NASDAQ$CARG

Cargurus Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

CarGurus' financial performance exceeded expectations, driven by strategic evolution and innovative solutions.

CarGurus reported a strong Q3 2021, exceeding guidance with a 51% year-over-year increase in total revenue, driven by its evolution into an end-to-end transaction-enabled marketplace, partnerships with dealers, and the provision of a self-selective digital retail journey for consumers.

  • Total revenue increased by 51% year-over-year, reaching $222.9 million.
  • GAAP operating income was $40.1 million, while non-GAAP operating income reached $63.1 million.
  • GAAP consolidated net income was $29.3 million, with non-GAAP consolidated net income at $49.5 million.
  • Cash, cash equivalents, and short-term investments totaled $321.1 million.

Headline financials

Total Revenue

$223M

Previous: $147M+51.2%
EPS (adj)

$0.38

Previous: $0.37+2.7%
U.S. QARSD

$5.6K

Previous: $5.13K+9.1%
Capital Expenditures

-$4.94M

Previous: -$2.73M-80.6%
Free Cash Flow

$24.3M

Previous: $29.8M-18.7%
Net Income

$29.2M

Previous: $32.6M-10.3%
Operating Income

$40.1M

Previous: $43.6M-8.0%
Gross Profit

$163M

Previous: $138M+18.3%
Cash & Equivalents

$231M

Previous: $246M-6.0%
Total Assets

$820M

Previous: $461M+78.0%
Stock-Based Comp

$13.8M

Previous: $11M+25.2%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$223M

Q3 2021+51.2%vs Q3 2020
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Forward guidance

CarGurus anticipates strong financial performance for Q4 2021 and the full year, with revenue, non-GAAP operating income, and non-GAAP EPS expected to be in specific ranges.

Tailwinds

  • Total revenue is projected to be between $273 million and $285 million for Q4 2021.
  • Non-GAAP operating income is expected to range from $44 million to $50 million for Q4 2021.
  • Non-GAAP EPS is forecasted to be between $0.28 and $0.30 for Q4 2021.
  • Total revenue for the full year 2021 is anticipated to be between $885 million and $897 million.
  • Non-GAAP operating income for the full year 2021 is expected to range from $224.4 million to $230.4 million.

Headwinds

  • Guidance excludes the effects of significant COVID-19 resurgences.
  • Guidance excludes the reintroduction of lockdowns and/or a slowed pace of recovery.
  • Guidance excludes other macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors.
  • Guidance excludes measures to assist dealers, such as offering fee reductions or waivers.
  • Guidance excludes adjustments to the carrying value of redeemable noncontrolling interests.

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 2021

Historical avgQ3 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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