Cargurus Q2 2023 Earnings Report
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 Geographic Location
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.