NASDAQ$CARG

Cargurus Inc · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Announced fourth quarter and full-year 2021 results, showing significant revenue growth and strategic business evolution.

CarGurus reported a 124% increase in total revenue for Q4 2021, reaching $339.3 million, driven by growth in Marketplace, Wholesale, and Product revenues. GAAP operating income increased by 31% to $43.9 million, and GAAP net income was $34.2 million. The company's transformation into a transaction-enabled marketplace contributed to exceeding forecasted guidance for the quarter and full year.

  • Total revenue increased by 124% year-over-year to $339.3 million.
  • GAAP operating income was $43.9 million, a 31% increase year-over-year.
  • GAAP consolidated net income reached $34.2 million.
  • U.S. revenue increased by 128% year-over-year to $327.9 million.

Headline financials

Total Revenue

$339M

Previous: $152M+123.9%
EPS (adj)

$0.43

Previous: $0.32+34.4%
U.S. QARSD

$5.63K

Previous: $5.3K+6.2%
International QARSD

$1.55K

Previous: $1.06K+45.8%
Capital Expenditures

$2.78M

Previous: $220K+1162.7%
Free Cash Flow

-$41.6M

Previous: $46.2M-190.0%
Net Income

$34.2M

Previous: $25.2M+35.7%
Operating Income

$43.9M

Previous: $33.5M+31.0%
Gross Profit

$180M

Previous: $140M+28.3%
Cash & Equivalents

$232M

Previous: $190M+21.9%
Total Assets

$932M

Previous: $502M+85.5%
Stock-Based Comp

$11M

Previous: $10.7M+2.7%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$339M

Q4 2021+123.9%vs Q4 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Forward guidance

CarGurus anticipates revenue between $390 million and $410 million, non-GAAP operating income between $59 million and $65 million, and non-GAAP EPS between $0.31 and $0.33 for Q1 2022.

Tailwinds

  • Total revenue is expected to be between $390 million and $410 million.
  • Non-GAAP operating income is projected to be between $59 million and $65 million.
  • Non-GAAP EPS is anticipated to be between $0.31 and $0.33.
  • Guidance assumes 118.5 million diluted weighted-average common shares outstanding.
  • Assumptions are based on recent market behaviors and industry conditions.

Headwinds

  • Guidance excludes 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 as during the COVID-19 pandemic.
  • Guidance excludes adjustments to the carrying value of redeemable noncontrolling interests and any potential impact of foreign currency exchange gains or losses.

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 2021

Historical avgQ4 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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