CAMBRIDGE, Mass. - CarGurus , Inc. (NASDAQ:CARG), a leading online automotive marketplace, reported first-quarter earnings that surpassed analyst expectations on the bottom line but fell short on revenue, sending shares down 1.75%.
The company reported adjusted earnings per share (EPS) of $0.32, $0.03 higher than the analyst consensus of $0.29. However, first-quarter revenue came in at $215.8 million, missing the consensus estimate of $216.81 million.
The company's marketplace revenue saw a 12% year-over-year (YoY) increase, reaching $187.2 million, while wholesale revenue declined by 36% to $16.1 million. Total revenue for the quarter decreased by 7% compared to the same period last year. Despite the revenue shortfall, CarGurus achieved a significant 80% YoY increase in consolidated net income, amounting to $21.3 million. Adjusted EBITDA also rose by 24% YoY to $50.4 million.
For the second quarter of 2024, CarGurus provided guidance for EPS between $0.29 and $0.34, with the midpoint of $0.315 falling slightly above the analyst consensus of $0.30. The company's revenue guidance for the next quarter is projected to be between $202 million and $222 million, with a midpoint of $212 million, which is below the consensus estimate of $224.5 million.
Jason Trevisan, Chief Executive Officer at CarGurus, commented on the results, "We are pleased with our first quarter results, as we achieved sustained marketplace revenue acceleration, driven by double-digit QARSD growth and an increase in the number of paying dealers." He also noted the company's focus on rebuilding operations and optimizing strategy in its Digital Wholesale business.
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