CarGurus (CARG) The 44th Annual William Blair Growth Stock Conference summary

Business evolution and platform expansion

• Transitioned from a core listings business to a comprehensive end-to-end automotive marketplace, offering research, financing, buying, and selling capabilities for consumers.

• Dealers now benefit from tools for sourcing, pricing, merchandising, marketing, and completing sales, supported by advanced analytics and AI.

• Acquisition of CarOffer added a digital wholesale platform, enabling instant trades and deeper integration into dealer workflows.

• New products like Digital Deal and Buy Online streamline transactions, allowing more of the car buying process to occur online.

• Evolved from a lead-generation model to a partner-oriented approach, focusing on dealer profitability and operational efficiency.

Market trends and macro environment

• COVID-19 caused dealer shutdowns and a surge in consumer demand, driving used car prices up 60% from mid-2020 to end-2021.

• Used car prices have stabilized but remain 25% above pre-pandemic levels; new car inventory is recovering after significant declines.

• Dealers are returning to marketing partners to help move increased inventory amid higher floorplan financing costs.

• The marketplace is now in a healthier macro environment, with rising inventory and normalized pricing.

Dealer relationships and sales approach

• Shifted to a partnership model with dealers, offering data-driven insights and workflow tools to optimize operations.

• Sales cycle is now shorter, with deeper engagement through advisory on pricing, merchandising, and daily operational decisions.

• Nearly one-third of new dealers are signing annual contracts, reflecting increased trust and partnership.

• Dealer dashboard and pricing intelligence tools are widely adopted, with many dealers requesting daily updates.