NASDAQ$CARG

Cargurus Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

CarGurus' financial performance fell short of expectations due to hurdles faced in transforming the company, despite progress in integrating Digital Retail and Digital Wholesale.

CarGurus reported a 91% increase in total revenue to $426.5 million, but GAAP operating income decreased by 28% to $28.7 million. The company is undergoing a transformation to integrate Digital Retail and Digital Wholesale with its core Listings business.

  • Total revenue increased by 91% year-over-year to $426.5 million.
  • GAAP operating income was $28.7 million, a decrease of 28% year-over-year.
  • GAAP consolidated net income was $18.8 million compared to $29.3 million in the third quarter of 2021.
  • Cash and cash equivalents totaled $404.4 million, with an additional $400 million available under its revolving credit facility.

Headline financials

Total Revenue

$426M

Previous: $223M+91.3%
EPS (adj)

$0.21

Previous: $0.38-44.7%
U.S. QARSD

$5.8K

Previous: $5.6K+3.5%
International QARSD

$1.51K

No prior period
Capital Expenditures

-$4.17M

Previous: -$4.94M+15.5%
Free Cash Flow

$16.2M

Previous: $24.3M-33.1%
Net Income

$20.4M

Previous: $29.2M-30.1%
Operating Income

$28.7M

Previous: $40.1M-28.5%
Gross Profit

$151M

Previous: $163M-7.4%
Cash & Equivalents

$404M

Previous: $231M+75.0%
Total Assets

$983M

Previous: $820M+19.9%
Stock-Based Comp

$14M

Previous: $13.8M+1.2%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$426M

Q3 2022+91.3%vs Q3 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CarGurus anticipates total revenue between $270 million and $300 million for Q4 2022.

Tailwinds

  • Total Revenue $270 million to $300 million
  • Instant Max Cash Offer Revenue $65 million to $85 million
  • Non-GAAP Consolidated Adjusted EBITDA $6 million to $14 million
  • Non-GAAP EPS $0.13 to $0.16
  • Full-Year 2022: Total Revenue $1,638 million to $1,668 million

Headwinds

  • Guidance excludes the effects of significant COVID-19 resurgences
  • Guidance excludes the reintroduction of lockdowns
  • Guidance excludes 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 adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such 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 2022

Historical avgQ3 2022

+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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