NASDAQ$CARG

Cargurus Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

CarGurus finished 2019 with a strong fourth quarter, driven by U.S. marketplace traffic and lead growth, new product adoption, and international business scaling efficiently.

CarGurus announced its Q4 2019 financial results, reporting a total revenue of $158.2 million, a 25% increase year-over-year. GAAP operating income was $13.6 million, while non-GAAP operating income reached $23.1 million. GAAP net income was $13.2 million, and adjusted EBITDA was $25.1 million.

  • Total revenue increased by 25% year-over-year to $158.2 million.
  • U.S. marketplace experienced continued traffic and lead growth.
  • Product attach rate reached 30% with over 1,000 U.S. dealers subscribing to at least three products.
  • International business scaled efficiently with strong audience and leads growth.

Headline financials

Total Revenue

$158M

Previous: $126M+25.4%
EPS (adj)

$0.17

Previous: $0.11+54.5%
U.S. QARSD

$17.6K

No prior period
International QARSD

$5.4K

No prior period
Capital Expenditures

$440K

Previous: $4.08M-89.2%
Free Cash Flow

$19.2M

Previous: $13M+47.2%
Net Income

$13.2M

Previous: $12.5M+6.0%
Operating Income

$13.6M

Previous: $6.9M+97.0%
Gross Profit

$148M

Previous: $119M+23.8%
Cash & Equivalents

$59.9M

Previous: $34.9M+71.8%
Total Assets

$394M

Previous: $268M+46.7%
Stock-Based Comp

$8.91M

Previous: $5.84M+52.5%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$158M

Q4 2019+25.4%vs Q4 2018
Beat estimate in 12 of 12 quarters(100%)
ActualEstimate

Forward guidance

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

Tailwinds

  • Total revenue $156.5 to $159.5 million
  • Non-GAAP operating income $10 to $12 million
  • Non-GAAP EPS $0.07 to $0.08
  • Total revenue $156.5 to $159.5 million
  • Non-GAAP operating income $10 to $12 million

Headwinds

  • Non-GAAP EPS $0.07 to $0.08
  • The first quarter 2020 non-GAAP earnings per share calculation assumes 115.0 million diluted weighted-average common shares outstanding.
  • Total revenue $664 to $676 million
  • Non-GAAP operating income $78 to $86 million
  • Non-GAAP EPS $0.50 to $0.55

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 Q4 2019

Historical avgQ4 2019

+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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