NASDAQ$CARG

Cargurus Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

CarGurus's Q4 2023 performance was marked by significant growth in marketplace revenue and strategic acquisitions.

CarGurus announced strong Q4 2023 results, with Marketplace Revenue accelerating to 10% YoY. The acquisition of CarOffer was completed in December, expanding the company's presence in the digital wholesale sector.

  • Marketplace Revenue increased by 10% year-over-year, the fastest pace in 10 quarters.
  • Consolidated Net Loss was $(22.6) million, a decrease of 197% year-over-year.
  • Non-GAAP Consolidated Adjusted EBITDA increased by 120% year-over-year to $61.2 million.
  • $99.9 million worth of shares were repurchased in Q4 2023.

Headline financials

Total Revenue

$223M

Previous: $287M-22.2%
EPS (adj)

$0.35

Previous: $0.22+59.1%
U.S. QARSD

$6.53K

Previous: $5.84K+11.8%
International QARSD

$1.77K

Previous: $1.52K+16.5%
Capital Expenditures

-$20.4M

Previous: $1.76M-1261.2%
Net Income

-$22.6M

Previous: $23.2M-197.4%
Operating Income

-$22.3M

Previous: $29.6M-175.2%
Gross Profit

$168M

Previous: $137M+22.6%
Stock-Based Comp

$20M

Previous: $13.2M+51.0%

Revenue & EPS history

Cargurus · Revenue · Quarterly

$223M

Q4 2023-22.2%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CarGurus provided guidance for Q1 2024, projecting total revenue between $201 million and $221 million and Non-GAAP EPS between $0.24 and $0.29.

Tailwinds

  • Total revenue is expected to be between $201 million and $221 million.
  • Marketplace revenue is projected to be between $182 million and $187 million.
  • Non-GAAP Consolidated Adjusted EBITDA is expected to be between $41 million and $49 million.
  • Non-GAAP EPS is projected to be between $0.24 and $0.29.
  • The assumptions built into the guidance are based on recent market trends and industry conditions.

Headwinds

  • Guidance excludes macro-level industry issues that could materially change dealer and consumer behaviors.
  • Guidance excludes any potential impact of foreign currency exchange gains or losses.
  • Reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available without unreasonable effort.
  • The timing, amount, valuation, and number of future employee equity awards cannot be reasonably predicted.
  • The uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses 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 2023

Historical avgQ4 2023

+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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