NASDAQ$CARG

Cargurus Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

CarGurus's financial performance decreased in Q4 2022, with revenue and operating income declining year-over-year.

CarGurus reported a decrease in total revenue by 16% year-over-year, amounting to $286.7 million. GAAP operating income decreased by 33% to $29.6 million, while non-GAAP operating income decreased significantly by 69% to $23.6 million. GAAP net income attributable to common stockholders was $159.2 million, or $0.20 per fully diluted share, while non-GAAP net income attributable to common stockholders was $26.3 million, or $0.22 per fully diluted share.

  • Total revenue decreased by 16% year-over-year to $286.7 million.
  • GAAP operating income decreased by 33% year-over-year to $29.6 million.
  • GAAP net income attributable to common stockholders was $159.2 million, or $0.20 per fully diluted share.
  • Cash and cash equivalents totaled $469.5 million.

Headline financials

Total Revenue

$287M

Previous: $339M-15.5%
EPS (adj)

$0.22

Previous: $0.43-48.8%
U.S. QARSD

$5.84K

Previous: $5.63K+3.7%
International QARSD

$1.52K

Previous: $1.55K-1.6%
Capital Expenditures

$1.76M

Previous: $2.78M-36.8%
Free Cash Flow

$90.5M

Previous: -$41.6M+317.7%
Net Income

$23.2M

Previous: $34.2M-32.2%
Operating Income

$29.6M

Previous: $43.9M-32.6%
Gross Profit

$137M

Previous: $180M-23.8%
Cash & Equivalents

$470M

Previous: $232M+102.4%
Total Assets

$927M

Previous: $932M-0.5%
Stock-Based Comp

$13.2M

Previous: $11M+20.5%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$287M

Q4 2022-15.5%vs Q4 2021
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CarGurus anticipates total revenue between $195 million and $215 million, product revenue between $21 million and $31 million, non-GAAP Consolidated Adjusted EBITDA between $19 million and $27 million, and non-GAAP EPS between $0.17 and $0.19 for the first quarter of 2023.

Tailwinds

  • Total revenue between $195 million and $215 million
  • Product revenue between $21 million and $31 million
  • Non-GAAP Consolidated Adjusted EBITDA between $19 million and $27 million
  • Non-GAAP EPS between $0.17 and $0.19
  • Guidance for the first quarter of 2023 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market behaviors and industry conditions.

Headwinds

  • Excludes the effects of significant COVID-19 resurgences, including the reintroduction of lockdowns and/or a slowed pace of recovery, or other macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact measures to assist dealers, such as offering fee reductions or waivers as we have done from time to time during the COVID-19 pandemic.
  • Excludes adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests
  • Excludes any potential impact of foreign currency exchange gains or losses.
  • CarGurus has not reconciled its guidance of non-GAAP consolidated adjusted EBITDA to GAAP consolidated net income or non-GAAP consolidated EPS to GAAP consolidated EPS because the reconciling items between such GAAP and non-GAAP financial measures cannot be reasonably predicted due to the timing, amount, valuation and number of future employee equity awards.
  • The uncertainty relating to the timing, frequency and effect of acquisitions and the significance of the resulting acquisition-related expenses, including adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests, and therefore cannot be determined without unreasonable effort.

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 2022

Historical avgQ4 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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