CarGurus Announces Fourth Quarter and Full Year 2024 Results

Core Insights - CarGurus, Inc. reported a 15% year-over-year growth in Marketplace revenue for Q4 2024, reaching $210.2 million, and a total revenue of $228.5 million, which is a 2% increase from the previous year [2][4] - The company achieved a consolidated GAAP net income of $45.9 million for Q4 2024, with a Non-GAAP Consolidated Adjusted EBITDA of $76.4 million, reflecting a 25% increase year-over-year [2][4] - International revenue grew by 26% year-over-year, and OEM Advertising revenue also saw double-digit growth [2][4] Financial Performance - Q4 2024 Marketplace Revenue: $210.2 million, up 15% YoY; Total Revenue: $228.5 million, up 2% YoY [4] - Q4 2024 GAAP Net Income: $45.9 million; Non-GAAP Adjusted EBITDA: $76.4 million, up 25% YoY [2][4] - Full Year 2024 Total Revenue: $894.4 million, down 2% YoY; Gross Profit: $738.9 million, up 13% YoY [4][21] Operational Highlights - The U.S. Marketplace segment revenue for Q4 2024 was $193.4 million, a 15% increase YoY, while the Digital Wholesale segment revenue dropped by 55% [5][23] - The number of U.S. Paying Dealers remained stable at 24,692, with a 2% increase, while International Paying Dealers grew by 11% to 7,318 [5][23] - The company reported a significant margin expansion, with a gross margin of 87% for Q4 2024, an increase of 1,176 basis points [4][21] Future Guidance - For Q1 2025, CarGurus expects total revenue to be between $216 million and $236 million, with Marketplace revenue projected between $209 million and $214 million [6][7] - Non-GAAP Consolidated Adjusted EBITDA guidance for Q1 2025 is set between $60 million and $68 million, with Non-GAAP EPS expected to range from $0.41 to $0.47 [7][8] Strategic Outlook - The CEO emphasized the company's focus on product innovation and enhancing dealer ROI, which has led to increased engagement and market share [3] - CarGurus aims to leverage data-driven insights and competitive intelligence to strengthen its market leadership in 2025 [3]