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Dec 31, 2020

Cargurus Q4 2020 Earnings Report

CarGurus generated strong results in Q4 2020, demonstrating the durability of their market leadership and the flexibility of their business model.

Key Takeaways

CarGurus reported Q4 2020 total revenue of $151.6 million, a decrease of 4% year-over-year. GAAP operating income was $33.5 million, and GAAP net income was $25.2 million, or $0.22 per fully diluted share. The company generated $47.9 million in cash from operations and $46.2 million in free cash flow during the quarter.

Total revenue decreased by 4% year-over-year to $151.6 million.

GAAP operating income was $33.5 million, compared to $13.6 million in Q4 2019.

GAAP net income was $25.2 million, or $0.22 per fully diluted share.

U.S. revenue was $143.7 million, a decrease of 3% compared to Q4 2019.

Total Revenue
$152M
Previous year: $158M
-4.2%
EPS
$0.32
Previous year: $0.17
+88.2%
US AARSD
$5.3K
Previous year: $17.6K
-69.8%
International AARSD
$1.06K
Previous year: $5.4K
-80.4%
Gross Profit
$140M
Previous year: $148M
-5.1%
Cash and Equivalents
$190M
Previous year: $59.9M
+217.6%
Free Cash Flow
$46.2M
Previous year: $19.2M
+140.6%
Total Assets
$502M
Previous year: $394M
+27.6%

Cargurus

Cargurus

Cargurus Revenue by Geographic Location

Forward Guidance

CarGurus anticipates total revenue between $156.0 to $160.0 million, non-GAAP operating income between $33.5 to $36.5 million, and non-GAAP EPS between $0.21 to $0.23 for Q1 2021.

Positive Outlook

  • Total revenue $156.0 to $160.0 million
  • Non-GAAP operating income $33.5 to $36.5 million
  • Non-GAAP EPS $0.21 to $0.23

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 the impact of foreign currency exchange gains or losses.
  • Assumptions are based off of recent market behaviors.

Revenue & Expenses

Visualization of income flow from segment revenue to net income