CarGurus(CARG) - 2025 Q1 - Quarterly Results

Executive Summary Q1 2025 Financial Highlights CarGurus reported strong Q1 2025 results, with Marketplace revenue growing 13% and total revenue increasing 4% to $225.2 million Q1 2025 Financial Performance | Metric | March 31, 2025 Results (in millions) | Variance from Prior Year | | :--- | :--- | :--- | | Marketplace Revenue | $212.2 | 13% | | Wholesale Revenue | $7.7 | (52)% | | Product Revenue | $5.2 | (58)% | | Total Revenue | $225.2 | 4% | | Gross Profit | $199.7 | 14% | | % Margin | 89% | 762 bps | | Operating Expenses | $154.0 | 4% | | GAAP Net Income | $39.0 | 83% | | % Margin | 17% | 747 bps | | Non-GAAP Adjusted EBITDA | $66.3 | 32% | | % Margin | 29% | 609 bps | | Cash and Cash Equivalents at period end | $172.9 | (43)% (from Dec 31, 2024) | - Repurchased $184.2 million worth of shares in Q1'25, representing 6% of outstanding capital[2] CEO Commentary CEO Jason Trevisan highlighted strong Marketplace momentum, driven by data solutions, shopper needs, and online transactions - Marketplace business grew 13% year-over-year, continuing strong momentum into 2025[3] - Advanced 2025 core drivers of value creation: expanding data-driven solutions for dealers, meeting evolving shopper needs with intelligent and seamless experiences, and enabling more online transactions[3] Key Performance Indicators CarGurus reported growth in total paying dealers and QARSD, but Digital Wholesale Transactions decreased significantly Paying Dealers and QARSD Performance | Metric | March 31, 2025 Results | Variance from Prior Year | | :--- | :--- | :--- | | U.S. Paying Dealers | 25,153 | 3% | | International Paying Dealers | 7,219 | 7% | | Total Paying Dealers | 32,372 | 4% | | U.S. QARSD | $7,369 | 10% | | International QARSD | $2,073 | 10% | | Consolidated QARSD | $6,173 | 9% | Digital Wholesale Transactions | Metric | March 31, 2025 Results | Variance from Prior Year | | :--- | :--- | :--- | | Transactions | 5,209 | (49)% | - U.S. and International Average Monthly Unique Users and Sessions are not comparable year-over-year due to a change from Google Universal Analytics to Google Analytics 4 (GA4) on July 1, 2024[6][8] Second Quarter 2025 Guidance Q2 2025 Financial Outlook CarGurus projects Q2 2025 total revenue between $222.0 million and $242.0 million Q2 2025 Financial Guidance | Second Quarter 2025 Guidance Metrics | Values (in millions, except per share) | | :--- | :--- | | Total Revenue | $222.0 million to $242.0 million | | Marketplace Revenue | $219.5 million to $224.5 million | | Non-GAAP Adjusted EBITDA | $71.5 million to $79.5 million | | Non-GAAP Earnings per Share | $0.52 to $0.58 | Guidance Assumptions and Exclusions Q2 2025 guidance is based on market trends, excluding macro-level issues, foreign currency, and certain non-GAAP adjustments - Guidance is based on recent market trends, industry conditions, and management's expectations and assumptions[9][11] - Excludes macro-level industry issues, potential foreign currency exchange impacts, and certain GAAP to non-GAAP reconciling items (e.g., stock-based compensation, amortization of intangibles) due to their unpredictable nature[11][12] Corporate Information Conference Call and Webcast CarGurus will host a conference call and webcast on May 8, 2025, to discuss Q1 2025 results and outlook - Conference call and live webcast to discuss Q1 2025 financial results and business outlook scheduled for May 8, 2025, at 5:00 p.m. Eastern Time[14] - An audio replay and archived webcast will be available until May 22, 2025, on the Investors section of CarGurus' website[15] About CarGurus CarGurus is a multinational online automotive platform for buying and selling vehicles, offering a listings marketplace and digital retail solutions - CarGurus is a multinational online automotive platform for buying and selling vehicles, building upon its listings marketplace with digital retail solutions and the CarOffer online wholesale platform[16] - The platform uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience[16] - Operates online marketplaces under the CarGurus brand in the U.S., Canada, and the U.K., as well as independent brands Autolist (U.S.) and PistonHeads (U.K.)[16] Cautionary Language Concerning Forward-Looking Statements This section advises readers that the press release contains forward-looking statements regarding future financial and operating results, business strategy, and market conditions - The press release includes forward-looking statements regarding future financial and operating results, business strategy, and market conditions[20] - These statements are based on current expectations and projections but are subject to risks and uncertainties that could cause actual results to differ materially[20][21] - The company is under no duty to update any forward-looking statements after the date of the press release, except as required by law[21] Investor and Media Contacts Contact information for CarGurus' Investor Relations and Public Relations is provided for inquiries - Investor Contact: Kirndeep Singh, Vice President, Head of Investor Relations (investors@cargurus.com)[22] - Media Contact: Maggie Meluzio, Director, Public Relations and External Communications (pr@cargurus.com)[22] Unaudited Condensed Consolidated Financial Statements Unaudited Condensed Consolidated Balance Sheets As of March 31, 2025, total assets decreased to $689.1 million from $824.5 million, primarily due to reduced cash and cash equivalents Unaudited Condensed Consolidated Balance Sheets | Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Cash and cash equivalents | $172,862 | $304,193 | | Total current assets | $251,970 | $391,206 | | Total assets | $689,115 | $824,536 | | Total current liabilities | $94,507 | $93,051 | | Total liabilities | $287,065 | $282,847 | | Total stockholders' equity | $402,050 | $541,689 | Unaudited Condensed Consolidated Income Statements For Q1 2025, total revenue increased to $225.2 million, and net income significantly improved to $39.0 million from $21.3 million in the prior year Unaudited Condensed Consolidated Income Statements - Revenue | Revenue Type | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Marketplace | $212,235 | $187,219 | | Wholesale | $7,747 | $16,125 | | Product | $5,176 | $12,452 | | Total revenue | $225,158 | $215,796 | Unaudited Condensed Consolidated Income Statements - Profit and EPS | Metric | Three Months Ended March 31, 2025 (in thousands, except per share) | Three Months Ended March 31, 2024 (in thousands, except per share) | | :--- | :--- | :--- | | Gross profit | $199,707 | $174,961 | | Income from operations | $45,755 | $26,284 | | **