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 ...

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]