CarGurus, Inc. (Nasdaq: CARG), a multinational, online automotive
platform for buying and selling vehicles, today announced financial
results for the third quarter ended September 30, 2023.
"We are pleased to have exceeded our forecasted
consolidated adjusted EBITDA guidance range for the quarter," said
Jason Trevisan, Chief Executive Officer at CarGurus. “Marketplace
revenue growth accelerated to nearly 8% year-over-year driven by
outperformance in our foundational Listings business, where we
continued to focus on QARSD growth levers to drive greater revenue
expansion and long-term growth. Our advancements in Digital Retail
and Digital Wholesale demonstrate our progress toward being the
only end-to-end automotive transaction-enabled platform. We are
excited by the trajectory of our platform and rapid innovation and
are pleased to announce that our Board has authorized a $250
million share repurchase program, which underscores our commitment
to using our strong cash flow to enhance shareholder value. Looking
ahead, we believe our accomplishments and trend lines exiting this
year, coupled with our decision to accelerate our purchase of the
remaining stake in CarOffer, set the stage for continued financial
growth and innovation in 2024 that will serve well our dealer
partners and largest consumer audience."
Third Quarter Financial
Highlights
- Total revenue of $219.4 million, a
decrease of (49)% year-over-year.
- Marketplace revenue was $177.9 million, an increase of 8%
year-over-year.
- Wholesale revenue was $21.7 million, a decrease of (54)%
year-over-year.
- Product revenue was $19.8 million, a decrease of (91)%
year-over-year.
- GAAP consolidated net income of
$19.0 million, an increase of 1% year-over-year; non-GAAP
consolidated net income of $37.5 million, an increase of 81%
year-over-year.
- GAAP net income attributable to
common stockholders of $22.3 million, or $0.17 per fully diluted
share, an increase of 79% year-over-year; non-GAAP net income
attributable to common stockholders of $38.3 million, or $0.34 per
fully diluted share, an increase of 40% year-over-year.
- Consolidated Adjusted EBITDA, a
non-GAAP metric, of $48.6 million, an increase of 48%
year-over-year.
- Adjusted EBITDA, a non-GAAP metric,
of $49.1 million, an increase of 26% year-over-year.
- Cash, cash equivalents, and
short-term investments of $447.2 million.
Third Quarter Business Metrics(1)(2)(3)
- U.S. Marketplace segment revenue
was $164.3 million, an increase of 6% year-over-year. U.S.
Marketplace segment operating income was $33.3 million, a decrease
of (4)% year-over-year.
- Digital Wholesale segment revenue
was $41.5 million, a decrease of (84)% year-over-year. Digital
Wholesale segment operating loss was $(11.7) million, an increase
of 224% year-over-year.
- Total paying dealers were 31,191 as
of September 30, 2023, roughly flat year-over-year. Of the
total paying dealers as of September 30, 2023, U.S. and
International accounted for 24,368 and 6,823, respectively, a
decrease of (1)% and an increase of 3%, respectively,
year-over-year.
- Quarterly Average Revenue per
Subscribing Dealer (“QARSD”) in the U.S. was $6,332 as of
September 30, 2023, an increase of 9% year-over-year. QARSD in
International markets was $1,721 as of September 30, 2023, an
increase of 14% year-over-year.
- Website traffic and consumer
engagement metrics for the third quarter of 2023 were as follows:
- U.S. average monthly unique users were 31.7 million, an
increase of 8% year-over-year.
- U.S. average monthly sessions were 83.9 million, an increase of
11% year-over-year.
- International average monthly unique users were 7.0 million, an
increase of 4% year-over-year.
- International average monthly sessions were 16.0 million, an
increase of 6% year-over-year.
- Transactions were 13,562, a
decrease of (66)% year-over-year.
(1) |
CarOffer website is excluded from the metrics presented for users
and sessions. |
(2) |
Effective as of the fourth quarter of 2022 the Company revised its
segment reporting from one reportable segment to two reportable
segments, U.S. Marketplace and Digital Wholesale. The change in
segment reporting was a triggering event for an evaluation of
goodwill impairment. As such, the Company evaluated for goodwill
impairment on December 31, 2022, and did not identify any
impairment to its goodwill. The change in segment reporting was
made to align with financial reporting results regularly provided
to the Company's chief operating decision maker ("CODM") to assess
the business. The CODM reviews segment revenue and segment income
(loss) from operations as a proxy for the performance of the
Company’s operations. The U.S. Marketplace segment derives revenues
from marketplace services from customers within the United States.
The Digital Wholesale segment derives revenues from
Dealer-to-Dealer and Instant Max Cash Offer services and products
which are sold on the CarOffer platform. The Company also has two
operating segments which are individually immaterial and therefore
aggregated into the Other category to reconcile reportable segments
to the Unaudited Condensed Consolidated Income Statements. The
Other category derives revenues from marketplace services from
customers outside of the United States. |
(3) |
For the year ended December 31, 2022, Digital Wholesale segment
income (loss) from operations did not reflect certain
Dealer-to-Dealer and Instant Max Cash Offer ("IMCO") related
capitalized website development amortization incurred by the U.S.
Marketplace segment. During the three months ended March 31, 2023,
the Company updated Digital Wholesale segment income (loss) from
operations to reflect certain Dealer-to-Dealer and IMCO related
capitalized website development amortization incurred by the U.S.
Marketplace segment and accordingly updated Digital Wholesale
segment income (loss) from operations for the three months ended
September 30, 2022 for comparative purposes. |
|
|
Fourth Quarter and Full-Year 2023 Guidance
CarGurus anticipates total revenue, product revenue, non-GAAP
Consolidated Adjusted EBITDA, and non-GAAP earnings per share
("EPS") to be in the following ranges:
Fourth Quarter 2023:
|
• Total revenue |
$208 million to $228 million |
|
• Product
revenue |
$12 million to $22 million |
|
• Non-GAAP
Consolidated Adjusted EBITDA |
$46 million to $54 million |
|
• Non-GAAP EPS |
$0.30 to $0.33 |
|
|
|
Full-Year 2023:
|
• Total revenue |
$899 million to $919 million |
|
• Product
revenue |
$108 million to $118 million |
|
• Non-GAAP
Consolidated Adjusted EBITDA |
$181 million to $189 million |
|
• Non-GAAP EPS |
$1.19 to $1.22 |
|
|
|
The fourth quarter and full-year 2023 non-GAAP
EPS calculation assumes 113.5 million and 114.6 million,
respectively diluted weighted-average common shares
outstanding.
