CarGurus(CARG)2024-05-09 20:11Financial Performance - For the three months ended March 31, 2024, CarGurus generated revenue of 232.0 million for the same period in 2023[51]. - Consolidated net income for the same period was 11.9 million in the prior year, while Consolidated Adjusted EBITDA increased to 40.8 million[51]. - Total revenue decreased by 21,301,000, compared to 50,398,000, up from 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 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 172.99 million for the three months ended March 31, 2024, representing 80% of total revenue[126]. - Digital Wholesale segment revenue decreased by 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 82.27 million, representing 38% of total revenue[138]. - General and administrative expense increased by 28.07 million, representing 13% of total revenue[140]. - Overall cost of revenue decreased by 40.84 million for the three months ended March 31, 2024[128]. - Stock-based compensation expense increased to 14,977,000 in Q1 2023, indicating a rise of 5.6%[73]. - The provision for income taxes for Q1 2024 was 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 291.4 million as of December 31, 2023[147]. - Cash generated from operating activities was 66.3 million for the same period in 2023[148]. - The company expects to spend an additional 26.3 million committed and unspent as of March 31, 2024[150]. - Net cash used in investing activities was 28.7 million in property and equipment purchases[161]. - Net cash used in financing activities was 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 5,943 year-over-year, while international QARSD rose to 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].