NASDAQ$CARG

Cargurus Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

CarGurus delivered outstanding results, demonstrating durability in its core listings business and accelerated growth in digital wholesale with the CarOffer platform.

CarGurus reported a strong second quarter with a 130% year-over-year increase in total revenue, reaching $217.7 million. The company's GAAP operating income was $38.5 million, and GAAP consolidated net income was $27.4 million. CarGurus is becoming a fully integrated transaction-enabled marketplace for consumers and dealers.

  • Total revenue increased by 130% year-over-year, reaching $217.7 million.
  • GAAP operating income was $38.5 million; non-GAAP operating income was $68.9 million.
  • GAAP consolidated net income was $27.4 million; non-GAAP consolidated net income was $53.8 million.
  • Cash, cash equivalents and short-term investments totaled $269.6 million.

Headline financials

Total Revenue

$218M

Previous: $94.7M+129.8%
EPS (adj)

$0.41

Previous: $0.19+115.8%
International QARSD

$1.49K

Previous: $643.00+131.9%
Capital Expenditures

-$4.67M

Previous: -$2.57M-81.7%
Free Cash Flow

$23.4M

Previous: $4.56M+412.7%
Net Income

$28.1M

Previous: $7.13M+293.4%
Operating Income

$38.5M

Previous: $8.71M+341.8%
Gross Profit

$167M

Previous: $84.9M+97.3%
Cash & Equivalents

$270M

Previous: $133M+102.4%
Total Assets

$784M

Previous: $407M+92.5%
Stock-Based Comp

$14.4M

Previous: $11.8M+22.2%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$218M

Q2 2021+129.8%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

CarGurus anticipates total revenue, non-GAAP operating income, and non-GAAP earnings per share for the third quarter 2021 to be in the following ranges:

Tailwinds

  • Total revenue $210 million to $216 million
  • Non-GAAP operating income $53 million to $57 million
  • Non-GAAP EPS $0.30 to $0.32
  • The third quarter 2021 non-GAAP earnings per share calculation assumes 120.1 million diluted weighted-average common shares outstanding.
  • The assumptions that are built into guidance for the third quarter 2021 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market behaviors and industry conditions.

Headwinds

  • Guidance for the third quarter 2021 excludes the effects of significant COVID-19 resurgences, including the reintroduction of lockdowns and/or a slowed pace of recovery, or other macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact additional measures to assist dealers, such as offering further fee reductions or waivers.
  • Guidance also excludes the potential impact of transactions related to CarGurus’ Instant Max Cash Offer offering
  • Guidance also excludes adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests
  • Guidance also excludes any potential impact of foreign currency exchange gains or losses.
  • CarGurus has not reconciled its guidance for non-GAAP operating income to GAAP operating income or non-GAAP consolidated EPS to GAAP consolidated EPS because stock-based compensation, amortization of intangible assets, acquisition-related expenses, and adjustments to the carrying value of redeemable noncontrolling interests resulting from changes in the redemption value of such interests, the reconciling items between such GAAP and non-GAAP financial measures, cannot be reasonably predicted due to, as applicable, the timing, amount, valuation and number of future employee equity awards, and the uncertainty relating to the timing, frequency and effect of acquisitions and the significance of the resulting acquisition-related expenses, including adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests, and therefore cannot be determined without unreasonable effort.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.3%

Avg return

Earnings day

+2.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

64%

25 / 39 earnings

Positive

+49.8%

Q4 2021

Best reaction

-27.5%

Q1 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-8.9%-18.1%-28.1%
Q4 2025+3.2%+3.6%+15.1%
Q3 2025+0.6%+7.6%+8.2%
Q1 2025+11.2%+20.4%+14.4%
Q4 2024-17.1%-17.0%-19.9%
Q3 2024+5.8%+14.0%+16.6%
Q2 2024+21.8%+28.5%+23.2%
Q1 2024+9.3%+10.6%+18.2%
Q4 2023-1.3%-4.9%-3.5%
Q3 2023+3.6%+3.2%+15.4%
Q2 2023-7.3%-7.2%-5.8%
Q1 2023+15.8%+17.3%+26.8%
Q4 2022+6.4%+2.4%+6.4%
Q3 2022-10.8%+3.3%-6.2%
Q2 2022-25.4%-21.7%-26.5%
Q1 2022-27.5%-20.1%-19.7%
Q4 2021+49.8%+50.0%+33.5%
Q3 2021+5.9%+7.3%+2.6%
Q2 2021+7.5%+3.5%+3.3%
Q1 2021+11.4%+17.0%+7.7%
Q4 2020-9.8%-15.0%-29.4%
Q3 2020+6.5%+4.5%+16.2%
Q2 2020-2.3%-10.5%-24.6%
Q1 2020+2.9%-7.8%+9.4%
Q4 2019-27.3%-24.3%-38.8%
Q3 2019+5.1%+10.1%+12.0%
Q2 2019-4.0%-6.8%-3.8%
Q1 2019-2.0%-2.8%-12.5%
Q4 2018-5.3%-6.5%-6.1%
Q3 2018-1.0%-3.2%-16.4%
Q2 2018+20.3%+16.1%+8.1%
Q1 2017+1.0%+2.5%+5.4%
Q1 2018+1.0%+2.5%+5.4%
Q2 2017+11.4%+11.7%+19.2%
Q4 2017+11.4%+11.7%+19.2%
Q4 2015+11.4%+11.7%+19.2%
Q4 2016+5.0%+4.3%+1.9%
Q3 2016+5.0%+4.3%+1.9%
Q3 2017+5.0%+4.3%+1.9%
Q2 2016
Q1 2016

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