CarGurus Announces First Quarter 2022 Results
First Quarter Highlights:
- Total revenue of
$430.6 million , an increase of 151% year-over-year - GAAP operating income of
$26.7 million ; non-GAAP operating income of$62.2 million - GAAP consolidated net income of
$18.8 million ; non-GAAP consolidated net income of$48.9 million - GAAP net loss attributable to common stockholders of
($62.1) million ; non-GAAP net income attributable to common stockholders of$42.9 million - Cash, cash equivalents and short-term investments of
$375.0 million and no debt - Consolidated Adjusted EBITDA of
$65.7 million ; Adjusted EBITDA of$58.0 million
"2022 is off to a terrific start," said
Revenue
- Total revenue was
$430.6 million , an increase of 151% compared to$171.4 million in the first quarter of 2021. - Marketplace revenue was
$163.3 million , an increase of 5% compared to$155.8 million in the first quarter of 2021. - Wholesale revenue was
$91.0 million , an increase of 559% compared to$13.8 million in the first quarter of 2021. - Product revenue was
$176.3 million , an increase of 9,896% compared to$1.8 million in the first quarter of 2021.
Operating Income
- GAAP operating income was
$26.7 million , an increase of 3% compared to$25.8 million in the first quarter of 2021. - Non-GAAP operating income was
$62.2 million , an increase of 28% compared to$48.5 million in the first quarter of 2021.
Consolidated Net Income, Net (Loss) Income Attributable to Common Stockholders, Consolidated Adjusted EBITDA, & Adjusted EBITDA
- GAAP consolidated net income was
$18.8 million during the quarter endedMarch 31, 2022 , compared to$19.6 million during the quarter endedMarch 31, 2021 . - Non-GAAP consolidated net income was
$48.9 million during the quarter endedMarch 31, 2022 , compared to$38.9 million during the quarter endedMarch 31, 2021 . - GAAP net (loss) income attributable to common stockholders was
($62.1) million , or ($0.53 ) per fully diluted share, during the quarter endedMarch 31, 2022 , compared to$22.4 million , or$0.19 per fully diluted share, during the quarter endedMarch 31, 2021 . - Non-GAAP net income attributable to common stockholders was
$42.9 million , or$0.36 per fully diluted share, during the quarter endedMarch 31, 2022 , compared to$39.1 million , or$0.33 per fully diluted share, during the quarter endedMarch 31, 2021 . - Consolidated Adjusted EBITDA, a non-GAAP metric, was
$65.7 million for the quarter endedMarch 31, 2022 , compared to$50.5 million for the quarter endedMarch 31, 2021 . - Adjusted EBITDA, a non-GAAP metric, was
$58.0 million for the quarter endedMarch 31, 2022 , compared to$50.6 million for the quarter endedMarch 31, 2021 .
Balance Sheet and Cash Flow
- As of
March 31, 2022 ,CarGurus had cash, cash equivalents and short-term investments of$375.0 million and no debt. CarGurus generated$93.1 million in cash from operations and$89.3 million in free cash flow, a non-GAAP metric, during the first quarter of 2022, compared to having generated$43.9 million in cash from operations and$41.7 million in free cash flow during the first quarter of 2021.
First Quarter Business Metrics(1)
- Total paying dealers were 30,867 at
March 31, 2022 , a decrease of (1%) compared to 31,213 atMarch 31, 2021 . Of the total paying dealers atMarch 31, 2022 ,U.S. and International accounted for 24,219 and 6,648, respectively, compared to 24,371 and 6,842, respectively, atMarch 31, 2021 . - Quarterly Average Revenue per Subscribing Dealer (“QARSD”) in the
U.S. was$5,713 as ofMarch 31, 2022 , an increase of 5% compared to$5,466 as ofMarch 31, 2021 . - QARSD in International markets was
$1,556 as ofMarch 31, 2022 , an increase of 40% compared to$1,113 as ofMarch 31, 2021 . - Website traffic and consumer engagement metrics for the first quarter of 2022 were as follows:
U.S. average monthly unique users were 31.1 million, a decrease of (15%) compared to 36.3 million in the first quarter of 2021.U.S. average monthly sessions were 84.9 million, a decrease of (6%) compared to 90.7 million in the first quarter of 2021.- International average monthly unique users were 6.9 million, a decrease of (13%) compared to 7.9 million in the first quarter of 2021.
