Q3'24 Marketplace revenue further accelerated to 15% YoY
Consolidated GAAP Net Income of $22.5 million1, up 19% YoY; Non-GAAP Consolidated Adjusted EBITDA of $64.9 million, up 33% YoY
CarGurus' Board of Directors authorized $200.0 million share repurchase program for fiscal year 2025
BOSTON, Nov. 07, 2024 (GLOBE NEWSWIRE) -- CarGurus, Inc. (Nasdaq: CARG), the No. 1 visited digital auto platform for shopping, buying, and selling new and used vehicles*, today announced financial results for the third quarter ended September 30, 2024.
"We are proud of our third quarter results as our Marketplace revenue growth further accelerated, and we leveraged our cost base to drive operating efficiencies," said Jason Trevisan, Chief Executive Officer at CarGurus. "Our customer-centric focus has enabled us to capture greater wallet share, as we strive to continuously enhance the value proposition we offer to our dealer partners, delivering actionable insights, tools, and functionalities that will over time drive adoption, engagement, and retention across our platform."
Third Quarter Financial Highlights
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2024 | |||||||||||||||
| Results
(in millions) | Variance from Prior Year | Results (in millions) | Variance from Prior Year | |||||||||||||
| Revenue | ||||||||||||||||
| Marketplace Revenue | $ | 204.0 | 15 | % | $ | 586.4 | 14 | % | ||||||||
| Wholesale Revenue | 12.1 | (44 | )% | 41.4 | (48 | )% | ||||||||||
| Product Revenue | 15.2 | (23 | )% | 38.1 | (60 | )% | ||||||||||
| Total Revenue | $ | 231.4 | 5 | % | $ | 665.8 | (4 | )% | ||||||||
| Gross Profit (2) | $ | 182.6 | 11 | % | $ | 540.0 | 12 | % | ||||||||
| % Margin | 79 | % | 403 bps | 81 | % | 1,115 bps | ||||||||||
| Operating Expenses (3) | $ | 155.1 | 10 | % | $ | 579.8 | 35 | % | ||||||||
| GAAP Consolidated Net Income (Loss) (1) | $ | 22.5 | 19 | % | $ | (24.9 | ) | (156 | )% | |||||||
| % Margin | 10 | % | 108 bps | (4 | )% | (1,020) bps | ||||||||||
| Non-GAAP Consolidated Adjusted EBITDA (4) | $ | 64.9 | 33 | % | $ | 170.8 | 27 | % | ||||||||
| % Margin (4) | 28 | % | 589 bps | 26 | % | 618 bps | ||||||||||
| Cash, Cash Equivalents, and Short-Term Investments at period end (5) | $ | 246.7 | (21 | )% | $ | 246.7 | (21 | )% | ||||||||
(2) Inclusive of $9.8 million and $9.9 million of impairment-related charges for the three and nine months ended September 30, 2024, respectively.
(3) Inclusive of $7.0 million and $134.5 million of impairment-related charges for the three and nine months ended September 30, 2024, respectively.
(4) For more information regarding our use of non-GAAP Consolidated Adjusted EBITDA and other non-GAAP financial measures, please see the reconciliations of GAAP financial measures to non-GAAP financial measures and the section titled "Non-GAAP Financial Measures and Other Business Metrics” below.
(5) Variance represents the change from December 31, 2023.
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, 2024 | September 30, 2024 | |||||||||||||||
| Results | Variance from Prior Year | Results | Variance from Prior Year | |||||||||||||
| Key Performance Indicators (1) | ||||||||||||||||
| U.S. Paying Dealers (2) | 24,561 | 1 | % | 24,561 | 1 | % | ||||||||||
| International Paying Dealers (2) | 7,123 | 4 | % | 7,123 | 4 | % | ||||||||||
| Total Paying Dealers (2) | 31,684 | 2 | % | 31,684 | 2 | % | ||||||||||
| U.S. QARSD (2) | $ | 7,177 | 13 | % | $ | 7,177 | 13 | % | ||||||||
| International QARSD (2) | $ | 2,057 | 20 | % | $ | 2,057 | 20 | % | ||||||||
| Consolidated QARSD (2) | $ | 6,038 | 14 | % | $ | 6,038 | 14 | % | ||||||||
| Transactions | 8,249 | (39 | )% | 27,329 | (47 | )% | ||||||||||
| U.S. Average Monthly Unique Users (in millions) (3) | 32.3 | N/A(5) | N/A(5) | N/A(5) | ||||||||||||
| U.S. Average Monthly Sessions (in millions) (3) | 80.4 | N/A(5) | N/A(5) | N/A(5) | ||||||||||||
| International Average Monthly Unique Users (in millions) (3) | 9.9 | N/A(5) | N/A(5) | N/A(5) | ||||||||||||
| International Average Monthly Sessions (in millions) (3) | 20.4 | N/A(5) | N/A(5) | N/A(5) | ||||||||||||
| Segment Reporting (in millions) | ||||||||||||||||
| U.S. Marketplace Segment Revenue | $ | 187.3 | 14 | % | $ | 540.3 | 13 | % | ||||||||
| U.S. Marketplace Segment Operating Income | $ | 50.4 | 51 | % | $ | 126.7 | 50 | % | ||||||||
| Digital Wholesale Segment Revenue | $ | 27.3 | (34 | )% | $ | 79.4 | (55 | )% | ||||||||
| Digital Wholesale Segment Operating Loss (4) | $ | (25.3 | ) | (117 | )% | $ | (173.8 | ) | (496 | )% | ||||||
(2) Metrics presented as of September 30, 2024.
