In terms of new cars, I believe that the emergence of subsidies by governments all around the world to produce more electric vehicles will present an opportunity for the company also.
That is what’s been happening in the first months of ’23.According to CarGurus themselves, used car prices have started to pick back up, which will be a positive catalyst in the next quarter. When it comes to the dealers’ side of things, if prices have been going down for a while, the dealers are less likely to advertise their cars in hopes that the prices will pick back up. I believe that the company is prepared for anything that the auto sector has in store for it. Operating and sales and marketing expenses were down 1% and 13% y-o-y respectively.
GAAP and non-GAAP gross margins improved by 25% each. Briefly on Q1 ResultsĪs expected, y-o-y revenues were down substantially, however, revenue of $232m beat consensus estimates by $17.65m, and non-GAAP EPS of $0.26 beat estimates by $0.10. With improvements to the CarOffer segment and used car prices picking back up, which leads to more dealer transactions, I can see that even with somewhat conservative estimates, the company is a buy at these levels, however, the stock price may come back down slightly due to the volatility of the sector and overall macroeconomic headwinds. ( NASDAQ: CARG) financials, and a bit into the sector outlook to see if, after such a melt-up in stock price, the company is still a good investment. After beating Q1 ’23 estimates by a decent margin and jumping over 16% on the day, I wanted to dig deeper into CarGurus, Inc.
0 kommentar(er)
