The following is a summary of the CarGurus, Inc. (CARG) Q1 2024 Earnings Call Transcript:
Financial Performance:
CarGurus reported Q1 revenue at the high end of its forecast, showing 24% growth in non-GAAP consolidated adjusted EBITDA due to an increase in subscriptions.
Marketplace business revenue demonstrated a 12% year-over-year growth, largely driven by strong subscription rates, evidenced by 28% growth in net new MRR.
International business maintained a robust performance with 24% revenue growth year-over-year.
They achieved a 14% year-over-year growth in Consolidated QARSD, attributed mainly to new active dealer adoption of their platforms.
CarGurus concluded the quarter with $246 million in cash.
Business Progress:
For 2024, CarGurus is prioritizing 'intelligent acceleration' to grow the business profitably, focusing on enhancing dealer ROI from their platform.
Significant adoption of their digital deals was reported, with over 6000 dealers onboarded by quarter-end.
The company is focusing on improving its mobile app for customer convenience and simplifying the car shopping process.
Efforts are underway to rebuild their go-to-market engine and elevate their product offering and customer service.
Tools like 'Next Best Deal Rating' and 'Inventory Acquisition Recommendation' have been introduced to adopt a more consultative approach with dealers and improve customer retention.
The company is working on linking end-to-end car dealership operations through its data and dealer insights.
The CarOffer initiative has shown successful results, underpinned by a consistent investment in product-first and operations optimization strategies.
Increased app downloads, engagement, and a 25% lead contribution are reported, and unique feature enhancements for app users are underway.
More details: CarGurus IR
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