Loading...
•
Jun 30, 2023
Cargurus Q2 2023 Earnings Report
CarGurus' Q2 2023 financial results were announced, exceeding adjusted EBITDA guidance due to Marketplace growth and efficiency improvements in Digital Wholesale.
Key Takeaways
CarGurus reported a total revenue of $239.7 million, a 53% decrease year-over-year. Marketplace revenue increased by 4% to $171.0 million, while Wholesale revenue decreased by 58% to $32.0 million. GAAP net income was $13.8 million, a 23% decrease year-over-year. The company exceeded its forecasted consolidated adjusted EBITDA guidance, reporting $45.2 million.
Total revenue was $239.7 million, a decrease of 53% year-over-year.
Marketplace revenue increased by 4% year-over-year to $171.0 million.
GAAP consolidated net income was $13.8 million, a decrease of 23% year-over-year.
Consolidated Adjusted EBITDA was $45.2 million, a decrease of 26% year-over-year.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
CarGurus anticipates total revenue, product revenue, non-GAAP Consolidated Adjusted EBITDA, and non-GAAP earnings per share for the third quarter 2023.
Positive Outlook
- Total revenue $201 million to $221 million
- Product revenue $15 million to $25 million
- Non-GAAP Consolidated Adjusted EBITDA $36 million to $44 million
- Non-GAAP EPS $0.24 to $0.27
- The third quarter 2023 non-GAAP EPS calculation assumes 114.5 million diluted weighted-average common shares outstanding.
Challenges Ahead
- Guidance for the third quarter 2023 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact measures to assist dealers.
- Guidance also excludes adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests.
- 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 income or non-GAAP consolidated EPS to GAAP consolidated EPS because the reconciling items between such GAAP and non-GAAP financial measures cannot be reasonably predicted.
- The uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting acquisition-related expenses cannot be determined without unreasonable effort.
Revenue & Expenses
Visualization of income flow from segment revenue to net income