Cargurus ( (CARG) ) has released its Q1 earnings. Here is a breakdown of the information Cargurus presented to its investors.
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CarGurus, Inc. is a leading online automotive platform that facilitates the buying and selling of vehicles, leveraging proprietary technology and data analytics to enhance the automotive shopping experience for consumers and dealerships across the U.S., Canada, and the U.K.
In its first quarter of 2025, CarGurus reported a strong financial performance with a notable increase in marketplace revenue and significant growth in net income and adjusted EBITDA. The company also executed a substantial share repurchase program, reflecting confidence in its business model and future prospects.
Key financial highlights include a 13% year-over-year increase in marketplace revenue, reaching $212.2 million, and an 83% rise in GAAP net income to $39.0 million. Non-GAAP adjusted EBITDA saw a 32% increase, amounting to $66.3 million. Despite a decline in wholesale and product revenues, the company’s gross profit margin improved significantly to 89%.
CarGurus’ strategic focus on expanding data-driven solutions and enhancing the online transaction experience has resulted in increased consumer and dealer engagement, contributing to the company’s market share expansion. The company continues to prioritize value creation through its core drivers, aligning with the evolving needs of car shoppers and dealers.
Looking ahead, CarGurus anticipates continued growth in the second quarter of 2025, with projected revenues between $222.0 million and $242.0 million and non-GAAP adjusted EBITDA ranging from $71.5 million to $79.5 million. The company remains committed to leveraging its platform to drive profitable growth and maintain its leadership position in the digital automotive marketplace.