(3) CarOffer website is excluded from the metrics presented for users and sessions.
(4) Inclusive of $16.8 million and $144.4 million of impairment-related charges for the three and nine months ended September 30, 2024, respectively.
(5) As a result of the change from Google Universal Analytics ("Google Analytics") to Google Analytics 4 ("GA4") on July 1, 2024, we are unable to provide comparable monthly unique users or monthly sessions information for this period. For more information regarding the change in methodology for monthly unique users or monthly sessions, please see the section titled "Non-GAAP Financial Measures and Other Business Metrics” below.
Fourth Quarter and Full-Year 2024 Guidance
The table below provides CarGurus' guidance, which is based on recent market trends, industry conditions, and management's expectations and assumptions as of today.
| Fourth Quarter 2024 Guidance Metrics | Values |
| Total Revenue | $219 million to $239 million |
| Marketplace Revenue | $208 million to $213 million |
| Non-GAAP Consolidated Adjusted EBITDA | $72 million to $80 million |
| Non-GAAP EPS | $0.50 to $0.55 |
| Full-Year 2024 Guidance Metrics | Values |
| Total Revenue | $885 million to $905 million |
| Marketplace Revenue | $794 million to $799 million |
| Non-GAAP Consolidated Adjusted EBITDA | $243 million to $251 million |
| Non-GAAP EPS | $1.67 to $1.73 |
The assumptions that are built into guidance for the fourth quarter and full-year 2024 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market trends and industry conditions. Guidance for the fourth quarter and full-year 2024 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause us to enact measures to assist dealers. Guidance also excludes any potential impact of foreign currency exchange gains or losses.
CarGurus has not reconciled its guidance of non-GAAP consolidated adjusted EBITDA to GAAP consolidated net loss or non-GAAP EPS to GAAP EPS because reconciling items between such GAAP and non-GAAP financial measures, which include, as applicable, stock-based compensation, amortization of intangible assets, goodwill and other asset impairment, depreciation expenses, non-intangible amortization, transaction-related expenses, other income, net, the provision for (benefit from) income taxes, and income tax effects, cannot be reasonably predicted due to, as applicable, the timing, amount, valuation, and number of future employee equity awards, and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, and therefore cannot be determined without unreasonable effort.
Conference Call and Webcast Information
CarGurus will host a conference call and live webcast to discuss its third quarter 2024 financial results and business outlook at 5:00 p.m. Eastern Time today, November 7, 2024. To access the conference call, dial (844) 834-0648 for callers in the U.S. or Canada, or (412) 542-4103 for international callers. The webcast will be available live on the Investors section of CarGurus' website at https://investors.cargurus.com.
An audio replay of the call will also be available to investors beginning at approximately 8:00 p.m. Eastern Time today, November 7, 2024, until 11:59 p.m. Eastern Time on November 21, 2024, by dialing (844) 512-2921 for callers in the U.S. or Canada, or (412) 317-6671 for international callers, and entering passcode 10192482. In addition, an archived webcast will be available on the Investors section of CarGurus' website at https://investors.cargurus.com.
About CarGurus
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S.*
CarGurus also operates online marketplaces under the CarGurus brand in Canada and the U.K. In the U.S. and the U.K., CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.
To learn more about CarGurus, visit www.cargurus.com, and for more information about CarOffer, visit www.caroffer.com.
*Source: Similarweb: Traffic Report, Q3 2024, U.S.
CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are property of their respective owners.
© 2024 CarGurus, Inc., All Rights Reserved.
Cautionary Language Concerning Forward-Looking Statements
This press release includes forward-looking statements. Other than statements of historical facts, all statements contained in this press release, including statements regarding our future financial and operating results; our fourth quarter 2024 and full year 2024 financial and business performance, including guidance; our business and growth strategy and our plans to execute on our growth strategy; our ability to grow our business profitably and efficiently; our capital allocation and investment strategy; the attractiveness and value proposition of our current offerings and other product opportunities; our ability to maintain existing and acquire new customers; addressable opportunities; our expectation that we will continue to invest in growth initiatives; our ability to quickly make transformations necessary for our business to achieve long-term goals; and the impact of macro-level issues on our industry, business, and financial results, are forward-looking statements. The words "aim,” "anticipate,” "believe,” "could,” "estimate,” "expect,” "goal,” "guide,” "guidance,” "intend,” "may,” "might,” "plan,” "potential,” "predicts,” "projects,” "seeks,” "should,” "strive,” "target,” "will,” "would,” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. You should not rely upon forward-looking statements as predictions of future events.
These forward-looking