•
Jun 30, 2020

Cargurus Q2 2020 Earnings Report

CarGurus demonstrated flexibility and resilience amidst the COVID-19 pandemic, generating strong results with increased consumer demand and lead generation.

Key Takeaways

CarGurus reported a total revenue of $94.7 million, a decrease of 35% year-over-year. GAAP operating income was $8.7 million, and GAAP net income was $7.1 million, or $0.06 per fully diluted share. The company experienced recovery signs in the second quarter with increased consumer demand in May and June.

Total revenue was $94.7 million, a 35% decrease year-over-year.

GAAP operating income was $8.7 million; non-GAAP operating income was $24.7 million.

GAAP net income was $7.1 million; non-GAAP net income was $21.3 million.

Adjusted EBITDA was $27.5 million.

Total Revenue
$94.7M
Previous year: $145M
-34.7%
EPS
$0.19
Previous year: $0.1
+90.0%
US AARSD
$3.05K
International AARSD
$643
Total Paying Dealers
2.52K
Gross Profit
$84.9M
Previous year: $136M
-37.8%
Cash and Equivalents
$133M
Previous year: $27.8M
+378.4%
Free Cash Flow
$22.4M
Previous year: $13.2M
+70.2%
Total Assets
$407M
Previous year: $346M
+17.7%

Cargurus

Cargurus

Cargurus Revenue by Geographic Location

Forward Guidance

CarGurus anticipates total revenue, non-GAAP operating income, and non-GAAP earnings per share to be in the following ranges:

Positive Outlook

  • Third Quarter 2020: Total revenue $132 to $135 million
  • Third Quarter 2020: Non-GAAP operating income $29 to $31 million
  • Third Quarter 2020: Non-GAAP EPS $0.21 to $0.23
  • Full-Year 2020: Total revenue $518 to $524 million
  • Full-Year 2020: Non-GAAP operating income $89 to $93 million

Challenges Ahead

  • Full-Year 2020: Non-GAAP EPS $0.66 to $0.69
  • Guidance does not include any potential impact of foreign currency exchange gains or losses.
  • CarGurus has not reconciled its non-GAAP operating income guidance to GAAP operating income.
  • CarGurus has not reconciled its non-GAAP EPS guidance to GAAP EPS.
  • Reconciling items between such GAAP and non-GAAP financial measures cannot be reasonably predicted.

Revenue & Expenses

Visualization of income flow from segment revenue to net income