CARG - CarGurus rallies after posting better-than-feared Q1 earnings report

2023-05-10 13:16:11 ET

CarGurus ( NASDAQ: CARG ) pushed higher in afternoon trading on Wednesday after the retailer posted a better-than-feared Q1 earnings report.

Revenue was down 46% year-over-year during the quarter to $232.0M. Marketplace revenue was up 2% to $167.1M, while wholesale revenue plunged 72% to $25.2M. Product revenue was off 78% to $39.7M

Quarterly average revenue per subscribing dealer in the U.S. was $5,943 vs. last year.

CarGurus ( CARG ) ended the quarter with 31,291 total paying dealers vs. 30,867 last year. Of the total paying dealers, U.S. and International accounted for 24,394 and 6,897, respectively.

Consolidated adjusted EBITDA decliend 38% to $40.8M.

In terms of website usage, U.S. average monthly unique users were up 3% to 32.0M and U.S. average monthly sessions were off 1% to 84.3M. International average monthly unique users were up 5% to 7.2M. International average monthly sessions were up 5% to 16.7M.

"Our foundational Listings business continues to exhibit resiliency and strong profitability, and progress in optimizing our CarOffer operations this quarter demonstrates our agility in responding promptly and effectively to build a sustainable business that produces a path to profitability," noted CEO Jason Trevisan.

Shares of CarGurus ( CARG ) showed a 15.39% gain at 1:11 p.m. on Wednesday and crossed over $20 for the first time in 2023. Investors had been skittish with the stock before the report amid concerns on profitability and consumer pushback on prices.

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