Description

CarGurus, Inc.: Initiation Of Coverage – Does Its Value Proposition Truly Constitute A Competitive Advantage?

This is our first report on online automotive marketplace, CarGurus. The company ended 2023 on a strong note, surpassing expectations and successfully accelerating their revenue growth across their platform. Despite challenges faced by customers, such as weak consumer demand, the lack of affordability, and increased costs linked to floor plan financing, CarGurus’ listings business demonstrated commendable resilience, pricing power, and growth acceleration. This growth was manifested by a 12% year-over-year rise in US cars. However, CarGurus’ product revenue fell significantly by 81% in the fourth quarter from a year ago and was down 5% in sequence. The company attributes this loss to its decision to control transaction volume and lower average selling prices (ASPs), as well as reduce arbitration revenue.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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