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Sep 30, 2023
Cargurus Q3 2023 Earnings Report
Cargurus's Q3 2023 performance reflected marketplace revenue growth and exceeded adjusted EBITDA guidance.
Key Takeaways
CarGurus reported Q3 2023 results with marketplace revenue increasing by 8% year-over-year, driven by the Listings business. The company's GAAP consolidated net income was $19.0 million, and the consolidated Adjusted EBITDA was $48.6 million, exceeding the high-end of the guidance range. The Board of Directors authorized a $250.0 million share repurchase program commencing in 2024, and the company acquired the remaining minority equity interests in CarOffer, LLC.
Marketplace revenue grew by 8% year-over-year.
GAAP consolidated net income was $19.0 million.
Consolidated Adjusted EBITDA was $48.6 million, exceeding guidance.
Board authorized a $250.0 million share repurchase program.
Cargurus
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
CarGurus anticipates total revenue between $208 million and $228 million, product revenue between $12 million and $22 million, non-GAAP Consolidated Adjusted EBITDA between $46 million and $54 million, and non-GAAP EPS between $0.30 and $0.33 for the fourth quarter of 2023.
Positive Outlook
- Total revenue between $208 million and $228 million
- Product revenue between $12 million and $22 million
- Non-GAAP Consolidated Adjusted EBITDA between $46 million and $54 million
- Non-GAAP EPS between $0.30 and $0.33
- Assumes 113.5 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 behaviors
- Excludes measures to assist dealers.
- Excludes adjustments to the carrying value of redeemable noncontrolling interests
- Excludes any potential impact of foreign currency exchange gains or losses.
- Reconciling items between GAAP and non-GAAP financial measures cannot be reasonably predicted
Revenue & Expenses
Visualization of income flow from segment revenue to net income