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Mar 31, 2021

Cargurus Q1 2021 Earnings Report

CarGurus generated strong results, with revenue increasing year-over-year and GAAP operating income improving significantly.

Key Takeaways

CarGurus announced its Q1 2021 financial results, reporting a 9% increase in total revenue to $171.4 million and a GAAP operating income of $25.8 million. The company's performance reflects a stronger, more efficient operation with a strategy focused on the future of car shopping for consumers and dealers.

Total revenue increased by 9% year-over-year, reaching $171.4 million.

GAAP operating income was $25.8 million, representing 15% of total revenue.

GAAP consolidated net income was $19.6 million, compared to $12.7 million in the same quarter of the previous year.

U.S. revenue increased by 10% to $163.0 million.

Total Revenue
$171M
Previous year: $158M
+8.7%
EPS
$0.33
Previous year: $0.19
+73.7%
US AARSD
$5.47K
Previous year: $18.4K
-70.3%
International AARSD
$1.11K
Previous year: $5.22K
-78.7%
Gross Profit
$147M
Previous year: $146M
+0.8%
Cash and Equivalents
$141M
Previous year: $74.5M
+88.9%
Free Cash Flow
$35.4M
Previous year: $8.3M
+326.5%
Total Assets
$713M
Previous year: $406M
+75.5%

Cargurus

Cargurus

Cargurus Revenue by Geographic Location

Forward Guidance

CarGurus anticipates total revenue, non-GAAP operating income, and non-GAAP earnings per share for the second quarter 2021 to be in the following ranges: Total revenue $186 million to $192 million Non-GAAP operating income $35.5 million to $39.5 million Non-GAAP EPS $0.23 to $0.25

Positive Outlook

  • Total revenue $186 million to $192 million
  • Non-GAAP operating income $35.5 million to $39.5 million
  • Non-GAAP EPS $0.23 to $0.25
  • The second quarter 2021 non-GAAP earnings per share calculation assumes 118.4 million diluted weighted-average common shares outstanding.
  • Guidance does not include any potential impact of foreign currency exchange gains or losses.

Challenges Ahead

  • Guidance for the second quarter 2021 excludes the effects of significant COVID-19 resurgences, including the continuation or reintroduction of lockdowns and/or a slowed pace of recovery
  • Guidance excludes other macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors
  • Guidance excludes issues that cause us to enact additional measures to assist dealers, such as offering further fee reductions or waivers.
  • The assumptions that are built into guidance regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market behaviors.
  • CarGurus has not reconciled its guidance for non-GAAP operating income to GAAP operating income or non-GAAP consolidated EPS to GAAP consolidated EPS

Revenue & Expenses

Visualization of income flow from segment revenue to net income