Slide 1: Q4 2023 Business Update
Q4 2023 Business Update February 26, 2024 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements This presentation includes “forward-looking statements”. The words “aim,” “anticipate,” “believe,” “could,” “estimate,” “expect,” “goal,” “guide,” “intend,” “may,” “might,” “plan,” “potential,” “predicts,” “projects,” “seeks,” “should,” “target,”
Slide 3: Consumers needed easy, trustworthy answers to their car shopping questions
Consumers needed easy, trustworthy answers to their car shopping questions… 1 Where can I buy a car like this if it is not in my area? 2 How do I know if I’m getting the best financing? 3 Have others liked working with this dealer? 4 Can I complete some steps of the purchase online? 5 Can I sell my
Slide 4: We created a listings platform to meet their needs
We created a listings platform to meet their needs… But consumer and dealer needs continued to change… We became the #1 …But needs continued to …So we created an unmatched end- listings platform1… change… to-end transaction- enabled platform Proprietary vehicle data Largest selection of vehicles in
Slide 5: So, we transformed to meet the market
So, we transformed to meet the market… We’ve built a full lifecycle transaction platform on top of the nation’s largest marketplace Dealer-To-Dealer Wholesale Consumer-to-Dealer Digital Retail One of the Largest CarOffer Sell My Car CG Buy Online Consumer Audiences of Largest any Automotive Dealer N
Slide 6: Creating full lifecycle solutions for dealers and consumers
…While creating full lifecycle solutions for dealers and consumers Dealers Consumers Source vehicles through Shop the largest selection of CarOffer and Sell My Car inventory2 from the largest dealer network2 Market inventory on CarGurus Marketplace to one Finance & Buy with a self- of the largest co
Slide 7: Accelerating growth in multiple large TAMs
…And accelerating growth in multiple large TAMs We have constructed a portfolio of products into a platform with stability, stickiness, and long growth runways D2D WHOLESALE MARKETPLACE Dealer-To-Dealer TAM1: $15B TAM1: $3B Wholesale Consumer-to-Dealer Digital Retail Mkt Share2: <1% Mkt Share2: 23%
Slide 8: Combination of Listings, Digital Wholesale, and Digital Retail Creates Powerful Synergies
The Combination of Listings, Digital Wholesale, and Digital Retail Creates Powerful Synergies Unavailable Elsewhere Bundling to drive stickiness with consumers and dealers Operational efficiencies Sell My Car access Consolidated call center support for CO + CG dealers to serve Sell My Car and Digita
Slide 9: Marketplace
Marketplace 9
Slide 10: CarGurus Listings marketplace is a platform of scale
CarGurus Listings marketplace is a platform of scale with a ready-to-purchase consumer audience Shoppers are serious… Each unique visitor spends more time One Of The Largest Consumer Audiences on CarGurus than our leading competitors’ sites3 Of Any Automotive Marketplace In The U.S.1 U.S. average mo
Slide 11: Strong ROI for dealers
The combination of which delivers a strong ROI for dealers Providing dealers the best investment Built on technology to Where the “ CarGurus has been the best investment for our dealership! The support team we have is amazing. They are always available when we deliver transparency shoppers are need
Slide 12: Innovating to stay ahead of the curve
Innovating to stay ahead of the curve & sell more efficiently… New Products Driving Engagement, Insights, & Efficiency Geographic Expansion ✔ Meet shopper demand CarGurus RPM® Improve Engagement ✔ Expand market ✔ Grow shopper connections Sell My Car ✔ Optimize inventory management Dealer Dashboard/A
Slide 13: Allowing dealers to flexibly serve the consumer
…And allowing dealers to flexibly serve the consumer Offline | At Dealership Offline | At Dealership Vehicle Calculator Credit Trade-in Payment Protection Delivery Hard-pull Deposits Finance-in-Advance Reservations CarGurus is reimagining a dealer-aligned way for consumers to transact – allowing bot
Slide 14: Sell My Car – Top Dealer Offers
Sell My Car – Top Dealer Offers Top Dealer Offers empowers consumers to get highly competitive offers and to choose between selling their vehicle at a local dealership or selling 100% online and provides dealers with another source for used inventory and high-intent shoppers 1 Dealer set parameters
Slide 15: Resulting in our leading position
Resulting in our leading position +11.8% YoY U.S. QARSD1 $6,532 A Unique Combination $6,332 $6,110 $5,943 $5,800 $5,842 $5,713 $5,771 $5,633 Scale ROI Innovation 4Q'21 1Q'22 2Q'22 3Q'22 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 Paying Dealers (thousands)1 U.S. International 30.63 30.87 31.14 31.29 31.31 31.29 3
Slide 16: Marketplace Select Financials
Marketplace (U.S. Segment & Other) Select Financials REVENUE ($ MILLIONS) NON-GAAP GROSS PROFIT ($ MILLIONS)1,2 +11.5% $639 +9.6% $168 YoY YoY $698 $163 $182 $156 $151 $152 $178 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY 2023 $171 % Margin 91% 91% 91% 92% 92% 91% $167 ADJUSTED EBITDA ($ MILLIONS)2 $166 $62 +2
Slide 17: Digital Wholesale
Digital Wholesale 17
Slide 18: Sell My Car: Instant Max Cash Offer
Sell My Car: Instant Max Cash Offer—offering Sell your car 100% online dealers the only direct- Get the best offer instantly, sourced from thousands of dealers to-consumer channel at scale Get your offer Access to unique inventory is a differentiator for any wholesale platform “ Like most dealership
Slide 19: CarOffer Platform: sustainably differentiated
CarOffer Platform: sustainably differentiated “ When you're an independent dealer, your time is spent mostly sourcing vehicles…Every piece of inventory we purchase, we have to go find— and the key to that is CarGurus and CarOffer. Combining forces has given CarOffer the secret weapon, and that is th
Slide 20: Digital Wholesale: GMS & Transactions
Digital Wholesale: GMS & Transactions Gross Merchandise Sales (GMS)1 3 Total Transactions2 3 $ MILLIONS $700 25,000 $600 20,793 $575 20,000 18,405 17,505 $500 $455 $445 15,000 $400 13,562 13,558 $350 $335 $300 10,000 $200 5,000 $100 $0 0 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 1.
