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Jun 30, 2024

Cargurus Q2 2024 Earnings Report

CarGurus' Q2 2024 financial results were announced, showing marketplace revenue accelerated and non-GAAP adjusted EBITDA increased.

Key Takeaways

CarGurus announced its Q2 2024 results, with marketplace revenue up 14% year-over-year, marking the third consecutive quarter of double-digit growth. The company's Non-GAAP Adjusted EBITDA was $55.6 million, a 23% increase year-over-year. CarGurus also repurchased $61 million worth of shares during the quarter.

Marketplace revenue increased 14% year-over-year.

Non-GAAP Adjusted EBITDA increased 23% year-over-year to $55.6 million.

The company repurchased $61 million of shares.

Total paying dealers increased 1% year-over-year to 31,352.

Total Revenue
$219M
Previous year: $240M
-8.8%
EPS
$0.41
Previous year: $0.29
+41.4%
US AARSD
$6.94K
Previous year: $6.11K
+13.6%
International AARSD
$1.94K
Previous year: $1.61K
+20.2%
Total Paying Dealers
5.85K
Gross Profit
$182M
Previous year: $164M
+11.2%
Cash and Equivalents
$216M
Previous year: $363M
-40.5%
Free Cash Flow
$40.4M
Previous year: $27.5M
+46.9%
Total Assets
$753M
Previous year: $1.04B
-27.6%

Cargurus

Cargurus

Cargurus Revenue by Geographic Location

Forward Guidance

CarGurus provided guidance for the third quarter of 2024, expecting total revenue between $212 million and $232 million, marketplace revenue between $199 million and $204 million, Non-GAAP Consolidated Adjusted EBITDA between $56 million and $64 million, and Non-GAAP EPS between $0.38 and $0.44.

Positive Outlook

  • Total Revenue: $212 million to $232 million
  • Marketplace Revenue: $199 million to $204 million
  • Non-GAAP Consolidated Adjusted EBITDA: $56 million to $64 million
  • Non-GAAP EPS: $0.38 to $0.44
  • Assumes 105.0 million diluted weighted-average common shares outstanding.

Challenges Ahead

  • Excludes macro-level industry issues that result in dealers and consumers materially changing their recent market trends or that cause the company to enact measures to assist dealers.
  • Excludes any potential impact of foreign currency exchange gains or losses.
  • Reconciling items between GAAP and non-GAAP financial measures, which include stock-based compensation, amortization of intangible assets, goodwill and other long-lived asset impairment, depreciation expenses, non-intangible amortization, transaction-related expenses, other income, net, the (benefit from) provision for income taxes, and income tax effects, cannot be reasonably predicted.
  • The timing, amount, valuation, and number of future employee equity awards are uncertain.
  • The timing, frequency and effect of acquisitions and the significance of the resulting transaction-related expenses are uncertain.

Revenue & Expenses

Visualization of income flow from segment revenue to net income