The assumptions that are built into guidance for
the fourth quarter and full-year 2023 regarding our pace of paid
dealer acquisition, churn, and expansion activity for the relevant
period are based on recent market behaviors and industry
conditions. Guidance for the fourth quarter and full-year 2023
excludes macro-level industry issues that result in dealers and
consumers materially changing their recent market behaviors or that
cause us to enact measures to assist dealers. Guidance also
excludes adjustments to the carrying value of redeemable
noncontrolling interests resulting from potential changes in the
redemption value of such interests, and any potential impact of
foreign currency exchange gains or losses.
CarGurus has not reconciled its guidance of
non-GAAP consolidated adjusted EBITDA to GAAP consolidated net
income or non-GAAP consolidated EPS to GAAP consolidated EPS
because reconciling items between such GAAP and non-GAAP financial
measures, which include, as applicable, stock-based compensation,
amortization of intangible assets, impairment of long-lived assets,
depreciation expenses, non-intangible amortization, other (income)
expense, net, the provision for income taxes, income tax effects,
and adjustments to the carrying value of redeemable noncontrolling
interests resulting from changes in the redemption value of such
interests, cannot be reasonably predicted due to, as applicable,
the timing, amount, valuation and number of future employee equity
awards, and the uncertainty relating to the timing, frequency, and
effect of acquisitions and the significance of the resulting
acquisition-related expenses, including adjustments to the carrying
value of redeemable noncontrolling interests resulting from
potential changes in the redemption value of such interests, and
therefore cannot be determined without unreasonable effort. For
more information regarding the non-GAAP financial measures
discussed in this press release, please see the reconciliations of
GAAP financial measures to non-GAAP financial measures and the
section titled “Non-GAAP Financial Measures and Other Business
Metrics” below.
Conference Call and Webcast
Information
CarGurus will host a conference call and live
webcast to discuss its third quarter 2023 financial results and
business outlook at 5:00 p.m. Eastern Time today, November 7, 2023.
To access the conference call, dial (877) 451-6152 for callers in
the U.S. or Canada, or (201) 389-0879 for international callers.
The webcast will be available live on the Investors section of
CarGurus’ website at https://investors.cargurus.com.
An audio replay of the call will also be
available to investors beginning at approximately 8:00 p.m. Eastern
Time today, November 7, 2023, until 11:59 p.m. Eastern Time on
November 14, 2023, by dialing (844) 512-2921 for callers in the
U.S. or Canada, or (412) 317-6671 for international callers, and
entering passcode 13741082. In addition, an archived webcast will
be available on the Investors section of CarGurus’ website at
https://investors.cargurus.com.
About CarGurus
CarGurus (Nasdaq: CARG) is a multinational,
online automotive platform for buying and selling vehicles that is
building upon its industry-leading listings marketplace with both
digital retail solutions and the CarOffer digital wholesale
platform. The CarGurus platform gives consumers the confidence to
purchase and/or sell a vehicle either online or in-person, and it
gives dealerships the power to accurately price, effectively
market, instantly acquire, and quickly sell vehicles, all with a
nationwide reach. The Company uses proprietary technology, search
algorithms, and data analytics to bring trust, transparency, and
competitive pricing to the automotive shopping experience. CarGurus
is the most visited automotive shopping site in the U.S.1
1Source: SimilarWeb: Traffic Report, Q3 2023,
U.S.
CarGurus also operates online marketplaces under
the CarGurus brand in Canada and the United Kingdom. In the United
States and the United Kingdom, CarGurus also operates the Autolist
and PistonHeads online marketplaces, respectively, as independent
brands.
To learn more about CarGurus, visit
www.cargurus.com, and for more information about CarOffer, visit
www.caroffer.com.
CarGurus® is a registered trademark of CarGurus,
Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All
other product names, trademarks and registered trademarks are
property of their respective owners.
© 2023 CarGurus, Inc., All Rights Reserved.
Cautionary Language Concerning Forward-Looking
Statements
This press release includes forward-looking
statements. Other than statements of historical facts, all
statements contained in this press release, including, without
limitation, statements regarding our future financial and business
performance for the fourth quarter 2023 and fiscal 2024; expected
completion of our acquisition of the remaining interest in CarOffer
(the "Transaction") and the time frame in which this will occur;
our ability to quickly make transformations necessary for our
business to achieve long-term goals; and the impact of macro-level
issues on our industry, business, and financial results, are
forward-looking statements. The words “aim,” “anticipate,”
“believe,” “could,” “estimate,” “expect,” “goal,” “guide,”
“intend,” “may,” “might,” “plan,” “potential,” “predicts,”
“projects,” “seeks,” “should,” “target,” “will,” “would,” and
similar expressions and their negatives are intended to identify
forward-looking statements. We have based these forward-looking
statements on our current expectations and projections about future
events and financial trends that we believe may affect our
financial condition, results of operations, business strategy,
short-term and long-term business operations and objectives and
financial needs. You should not place undue reliance on these
statements.
These forward-looking statements are subject to
a number of risks and uncertainties that could cause actual results
to differ materially from those reflected in such statements,
including, without limitation, risks related to our growth and our
ability to grow our revenue; the possibility that certain closing
conditions to the Transaction will not be satisfied; uncertainty as
to whether the anticipated benefits of the Transaction can be
achieved; risks of unexpected hurdles, costs, or delays; the
potential impact on our or CarOffer’s business due to the
announcement of the Transaction; the occurrence of any event,
change, or other circumstances that could give rise to the
termination of the Membership Interest Purchase Agreement entered
into in connection with the Transaction; our relationships with
dealers; competition in the markets in which we operate; market
growth; our ability to innovate; our ability to realize benefits
from our acquisitions and successfully implement the integration
strategies in connection therewith; global supply chain challenges,
increased inflation and interest rates, and other macroeconomic
issues; the material weakness identified in our internal controls
over financial reporting; changes in our key personnel; natural
disasters, epidemics, or pandemics; and our ability to operate in
compliance with applicable laws, as well as other risks and
uncertainties as may be detailed from time to time in our Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q and other
reports we file with the U.S. Securities and Exchange Commission.