Slide 21: Digital Wholesale Select Financials
Digital Wholesale Select Financials REVENUE ($ MILLIONS) NON-GAAP GROSS PROFIT (LOSS) ($ MILLIONS)1 $36 $14 $120 $216 $9 $7 $7 ($8) 4Q'22 1Q'23 2Q'23 3Q'23 4Q'23 FY 2023 $69 $65 % Margin (7%) 13% 20% 16% 17% 17% ADJUSTED EBITDA ($ MILLIONS)1 $42 $41 $4 ($2) ($1) ($2) ($3) 4Q'22 1Q'23 2Q'23 3Q'23 4Q'
Slide 22: Consolidated Financial Overview
Consolidated Financial Overview 22
Slide 23: CarGurus financial highlights
CarGurus financial highlights 1 Strong track record of revenue growth in our foundational Marketplace business 2 End-to-end transaction-enabled Marketplace allows for platform diversity 3 Proven operating leverage and profitability 4 Attractive free cash flow generation 5 High-quality revenue: diver
Slide 24: Financial Performance
Financial Performance CONSOLIDATED REVENUE ($ MILLIONS) CONSOLIDATED ADJUSTED EBITDA ($ MILLIONS)1 and MARGIN $1,655 $61 $270 29% 28% +24% +51% CAGR CAGR 2016-2023 2016-2023 $196 $188 +119.6% $951 $161 YoY $914 21% $28 $589 13% $551 11% $77 11% $454 8% $50 $317 6% $24 $198 $11 FY2016 FY2017 FY2018 F
Slide 25: First Quarter 2024 Outlook
First Quarter 2024 Outlook 1Q’24 Total Revenue $201 million - $221 million Marketplace Revenue $182 million - $187 million Non-GAAP Consolidated Adjusted EBITDA $41 million - $49 million Non-GAAP Earnings Per Share $0.24 - $0.29 The first quarter of 2024 non-GAAP EPS calculation assumes 108.8 millio
Slide 26: Appendix
Appendix 26
Slide 27: Reconciliations of non-GAAP Marketplace Gross Profit and Gross Margin
Reconciliations of non-GAAP Marketplace (U.S. Marketplace Segment & Other) Gross Profit and non-GAAP Gross Margin ($ thousands) 4Q’22 1Q’23 2Q’23 3Q’23 4Q'23 GAAP U.S. Marketplace Segment Revenue $ 155,092 $ 155,621 $ 158,443 $ 164,323 $ 168,897 GAAP Other Revenue 11,155 11,506 12,507 13,586 13,354
Slide 28: Reconciliations of non-GAAP Digital Wholesale Gross Profit (Loss)
Reconciliations of non-GAAP Digital Wholesale Gross Profit (Loss) and non-GAAP Digital Wholesale Gross Profit (Loss) Margin ($ thousands) 4Q’22 1Q’23 2Q’23 3Q’23 4Q'23 GAAP Wholesale Revenue $ 23,659 $ 25,186 $ 31,952 $ 21,735 $ 22,035 GAAP Product Revenue 96,838 39,650 36,835 19,775 18,838 GAAP Dig
Slide 29: Reconciliations of Marketplace Adjusted EBITDA
Reconciliations of Marketplace (U.S. Marketplace Segment & Other) Adjusted EBITDA ($ thousands) 4Q’22 1Q’23 2Q’23 3Q’23 4Q'23 U.S. Marketplace Segment Income from Operations $ 35,613 $ 26,539 $ 24,619 $ 33,285 $ 43,281 Other (Loss) Income from Operations (2,506) (1,255) (574) 1,462 1,653 GAAP Market
Slide 30: Reconciliations of Digital Wholesale Adjusted EBITDA
Reconciliations of Digital Wholesale Adjusted EBITDA ($ thousands) 4Q’22 1Q’23 2Q’23 3Q’23 4Q'23 GAAP Digital Wholesale Loss from Operations1 $ (3,486) $ (11,225) $ (6,307) $ (11,652) $ (67,199) Impact of Depreciation and Amortization1 8,551 8,693 8,702 9,334 9,537 Impact of Impairments of Long-Live
Slide 31: Reconciliations of Consolidated Adjusted EBITDA
Reconciliations of Consolidated Adjusted EBITDA ($ thousands) 1Q’22 2Q’22 3Q’22 4Q'22 1Q’23 2Q’23 3Q’23 4Q'23 GAAP Consolidated Net Income $ 18,838 $ 18,061 $ 18,824 $ 23,231 $ 11,866 $ 13,817 $ 18,973 $ (22,603) Impact of Depreciation and Amortization 11,185 11,234 11,183 11,732 11,576 11,667 12,47
Slide 32: Reconciliations of Consolidated Adjusted EBITDA
Reconciliations of Consolidated Adjusted EBITDA ($ thousands) FY2019 FY2020 FY2021 FY2022 FY2023 GAAP Consolidated Net Income $ 42,146 $ 77,553 $ 110,373 $ 78,954 $ 22,053 Impact of Depreciation and Amortization 7,817 10,191 40,476 45,334 48,474 Impact of Impairments of Long-Lived Assets - 1,151 3,1