CarGurus CFO to step down, CEO to take dual role

BOSTON - CarGurus , Inc. (NASDAQ:CARG), a $3.2 billion market cap company with impressive gross profit margins of 84%, announced changes in its executive leadership, with Chief Financial Officer Elisa Palazzo set to step down effective March 7, 2025. The company’s current Chief Executive Officer, Jason Trevisan, will assume the additional roles of principal financial officer and principal accounting officer following Palazzo’s departure.

The decision was disclosed in a recent 8-K filing with the U.S. Securities and Exchange Commission. The filing stated that Trevisan will serve in these roles until a new CFO is appointed. This strategic move comes after a year-end report for the fiscal year ending December 31, 2024, which included background information on Trevisan’s experience and qualifications. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.2, indicating robust liquidity management.

CarGurus, a technology company specializing in computer processing and data preparation, has not reported any material transactions involving Trevisan that would require additional disclosure under SEC regulations.

The company’s announcement ensures continuity in its financial leadership as the search for a new CFO begins. CarGurus has not disclosed reasons for Palazzo’s departure or details regarding the search for her successor. The company’s business address remains at 1001 Boylston Street, 16th Floor, Boston, Massachusetts, with the business phone listed as (617) 354-0068. Investors can access detailed analysis and 12+ additional ProTips through InvestingPro’s comprehensive research reports.

This executive transition comes at a time when CarGurus continues to navigate the competitive landscape of online automotive marketplaces, with the stock experiencing a 22% decline over the past week despite showing strong fundamentals. The company’s next earnings report is scheduled for May 8, 2025. The information regarding these changes is based on a press release statement from CarGurus, Inc.

In other recent news, CarGurus Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of $0.55, surpassing the projected $0.52, though revenue fell short at $229 million compared to the anticipated $231.85 million. Marketplace revenue grew by 15% year-over-year, reaching $210 million, while adjusted EBITDA exceeded expectations at $76 million, against Wall Street’s forecast of $75 million. However, CarGurus’ guidance for the first quarter of 2025 anticipates total revenue between $216 million and $236 million, below the consensus estimate of $239 million. Analyst reactions included BTIG’s Marvin Fong reducing the stock price target to $40 due to EBITDA meeting but not exceeding guidance, and Citi’s Ronald Josey also lowering the target to $40, attributing the change to mixed earnings results. JMP analysts decreased their target from $46 to $43, maintaining a Market Outperform rating, citing ongoing challenges in the CarOffer segment. Despite these adjustments, CarGurus saw a positive development with the addition of 131 U.S. dealers, significantly surpassing expectations. Looking ahead, CarGurus plans to focus on product development, international expansion, and AI integration to enhance its competitive position.

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