Moreover, we operate in very competitive and rapidly changing
environments. New risks emerge from time to time. It is not
possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which
any factor, or combination of factors, may cause actual results to
differ materially from those contained in any forward-looking
statements we may make. In light of these risks, uncertainties, and
assumptions, we cannot guarantee that future results, levels of
activity, performance, achievements, or events and circumstances
reflected in the forward-looking statements will occur. We are
under no duty to update any of these forward-looking statements
after the date of this press release to conform these statements to
actual results or revised expectations, except as required by law.
You should, therefore, not rely on these forward-looking statements
as representing our views as of any date subsequent to the date of
this press release.
Investor Contact:Kirndeep
SinghVice President, Investor Relationsinvestors@cargurus.com
Unaudited Condensed Consolidated Balance Sheets(in
thousands, except share and per share data) |
|
|
|
|
|
As
ofSeptember 30,2023 |
|
|
As
ofDecember 31,2022 |
|
Assets |
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
355,330 |
|
|
$ |
469,517 |
|
Short-term investments |
|
|
91,824 |
|
|
|
— |
|
Accounts receivable, net of allowance for doubtful accounts of
$823 and $1,809, respectively |
|
|
46,107 |
|
|
|
46,817 |
|
Inventory |
|
|
323 |
|
|
|
5,282 |
|
Prepaid expenses, prepaid income taxes and other current
assets |
|
|
19,696 |
|
|
|
21,972 |
|
Deferred contract costs |
|
|
10,465 |
|
|
|
8,541 |
|
Restricted cash |
|
|
11,624 |
|
|
|
5,237 |
|
Total current assets |
|
|
535,369 |
|
|
|
557,366 |
|
Property and equipment, net |
|
|
54,700 |
|
|
|
40,128 |
|
Intangible assets, net |
|
|
30,481 |
|
|
|
53,054 |
|
Goodwill |
|
|
157,267 |
|
|
|
157,467 |
|
Operating lease right-of-use assets |
|
|
183,774 |
|
|
|
56,869 |
|
Restricted cash |
|
|
— |
|
|
|
9,378 |
|
Deferred tax assets |
|
|
67,623 |
|
|
|
35,488 |
|
Deferred contract costs, net of current portion |
|
|
11,965 |
|
|
|
8,853 |
|
Other non-current assets |
|
|
7,546 |
|
|
|
8,499 |
|
Total assets |
|
$ |
1,048,725 |
|
|
$ |
927,102 |
|
Liabilities, redeemable noncontrolling interest and
stockholders’ equity |
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
Accounts payable |
|
$ |
37,481 |
|
|
$ |
32,529 |
|
Accrued expenses, accrued income taxes and other current
liabilities |
|
|
36,908 |
|
|
|
39,193 |
|
Deferred revenue |
|
|
21,043 |
|
|
|
12,249 |
|
Operating lease liabilities |
|
|
13,206 |
|
|
|
14,762 |
|
Total current liabilities |
|
|
108,638 |
|
|
|
98,733 |
|
Operating lease liabilities |
|
|
192,111 |
|
|
|
51,656 |
|
Deferred tax liabilities |
|
|
60 |
|
|
|
54 |
|
Other non–current liabilities |
|
|
4,386 |
|
|
|
5,301 |
|
Total liabilities |
|
|
305,195 |
|
|
|
155,744 |
|
Redeemable noncontrolling interest |
|
|
26,536 |
|
|
|
36,749 |
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, $0.001 par value per share; 10,000,000 shares
authorized; no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Class A common stock, $0.001 par value per share; 500,000,000
shares authorized; 96,877,765 and 101,636,649 shares issued
and outstanding at September 30, 2023 and December 31, 2022,
respectively |
|
|
97 |
|
|
|
102 |
|
Class B common stock, $0.001 par value per share; 100,000,000
shares authorized; 15,999,173 and 15,999,173 shares issued and
outstanding at September 30, 2023 and December 31, 2022,
respectively |
|
|
16 |
|
|
|
16 |
|
Additional paid-in capital |
|
|
341,110 |
|
|
|
413,092 |
|
Retained earnings |
|
|
377,890 |
|
|
|
323,043 |
|
Accumulated other comprehensive loss |
|
|
(2,119 |
) |
|
|
(1,644 |
) |
Total stockholders’ equity |
|
|
716,994 |
|
|
|
734,609 |
|
Total liabilities, redeemable noncontrolling interest and
stockholders’ equity |
|
$ |
1,048,725 |
|
|
$ |
927,102 |
|
Unaudited Condensed Consolidated Income
Statements(in thousands, except share and per share
data) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
Marketplace |
|
$ |
177,909 |
|
|
$ |
165,309 |
|
|
$ |
515,986 |
|
|
$ |
492,524 |
|
Wholesale |
|
|
21,735 |
|
|
|
47,045 |
|
|
|
78,873 |
|
|
|
213,976 |
|
Product |
|
|
19,775 |
|
|
|
214,100 |
|
|
|
96,260 |
|
|
|
661,791 |
|
Total revenue |
|
|
219,419 |
|
|
|
426,454 |
|
|
|
691,119 |
|
|
|
1,368,291 |
|
Cost of revenue (1) |
|
|
|
|
|
|
|
|
|
|
|
|
Marketplace |
|
|
14,823 |
|
|
|
14,956 |
|
|
|
45,830 |
|
|
|
40,422 |
|
Wholesale |
|
|
21,284 |
|
|
|
41,789 |
|
|
|
67,780 |
|
|
|
146,489 |
|
Product |
|
|
19,014 |
|
|
|
218,924 |
|
|
|
94,090 |
|
|
|
660,869 |
|
Total cost of revenue |
|
|
55,121 |
|
|
|
275,669 |
|
|
|
207,700 |
|
|
|
847,780 |
|
Gross profit |
|
|
164,298 |
|
|
|
150,785 |
|
|
|
483,419 |
|
|
|
