Quick Summary:
Marketplace $56,068 $43,281 $182,738 $127,724 Digital Wholesale (5,500) (67,199) (179,315) (96,383)Other 2,710 1,653 9,989 1,286 Total $53,278 $(22,265) $13,412 $32,627 Unaudited Condensed Consolidated Statements of Cash Flows(in thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Operating Activities Consolidated net income (loss) $45,881 $(22,603) $20,972 $22,053 Adjustments to reconcile consolidated net income (loss) to net cash provided by operating activities: Depreciation and amortization 7,038 12,761 25,360 48,474 Gain on sale of property and equipment — — — (460)Currency loss (gain) on foreign denominated transactions 1,205 (532) 971 (283)Other non-cash (income) expense, net — (80) (816) 88 Deferred taxes 13,996 (5,735) (33,348) (37,864)Provision for doubtful accounts 517 131 2,051 378 Stock-based compensation expense 15,658 19,968 62,272 63,737 Amortization of deferred financing costs 128 128 515 515 Amortization of deferred contract costs 3,734 3,188 13,975 11,817 Impairment — — 144,431 184 Changes in operating assets and liabilities: Accounts receivable 527 10,638 (4,866) 10,975 Inventory (261) (3,001) (112) 1,958 Prepaid expenses, prepaid income taxes, and other assets (8,720) (7,525) (1,627) (1,498)Deferred contract costs (4,394) (4,752) (15,701) (18,440)Accounts payable (15,433) 903 (4,663) 2,080 Accrued expenses, accrued income taxes, and other liabilities 6,465 (4,435) 3,897 (3,419)Deferred revenue (193) 270 362 9,067 Lease obligations 9,589 3,172 41,821 15,165 Net cash provided by operating activities 75,737 2,496 255,494 124,527 Investing Activities Purchases of property and equipment (10,236) (15,515) (75,173) (24,563)Proceeds from sale of property and equipment — — — 460 Capitalization of website development costs (3,462) (4,875) (18,776) (16,648)Purchases of short-term investments — (1,268) (494) (98,016)Sale of short-term investments — 72,462 21,218 77,462 Advance payments to customers, net of collections — 2,649 259 (259)Net cash (used in) provided by investing activities (13,698) 53,453 (72,966) (61,564)Financing Activities Proceeds from issuance of common stock upon exercise of stock options 4,848 — 4,923 74 Payment of withholding taxes on net share settlements of restricted stock units (7,500) (3,859) (24,891) (15,597)Repurchases of common stock — (101,115) (146,180) (208,524)Payment of excise taxes on repurchases of common stock (1,584) — (1,584) — Payment of finance lease obligations (19) (18) (75) (70)Payment of tax distributions to redeemable noncontrolling interest holders — — — (38)Acquisition of remaining interest in CarOffer, LLC — (25,014) — (25,014)Change in gross advance payments received from third-party transaction processor (118) 48 (822) (4,475)Net cash used in financing activities (4,373) (129,958) (168,629) (253,644)Impact of foreign currency on cash, cash equivalents, and restricted cash (2,178) 981 (1,596) 475 Net increase (decrease) in cash, cash equivalents, and restricted cash 55,488 (73,028) 12,303 (190,206)Cash, cash equivalents, and restricted cash at beginning of period 250,741 366,954 293,926 484,132 Cash, cash equivalents, and restricted cash at end of period $306,229 $293,926 $306,229 $293,926 Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Net Income and Non-GAAP Net Income Attributable to Common Stockholders and GAAP Net Income (Loss) Per Share Attributable to Common Stockholders to Non-GAAP Net Income Per Share Attributable to Common Stockholders:(in thousands, except per share data) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 GAAP consolidated net income (loss) $45,881 $(22,603) $20,972 $22,053 Stock-based compensation expense 15,658 14,071 62,492 57,913 Stock-based compensation expense for CarOffer, LLC Units(1) — 55,543 — 55,543 Amortization of intangible assets 507 7,513 3,655 30,062 Impairment(2) — — 144,431 184 Transaction-related expenses 421 1,044 1,536 1,044 Income tax effects and adjustments (3,767) (16,807) (49,798) (27,489)Non-GAAP consolidated net income $58,700 $38,761 $183,288 $139,310 Non-GAAP net loss attributable to redeemable noncontrolling interest — (456) — (1,686)Non-GAAP net income attributable to common stockholders $58,700 $39,217 $183,288 $140,996 GAAP net income (loss) per share attributable to common stockholders: Basic $0.44 $(0.21) $0.20 $0.27 Diluted $0.43 $(0.21) $0.20 $0.19 Non-GAAP net income per share attributable to common stockholders: Basic $0.57 $0.35 $1.75 $1.25 Diluted $0.55 $0.35 $1.72 $1.23 Shares used in GAAP and Non-GAAP per share calculations Basic 103,839 110,989 104,536 113,240 Diluted 106,117 110,989 106,264 114,189 (1) CarOffer, LLC Units consist of CO Incentive Units, Subject Units (each as defined in the Company's Annual Report on Form 10-K as of December 31, 2024, filed with the U.S.
