CAMBRIDGE, Mass. - CarGurus , Inc. (NASDAQ:CARG), a leading online automotive marketplace, reported fourth-quarter earnings that slightly surpassed analyst expectations, but the company's stock fell sharply due to weaker-than-expected guidance for the first quarter of 2024.
The company posted adjusted earnings per share (EPS) of $0.35 for the fourth quarter, a cent higher than the $0.34 consensus estimate. Revenue for the quarter was $223.1 million, also exceeding the analyst consensus of $220.05 million. Despite the earnings beat, CarGurus forecasted first-quarter 2024 EPS in the range of $0.24 to $0.29, below the consensus estimate of $0.31. Additionally, the company's revenue guidance for the first quarter of $201 million to $221 million fell short of the expected $238.4 million.
In the fourth quarter, CarGurus experienced a 10% year-over-year (YoY) increase in marketplace revenue, marking the fastest growth pace in 10 quarters. However, the company's consolidated net loss widened to $22.6 million, a 197% decrease YoY. On a positive note, CarGurus' adjusted EBITDA for the quarter showed a significant improvement, rising 120% YoY to $61.2 million.
Jason Trevisan, Chief Executive Officer at CarGurus, expressed satisfaction with the company's performance, highlighting the acceleration in the marketplace business and the successful acquisition of CarOffer. He emphasized the company's continued investment in growth initiatives while maintaining financial discipline and operational excellence.
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