Overview

• U.S. automotive marketplace's Q1 revenue rose 15% yr/yr to $244 mln

• Adjusted EBITDA for Q1 beat analyst expectations

• Company repurchased $175 mln in shares during Q1, totaling 29% of shares since Dec 2022

Outlook

• CarGurus sees Q2 revenue between $247 mln and $252 mln

• Company expects Q2 non-GAAP EPS from continuing operations of $0.57 to $0.64

• CarGurus forecasts full-year revenue growth of 10% to 13% YoY

Result Drivers

• AI-LED PRODUCT INNOVATION - Co said revenue growth was driven by investment in AI-led product innovation for dealers and consumers

• INCREASE IN PAYING DEALERS - Growth in both U.S. and international paying dealers contributed to higher revenue

• HIGHER OPERATING EXPENSES AND IMPAIRMENTS - Operating expenses rose 25% yr/yr, including $19.7 mln in impairments, impacting net income

Company press release: ID:nGNX5B8msy

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		$32.23 mln
Q1 Adjusted EBITDA	Beat	$80.20 mln	$76.92 mln (14 Analysts)
Q1 Gross Profit		$224.60 mln
Q1 Operating Expenses		$184.50 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the online services peer group is "buy"

• Wall Street's median 12-month price target for CarGurus Inc is $34.00, about 9.1% below its May 6 closing price of $37.41

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

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