of demand or a continuation in the used car market.Most players point to CarGurus as the one stock in this space that will emerge as a potential new bull run.Analysts and institutional investors have already trickled in, will you?5 stocks we like better than AutoNationSome businesses could soon see the bullish side effects of a resilient consumer amongst the pretext of potential interest rate cuts coming this year from the FED. According to the FedW ...

CarGurus, Inc. (NASDAQ:CARG) Q4 2023 Earnings Conference Call February 26, 2024 5:00 PM ET Company Participants Kirndeep Singh - VP & Head, Investment Jason Trevisan - Chief Executive Officer Sam Zales - President & Chief Operating Officer Elisa Palazzo - Chief Financial Officer Conference Call Participants Marvin Fong - BTIG Rajat Gupta - JPMorgan Matt Logan - RBC Capital Markets Thomas White - D.A. Davidson Jed Kelly - Oppenheimer Christopher Pierce - Needham & Company Ronald Josey - Citi John Colantuoni ...

For the quarter ended December 2023, CarGurus (CARG) reported revenue of $223.12 million, down 22.2% over the same period last year. EPS came in at $0.35, compared to $0.22 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $218.14 million, representing a surprise of +2.28%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...