The earnings call presented a strong performance in the Marketplace and international segments, with significant year-over-year growth in revenue and EBITDA margins. However, challenges persist in the wholesale and product revenue areas. The discontinuation of the CG Buy Online pilot indicates strategic shifts, but overall financial performance remains robust.

Company Guidance

During the CarGurus Q3 2024 earnings call, the company reported impressive financial results, with consolidated revenue reaching $231 million, a 5% year-over-year increase, driven largely by a 15% increase in Marketplace revenue to $204 million. The company's non-GAAP consolidated adjusted EBITDA grew by 33% year-over-year to $64.9 million, with margins expanding by approximately 590 basis points to 28%. Marketplace EBITDA rose by 36% year-over-year, achieving a margin of 34%. Additionally, CarGurus' international business continued its strong performance, with revenue growing 23% year-over-year. The company also highlighted its ongoing investments in digital transactions, reporting that Digital Deal penetration rose by nearly 150% year-over-year, engaging 8,474 dealers. Looking ahead, CarGurus guided for Q4 consolidated revenue between $219 million and $239 million and expects non-GAAP consolidated adjusted EBITDA to be between $72 million and $80 million.

Record Marketplace Revenue Growth

Marketplace revenue grew 15% year-over-year, marking a $26 million expansion, with EBITDA margins expanding approximately 540 basis points to 34%.

International Business Expansion

International revenue grew 23% year-over-year, with significant contributions from the Canadian market, including expanded traffic share and session growth.

Successful Product Innovations

The Digital Deal product saw a 150% year-over-year growth, reaching 8,474 dealers with nearly 20% of a dealer's leads coming from Digital Deal, closing at 3x higher rates than email leads.

Strong Financial Performance

Non-GAAP consolidated adjusted EBITDA grew 33% year-over-year, with consolidated adjusted EBITDA margin rising 590 basis points to 28%.

Share Repurchase Program

Board authorized a $200 million share repurchase program effective January 2025, with $146 million worth of shares repurchased in 2024.

---

CarGurus (CARG) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

CARG Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 26, 2025	2024 (Q4)	0.52 / -	0.35	―	―	―
Nov 07, 2024	2024 (Q3)	0.43 / 0.45	0.34	32.35% (+0.11)
Aug 08, 2024	2024 (Q2)	0.34 / 0.41	0.29	41.38% (+0.12)
May 09, 2024	2024 (Q1)	0.28 / 0.32	0.26	23.08% (+0.06)
Feb 26, 2024	2023 (Q4)	0.34 / 0.35	0.22	59.09% (+0.13)
Nov 07, 2023	2023 (Q3)	0.26 / 0.34	0.21	61.90% (+0.13)
Aug 09, 2023	2023 (Q2)	0.23 / 0.29	0.32	-9.38% (-0.03)
May 09, 2023	2023 (Q1)	0.16 / 0.26	0.36	-27.78% (-0.10)
Feb 28, 2023	2022 (Q4)	0.13 / 0.22	0.43	-48.84% (-0.21)
Nov 08, 2022	2022 (Q3)	0.25 / 0.21	0.38	-44.74% (-0.17)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

---

CARG Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$33.36	$34.81	+4.35%
Aug 08, 2024	$22.40	$26.94	+20.27%
May 09, 2024	$22.28	$24.22	+8.71%
Feb 26, 2024	$23.89	$23.52	-1.55%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

---