Cargurus Q4 2024 Earnings Report
Key Takeaways
CarGurus reported Q4 2024 revenue of $228.5 million, up 2% year-over-year. Marketplace revenue increased by 15% YoY, while wholesale and product revenue declined significantly. Net income reached $45.9 million, and adjusted EBITDA improved 25% to $76.4 million. The company highlighted strong international growth and increased adoption of premium services but faces headwinds in the wholesale segment.
Total Q4 2024 revenue grew 2% YoY to $228.5 million.
Marketplace revenue increased 15% YoY to $210.2 million.
Wholesale revenue declined 55% YoY to $9.9 million.
Adjusted EBITDA grew 25% YoY to $76.4 million.
Cargurus Revenue
Cargurus EPS
Cargurus Revenue by Segment
Cargurus Revenue by Geographic Location
Forward Guidance
CarGurus expects Q1 2025 revenue to range between $216M and $236M, with non-GAAP EPS between $0.41 and $0.47. The company anticipates continued strength in marketplace revenue but remains cautious about wholesale segment performance.
Positive Outlook
- Marketplace revenue expected to remain strong, with continued growth in premium tiers.
- International segment expected to see continued double-digit growth.
- OEM advertising demand remains robust, supporting revenue expansion.
- Ongoing product innovations improving dealer engagement and retention.
- Company well-positioned for further market penetration with data-driven insights.
Challenges Ahead
- Wholesale revenue expected to continue declining due to market headwinds.
- Macroeconomic uncertainties may impact overall automotive market trends.
- Higher operating expenses expected due to investment in product development.
- Potential fluctuations in foreign exchange rates affecting international earnings.
- Competitive pressures in the digital automotive marketplace could impact pricing power.
Revenue & Expenses
Visualization of income flow from segment revenue to net income