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Sep 30, 2021
Cargurus Q3 2021 Earnings Report
CarGurus' financial performance exceeded expectations, driven by strategic evolution and innovative solutions.
Key Takeaways
CarGurus reported a strong Q3 2021, exceeding guidance with a 51% year-over-year increase in total revenue, driven by its evolution into an end-to-end transaction-enabled marketplace, partnerships with dealers, and the provision of a self-selective digital retail journey for consumers.
Total revenue increased by 51% year-over-year, reaching $222.9 million.
GAAP operating income was $40.1 million, while non-GAAP operating income reached $63.1 million.
GAAP consolidated net income was $29.3 million, with non-GAAP consolidated net income at $49.5 million.
Cash, cash equivalents, and short-term investments totaled $321.1 million.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.com Forward Guidance
CarGurus anticipates strong financial performance for Q4 2021 and the full year, with revenue, non-GAAP operating income, and non-GAAP EPS expected to be in specific ranges.
Positive Outlook
- Total revenue is projected to be between $273 million and $285 million for Q4 2021.
- Non-GAAP operating income is expected to range from $44 million to $50 million for Q4 2021.
- Non-GAAP EPS is forecasted to be between $0.28 and $0.30 for Q4 2021.
- Total revenue for the full year 2021 is anticipated to be between $885 million and $897 million.
- Non-GAAP operating income for the full year 2021 is expected to range from $224.4 million to $230.4 million.
Challenges Ahead
- Guidance excludes the effects of significant COVID-19 resurgences.
- Guidance excludes the 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 measures to assist dealers, such as offering fee reductions or waivers.
- Guidance excludes adjustments to the carrying value of redeemable noncontrolling interests.
Revenue & Expenses
Visualization of income flow from segment revenue to net income