Cargurus Q3 2022 Earnings Report
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
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