520,511 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
76,828 |
|
|
|
83,319 |
|
|
|
230,243 |
|
|
|
266,505 |
|
Product, technology, and development |
|
|
35,434 |
|
|
|
30,208 |
|
|
|
109,432 |
|
|
|
92,215 |
|
General and administrative |
|
|
24,904 |
|
|
|
4,760 |
|
|
|
77,090 |
|
|
|
71,395 |
|
Depreciation and amortization |
|
|
4,037 |
|
|
|
3,842 |
|
|
|
11,762 |
|
|
|
11,539 |
|
Total operating expenses |
|
|
141,203 |
|
|
|
122,129 |
|
|
|
428,527 |
|
|
|
441,654 |
|
Income from operations |
|
|
23,095 |
|
|
|
28,656 |
|
|
|
54,892 |
|
|
|
78,857 |
|
Other income (expense),
net: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
5,261 |
|
|
|
1,158 |
|
|
|
13,337 |
|
|
|
1,506 |
|
Other expense, net |
|
|
(1,094 |
) |
|
|
(958 |
) |
|
|
(152 |
) |
|
|
(1,581 |
) |
Total other income (expense), net |
|
|
4,167 |
|
|
|
200 |
|
|
|
13,185 |
|
|
|
(75 |
) |
Income before income taxes |
|
|
27,262 |
|
|
|
28,856 |
|
|
|
68,077 |
|
|
|
78,782 |
|
Provision for income taxes |
|
|
8,289 |
|
|
|
10,032 |
|
|
|
23,421 |
|
|
|
23,059 |
|
Consolidated net income |
|
|
18,973 |
|
|
|
18,824 |
|
|
|
44,656 |
|
|
|
55,723 |
|
Net loss attributable to redeemable noncontrolling
interest |
|
|
(3,329 |
) |
|
|
(1,576 |
) |
|
|
(10,191 |
) |
|
|
(3,871 |
) |
Net income attributable to CarGurus, Inc. |
|
|
22,302 |
|
|
|
20,400 |
|
|
|
54,847 |
|
|
|
59,594 |
|
Accretion of redeemable noncontrolling interest to redemption
value |
|
|
— |
|
|
|
(86,564 |
) |
|
|
— |
|
|
|
25,056 |
|
Net income attributable to common stockholders |
|
$ |
22,302 |
|
|
$ |
106,964 |
|
|
$ |
54,847 |
|
|
$ |
34,538 |
|
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.20 |
|
|
$ |
0.90 |
|
|
$ |
0.48 |
|
|
$ |
0.29 |
|
Diluted |
|
$ |
0.17 |
|
|
$ |
0.14 |
|
|
$ |
0.39 |
|
|
$ |
0.28 |
|
Weighted-average number of shares of common stock used in
computing net income per share attributable to
common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
113,223,711 |
|
|
|
118,683,642 |
|
|
|
113,998,928 |
|
|
|
118,370,925 |
|
Diluted |
|
|
114,322,279 |
|
|
|
132,243,636 |
|
|
|
114,901,736 |
|
|
|
122,159,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes depreciation and
amortization expense for the three months ended September 30,
2023 and 2022 and for the nine months ended September 30, 2023
and 2022 of $8,433, $7,341, $23,951, and $22,063,
respectively. |
Unaudited Segment Revenue(in thousands) |
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Segment Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Marketplace |
|
$ |
164,323 |
|
|
$ |
154,402 |
|
|
$ |
478,387 |
|
|
$ |
459,044 |
|
Digital Wholesale |
|
|
41,510 |
|
|
|
261,145 |
|
|
|
175,133 |
|
|
|
875,767 |
|
Other |
|
|
13,586 |
|
|
|
10,907 |
|
|
|
37,599 |
|
|
|
33,480 |
|
Total |
|
$ |
219,419 |
|
|
$ |
426,454 |
|
|
$ |
691,119 |
|
|
$ |
1,368,291 |
|
Unaudited Segment Income (Loss) from Operations(in
thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Segment Income (Loss) from Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Marketplace |
|
$ |
33,285 |
|
|
$ |
34,660 |
|
|
$ |
84,443 |
|
|
$ |
92,842 |
|
Digital Wholesale |
|
|
(11,652 |
) |
|
|
(3,599 |
) |
|
|
(29,184 |
) |
|
|
(8,348 |
) |
Other |
|
|
1,462 |
|
|
|
(2,405 |
) |
|
|
(367 |
) |
|
|
(5,637 |
) |
Total |
|
$ |
23,095 |
|
|
$ |
28,656 |
|
|
$ |
54,892 |
|
|
$ |
78,857 |
|
Unaudited Condensed Consolidated Statements of Cash
Flows(in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Operating
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net income |
|
$ |
18,973 |
|
|
$ |
18,824 |
|
|
$ |
44,656 |
|
|
$ |
55,723 |
|
Adjustments to reconcile
consolidated net income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization |
|
|
12,470 |
|
|
|
11,183 |
|
|
|
35,713 |
|
|
|
33,602 |
|
Gain on sale of property and
equipment |
|
|
— |
|
|
|
— |
|
|
|
(460 |
) |
|
|
— |
|
Unrealized currency loss on
foreign denominated transactions |
|
|
385 |
|
|
|
263 |
|
|
|
249 |
|
|
|
617 |
|
Other non-cash expense,
net |
|
|
152 |
|
|
|
— |
|
|
|
168 |
|
|
|
— |
|
Deferred taxes |
|
|
(15,718 |
) |
|
|
(7,201 |
) |
|
|
(32,129 |
) |
|
|
(30,665 |
) |
Provision for doubtful
accounts |
|
|
418 |
|
|
|
430 |
|
|
|
247 |
|
|
|
1,129 |
|
Stock-based compensation
expense |
|
|
14,262 |
|
|
|
13,971 |
|
|
|
43,769 |
|
|
|
41,550 |
|
Amortization of deferred
financing costs |
|
|
129 |
|
|
|
7 |
|
|
|
387 |
|
|
|
7 |
|
Amortization of deferred
contract costs |
|
|
3,026 |
|
|
|
2,768 |
|
|
|
8,629 |
|
|
|
8,332 |
|
Impairment of long-lived
assets |
|
|
— |
|
|
|
— |
|
|
|
184 |
|
|
|
— |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(12,904 |
) |
|
|
75,506 |
|
|
|
337 |
|
|
|
63,484 |
|
Inventory |
|
|
219 |
|
|
|
(6,482 |
) |
|
|
4,959 |
|
|
|
(8,510 |
) |
Prepaid expenses, prepaid income taxes, and other assets |
|
|
2,573 |
|
|
|
(4,241 |
) |
|
|
6,027 |
