Slide 1: Q3 2024 Earnings Presentation
Q3 2024 Earnings Presentation November 7, 2024
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation includes forward-looking statements. Other than statements of historical facts, all statements contained in this presentation, including statements regarding our transformation to a transaction-enabled platform; industry trends;
Slide 3: Financial Highlights: Q3 2024
Financial Highlights: Q3 2024 Revenue ($ millions) GAAP Gross Profit ($ millions) Non-GAAP Adjusted EBITDA1 ($ millions) % YoY (49%) (22%) (7%) (9%) 5% % Margin 75% 75% 81% 83% 79% % Margin 22% 27% 23% 25% 28% 231.4 219.4 223.1 218.7 215.8 64.9 27.3 -34% 40.9 28.6 23.5 182.6 61.2 41.5 YoY 182.4 55.6
Slide 4: Drivers of Value Creation: Q3 2024 Progress
Drivers of Value Creation: Q3 2024 Progress More Value Better Consumer Transaction Rebuild & Integrate to Dealers Experience Enablement Digital Wholesale ● CarGurus ranked #1 for ROI, ● Launched website redesign ● Digital Deal adoption +150% ● Reduced transaction based on independent dealer YoY to 8
Slide 5: Mid-Teens QARSD Growth; Paying Dealer Base Expansion
Mid-Teens QARSD Growth; Paying Dealer Base Expansion QARSD1 Paying Dealers1 $6,038 +13.6% $5,664 $5,848 YoY +493 $5,317 $5,503 $2,057 31,191 30,935 31,175 31,352 31,684 Dealers $1,882 $1,935 YoY $1,721 $1,773 6,823 6,617 6,756 6,906 7,123 $6,532 $6,702 $6,942 $7,177 $6,332 24,368 24,318 24,419 24,44
Slide 6: Market-leading Consumer Experience
Market-leading Consumer Experience U.S. Average Monthly Visitors1 2 Average Monthly Unique Visits3 58% (millions) (millions) More average monthly visits than our closest competitor4 36% Of our average monthly unique visitors do not visit our competitors’ sites5 56% More minutes per unique visitor on
Slide 7: Marketplace (U.S. Segment & Other) Q3 2024 Results
Marketplace (U.S. Segment & Other) Q3 2024 Results Revenue Non-GAAP Gross Profit1 $191 +16.8% ($ millions) ($ millions) YoY $182 $173 $168 $204 +14.7% $163 YoY $195 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 $187 % Margin 92% 92% 92% 93% 93% $182 $178 Adjusted EBITDA1 ($ millions) $70 +36.2% $62 $61 YoY $51 $55
Slide 8: Digital Wholesale Q3 2024 Results
Digital Wholesale Q3 2024 Results Revenue Non-GAAP Gross Profit (Loss)1 ($ millions) ($ millions) $7 $7 $42 $41 $3 $2 $1 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 $29 % Margin 16% 17% 11% 3% 7% $27 $24 Adjusted EBITDA1 ($ millions) ($1) ($3) ($4) ($5) ($6) Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q
Slide 9: Q4 & Full-Year 2024 Outlook
Q4 & Full-Year 2024 Outlook Q4’24 Full-Year 2024 Total Revenue $219 million - $239 million $885 million - $905 million Marketplace Revenue $208 million - $213 million $794 million - $799 million Non-GAAP Consolidated Adjusted EBITDA $72 million - $80 million $243 million - $251 million Non-GAAP Earn
Slide 10: Appendix
Appendix
Slide 11: Digital Wholesale Platform Transaction Volume
Digital Wholesale Platform Transaction Volume Gross Merchandise Sales (GMS)1 Total Transactions2 ($ millions) $450 16,500 13,562 13,558 $350 $335 $300 11,000 10,302 $250 8,778 8,249 $215 $195 $150 5,500 $0 0 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 1. We define Gross Merchandise S
Slide 12: Marketplace GAAP to Non-GAAP Gross Profit and Gross Margin Reconciliation
Marketplace (U.S. Marketplace Segment & Other) GAAP to Non-GAAP Gross Profit and Non-GAAP Gross Margin Reconciliation ($ thousands) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 GAAP U.S. Marketplace Segment Revenue $ 164,323 $ 168,897 $ 172,988 $ 180,052 $ 187,253 GAAP Other Revenue 13,586 13,353 14,231 15,115 16,
Slide 13: Digital Wholesale GAAP to Non-GAAP Gross Profit (Loss) Reconciliation
Digital Wholesale GAAP to Non-GAAP Gross Profit (Loss) and Non-GAAP Gross Margin Reconciliation ($ thousands) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 GAAP Wholesale Revenue $ 21,735 $ 22,035 $ 16,125 $ 13,119 $ 12,107 GAAP Product Revenue 19,775 18,838 12,452 10,406 15,232 GAAP Digital Wholesale Revenue $ 41,
Slide 14: Non-GAAP Marketplace Adjusted EBITDA Reconciliation
Non-GAAP Marketplace (U.S. Marketplace Segment & Other) Adjusted EBITDA Reconciliation ($ thousands) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 U.S. Marketplace Segment Income from Operations $ 33,285 $ 43,281 $ 34,217 $ 42,043 $ 50,410 Other Income from Operations 1,462 1,653 2,407 2,531 2,341 GAAP Marketplace
Slide 15: Non-GAAP Digital Wholesale Adjusted EBITDA Reconciliation
Non-GAAP Digital Wholesale Adjusted EBITDA Reconciliation ($ thousands) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 GAAP Digital Wholesale Loss from Operations $ (11,652) $ (67,199) $ (10,340) $ (138,158) $ (25,317) Impact of Depreciation and Amortization 9,334 9,537 4,281 3,436 2,286 Impact of Goodwill and Other
Slide 16: Non-GAAP Consolidated Adjusted EBITDA Reconciliation
Non-GAAP Consolidated Adjusted EBITDA Reconciliation ($ thousands) Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 GAAP Consolidated Net Income (Loss) $ 18,973 $ (22,603) $ 21,301 $ (68,721) $ 22,511 Impact of Depreciation and Amortization 12,470 12,761 7,481 5,663 5,178 Impact of Goodwill and Other Asset Impairment1