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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.
Revenue by Segment
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.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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