|
|
|
(14,675 |
) |
Deferred contract costs |
|
|
(3,950 |
) |
|
|
(3,343 |
) |
|
|
(13,688 |
) |
|
|
(9,089 |
) |
Accounts payable |
|
|
(2,963 |
) |
|
|
(6,858 |
) |
|
|
1,177 |
|
|
|
1,310 |
|
Accrued expenses, accrued income taxes, and other liabilities |
|
|
5,107 |
|
|
|
(19,250 |
) |
|
|
1,016 |
|
|
|
18,924 |
|
Deferred revenue |
|
|
(219 |
) |
|
|
(2,322 |
) |
|
|
8,797 |
|
|
|
(20 |
) |
Lease obligations |
|
|
4,390 |
|
|
|
(47 |
) |
|
|
11,993 |
|
|
|
(916 |
) |
Net cash provided by operating activities |
|
|
26,350 |
|
|
|
73,208 |
|
|
|
122,031 |
|
|
|
160,803 |
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(4,793 |
) |
|
|
(1,507 |
) |
|
|
(9,048 |
) |
|
|
(4,168 |
) |
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
— |
|
|
|
460 |
|
|
|
— |
|
Capitalization of website development costs |
|
|
(4,341 |
) |
|
|
(2,773 |
) |
|
|
(11,773 |
) |
|
|
(8,275 |
) |
Purchases of short-term investments |
|
|
(1,242 |
) |
|
|
— |
|
|
|
(96,748 |
) |
|
|
— |
|
Maturities of short-term investments |
|
|
— |
|
|
|
30,000 |
|
|
|
— |
|
|
|
90,000 |
|
Sales of short-term investments |
|
|
— |
|
|
|
— |
|
|
|
5,000 |
|
|
|
— |
|
Advance payments to customers, net of collections |
|
|
(307 |
) |
|
|
— |
|
|
|
(2,908 |
) |
|
|
— |
|
Net cash (used in) provided by investing activities |
|
|
(10,683 |
) |
|
|
25,720 |
|
|
|
(115,017 |
) |
|
|
77,557 |
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from issuance of common stock upon exercise of stock
options |
|
|
45 |
|
|
|
14 |
|
|
|
74 |
|
|
|
719 |
|
Payment of withholding taxes on net share settlements of
restricted stock units |
|
|
(4,844 |
) |
|
|
(2,911 |
) |
|
|
(11,738 |
) |
|
|
(14,171 |
) |
Repurchase of common stock |
|
|
(15,951 |
) |
|
|
— |
|
|
|
(107,409 |
) |
|
|
— |
|
Payment of deferred financing costs |
|
|
— |
|
|
|
(2,578 |
) |
|
|
— |
|
|
|
(2,578 |
) |
Payment of finance lease obligations |
|
|
(18 |
) |
|
|
(16 |
) |
|
|
(52 |
) |
|
|
(51 |
) |
Payment of tax distributions to redeemable noncontrolling
interest holders |
|
|
— |
|
|
|
(7,152 |
) |
|
|
(38 |
) |
|
|
(19,843 |
) |
Change in gross advance payments received from third-party
transaction processor |
|
|
(1,849 |
) |
|
|
(19,402 |
) |
|
|
(4,523 |
) |
|
|
(21,765 |
) |
Net cash used in financing activities |
|
|
(22,617 |
) |
|
|
(32,045 |
) |
|
|
(123,686 |
) |
|
|
(57,689 |
) |
Impact of foreign currency on cash, cash equivalents, and
restricted cash |
|
|
(717 |
) |
|
|
(728 |
) |
|
|
(506 |
) |
|
|
(1,640 |
) |
Net (decrease) increase in cash, cash equivalents, and
restricted cash |
|
|
(7,667 |
) |
|
|
66,155 |
|
|
|
(117,178 |
) |
|
|
179,031 |
|
Cash, cash equivalents, and restricted cash at beginning of
period |
|
|
374,621 |
|
|
|
361,156 |
|
|
|
484,132 |
|
|
|
248,280 |
|
Cash, cash equivalents, and restricted cash at end of
period |
|
$ |
366,954 |
|
|
$ |
427,311 |
|
|
$ |
366,954 |
|
|
$ |
427,311 |
|
Unaudited Reconciliation of GAAP Consolidated Net Income to
Non-GAAP Consolidated Net Income and Non-GAAP Net Income
Attributable to Common Stockholders(in thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP
consolidated net income |
|
$ |
18,973 |
|
|
$ |
18,824 |
|
|
$ |
44,656 |
|
|
$ |
55,723 |
|
Stock-based compensation expense |
|
|
13,038 |
|
|
|
(6,946 |
) |
|
|
43,842 |
|
|
|
47,353 |
|
Amortization of intangible assets |
|
|
7,508 |
|
|
|
7,669 |
|
|
|
22,549 |
|
|
|
23,046 |
|
Income tax effects and adjustments |
|
|
(2,015 |
) |
|
|
1,207 |
|
|
|
(10,687 |
) |
|
|
(14,154 |
) |
Non-GAAP consolidated net income |
|
|
37,504 |
|
|
|
20,754 |
|
|
|
100,360 |
|
|
|
111,968 |
|
Non-GAAP net (loss) income attributable to redeemable
noncontrolling interest |
|
|
(812 |
) |
|
|
(6,570 |
) |
|
|
(1,230 |
) |
|
|
7,182 |
|
Non-GAAP net income attributable to common stockholders |
|
$ |
38,316 |
|
|
$ |
27,324 |
|
|
$ |
101,590 |
|
|
$ |
104,786 |
|
Non-GAAP net income per share attributable to common
stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.34 |
|
|
$ |
0.23 |
|
|
$ |
0.89 |
|
|
$ |
0.89 |
|
Diluted |
|
$ |
0.34 |
|
|
$ |
0.21 |
|
|
$ |
0.88 |
|
|
$ |
0.86 |
|
Shares used in Non-GAAP per share calculations |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
113,224 |
|
|
|
118,684 |
|
|
|
113,999 |
|
|
|
118,371 |
|
Diluted |
|
|
114,322 |
|
|
|
132,244 |
|
|
|
114,902 |
|
|
|
122,159 |
|
Unaudited Reconciliation of GAAP Net Loss Attributable to
Redeemable Noncontrolling Interest to Non-GAAP Net (Loss) Income
Attributable to Redeemable Noncontrolling Interest(in
thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP net loss
attributable to redeemable noncontrolling interest |
|
$ |
(3,329 |
) |
|
$ |
(1,576 |
) |
|
$ |
(10,191 |
) |
|
$ |
(3,871 |
) |
Stock-based compensation expense(1) |
|
|
(257 |
) |
|
|
(7,767 |
) |
|
|
639 |
|
|
|
2,731 |
|
Amortization of intangible assets(1) |
