Loading...
•
Dec 31, 2024
Cargurus Q4 2024 Earnings Report
CarGurus reported mixed results in Q4 2024, with marketplace revenue growing but overall revenue and wholesale revenue declining.
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
Cargurus
Cargurus Revenue by Segment
Revenue by Segment
U.S. Marketplace Revenue
CapyFin.comDigital Wholesale Revenue
CapyFin.comOther Revenue
CapyFin.com 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