Q2 2024 CarGurus Inc Earnings Call Transcript
Key Points
- CarGurus Inc (CARG) reported a 14% year-over-year growth in its marketplace business, marking the fifth consecutive quarter of acceleration.
- The company's non-GAAP consolidated adjusted EBITDA grew 23% year-over-year, with a margin expansion of 650 basis points to 25%.
- CarGurus Inc (CARG) achieved the highest quarterly revenue increase since 2021, driven by growth in its global dealer base and increased adoption of add-on products.
- The international business of CarGurus Inc (CARG) grew revenue by 21% year-over-year, with strong performance in the UK and Canada.
- The OEM advertising business delivered strong year-over-year growth as new vehicle inventory levels recovered, increasing impressions on the website.
- Consolidated revenue for CarGurus Inc (CARG) was down 9% year-over-year, primarily due to lower wholesale and product volumes.
- Wholesale revenue declined by 59% year-over-year, driven by a decrease in dealer-to-dealer transaction volume.
- Product revenue fell by 72% year-over-year, reflecting a decline in Instant Max Cash Offer revenue.
- CarOffer's digital wholesale business faced challenges, with a non-cash goodwill impairment charge of $127 million recognized.
- The process of rebuilding and integrating CarOffer's leadership and operations has been slower than anticipated.
Good day, and welcome to the CarGurus, Inc. second quarter 2024 earnings results conference call. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Kirndeep Singh, Vice President and Head of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon. I'm delighted to welcome you to CarGurus' second quarter 2024 earnings call. With me on the call today are, Jason Trevisan, Chief Executive Officer; Sam Zales, President and Chief Operating Officer; and Elisa Palazzo, Chief Financial Officer.
During the call, we will be making forward-looking statements, which are based on our current expectations and beliefs. These statements are subject to risks and uncertainties which could cause our actual results to differ materially from those reflected in such statements.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