|
|
2,774 |
|
|
|
2,773 |
|
|
|
8,322 |
|
|
|
8,322 |
|
Non-GAAP net (loss) income attributable to redeemable
noncontrolling interest |
|
$ |
(812 |
) |
|
$ |
(6,570 |
) |
|
$ |
(1,230 |
) |
|
$ |
7,182 |
|
|
(1) These exclusions are adjusted to
reflect the noncontrolling shareholder's 38% share of earnings and
losses in CarOffer. |
Unaudited Reconciliation of GAAP Consolidated Net Income to
Consolidated Adjusted EBITDA and Adjusted EBITDA(in
thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP consolidated net income |
|
$ |
18,973 |
|
|
$ |
18,824 |
|
|
$ |
44,656 |
|
|
$ |
55,723 |
|
Depreciation and
amortization |
|
|
12,470 |
|
|
|
11,183 |
|
|
|
35,713 |
|
|
|
33,602 |
|
Impairment of long-lived
assets |
|
|
— |
|
|
|
— |
|
|
|
184 |
|
|
|
— |
|
Stock-based compensation
expense |
|
|
13,038 |
|
|
|
(6,946 |
) |
|
|
43,842 |
|
|
|
47,353 |
|
Other (income) expense,
net |
|
|
(4,167 |
) |
|
|
(200 |
) |
|
|
(13,185 |
) |
|
|
75 |
|
Provision for income
taxes |
|
|
8,289 |
|
|
|
10,032 |
|
|
|
23,421 |
|
|
|
23,059 |
|
Consolidated Adjusted
EBITDA |
|
|
48,603 |
|
|
|
32,893 |
|
|
|
134,631 |
|
|
|
159,812 |
|
Adjusted EBITDA attributable
to redeemable noncontrolling interest |
|
|
(527 |
) |
|
|
(5,948 |
) |
|
|
386 |
|
|
|
9,053 |
|
Adjusted EBITDA |
|
$ |
49,130 |
|
|
$ |
38,841 |
|
|
$ |
134,245 |
|
|
$ |
150,759 |
|
Unaudited
Reconciliation of GAAP Net Loss Attributable to Redeemable
Noncontrolling Interest to Adjusted EBITDA Attributable to
Redeemable Noncontrolling Interest(in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP net loss attributable to redeemable noncontrolling
interest |
|
$ |
(3,329 |
) |
|
$ |
(1,576 |
) |
|
$ |
(10,191 |
) |
|
$ |
(3,871 |
) |
Depreciation and
amortization(1) |
|
|
2,975 |
|
|
|
2,938 |
|
|
|
8,874 |
|
|
|
8,765 |
|
Impairment of long-lived
assets(1) |
|
|
— |
|
|
|
— |
|
|
|
67 |
|
|
|
— |
|
Stock-based compensation
expense(1) |
|
|
(257 |
) |
|
|
(7,767 |
) |
|
|
639 |
|
|
|
2,731 |
|
Other expense, net(1) |
|
|
84 |
|
|
|
471 |
|
|
|
972 |
|
|
|
1,351 |
|
Provision for income
taxes(1) |
|
|
— |
|
|
|
(14 |
) |
|
|
25 |
|
|
|
77 |
|
Adjusted EBITDA attributable
to redeemable noncontrolling interest |
|
$ |
(527 |
) |
|
$ |
(5,948 |
) |
|
$ |
386 |
|
|
$ |
9,053 |
|
|
(1)
These exclusions are adjusted to reflect the noncontrolling
interest of 38%. |
Unaudited
Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and
GAAP Gross Profit Margin to Non-GAAP Gross Profit
Margin(in thousands, except percentages) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
Revenue |
|
$ |
219,419 |
|
|
$ |
426,454 |
|
|
$ |
691,119 |
|
|
$ |
1,368,291 |
|
Cost of revenue |
|
|
55,121 |
|
|
|
275,669 |
|
|
|
207,700 |
|
|
|
847,780 |
|
GAAP gross profit |
|
|
164,298 |
|
|
|
150,785 |
|
|
|
483,419 |
|
|
|
520,511 |
|
Stock-based compensation
expense included in Cost of revenue |
|
|
185 |
|
|
|
212 |
|
|
|
513 |
|
|
|
417 |
|
Amortization of intangible
assets included in Cost of revenue |
|
|
5,250 |
|
|
|
5,350 |
|
|
|
15,766 |
|
|
|
16,050 |
|
Non-GAAP gross profit |
|
$ |
169,733 |
|
|
$ |
156,347 |
|
|
$ |
499,698 |
|
|
$ |
536,978 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit margin |
|
|
75 |
% |
|
|
35 |
% |
|
|
70 |
% |
|
|
38 |
% |
Non-GAAP gross profit
margin |
|
|
77 |
% |
|
|
37 |
% |
|
|
72 |
% |
|
|
39 |
% |
Unaudited
Reconciliation of GAAP Expense to Non-GAAP
Expense (in thousands) |
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
GAAP expense |
|
|
Stock-basedcompensationexpense |
|
|
Amortization ofintangible
assets |
|
|
Non-GAAPexpense |
|
|
GAAP expense |
|
|
Stock-basedcompensationexpense |
|
|
Amortization ofintangible
assets |
|
|
Non-GAAPexpense |
|
Cost of revenue |
|
$ |
55,121 |
|
|
$ |
(185 |
) |
|
$ |
(5,250 |
) |
|
$ |
49,686 |
|
|
$ |
275,669 |
|
|
$ |
(212 |
) |
|
$ |
(5,350 |
) |
|
$ |
270,107 |
|
Sales and marketing |
|
|
76,828 |
|
|
|
(2,780 |
) |
|
|
— |
|
|
|
74,048 |
|
|
|
83,319 |
|
|
|
(104 |
) |
|
|
— |
|
|
|
83,215 |
|
Product, technology, and
development |
|
|
35,434 |
|
|
|
(5,745 |
) |
|
|
— |
|
|
|
29,689 |
|
|
|
30,208 |
|
|
|
(4,201 |
) |
|
|
— |
|
|
|
26,007 |
|
General and
administrative |
|
|
24,904 |
|
|
|
(4,328 |
) |
|
|
— |
|
|
|
20,576 |
|
|
|
4,760 |
|
|
|
11,463 |
|
|
|
— |
|
|
|
16,223 |
|
Depreciation &
amortization |
|
|
4,037 |
|
|
|
— |
|
|
|
(2,258 |
) |
|
|
1,779 |
|
|
|
3,842 |
|
|
|
— |
|
|
|
(2,319 |
) |
|
|
1,523 |
|
Operating expenses(1) |
|
$ |
141,203 |
|
|
$ |
(12,853 |
) |
|
$ |
(2,258 |
) |
|
$ |
126,092 |
|
|
$ |
122,129 |
|
|
$ |
7,158 |
|
|
$ |
(2,319 |
) |
|
$ |
126,968 |
|
Total cost of revenue and
operating expenses |
|
$ |
196,324 |
|
|
$ |
(13,038 |
) |
|
$ |
(7,508 |
) |
|
$ |
175,778 |
|
|
$ |
397,798 |
|
|
$ |
6,946 |
|
|
$ |
(7,669 |
) |
|
$ |
397,075 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
|
GAAP expense |
|
|
