NASDAQ$CARG

Cargurus Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

CarGurus generated strong results in Q4 2020, demonstrating the durability of their market leadership and the flexibility of their business model.

CarGurus reported Q4 2020 total revenue of $151.6 million, a decrease of 4% year-over-year. GAAP operating income was $33.5 million, and GAAP net income was $25.2 million, or $0.22 per fully diluted share. The company generated $47.9 million in cash from operations and $46.2 million in free cash flow during the quarter.

  • Total revenue decreased by 4% year-over-year to $151.6 million.
  • GAAP operating income was $33.5 million, compared to $13.6 million in Q4 2019.
  • GAAP net income was $25.2 million, or $0.22 per fully diluted share.
  • U.S. revenue was $143.7 million, a decrease of 3% compared to Q4 2019.

Headline financials

Total Revenue

$152M

Previous: $158M-4.2%
EPS (adj)

$0.32

Previous: $0.17+88.2%
U.S. QARSD

$5.3K

Previous: $17.6K-69.8%
International QARSD

$1.06K

Previous: $5.4K-80.4%
Capital Expenditures

$220K

Previous: $440K-50.0%
Free Cash Flow

$46.2M

Previous: $19.2M+140.6%
Net Income

$25.2M

Previous: $13.2M+90.9%
Operating Income

$33.5M

Previous: $13.6M+146.3%
Gross Profit

$140M

Previous: $148M-5.1%
Cash & Equivalents

$190M

Previous: $59.9M+217.6%
Total Assets

$502M

Previous: $394M+27.6%
Stock-Based Comp

$10.7M

Previous: $8.91M+19.9%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$152M

Q4 2020-4.2%vs Q4 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Forward guidance

CarGurus anticipates total revenue between $156.0 to $160.0 million, non-GAAP operating income between $33.5 to $36.5 million, and non-GAAP EPS between $0.21 to $0.23 for Q1 2021.

Tailwinds

  • Total revenue $156.0 to $160.0 million
  • Non-GAAP operating income $33.5 to $36.5 million
  • Non-GAAP EPS $0.21 to $0.23

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 the impact of foreign currency exchange gains or losses.
  • Assumptions are based off of recent market behaviors.

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 2020

Historical avgQ4 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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