- International average monthly sessions were 15.8 million, a decrease of (13%) compared to 18.2 million in the first quarter of 2021.
(1) CarOffer is excluded from the metrics presented for paying dealers, QARSD, users and sessions.
Second Quarter 2022 Guidance
| • Total revenue | ||
| • Non-GAAP operating income | ||
| • Non-GAAP EPS |
The second quarter 2022 non-GAAP earnings per share calculation assumes 119.5 million diluted weighted-average common shares outstanding. This assumed number of shares outstanding excludes the potential dilution from
The assumptions that are built into guidance for the second quarter 2022 regarding our pace of paid dealer acquisition, churn, and expansion activity for the relevant period are based on recent market behaviors and industry conditions. Guidance for the second quarter 2022 excludes the effects of significant COVID-19 resurgences, including the reintroduction of lockdowns and/or a slowed pace of recovery, or other macro-level industry issues that result in dealers and consumers materially changing their recent market behaviors or that cause us to enact measures to assist dealers, such as offering fee reductions or waivers as we have done from time to time during the COVID-19 pandemic. Guidance also excludes adjustments to the carrying value of redeemable noncontrolling interests resulting from potential changes in the redemption value of such interests, and any potential impact of foreign currency exchange gains or losses.
Conference Call and Webcast Information
An audio replay of the call will also be available to investors beginning at approximately
Investor Day 2022
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Cautionary Language Concerning Forward-Looking Statements
This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding: our future financial and business performance for the second quarter 2022; our belief that the presentation of non-GAAP financial measures and other business metrics is helpful to our investors; our expectations for our business, products and growth strategies in 2022; and the impact of the COVID-19 pandemic and other macro-level issues on our industry, business and financial results, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “guide,” “intend,” “likely,” “may,” “will” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to: our growth and ability to grow our revenue; our relationships with dealers; competition in the markets in which we operate; market growth; our ability to innovate; our ability to realize benefits from our acquisitions and successfully implement the integration strategies in connection therewith; natural disasters, epidemics or pandemics, like COVID-19 that has negatively impacted our business; global supply chain challenges, the semiconductor chip shortage and other macroeconomic issues; our ability to operate in compliance with applicable laws, as well as other risks and uncertainties as may be detailed from time to time in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other reports we file with the
Unaudited Condensed Consolidated Balance Sheets
(in thousands, except share and per share data)
| At 2022 |
At 2021 |
|||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 315,005 | $ | 231,944 | ||||
| Investments | 60,000 | 90,000 | ||||||
| Accounts receivable, net of allowance for doubtful accounts of and |
144,718 | 189,324 | ||||||
| Inventory | 20,992 | 19,656 | ||||||
| Prepaid expenses, prepaid income taxes and other current assets | 17,407 | 16,430 | ||||||
| Deferred contract costs | 8,731 | 9,045 | ||||||
| Restricted cash | 5,866 | 6,709 | ||||||
| Total current assets | 572,719 | 563,108 | ||||||
| Property and equipment, net | 33,101 | 32,210 | ||||||
| Intangible assets, net | 76,161 | 83,915 | ||||||
| 157,998 | 158,287 | |||||||
| Operating lease right-of-use assets | 57,359 | 60,609 | ||||||
| Restricted cash | 9,627 | 9,627 | ||||||
| Deferred tax assets | 26,439 | 13,378 | ||||||
| Deferred contract costs, net of current portion | 6,327 | 5,867 | ||||||
| Other non-current assets | 6,074 | 4,573 | ||||||
| Total assets | $ | 945,805 | $ | 931,574 | ||||
