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Dec 31, 2019

Cargurus Q4 2019 Earnings Report

CarGurus finished 2019 with a strong fourth quarter, driven by U.S. marketplace traffic and lead growth, new product adoption, and international business scaling efficiently.

Key Takeaways

CarGurus announced its Q4 2019 financial results, reporting a total revenue of $158.2 million, a 25% increase year-over-year. GAAP operating income was $13.6 million, while non-GAAP operating income reached $23.1 million. GAAP net income was $13.2 million, and adjusted EBITDA was $25.1 million.

Total revenue increased by 25% year-over-year to $158.2 million.

U.S. marketplace experienced continued traffic and lead growth.

Product attach rate reached 30% with over 1,000 U.S. dealers subscribing to at least three products.

International business scaled efficiently with strong audience and leads growth.

Total Revenue
$158M
Previous year: $126M
+25.4%
EPS
$0.17
Previous year: $0.11
+54.5%
US AARSD
$17.6K
International AARSD
$5.4K
Total Paying Dealers
36.12K
Gross Profit
$148M
Previous year: $119M
+23.8%
Cash and Equivalents
$59.9M
Previous year: $34.9M
+71.8%
Free Cash Flow
$19.2M
Previous year: $13M
+47.2%
Total Assets
$394M
Previous year: $268M
+46.7%

Cargurus

Cargurus

Cargurus Revenue by Geographic Location

Forward Guidance

CarGurus anticipates total revenue, non-GAAP operating income, and non-GAAP earnings per share to be in the following ranges:

Positive Outlook

  • Total revenue $156.5 to $159.5 million
  • Non-GAAP operating income $10 to $12 million
  • Non-GAAP EPS $0.07 to $0.08
  • Total revenue $156.5 to $159.5 million
  • Non-GAAP operating income $10 to $12 million

Challenges Ahead

  • Non-GAAP EPS $0.07 to $0.08
  • The first quarter 2020 non-GAAP earnings per share calculation assumes 115.0 million diluted weighted-average common shares outstanding.
  • Total revenue $664 to $676 million
  • Non-GAAP operating income $78 to $86 million
  • Non-GAAP EPS $0.50 to $0.55

Revenue & Expenses

Visualization of income flow from segment revenue to net income