CarGurus (CARG) investor relations material

Leadership and strategic direction

• CEO with a decade of experience, transitioning from CFO to CEO, emphasizing innovation and strategic expansion.

• Focus on rapid product innovation in 2025, introducing more products than ever before, especially in dealer workflow and consumer journey.

• Shifted away from low-margin wholesale transactions to concentrate on technology, data, and AI-driven solutions.

• Continued investment in AI to drive efficiency, product development, and market leadership.

• International operations in the U.K. and Canada are growing faster than the U.S., following a model of U.S.-led innovation.

Product innovation and AI integration

• Launched PriceVantage, a standalone software for inventory pricing, and expanded Dealer Data Insights for actionable analytics.

• Enhanced marketing offerings with products like New Car Exposure and AI-driven consumer tools such as Discover and Dealership Mode.

• AI underpins all new products, improving both dealer and consumer experiences, including smarter search and personalized recommendations.

• Digital Deal enables consumers to complete financing and F&I products online, now adopted by about half of dealers.

• AI is seen as a major opportunity, driving both operational efficiency and new product creation, with ongoing strategy for LLM data exposure.

Market trends and industry analysis

• Used car prices and inventory remain elevated post-COVID, with affordability and total cost of ownership as key industry themes.

• Tariffs and trade policy continue to impact new and used car pricing, contributing to market uncertainty.

• Most car purchases still involve in-person elements, but consumers increasingly want to complete more steps online.

• Dealers and consumers benefit from hybrid digital/in-person solutions, improving conversion rates and customer satisfaction.

• Marketplace inventory exceeds 4 million vehicles, representing over 80% of U.S. inventory, far surpassing competitors.