| Liabilities, redeemable noncontrolling interest and stockholders’ equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 61,873 | $ | 66,153 | ||||
| Accrued expenses, accrued income taxes and other current liabilities | 61,755 | 78,586 | ||||||
| Deferred revenue | 12,776 | 12,784 | ||||||
| Operating lease liabilities | 12,503 | 13,186 | ||||||
| Total current liabilities | 148,907 | 170,709 | ||||||
| Operating lease liabilities | 54,359 | 57,519 | ||||||
| Deferred tax liabilities | 28 | 58 | ||||||
| Other non–current liabilities | 37,896 | 23,639 | ||||||
| Total liabilities | 241,190 | 251,925 | ||||||
| Redeemable noncontrolling interest | 239,750 | 162,808 | ||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, no shares issued and outstanding |
— | — | ||||||
| Class A common stock, authorized; 102,142,545 and 101,773,034 shares issued and outstanding at |
102 | 102 | ||||||
| Class B common stock, authorized; 15,999,173 and 15,999,173 shares issued and outstanding at |
16 | 16 | ||||||
| Additional paid-in capital | 398,471 | 387,868 | ||||||
| Retained earnings | 67,168 | 129,258 | ||||||
| Accumulated other comprehensive loss | (892 | ) | (403 | ) | ||||
| Total stockholders’ equity | 464,865 | 516,841 | ||||||
| Total liabilities, redeemable noncontrolling interest and stockholders’ equity | $ | 945,805 | $ | 931,574 | ||||
Unaudited Condensed Consolidated Income Statements
(in thousands, except share and per share data)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| Revenue | ||||||||
| Marketplace | $ | 163,289 | $ | 155,800 | ||||
| Wholesale | 90,994 | 13,803 | ||||||
| Product | 176,325 | 1,765 | ||||||
| Total revenue | 430,608 | 171,368 | ||||||
| Cost of revenue (1) | ||||||||
| Marketplace | 12,209 | 10,988 | ||||||
| Wholesale | 58,182 | 11,126 | ||||||
| Product | 178,342 | 1,944 | ||||||
| Total cost of revenue | 248,733 | 24,058 | ||||||
| Gross profit | 181,875 | 147,310 | ||||||
| Operating expenses: | ||||||||
| Sales and marketing | 87,581 | 68,174 | ||||||
| Product, technology, and development | 30,653 | 25,164 | ||||||
| General and administrative | 33,121 | 20,514 | ||||||
| Depreciation and amortization | 3,861 | 7,667 | ||||||
| Total operating expenses | 155,216 | 121,519 | ||||||
| Income from operations | 26,659 | 25,791 | ||||||
| Other (expense) income, net | (119 | ) | 222 | |||||
| Income before income taxes | 26,540 | 26,013 | ||||||
| Provision for income taxes | 7,702 | 6,462 | ||||||
| Consolidated net income | 18,838 | 19,551 | ||||||
| Net loss attributable to redeemable noncontrolling interest | (1,072 | ) | (2,810 | ) | ||||
| Net income attributable to |
19,910 | 22,361 | ||||||
| Accretion of redeemable noncontrolling interest to redemption value | 82,000 | — | ||||||
| Net (loss) income attributable to common stockholders | $ | (62,090 | ) | $ | 22,361 | |||
| Basic | $ | (0.53 | ) | $ | 0.19 | |||
| Diluted | $ | (0.53 | ) | $ | 0.19 | |||
| Weighted-average number of shares of common stock used in computing net (loss) income per share attributable to common stockholders: |
||||||||
| Basic | 118,031,325 | 116,316,464 | ||||||
| Diluted | 118,031,325 | 117,249,365 | ||||||
| (1) Includes depreciation and amortization expense for the three months ended |
||||||||
Unaudited Condensed Consolidated Statements of Cash Flows
(in thousands)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| Operating Activities | ||||||||
| Consolidated net income | $ | 18,838 | $ | 19,551 | ||||
| Adjustments to reconcile consolidated net income to net cash provided by operating activities: |
||||||||
| Depreciation and amortization | 11,185 | 8,666 | ||||||
| Currency loss (gain) on foreign denominated transactions | 84 | (51 | ) | |||||
| Deferred taxes | (13,091 | ) | 60 | |||||
| Provision for doubtful accounts | 150 | 379 | ||||||
| Stock-based compensation expense | 14,147 | 14,360 | ||||||
| Amortization of deferred contract costs | 2,806 | 3,195 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 39,973 | (2,423 | ) | |||||
| Inventory | (1,336 | ) | (565 | ) | ||||
