NASDAQ$CARG

Cargurus Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

CarGurus demonstrated flexibility and resilience in Q3 2020, exceeding revenue and profit guidance due to improved dealer retention and efficient marketing investments.

CarGurus announced its Q3 2020 results, reporting a total revenue of $147.5 million, a slight decrease of 2% year-over-year. GAAP operating income was $43.6 million, and GAAP net income was $32.6 million, or $0.29 per fully diluted share.

  • Total revenue was $147.5 million, a decrease of (2%) year-over-year.
  • GAAP operating income was $43.6 million; non-GAAP operating income was $55.1 million.
  • GAAP net income was $32.6 million; non-GAAP net income was $41.9 million.
  • Cash and cash equivalents of $245.9 million and no debt.

Headline financials

Total Revenue

$147M

Previous: $150M-2.0%
EPS (adj)

$0.37

Previous: $0.14+164.3%
U.S. QARSD

$5.13K

No prior period
International QARSD

$1.26K

No prior period
Capital Expenditures

-$2.73M

Previous: -$10.8M+74.6%
Free Cash Flow

$29.8M

Previous: -$381K+7929.7%
Net Income

$32.6M

Previous: $10.4M+213.6%
Operating Income

$43.6M

Previous: $9.7M+349.0%
Gross Profit

$138M

Previous: $141M-2.4%
Cash & Equivalents

$246M

Previous: $29.5M+733.2%
Total Assets

$461M

Previous: $369M+24.7%
Stock-Based Comp

$11M

Previous: $8.76M+25.9%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$147M

Q3 2020-2%vs Q3 2019
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

CarGurus anticipates for Q4 2020: total revenue between $146.1 to $149.1 million, non-GAAP operating income between $38.7 to $40.7 million, and non-GAAP EPS between $0.26 to $0.28. For the full year 2020, they anticipate total revenue between $546 to $549 million, non-GAAP operating income between $143.5 to $145.5 million, and non-GAAP EPS between $1.01 to $1.03.

Tailwinds

  • Total revenue $146.1 to $149.1 million
  • Non-GAAP operating income $38.7 to $40.7 million
  • Non-GAAP EPS $0.26 to $0.28
  • Total revenue $546 to $549 million
  • Non-GAAP operating income $143.5 to $145.5 million

Headwinds

  • Guidance for the fourth quarter and full-year 2020 excludes the effects of significant COVID-19 resurgences, including the reintroduction of lockdowns and/or a slowed pace of recovery, that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact measures to assist dealers, such as by offering billings relief.
  • Guidance assumes that our pace of paid dealer acquisition, churn, and expansion activity for the remainder of the year will be in line with recent market behaviors.
  • Guidance does not include any potential impact of foreign currency exchange gains or losses.
  • CarGurus has not reconciled its non-GAAP operating income guidance to GAAP operating income, or its non-GAAP EPS guidance to GAAP EPS, because stock-based compensation, amortization of intangible assets, acquisition-related expenses, and restructuring expenses, the reconciling items between such GAAP and non-GAAP financial measures, cannot be reasonably predicted
  • 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 Q3 2020

Historical avgQ3 2020

+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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