Stock-basedcompensationexpense |
|
|
Amortization ofintangible
assets |
|
|
Non-GAAPexpense |
|
|
GAAP expense |
|
|
Stock-basedcompensationexpense |
|
|
Amortization ofintangible
assets |
|
|
Non-GAAPexpense |
|
Cost of revenue |
|
$ |
207,700 |
|
|
$ |
(513 |
) |
|
$ |
(15,766 |
) |
|
$ |
191,421 |
|
|
$ |
847,780 |
|
|
$ |
(417 |
) |
|
$ |
(16,050 |
) |
|
$ |
831,313 |
|
Sales and marketing |
|
|
230,243 |
|
|
|
(8,736 |
) |
|
|
— |
|
|
|
221,507 |
|
|
|
266,505 |
|
|
|
(8,173 |
) |
|
|
— |
|
|
|
258,332 |
|
Product, technology, and
development |
|
|
109,432 |
|
|
|
(18,068 |
) |
|
|
— |
|
|
|
91,364 |
|
|
|
92,215 |
|
|
|
(16,720 |
) |
|
|
— |
|
|
|
75,495 |
|
General and administrative |
|
|
77,090 |
|
|
|
(16,525 |
) |
|
|
— |
|
|
|
60,565 |
|
|
|
71,395 |
|
|
|
(22,043 |
) |
|
|
— |
|
|
|
49,352 |
|
Depreciation & amortization |
|
|
11,762 |
|
|
|
— |
|
|
|
(6,783 |
) |
|
|
4,979 |
|
|
|
11,539 |
|
|
|
— |
|
|
|
(6,996 |
) |
|
|
4,543 |
|
Operating expenses(1) |
|
$ |
428,527 |
|
|
$ |
(43,329 |
) |
|
$ |
(6,783 |
) |
|
$ |
378,415 |
|
|
$ |
441,654 |
|
|
$ |
(46,936 |
) |
|
$ |
(6,996 |
) |
|
$ |
387,722 |
|
Total cost of revenue and operating expenses |
|
$ |
636,227 |
|
|
$ |
(43,842 |
) |
|
$ |
(22,549 |
) |
|
$ |
569,836 |
|
|
$ |
1,289,434 |
|
|
$ |
(47,353 |
) |
|
$ |
(23,046 |
) |
|
$ |
1,219,035 |
|
|
(1) Operating expenses include sales
and marketing, product, technology, and development, general and
administrative, and depreciation & amortization. |
Unaudited Reconciliation of GAAP Net Cash and Cash
Equivalents Provided by Operating Activities to Non-GAAP Free Cash
Flow(in thousands) |
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
September 30, |
|
|
September 30, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
GAAP net cash
and cash equivalents provided by operating activities |
|
$ |
26,350 |
|
|
$ |
73,208 |
|
|
$ |
122,031 |
|
|
$ |
160,803 |
|
Purchases of property and equipment |
|
|
(4,793 |
) |
|
|
(1,507 |
) |
|
|
(9,048 |
) |
|
|
(4,168 |
) |
Capitalization of website development costs |
|
|
(4,341 |
) |
|
|
(2,773 |
) |
|
|
(11,773 |
) |
|
|
(8,275 |
) |
Non-GAAP free cash flow |
|
$ |
17,216 |
|
|
$ |
68,928 |
|
|
$ |
101,210 |
|
|
$ |
148,360 |
|
|
|
Non-GAAP Financial Measures and Other Business
Metrics
To supplement our Unaudited Condensed
Consolidated financial statements, which are prepared and presented
in accordance with Generally Accepted Accounting Principles in the
United States ("GAAP"), we provide investors with certain non-GAAP
financial measures and other business metrics, which we believe are
helpful to our investors. We use these non-GAAP financial measures
and other business metrics for financial and operational
decision-making purposes and as a means to evaluate
period-to-period comparisons. We believe that these non-GAAP
financial measures and other business metrics provide useful
information about our operating results, enhance the overall
understanding of past financial performance, and future prospects
and allow for greater transparency with respect to metrics used by
our management in its financial and operational
decision-making.
The presentation of non-GAAP financial
information and other business metrics is not meant to be
considered in isolation or as a substitute for the directly
comparable financial measures prepared in accordance with GAAP.
While our non-GAAP financial measures and other business metrics
are an important tool for financial and operational decision-making
and for evaluating our own operating results over different periods
of time, we urge investors to review the reconciliation of these
financial measures to the comparable GAAP financial measures
included above, and not to rely on any single financial measure to
evaluate our business.
While a reconciliation of non-GAAP guidance
measures to corresponding GAAP measures is not available on a
forward-looking basis without unreasonable effort due to, as
applicable, the timing, amount, valuation and number of future
employee equity awards, and the uncertainty relating to the timing,
frequency and effect of acquisitions and the significance of the
resulting acquisition-related expenses, including adjustments to
the carrying value of redeemable noncontrolling interests resulting
from potential changes in the redemption value of such interests,
we have provided a reconciliation of non-GAAP financial measures
and other business metrics to the nearest comparable GAAP measures
in the accompanying financial statement tables included in this
press release.
We monitor operating measures of certain
non-GAAP items including non-GAAP gross profit, non-GAAP gross
margin, non-GAAP expense, non-GAAP consolidated net income,
non-GAAP net income attributable to common stockholders, and
non-GAAP net income per share attributable to common stockholders.