| Prepaid expenses, prepaid income taxes, and other assets | (2,127 | ) | (1,652 | ) | ||||
| Deferred contract costs | (2,997 | ) | (3,494 | ) | ||||
| Accounts payable | (4,062 | ) | 4,876 | |||||
| Accrued expenses, accrued income taxes, and other liabilities | 30,087 | (1,632 | ) | |||||
| Deferred revenue | (5 | ) | 2,857 | |||||
| Lease obligations | (592 | ) | (265 | ) | ||||
| Net cash provided by operating activities | 93,060 | 43,862 | ||||||
| Investing Activities | ||||||||
| Purchases of property and equipment | (1,230 | ) | (1,227 | ) | ||||
| Capitalization of website development costs | (2,506 | ) | (966 | ) | ||||
| Cash paid for acquisitions, net of cash acquired | — | (65,899 | ) | |||||
| Maturities of certificates of deposit | 30,000 | — | ||||||
| Net cash provided by (used in) investing activities | 26,264 | (68,092 | ) | |||||
| Financing Activities | ||||||||
| Proceeds from exercise of stock options | 680 | 258 | ||||||
| Payment of finance lease obligations | (19 | ) | (10 | ) | ||||
| Payment of withholding taxes and option costs on net share settlement of restricted stock units and stock options |
(5,430 | ) | (5,041 | ) | ||||
| Repayment of line of credit | — | (14,250 | ) | |||||
| Payment of tax distributions to redeemable noncontrolling interest holders | (8,519 | ) | — | |||||
| Payments received in advance from (payments made to) third party payment processor | (23,606 | ) | — | |||||
| Net cash used in financing activities | (36,894 | ) | (19,043 | ) | ||||
| Impact of foreign currency on cash, cash equivalents, and restricted cash | (212 | ) | (119 | ) | ||||
| Net increase (decrease) in cash, cash equivalents, and restricted cash | 82,218 | (43,392 | ) | |||||
| Cash, cash equivalents, and restricted cash at beginning of period | 248,280 | 200,926 | ||||||
| Cash, cash equivalents, and restricted cash at end of period | $ | 330,498 | $ | 157,534 | ||||
Unaudited Reconciliation of GAAP Operating Income to Non-GAAP Operating Income and GAAP Operating Margin to Non-GAAP Operating Margin
(in thousands, except percentages)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| GAAP operating income | $ | 26,659 | $ | 25,791 | ||||
| Stock-based compensation expense | 27,842 | 15,393 | ||||||
| Amortization of intangible assets | 7,705 | 6,646 | ||||||
| Acquisition-related expenses | — | 644 | ||||||
| Non-GAAP operating income | $ | 62,206 | $ | 48,474 | ||||
| GAAP operating margin | 6 | % | 15 | % | ||||
| Non-GAAP operating margin | 14 | % | 28 | % | ||||
Unaudited Reconciliation of GAAP Consolidated Net Income to Non-GAAP Net Income Attributable to Common Stockholders
(in thousands, except per share data)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| GAAP consolidated net income | $ | 18,838 | $ | 19,551 | ||||
| Stock-based compensation expense, net of tax(1) | 21,995 | 12,160 | ||||||
| Change in tax provision from stock-based compensation expense(2) | 330 | (53 | ) | |||||
| Amortization of intangible assets | 7,705 | 6,646 | ||||||
| Acquisition-related expenses | — | 644 | ||||||
| Non-GAAP consolidated net income | 48,868 | 38,948 | ||||||
| Net (income) loss attributable to redeemable noncontrolling interest | (5,945 | ) | 125 | |||||
| Non-GAAP net income attributable to common stockholders | $ | 42,923 | $ | 39,073 | ||||
| Non-GAAP net income per share attributable to common stockholders: | ||||||||
| Basic | $ | 0.36 | $ | 0.34 | ||||
| Diluted | $ | 0.36 | $ | 0.33 | ||||
| Shares used in Non-GAAP per share calculations | ||||||||
| Basic | 118,031 | 116,316 | ||||||
| Diluted | 118,031 | 117,249 | ||||||
| (1) The stock-based compensation amounts reflected in the table above are tax effected at the |
||||||||
| (2) This adjustment reflects the tax effect of differences between tax deductions related to stock compensation and the corresponding financial statement expense. | ||||||||
Unaudited Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit and GAAP Gross Profit Margin to Non-GAAP Gross Profit Margin
(in thousands, except percentages)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| Revenue | $ | 430,608 | $ | 171,368 | ||||
