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CarGurus(CARG) - 2024 Q2 - Quarterly Results
CARGCarGurus(CARG)2024-08-08 20:05

Revenue Performance - Q2'24 Marketplace revenue increased by 14% year-over-year, marking the third consecutive quarter of double-digit growth[3] - Total revenue for Q2'24 was 218.7million,adecreaseof9218.7 million, a decrease of 9% compared to the prior year[5] - U.S. Marketplace Segment Revenue reached 180.1 million, reflecting a 14% increase year-over-year[7] - U.S. Marketplace revenue increased to 180.1millioninQ22024,up13.6180.1 million in Q2 2024, up 13.6% from 158.4 million in Q2 2023[22] - Digital Wholesale Segment Revenue decreased by 66% to 23.5millioninQ2′24[7]−Thedigitalwholesalesegmentreportedarevenuedropto23.5 million in Q2'24[7] - The digital wholesale segment reported a revenue drop to 13.1 million in Q2 2024, down 59% from 32.0millioninQ22023[21]−Thirdquarter2024guidanceestimatestotalrevenuebetween32.0 million in Q2 2023[21] - Third quarter 2024 guidance estimates total revenue between 212 million and 232million[9]ProfitabilityandLoss−ConsolidatedGAAPNetLossforQ2′24was232 million[9] Profitability and Loss - Consolidated GAAP Net Loss for Q2'24 was 68.7 million, while Non-GAAP Adjusted EBITDA was 55.6million,up2355.6 million, up 23% year-over-year[3][5] - The company reported a net loss of 68.7 million for Q2 2024, compared to a net income of 16.4millioninQ22023[21]−ConsolidatednetlossforthethreemonthsendedJune30,2024,was16.4 million in Q2 2023[21] - Consolidated net loss for the three months ended June 30, 2024, was (68,721) thousand, compared to a net income of 13,817thousandforthesameperiodin2023[25]−Non−GAAPconsolidatednetincomeforthethreemonthsendedJune30,2024,was13,817 thousand for the same period in 2023[25] - Non-GAAP consolidated net income for the three months ended June 30, 2024, was 42,732 thousand, compared to 33,848thousandforthesameperiodin2023,reflectinga2633,848 thousand for the same period in 2023, reflecting a 26% increase[26] - Non-GAAP EPS guidance for Q3 2024 is projected to be between 0.38 and 0.44[9]OperatingExpenses−Operatingexpensessurgedto0.44[9] Operating Expenses - Operating expenses surged to 276.0 million in Q2 2024, significantly higher than 146.4millioninQ22023,primarilyduetogoodwillimpairment[21]−Thecompanyreportedatotaloperatingexpenseof146.4 million in Q2 2023, primarily due to goodwill impairment[21] - The company reported a total operating expense of 424.705 million for the three months ended June 30, 2024, down from 455.793millioninthepreviousyear[39]−Goodwillandotherlong−livedassetimpairmentforthethreemonthsendedJune30,2024,was455.793 million in the previous year[39] - Goodwill and other long-lived asset impairment for the three months ended June 30, 2024, was 127,655 thousand, significantly higher than the 9thousandreportedinthesameperiodof2023[25]−Stock−basedcompensationexpenseforthethreemonthsendedJune30,2024,was9 thousand reported in the same period of 2023[25] - Stock-based compensation expense for the three months ended June 30, 2024, was 15,557 thousand, slightly up from 14,602thousandinthesameperiodof2023[26]CashFlowandLiquidity−Cashandcashequivalentsdecreasedto14,602 thousand in the same period of 2023[26] Cash Flow and Liquidity - Cash and cash equivalents decreased to 216.2 million as of June 30, 2024, down from 291.4millionattheendof2023[19]−Thecompanyreportedanetdecreaseincash,cashequivalents,andrestrictedcashof291.4 million at the end of 2023[19] - The company reported a net decrease in cash, cash equivalents, and restricted cash of (30,763) thousand for the three months ended June 30, 2024[25] - Cash, cash equivalents, and restricted cash at the end of the period stood at 218,365thousand,downfrom218,365 thousand, down from 374,621 thousand at the end of the same period in 2023[25] - Net cash provided by operating activities increased to 71,597thousandforthethreemonthsendedJune30,2024,upfrom71,597 thousand for the three months ended June 30, 2024, up from 29,336 thousand in the prior year, representing a 143% increase[25] - Non-GAAP free cash flow for the three months ended June 30, 2024, was 40.371million,upfrom40.371 million, up from 23.536 million in the same period last year[41] Assets and Liabilities - Total assets decreased to 753.3millionasofJune30,2024,from753.3 million as of June 30, 2024, from 918.9 million at the end of 2023, indicating a decline of 18%[19] - Total current liabilities were 112.0million,slightlydownfrom112.0 million, slightly down from 115.2 million at the end of 2023[19] - The company’s retained earnings decreased to 306.7millionasofJune30,2024,from306.7 million as of June 30, 2024, from 354.1 million at the end of 2023[20] User Engagement and Metrics - International Average Monthly Unique Users increased by 21% to 8.9 million[7] - The average revenue per subscribing dealer (QARSD) is a key metric for evaluating the value proposition of marketplace products, reflecting the company's sales and marketing success[49] - Average monthly unique users are a key indicator of user experience, advertising effectiveness, and brand awareness, calculated based on Google Analytics data[51] - Average monthly sessions are defined as distinct visits to the websites, indicating consumer satisfaction and engagement, also measured by Google Analytics[52] - Transactions in the Digital Wholesale segment represent the number of vehicles processed through the CarOffer website, providing insight into growth and revenue for this segment[53] - Growth in Transactions is a significant metric, demonstrating consumer and dealer utilization and market share penetration in the Digital Wholesale segment[53] Financial Reporting and Transparency - The company aims to enhance its operational decision-making by providing non-GAAP financial measures, which exclude certain expenses for clearer insights into performance[42] - The company has updated its financial disclosures to separately report stock-based compensation expenses for CarOffer, LLC Units for better transparency[39] - The company defines Free Cash Flow as cash flow from operations minus purchases of property and equipment and capitalization of website development costs, indicating financial performance after necessary expenditures[49]