Investor Contact: Kirndeep SinghVice President, Head of Investor Relationsinvestors@cargurus.com Media Contact: Maggie MeluzioDirector, Public Relations and External Communicationspr@cargurus.com Unaudited Condensed Consolidated Balance Sheets(in thousands, except share and per share data) As of December 31, 2024 2023 Assets Current assets: Cash and cash equivalents $304,193 $291,363 Short-term investments — 20,724 Accounts receivable, net of allowance for doubtful accounts of $788 and $610, respectively 44,248 39,963 Inventory 338 331 Prepaid expenses, prepaid income taxes and other current assets 27,868 25,152 Deferred contract costs 12,523 11,095 Restricted cash 2,036 2,563 Total current assets 391,206 391,191 Property and equipment, net 130,010 83,370 Intangible assets, net 11,767 23,056 Goodwill 46,167 157,898 Operating lease right-of-use assets 121,484 169,682 Deferred tax assets 106,672 73,356 Deferred contract costs, net of current portion 13,196 12,998 Other non-current assets 4,034 7,376 Total assets $824,536 $918,927 Liabilities, redeemable noncontrolling interest and stockholders’ equity Current liabilities: Accounts payable $26,410 $47,854 Accrued expenses, accrued income taxes and other current liabilities 35,975 33,718 Deferred revenue 21,661 21,322 Operating lease liabilities 9,005 12,284 Total current liabilities 93,051 115,178 Operating lease liabilities 183,739 182,106 Deferred tax liabilities 26 58 Other non–current liabilities 6,031 4,733 Total liabilities 282,847 302,075 Stockholders’ equity: Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding — — Class A common stock, $0.001 par value per share; 500,000,000 shares authorized; 89,002,571 and 92,175,243 shares issued and outstanding at December 31, 2024 and 2023, respectively 89 92 Class B common stock, $0.001 par value per share; 100,000,000 shares authorized; 14,986,745 and 15,999,173 shares issued and outstanding at December 31, 2024 and 2023, respectively 15 16 Additional paid–in capital 169,013 263,498 Retained earnings 375,119 354,147 Accumulated other comprehensive loss (2,547) (901)Total stockholders’ equity 541,689 616,852 Total liabilities, redeemable noncontrolling interest and stockholders’ equity $824,536 $918,927 Unaudited Condensed Consolidated Income Statements(in thousands, except share and per share data) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 Revenue Marketplace $210,194 $182,250 $796,599 $698,236 Wholesale 9,850 22,035 51,201 100,908 Product 8,494 18,838 46,584 115,098 Total revenue 228,538 223,123 894,384 914,242 Cost of revenue(1) Marketplace 13,899 14,190 54,950 60,020 Wholesale(2) 7,068 22,286 54,340 90,066 Product 8,582 18,612 46,149 112,702 Total cost of revenue 29,549 55,088 155,439 262,788 Gross profit 198,989 168,035 738,945 651,454 Operating expenses: Sales and marketing 76,448 73,827 322,249 304,070 Product, technology, and development 35,948 36,737 144,432 146,169 General and administrative 28,384 75,667 112,066 152,757 Impairment — — 134,501 — Depreciation and amortization 4,931 4,069 12,285 15,831 Total operating expenses 145,711 190,300 725,533 618,827 Income (loss) from operations 53,278 (22,265) 13,412 32,627 Other income, net: Interest income 3,126 