| Cost of revenue | 248,733 | 24,058 | ||||||
| Gross profit | 181,875 | 147,310 | ||||||
| Stock-based compensation expense included in Cost of revenue | 136 | 92 | ||||||
| Amortization of acquired intangible assets included in Cost of revenue | 5,350 | — | ||||||
| Non-GAAP gross profit | $ | 187,361 | $ | 147,402 | ||||
| GAAP gross profit margin | 42 | % | 86 | % | ||||
| Non-GAAP gross profit margin | 44 | % | 86 | % | ||||
Unaudited Reconciliation of GAAP Expense to Non-GAAP Expense
(in thousands)
| Three Months Ended |
|||||||||||||||||||||||||||||||||||||||
| 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||
| GAAP expense | Stock-based compensation expense |
Amortization of intangible assets |
Acquisition- related expenses |
Non-GAAP expense |
GAAP expense | Stock-based compensation expense |
Amortization of intangible assets |
Acquisition- related expenses |
Non-GAAP expense |
||||||||||||||||||||||||||||||
| Cost of revenue | $ | 248,733 | $ | (136 | ) | $ | (5,350 | ) | $ | — | $ | 243,247 | $ | 24,058 | $ | (92 | ) | $ | — | $ | — | $ | 23,966 | ||||||||||||||||
| S&M | 87,581 | (3,983 | ) | — | — | 83,598 | 68,174 | (2,752 | ) | — | — | 65,422 | |||||||||||||||||||||||||||
| P,T&D(1) | 30,653 | (6,368 | ) | — | — | 24,285 | 25,164 | (5,772 | ) | — | — | 19,392 | |||||||||||||||||||||||||||
| G&A | 33,121 | (17,355 | ) | — | — | 15,766 | 20,514 | (6,777 | ) | — | (644 | ) | 13,093 | ||||||||||||||||||||||||||
| Depreciation & amortization | 3,861 | — | (2,355 | ) | — | 1,506 | 7,667 | — | (6,646 | ) | — | 1,021 | |||||||||||||||||||||||||||
| Operating expenses(2) | $ | 155,216 | $ | (27,706 | ) | $ | (2,355 | ) | $ | — | $ | 125,155 | $ | 121,519 | $ | (15,301 | ) | $ | (6,646 | ) | $ | (644 | ) | 98,928 | |||||||||||||||
| Total expenses | $ | 403,949 | $ | (27,842 | ) | $ | (7,705 | ) | $ | — | $ | 368,402 | $ | 145,577 | $ | (15,393 | ) | $ | (6,646 | ) | $ | (644 | ) | $ | 122,894 | ||||||||||||||
| (1) Product, Technology, & Development | |||||||||||||||||||||||||||||||||||||||
| (2) Operating expenses include S&M, P,T&D, G&A, and depreciation & amortization | |||||||||||||||||||||||||||||||||||||||
Unaudited Reconciliation of GAAP Consolidated Net Income to Consolidated Adjusted EBITDA and Adjusted EBITDA
(in thousands)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| Consolidated net income | $ | 18,838 | $ | 19,551 | ||||
| Depreciation and amortization | 11,185 | 8,666 | ||||||
| Stock-based compensation expense | 27,842 | 15,393 | ||||||
| Acquisition-related expenses | — | 644 | ||||||
| Other expense (income), net | 119 | (222 | ) | |||||
| Provision for income taxes | 7,702 | 6,462 | ||||||
| Consolidated Adjusted EBITDA | 65,686 | 50,494 | ||||||
| Adjusted EBITDA attributable to redeemable noncontrolling interest | (7,736 | ) | 68 | |||||
| Adjusted EBITDA | $ | 57,950 | $ | 50,562 | ||||
Unaudited Reconciliation of GAAP
(in thousands)
| Three Months Ended | ||||||||
| 2022 | 2021 | |||||||
| GAAP net cash and cash equivalents provided by operating activities |
$ | 93,060 | $ | 43,862 | ||||
| Purchases of property and equipment | (1,230 | ) | (1,227 | ) | ||||
| Capitalization of website development costs | (2,506 | ) | (966 | ) | ||||
| Non-GAAP free cash flow | $ | 89,324 | $ | 41,669 | ||||
Non-GAAP Financial Measures and Other Business Metrics
To supplement our consolidated financial statements, which are prepared and presented in accordance with Generally Accepted Accounting Principles in
The presentation of non-GAAP financial information and other business metrics is not meant to be considered in isolation or as a substitute for the directly comparable financial measures prepared in accordance with GAAP. While our non-GAAP financial measures and other business metrics are an important tool for financial and operational decision-making and for evaluating our own operating results over different periods of time, we urge investors to review the reconciliation of these financial measures to the comparable GAAP financial measures included above, and not to rely on any single financial measure to evaluate our business.
