CarGurus(CARG) - 2024 Q3 - Quarterly Results

Financial Performance - Q3 2024 Marketplace revenue increased by 15% year-over-year to $204.0 million[3] - Consolidated GAAP Net Income for Q3 2024 was $22.5 million, up 19% year-over-year[3] - Non-GAAP Consolidated Adjusted EBITDA reached $64.9 million, reflecting a 33% increase year-over-year[3] - Total revenue for Q3 2024 was $231.4 million, a 5% increase compared to the previous year[3] - The company reported a consolidated net income of $22.51 million for the three months ended September 30, 2024, compared to $18.97 million in the same period of 2023[19] - Consolidated net income for the three months ended September 30, 2024, was $22,511,000, an increase from $18,973,000 in the same period of 2023, representing a growth of approximately 18.1%[22] - Non-GAAP consolidated net income for the three months ended September 30, 2024, was $47,058,000, compared to $37,515,000 in the same period of 2023, reflecting a year-over-year increase of about 25.5%[23] - The company experienced a net loss attributable to common stockholders of $24.91 million for the nine months ended September 30, 2024, compared to a net income of $54.85 million in the same period of 2023[19] Revenue Guidance - Fourth Quarter 2024 guidance for total revenue is projected between $219 million and $239 million[6] - Full-Year 2024 guidance for total revenue is estimated to be between $885 million and $905 million[6] Dealer Metrics - U.S. Paying Dealers remained stable at 24,561, a 1% increase year-over-year[5] - International Paying Dealers grew by 4% to 7,123[5] - Quarterly Average Revenue per Subscribing Dealer (QARSD) is calculated based on marketplace revenue divided by the average number of paying dealers, indicating product value and return on investment[46] Cash Flow and Assets - The company reported a net cash provided by operating activities of $56,196,000 for the three months ended September 30, 2024, significantly up from $26,350,000 in the prior year, marking an increase of approximately 113.0%[22] - The company’s cash and cash equivalents were $246.75 million as of September 30, 2024, down from $291.36 million as of December 31, 2023[16] - The cash, cash equivalents, and restricted cash at the end of the period was $250,741,000 as of September 30, 2024, down from $366,954,000 at the end of September 30, 2023[22] - The total current assets decreased to $326.64 million as of September 30, 2024, from $391.19 million as of December 31, 2023[16] Expenses and Impairments - Operating expenses for the three months ended September 30, 2024, totaled $155.12 million, an increase from $141.20 million in the same period of 2023[19] - Total cost of revenue and operating expenses for the three months ended September 30, 2024, was $203,924 thousand, down from $219,379 thousand in the same period last year[31] - The company experienced a goodwill and other asset impairment of $16,776,000 for the three months ended September 30, 2024, while there was no impairment recorded in the same period of 2023[23] - The company recognized a goodwill impairment charge of $127.5 million during the nine months ended September 30, 2024[27] Shareholder Actions - The Board of Directors authorized a $200.0 million share repurchase program for fiscal year 2025[1] Operational Metrics - Monthly unique users and sessions are measured using GA4, with adjustments for accuracy, impacting the understanding of user engagement[48][49] - Average monthly unique users are calculated to assess user experience and brand awareness, crucial for marketplace revenue generation[49] - Monthly sessions are defined as distinct visits including visitor actions, providing insights into consumer satisfaction and engagement[50] - Transactions in the Digital Wholesale segment represent unique vehicles processed, serving as a key business metric for growth and revenue insights[47] Financial Measures - The company aims to enhance transparency with respect to metrics used in financial and operational decision-making through the use of non-GAAP financial measures[36] - Consolidated Adjusted EBITDA and Adjusted EBITDA are key measures for evaluating operating performance and strategic decision-making[43] - Free Cash Flow is defined as cash flow from operations after capital expenditures, indicating financial performance and asset maintenance[44] - Non-GAAP gross profit margin is calculated as non-GAAP gross profit divided by total revenue, providing insights into operational efficiency[39]