CarGurus(CARG) - 2024 Q4 - Annual Results

Revenue Growth - Q4'24 Marketplace revenue grew 15% year-over-year to $210.2 million, while total revenue increased by 2% to $228.5 million[4] - Q4'24 International revenue rose 26% year-over-year, and OEM Advertising revenue also experienced double-digit growth[2] - Total revenue for Q4 2024 was $228.5 million, a slight increase from $223.1 million in Q4 2023, while total revenue for the year was $894.4 million, down from $914.2 million in 2023[25] - U.S. Marketplace revenue for Q4 2024 was $193.4 million, up from $168.9 million in Q4 2023, contributing to a yearly total of $733.7 million compared to $647.3 million in 2023[27] Profitability Metrics - Q4'24 Non-GAAP Consolidated Adjusted EBITDA reached $76.4 million, up 25% year-over-year, with a margin of 33%[4] - The company recorded a GAAP Consolidated Net Income of $45.9 million in Q4'24, reflecting a 5% decrease year-over-year[4] - Consolidated net income for Q4 2024 was $45,881 thousand, compared to a loss of $22,603 thousand in Q4 2023[30] - Non-GAAP consolidated net income for Q4 2024 was $58,700 thousand, up from $38,761 thousand in Q4 2023, representing a 51% increase[31] - The company reported a net income per share of $0.44 for Q4 2024, compared to a loss of $0.21 per share in Q4 2023[25] Operating Expenses - Operating expenses decreased to $145.7 million in Q4 2024 from $190.3 million in Q4 2023, primarily due to lower general and administrative costs[25] - The company recorded a $134.5 million impairment-related charge in operating expenses for the year ended December 31, 2024[5] - The total cost of revenue and operating expenses for the year ended December 31, 2024, was $668.858 million, down from $736.869 million in 2023, showing a reduction of approximately 9.2%[38] Cash Flow - Cash provided by operating activities for Q4 2024 was $75,737 thousand, significantly higher than $2,496 thousand in Q4 2023[30] - For the year ended December 31, 2024, GAAP net cash provided by operating activities was $255,494,000, up from $124,527,000 in 2023[40] - Non-GAAP free cash flow for Q4 2024 was $62,039,000, a recovery from a negative $17,894,000 in Q4 2023[40] - Non-GAAP free cash flow for the year ended December 31, 2024 was $161,545,000, compared to $83,316,000 in 2023, indicating strong growth[40] User Engagement - U.S. Average Monthly Unique Users decreased by 5% to 29.3 million, while International Average Monthly Unique Users also fell by 5% to 9.1 million[7] - Monthly unique users and sessions are critical metrics for assessing user engagement and marketplace effectiveness, with a shift to GA4 methodology effective July 1, 2024[53][54][55] - The company emphasizes the importance of measuring unique users and sessions to understand consumer satisfaction and engagement, which directly impacts marketplace revenue[55] Dealer Metrics - The number of U.S. Paying Dealers increased by 2% to 24,692, while International Paying Dealers grew by 11% to 7,318[7] - The number of paying dealers is a key metric, reflecting the value proposition of marketplace products and sales success[50] - Quarterly Average Revenue per Subscribing Dealer (QARSD) is calculated based on marketplace revenue from subscriptions divided by the average number of paying dealers, indicating product value and return on investment[51] Financial Health - The total assets decreased to $824.5 million as of December 31, 2024, from $918.9 million in 2023, reflecting a reduction in goodwill and intangible assets[24] - Total liabilities decreased to $282.8 million as of December 31, 2024, down from $302.1 million in 2023, indicating improved financial health[24] Future Outlook - For Q1 2025, CarGurus expects total revenue between $216 million and $236 million, with Marketplace revenue projected at $209 million to $214 million[11] - The company plans to continue focusing on market expansion and new product development to drive future growth and profitability[39]