We define Consolidated Adjusted EBITDA as consolidated net income, adjusted to exclude: depreciation and amortization, stock-based compensation expense, acquisition-related expenses, other expense (income) net, and the provision for income taxes. We define Adjusted EBITDA as Consolidated Adjusted EBITDA adjusted to exclude Adjusted EBITDA attributable to redeemable noncontrolling interests, adjusted for all prior limitations to Consolidated Adjusted EBITDA as previously described. We have presented Consolidated Adjusted EBITDA and Adjusted EBITDA because they are key measures used by our management and board of directors to understand and evaluate our operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital. In particular, we believe that the exclusion of certain items in calculating each of Consolidated Adjusted EBITDA and Adjusted EBITDA can produce a useful measure for period-to-period comparisons of our business.
We define Free Cash Flow as cash flow from operations, adjusted to include purchases of property and equipment and capitalization of website development costs. We have presented Free Cash Flow because it is a measure of our financial performance that represents the cash that we are able to generate after expenditures required to maintain or expand our asset base.
We also monitor operating measures of certain non-GAAP items including non-GAAP gross profit, non-GAAP gross margin, non-GAAP expense, non-GAAP operating income, non-GAAP operating margin, non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income attributable to common stockholders per share. These non-GAAP financial measures exclude the effect of stock-based compensation expense, amortization of acquired intangible assets, acquisition-related expenses, and net (income) loss attributable to redeemable noncontrolling interests. Non-GAAP consolidated net income, non-GAAP net income attributable to common stockholders, and non-GAAP net income attributable to common stockholders per share also exclude the change in tax provision from stock-based compensation expense. Our calculations of non-GAAP net income attributable to common stockholders per share utilize applicable GAAP share counts as included in the accompanying financial statement tables included in this press release. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to metrics used by our management in its financial and operational decision-making.
While a reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards, and the uncertainty relating to the timing, frequency and effect of acquisitions and the significance of the resulting acquisition-related expenses, or associated income or losses attributable to redeemable noncontrolling interests, we have provided a reconciliation of non-GAAP financial measures and other business metrics to the nearest comparable GAAP measures in the accompanying financial statement tables included in this press release.
We define a paying dealer as a dealer account with an active, paid marketplace subscription at the end of a defined period.
We define QARSD, which is measured at the end of a fiscal quarter, as the marketplace revenue primarily from subscriptions to our Listings packages and Real-time Performance Marketing digital advertising suite during that trailing quarter divided by the average number of paying dealers in that marketplace during the quarter. We calculate the average number of paying dealers for a period by adding the number of paying dealers at the end of such period and the end of the prior period and dividing by two.
For each of our websites, we define a monthly unique user as an individual who has visited any such website within a calendar month, based on data as measured by Google Analytics. We calculate average monthly unique users as the sum of the monthly unique users of each of our websites in a given period, divided by the number of months in that period. We count a unique user the first time a computer or mobile device with a unique device identifier accesses any of our websites during a calendar month. If an individual accesses a website using a different device within a given month, the first access by each such device is counted as a separate unique user. If an individual uses multiple browsers on a single device and/or clears their cookies and returns to our site within a calendar month, we count each such visit as a unique user.
We define monthly sessions as the number of distinct visits to our websites that take place each month within a given time frame, as measured and defined by
We define leads as user inquiries via our marketplace to dealers by phone calls, email, or managed text and chat.
Investor Contact:
Kirndeep Singh
Vice President, Investor Relations
investors@cargurus.com
Source: CarGurus, Inc.