CarGurus (CARG) Q4 2024 earnings summary

Executive summary

• Achieved exceptional results in 2024, with seventh consecutive quarter of accelerating marketplace revenue growth and strong execution on business priorities.

• Marketplace revenue grew 15% year-over-year in Q4 2024, with international revenue up 26% and OEM advertising returning to double-digit growth.

• Enhanced dealer value through nearly 1M price changes, improved close rates, and a 23% YoY increase in premium tier penetration.

• Digital Deal adoption more than doubled YoY, reaching 9,570 dealers, and cross-platform consumer experience improvements drove engagement.

• Strong cash flow generation and significant operating leverage achieved alongside growth and investment.

Financial highlights

• Q4 2024 consolidated revenue was $229 million, up 2% year-over-year, led by Marketplace growth; full-year revenue was $894.4 million, down 2% from 2023.

• Marketplace revenue for Q4 was $210.2 million, up 15% year-over-year; global paying dealer count reached 32,010, up 3% YoY.

• Q4 2024 non-GAAP consolidated adjusted EBITDA was $76.4 million, up 25%-27% year-over-year; margin was 33%.

• Q4 2024 non-GAAP diluted EPS was $0.55, up 57% year-over-year.

• Ended Q4 with $304 million in cash and equivalents; $146 million in share repurchases during 2024.

Outlook and guidance

• Q1 2025 consolidated revenue expected between $216 million-$236 million; Marketplace revenue expected between $209 million-$214 million.

• Q1 2025 non-GAAP consolidated Adjusted EBITDA expected between $60 million-$68 million; non-GAAP EPS expected between $0.41-$0.47.

• Guidance assumes stable dealer acquisition and churn trends, excluding major macroeconomic disruptions and FX impacts.

• Marketplace margins expected up year-over-year but down sequentially due to increased media spend.

• Digital Wholesale segment EBITDA losses expected to increase sequentially as transaction volumes decline.