CarGurus(US:CARG)2024-08-08 20:10Financial Performance - For the three months ended June 30, 2024, CarGurus generated revenue of $218.7 million, a 9% decrease from $239.7 million for the same period in 2023[110]. - For the six months ended June 30, 2024, revenue was $434.5 million, an 8% decrease from $471.7 million for the same period in 2023[111]. - The consolidated net loss for the three months ended June 30, 2024, was $68.7 million, compared to a net income of $13.8 million for the same period in 2023[110]. - Consolidated net loss income for the three months ended June 30, 2024, was $(68,721) thousand, compared to a net income of $13,817 thousand for the same period in 2023, indicating a substantial decline[130]. - Overall revenue decreased by $37.2 million, or 8%, in the six months ended June 30, 2024, compared to the same period in 2023, totaling $434.5 million[180]. User Engagement - Average monthly unique users in the U.S. decreased to 30,246 in June 2024 from 31,907 in June 2023[114]. - Average monthly sessions in the U.S. decreased to 80,843 in June 2024 from 84,355 in June 2023[117]. Dealer Metrics - The number of paying dealers increased to 31,352 as of June 2024, up from 31,097 in June 2023[119]. - Quarterly Average Revenue per Subscribing Dealer (QARSD) in the U.S. increased to $6,942 as of June 2024, compared to $6,110 in June 2023[123]. Segment Performance - Marketplace revenue for Q2 2024 was $195.2 million, up from $171.0 million in Q2 2023, representing a growth of 14.0%[157]. - Digital Wholesale revenue decreased by $45.3 million, or 66%, totaling $13.1 million, representing 6% of total revenue for the three months ended June 30, 2024[166]. - Product revenue decreased by $26.4 million, or 72%, totaling $10.4 million, representing 5% of total revenue for the three months ended June 30, 2024[165]. - U.S. Marketplace segment income from operations increased to $42.0 million for the three months ended June 30, 2024, compared to $24.6 million in the same period of 2023[161]. - Digital Wholesale segment reported an operating loss of $138.2 million for the three months ended June 30, 2024, compared to a loss of $6.3 million in the same period of 2023[161]. Expenses and Impairments - Operating expenses for Q2 2024 totaled $276.0 million, significantly higher than $146.4 million in Q2 2023, primarily due to a $127.5 million impairment charge[157]. - The company recognized impairment losses of $115.2 million for goodwill during Q2 2024 due to declines in transaction volume[150]. - Goodwill and other long-lived asset impairment for the three months ended June 30, 2024, was $127,655 thousand, significantly higher than the $9 thousand reported in 2023[130]. - Total cost of revenue for Q2 2024 was $36.2 million, down from $75.6 million in Q2 2023, a decrease of 52.1%[157]. Cash Flow and Financing - Cash and cash equivalents as of June 30, 2024, were $216.2 million, down from $291.4 million as of December 31, 2023[200]. - Net cash provided by operating activities was $123.6 million for the six months ended June 30, 2024, compared to $95.7 million for the same period in 2023[201]. - The company announced a share repurchase program with an authorization of up to $250.0 million, having repurchased 6,193,001 shares for $142.4 million in the six months ended June 30, 2024[205]. Internal Controls and Compliance - The company has identified a material weakness in its internal control over financial reporting, which could lead to material misstatements in financial statements[231]. - As of June 30, 2024, management has implemented or enhanced certain controls to address specific issues related to the material weakness[233]. - There were no changes in internal control over financial reporting that materially affected the reporting during the period covered by the Quarterly Report[234]. Market Outlook - The company plans to expand into more geographies following the completion of the pilot program, contributing to the increase in marketplace revenue[163]. - The company has not faced significant foreign currency exchange risk due to its operations being primarily in the U.S., but this may change as it expands internationally[226].