NASDAQ$CARG

Cargurus Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

CarGurus' Q2 2023 financial results were announced, exceeding adjusted EBITDA guidance due to Marketplace growth and efficiency improvements in Digital Wholesale.

CarGurus reported a total revenue of $239.7 million, a 53% decrease year-over-year. Marketplace revenue increased by 4% to $171.0 million, while Wholesale revenue decreased by 58% to $32.0 million. GAAP net income was $13.8 million, a 23% decrease year-over-year. The company exceeded its forecasted consolidated adjusted EBITDA guidance, reporting $45.2 million.

  • Total revenue was $239.7 million, a decrease of 53% year-over-year.
  • Marketplace revenue increased by 4% year-over-year to $171.0 million.
  • GAAP consolidated net income was $13.8 million, a decrease of 23% year-over-year.
  • Consolidated Adjusted EBITDA was $45.2 million, a decrease of 26% year-over-year.

Headline financials

Total Revenue

$240M

Previous: $511M-53.1%
EPS (adj)

$0.29

Previous: $0.32-9.4%
U.S. QARSD

$6.11K

Previous: $5.77K+5.9%
International QARSD

$1.61K

Previous: $1.53K+5.0%
Capital Expenditures

-$4.26M

Previous: -$2.66M-59.9%
Free Cash Flow

$12.2M

Previous: $16.6M-26.9%
Net Income

$16.4M

Previous: $19.3M-14.9%
Operating Income

$17.7M

Previous: $23.5M-24.7%
Gross Profit

$164M

Previous: $188M-12.6%
Cash & Equivalents

$363M

Previous: $368M-1.4%
Total Assets

$1.04B

Previous: $1.01B+3.0%
Stock-Based Comp

$14.6M

Previous: $13.4M+8.7%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$240M

Q2 2023-53.1%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CarGurus anticipates total revenue, product revenue, non-GAAP Consolidated Adjusted EBITDA, and non-GAAP earnings per share for the third quarter 2023.

Tailwinds

  • Total revenue $201 million to $221 million
  • Product revenue $15 million to $25 million
  • Non-GAAP Consolidated Adjusted EBITDA $36 million to $44 million
  • Non-GAAP EPS $0.24 to $0.27
  • The third quarter 2023 non-GAAP EPS calculation assumes 114.5 million diluted weighted-average common shares outstanding.

Headwinds

  • Guidance for the third quarter 2023 excludes macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact measures to assist dealers.
  • 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 of non-GAAP consolidated adjusted EBITDA to GAAP consolidated net income or non-GAAP consolidated EPS to GAAP consolidated EPS because the reconciling items between such GAAP and non-GAAP financial measures cannot be reasonably predicted.
  • The uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting acquisition-related expenses 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 2023

Historical avgQ2 2023

+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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