These non-GAAP financial measures exclude the effect of stock-based
compensation expense and amortization of intangible assets.
Non-GAAP consolidated net income, non-GAAP net income attributable
to common stockholders, and non-GAAP net income per share
attributable to common stockholders also exclude certain income tax
effects and adjustments. Non-GAAP net income attributable to common
stockholders and non-GAAP net income per share attributable to
common stockholders also exclude non-GAAP net income (loss)
attributable to redeemable noncontrolling interests. We define
non-GAAP net income (loss) attributable to redeemable
noncontrolling interests as net loss attributable to redeemable
noncontrolling interests, adjusted to exclude: stock-based
compensation expenses and amortization of intangible assets. These
exclusions are adjusted for redeemable noncontrolling interest. Our
calculations of non-GAAP net income per share attributable to
common stockholders utilize applicable GAAP share counts as
included in the accompanying financial statement tables included in
this press release. We believe that these non-GAAP financial
measures provide useful information about our operating results,
enhance the overall understanding of past financial performance and
future prospects and allow for greater transparency with respect to
metrics used by our management in its financial and operational
decision-making.
We define Consolidated Adjusted EBITDA as
consolidated net income, adjusted to exclude: depreciation and
amortization, impairment of long-lived assets, stock-based
compensation expense, other (income) expense, net, and provision
for income taxes. We define Adjusted EBITDA as Consolidated
Adjusted EBITDA adjusted to exclude Adjusted EBITDA attributable to
redeemable noncontrolling interest. We define Adjusted EBITDA
attributable to redeemable noncontrolling interest as net loss
attributable to redeemable noncontrolling interest, adjusted to
exclude: depreciation and amortization, impairment of long-lived
assets, stock-based compensation expense, other expense, net, and
provision for income taxes. These exclusions are adjusted for
redeemable noncontrolling interest of 38% by taking the
noncontrolling interest's full financial results and multiplying
each line item in the reconciliation by 38%. The Company notes that
it uses 38%, versus 49%, to allocate the share of income (loss)
because it represents the portion attributable to the redeemable
noncontrolling interest. The 38% is exclusive of CO Incentive
Units, Subject Units, and 2021 Incentive Units (each as defined in
the Company's Annual Report on Form 10-K as of December 31, 2022
filed on March 1, 2023) liability classified awards which do not
participate in the share of income (loss).
We have presented Consolidated Adjusted EBITDA
and Adjusted EBITDA, because they are key measures used by our
management and board of directors to understand and evaluate our
operating performance, generate future operating plans, and make
strategic decisions regarding the allocation of capital. In
particular, we believe that the exclusion of certain items in
calculating Consolidated Adjusted EBITDA and Adjusted EBITDA can
produce a useful measure for period-to-period comparisons of our
business. We have presented Adjusted EBITDA attributable to
redeemable noncontrolling interest because it is used by our
management to reconcile Consolidated Adjusted EBITDA to Adjusted
EBITDA. It represents the portion of Consolidated Adjusted EBITDA
that is attributable to our noncontrolling interest. Adjusted
EBITDA attributable to redeemable noncontrolling interest is not
intended to be reviewed on its own.
We define Free Cash Flow as cash flow from
operations, adjusted to include purchases of property and equipment
and capitalization of website development costs. We have presented
Free Cash Flow because it is a measure of our financial performance
that represents the cash that we are able to generate after
expenditures required to maintain or expand our asset base.
We define a paying dealer as a dealer account
with an active, paid marketplace subscription at the end of a
defined period.
We define QARSD, which is measured at the end of
a fiscal quarter, as the marketplace revenue primarily from
subscriptions to our Listings packages and Real-time Performance
Marketing digital advertising suite during that trailing quarter
divided by the average number of paying dealers in that marketplace
during the quarter. We calculate the average number of paying
dealers for a period by adding the number of paying dealers at the
end of such period and the end of the prior period and dividing by
two.
For each of our websites (excluding the CarOffer
website), we define a monthly unique user as an individual who has
visited any such website within a calendar month, based on data as
measured by Google Analytics. We calculate average monthly unique
users as the sum of the monthly unique users of each of our
websites in a given period, divided by the number of months in that
period. We count a unique user the first time a computer or mobile
device with a unique device identifier accesses any of our websites
during a calendar month. If an individual accesses a website using
a different device within a given month, the first access by each
such device is counted as a separate unique user. If an individual
uses multiple browsers on a single device and/or clears their
cookies and returns to our site within a calendar month, each such
visit is counted as a separate unique user.
We define monthly sessions as the number of
distinct visits to our websites (excluding the CarOffer website)
that take place each month within a given time frame, as measured
and defined by Google Analytics. We calculate average monthly
sessions as the sum of the monthly sessions in a given period,
divided by the number of months in that period. A session is
defined as beginning with the first page view from a computer or
mobile device and ending at the earliest of when a user closes
their browser window, after 30 minutes of inactivity, or each night
at midnight (i) Eastern Time for our United States and Canada
websites, other than the Autolist website, (ii) Pacific Time for
the Autolist website, and (iii) Greenwich Mean Time for our United
Kingdom websites. A session can be made up of multiple page views
and visitor actions, such as performing a search, visiting vehicle
detail pages, and connecting with a dealer.
We define Transactions within the Digital
Wholesale segment as the number of vehicles processed from car
dealers, consumers, and other marketplaces through the CarOffer
website within the applicable period. Transactions consists of each
unique vehicle (based on vehicle identification number) that
reaches "sold and invoiced" status on the CarOffer website within
the applicable period, including vehicles sold to car dealers,
vehicles sold at third-party auctions, vehicles ultimately sold to
a different buyer, and vehicles that are returned to their owners
without completion of a sale transaction. We exclude vehicles
processed within CarOffer's intra-group trading solution (Group
Trade) from the definition of Transactions, and we only count any
unique vehicle once even if it reaches sold status multiple times.
Digital Wholesale includes Dealer-to-Dealer transactions and
Instant Max Cash Offer transactions. We view Transactions as a key
business metric, and we believe it provides useful information to
investors, because it provides insight into growth and revenue for
the Digital Wholesale segment. Transactions drive a significant
portion of Digital Wholesale segment revenue. We believe growth in
Transactions demonstrates consumer and dealer utilization and our
market share penetration in the Digital Wholesale
segment.
CarGurus (NASDAQ:CARG)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
CarGurus (NASDAQ:CARG)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024