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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.

Total Revenue
$219M
Previous year: $426M
-48.5%
EPS
$0.34
Previous year: $0.21
+61.9%
US AARSD
$6.33K
Previous year: $5.8K
+9.2%
International AARSD
$1.72K
Previous year: $1.51K
+14.2%
Gross Profit
$164M
Previous year: $151M
+9.0%
Cash and Equivalents
$355M
Previous year: $404M
-12.1%
Free Cash Flow
$17.2M
Previous year: $68.9M
-75.0%
Total Assets
$1.05B
Previous year: $983M
+6.7%

Cargurus

Cargurus

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