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Sep 30, 2022
Cargurus Q3 2022 Earnings Report
CarGurus' financial performance fell short of expectations due to hurdles faced in transforming the company, despite progress in integrating Digital Retail and Digital Wholesale.
Key Takeaways
CarGurus reported a 91% increase in total revenue to $426.5 million, but GAAP operating income decreased by 28% to $28.7 million. The company is undergoing a transformation to integrate Digital Retail and Digital Wholesale with its core Listings business.
Total revenue increased by 91% year-over-year to $426.5 million.
GAAP operating income was $28.7 million, a decrease of 28% year-over-year.
GAAP consolidated net income was $18.8 million compared to $29.3 million in the third quarter of 2021.
Cash and cash equivalents totaled $404.4 million, with an additional $400 million available under its revolving credit facility.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.com Forward Guidance
CarGurus anticipates total revenue between $270 million and $300 million for Q4 2022.
Positive Outlook
- Total Revenue $270 million to $300 million
- Instant Max Cash Offer Revenue $65 million to $85 million
- Non-GAAP Consolidated Adjusted EBITDA $6 million to $14 million
- Non-GAAP EPS $0.13 to $0.16
- Full-Year 2022: Total Revenue $1,638 million to $1,668 million
Challenges Ahead
- Guidance excludes the effects of significant COVID-19 resurgences
- Guidance excludes the reintroduction of lockdowns
- Guidance excludes 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 adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests
Revenue & Expenses
Visualization of income flow from segment revenue to net income