5,093 12,189 18,430 Other (expense) income, net (1,066) 782 (944) 630 Total other income, net 2,060 5,875 11,245 19,060 Income (loss) before income taxes 55,338 (16,390) 24,657 51,687 Provision for income taxes 9,457 6,213 3,685 29,634 Consolidated net income (loss) 45,881 (22,603) 20,972 22,053 Net loss attributable to redeemable noncontrolling interest — (4,698) — (14,889)Net income (loss) attributable to CarGurus, Inc. $45,881 $(17,905) $20,972 $36,942 Deemed dividend on redemption of noncontrolling interest — 5,838 — 5,838 Net income (loss) attributable to common stockholders $45,881 $(23,743) $20,972 $31,104 Net income (loss) per share attributable to common stockholders: Basic $0.44 $(0.21) $0.20 $0.27 Diluted $0.43 $(0.21) $0.20 $0.19 Weighted–average number of shares of common stock used in computing net income (loss) per share attributable to common stockholders: Basic 103,838,821 110,988,515 104,535,572 113,240,139 Diluted 106,116,888 110,988,515 106,263,886 114,188,834 (1) For the three months ended December 31, 2024 and 2023 and for the years ended December 31, 2024 and 2023, there was depreciation and amortization of $2,107, $8,692, $13,075, and $32,643, respectively, in cost of revenue.(2) For the three months ended December 31, 2024 and 2023, no impairment was recorded in cost of revenue.
Unaudited Reconciliation of GAAP Consolidated Net Income (Loss) to Non-GAAP Consolidated Adjusted EBITDA and Non-GAAP Adjusted EBITDA and GAAP Consolidated Net Income (Loss) Margin to Non-GAAP Consolidated Adjusted EBITDA Margin(in thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 GAAP consolidated net income (loss) $45,881 $(22,603) $20,972 $22,053 Depreciation and amortization 7,038 12,761 25,360 48,474 Impairment — — 144,431 184 Stock-based compensation expense 15,658 14,071 62,492 57,913 Stock-based compensation expense for CarOffer, LLC Units — 55,543 — 55,543 Transaction-related expenses 421 1,044 1,536 1,044 Other income, net (2,060) (5,875) (11,245) (19,060)Provision for income taxes 9,457 6,213 3,685 29,634 Non-GAAP consolidated adjusted EBITDA 76,395 61,154 247,231 195,785 Non-GAAP adjusted EBITDA attributable to redeemable noncontrolling interest — (303) — 83 Non-GAAP adjusted EBITDA $76,395 $61,457 $247,231 $195,702 GAAP consolidated net income (loss) margin 20% (10)% 2% 2%Non-GAAP consolidated adjusted EBITDA margin 33% 27% 28% 21% Unaudited Reconciliation of GAAP Net Loss Attributable to Redeemable Noncontrolling Interest to Non-GAAP Adjusted EBITDA Attributable to Redeemable Noncontrolling Interest(in thousands) Three Months Ended Year Ended December 31, December 31, 2024 2023 2024 2023 GAAP net loss attributable to redeemable noncontrolling interest $— $(4,698) $— $(14,889)Depreciation and amortization (1) — 1,989 — 10,863 Impairment (1) — — — 67 Stock-based compensation expense (1) — 144 — 783 Stock-based compensation expense for CarOffer, LLC Units (1) — 2,249 — 2,249 Other expense, net (1) — 13 — 985 Provision for income taxes (1) — — — 25 Adjusted EBITDA attributable to redeemable noncontrolling interest $— $(303) $— $83 (1) These exclusions are adjusted to reflect the noncontrolling interest of 38% for the period prior to the 2023 CarOffer Transaction.
