NASDAQ$CARG

Cargurus Inc · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

CarGurus reported mixed results in Q4 2024, with marketplace revenue growing but overall revenue and wholesale revenue declining.

CarGurus reported Q4 2024 revenue of $228.5 million, up 2% year-over-year. Marketplace revenue increased by 15% YoY, while wholesale and product revenue declined significantly. Net income reached $45.9 million, and adjusted EBITDA improved 25% to $76.4 million. The company highlighted strong international growth and increased adoption of premium services but faces headwinds in the wholesale segment.

  • Total Q4 2024 revenue grew 2% YoY to $228.5 million.
  • Marketplace revenue increased 15% YoY to $210.2 million.
  • Wholesale revenue declined 55% YoY to $9.9 million.
  • Adjusted EBITDA grew 25% YoY to $76.4 million.

Headline financials

Total Revenue

$229M

Previous: $223M+2.4%
EPS (adj)

$0.55

Previous: $0.35+57.1%
U.S. Paying Dealers

24.8K

No prior period
International Paying Dealers

7.3K

No prior period
Total Paying Dealers

32.1K

No prior period
U.S. QARSD

$7.35K

Previous: $6.53K+12.5%
International QARSD

$2.08K

Previous: $1.77K+17.3%
Consolidated QARSD

$6.13K

No prior period
Capital Expenditures

-$13.7M

Previous: -$20.4M+32.8%
Net Income

$45.9M

Previous: -$22.6M+303.0%
Operating Income

$53.3M

Previous: -$22.3M+339.3%
Gross Profit

$199M

Previous: $168M+18.4%
R&D Expense

$35.9M

No prior period

Revenue & EPS history

Cargurus · Revenue · Quarterly

$229M

Q4 2024+2.4%vs Q4 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Forward guidance

CarGurus expects Q1 2025 revenue to range between $216M and $236M, with non-GAAP EPS between $0.41 and $0.47. The company anticipates continued strength in marketplace revenue but remains cautious about wholesale segment performance.

Tailwinds

  • Marketplace revenue expected to remain strong, with continued growth in premium tiers.
  • International segment expected to see continued double-digit growth.
  • OEM advertising demand remains robust, supporting revenue expansion.
  • Ongoing product innovations improving dealer engagement and retention.
  • Company well-positioned for further market penetration with data-driven insights.

Headwinds

  • Wholesale revenue expected to continue declining due to market headwinds.
  • Macroeconomic uncertainties may impact overall automotive market trends.
  • Higher operating expenses expected due to investment in product development.
  • Potential fluctuations in foreign exchange rates affecting international earnings.
  • Competitive pressures in the digital automotive marketplace could impact pricing power.

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 2024

Historical avgQ4 2024

+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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