{"id":3100,"date":"2017-10-06T09:20:37","date_gmt":"2017-10-06T13:20:37","guid":{"rendered":"http:\/\/www.ipoboutique.com\/blog\/?p=3100"},"modified":"2017-10-06T09:20:37","modified_gmt":"2017-10-06T13:20:37","slug":"cargurus-inc-ipo-preview-carg","status":"publish","type":"post","link":"https:\/\/www.ipoboutique.com\/blog\/cargurus-inc-ipo-preview-carg\/","title":{"rendered":"CarGurus, Inc. #IPO Preview ($CARG)"},"content":{"rendered":"

\"CarGurusLogo\"<\/a><\/p>\n

Company: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/b>CarGurus, Inc.<\/b>
\nSymbol: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0CARG<\/span>
\nDescription: \u00a0\u00a0\u00a0\u00a0CarGurus is a global, online automotive marketplace connecting buyers and sellers of new and used cars.<\/span>
\nShares: 9.4 million<\/span>
\nPrice Range: $13.00-$15.00<\/span>
\nTrade Date: \u00a0\u00a0\u00a0\u00a010\/12<\/span>
\nUnderwriter(s): \u00a0Goldman Sachs & Co., Allen & Company, RBC Capital Markets<\/span>
\nCo-Manager(s): JMP Securities, Raymond James, William Blair<\/span><\/p>\n

Link to S-1\/A Prospectus<\/a><\/strong><\/p>\n

Link to Retail Roadshow<\/a>\u00a0 — Not Available<\/strong><\/p>\n

Business<\/strong>: Using their proprietary technology, search algorithms, and innovative data analytics, they believe they are building the world’s most trusted and transparent automotive marketplace and creating a differentiated automotive search experience for consumers. Their\u00a0trusted marketplace empowers users with unbiased third-party validation on pricing and dealer reputation as well as other information that aids them in finding “Great Deals from Great Dealers.” As of June\u00a030, 2017, they had an active dealer network of over 40,000 dealers, and our selection of over 5.4\u00a0million car listings is the largest number of car listings available on any of the major U.S. online automotive marketplaces. In addition to the United States, they operate online marketplaces in Canada, the United Kingdom, and Germany.<\/p>\n

KEY METRIC:\u00a0<\/strong>Increase Average Annual Revenue per Subscribing Dealer (AARSD)<\/strong><\/em><\/p>\n

\n

AARSD is a key driver of their\u00a0marketplace subscription revenue. AARSD is driven by the volume and quality of connections they deliver to dealers, the perceived value of their brand exposure in CarGurus Inc.\u00a0marketplace, and their\u00a0ability to upsell package levels and cross-sell additional products to our paying dealers. In 2016, they\u00a0provided their\u00a0U.S. dealer base with over 42 million connections to prospective car buyers. Historically, their\u00a0growing user traffic has led to an increase in the volume of connections that they\u00a0provide their\u00a0U.S. paying dealers, from 10.3 million connections during the second quarter of 2016 to 12.4 million connections during the same period of 2017. This growth has been a primary contributor to the increase in U.S. AARSD, which grew from $9,510 as of June 30, 2016 to $11,048 as of June 30, 2017, or 16%. In the future, CarGurus\u00a0expect new products to play a more important role in helping us grow AARSD.<\/p>\n

\"CarGurusData\"<\/a><\/p>\n

Financials:\u00a0<\/strong>\u00a0They\u00a0generate marketplace subscription revenue from dealers through Listing and Dealer Display subscriptions, and advertising revenue from automobile manufacturers and other auto-related brand advertisers. In 2016, they generated revenue of $198.1 million, a 101% increase from $98.6 million of revenue in 2015. Their\u00a0revenue for the six months ended June 30, 2017 was $143.3 million, a 70% increase from $84.2 million of revenue in the six months ended June 30, 2016.<\/p>\n

In 2016, they generated net income of $6.5 million and their\u00a0Adjusted EBITDA was $11.0 million, compared to a net loss of $1.6 million and Adjusted EBITDA of $(0.4) million in 2015. For the six months ended June 30, 2017, they generated net income of $8.6 million and their\u00a0Adjusted EBITDA was $14.1 million, compared to net income of $0.5 million and Adjusted EBITDA of $1.7 million for the six months ended June 30, 2016.<\/p>\n

\"CarGurusFinancials\"<\/a><\/p>\n<\/div>\n

Book-Building Status<\/strong>: The way the book comes together during the week of the roadshow is the most critical indicator to first-day and first-week performance. IPO Boutique uses its 45 years of experience and sources all over the street to gather daily subscription levels, specific price guidance and what type of investors are currently in the book or are anchoring orders in the book. In addition, recent underwriter performance on sector specific deals is a strong factor that IPO Boutique takes into account when determining if our clients should indicate for any offering.<\/p>\n

IPO Boutique subscription clients receive daily updates on this critical information.<\/a><\/p>\n

Conclusion<\/strong>: IPO Boutique provides ratings, daily commentary and a forecast for how this IPO will open vs. its offering price. We have kept a\u00a0track record<\/a>\u00a0with our performance for last 12 years at our website.<\/p>\n

Indicate with confidence,\u00a0SUBSCRIBE<\/a>\u00a0today.<\/p>\n","protected":false},"excerpt":{"rendered":"

Company: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0CarGurus, Inc. Symbol: \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0CARG Description: \u00a0\u00a0\u00a0\u00a0CarGurus is a global, online automotive marketplace connecting buyers and sellers of new and used cars. Shares: 9.4 million Price Range: $13.00-$15.00 Trade Date: \u00a0\u00a0\u00a0\u00a010\/12 Underwriter(s): \u00a0Goldman Sachs & Co., Allen & Company, RBC Capital Markets Co-Manager(s): JMP Securities, Raymond James, William Blair Link to S-1\/A Prospectus Link to[…]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"zakra_general_container_width":0,"zakra_general_content_width":0,"zakra_general_sidebar_width":0,"zakra_sticky_header":"customizer","zakra_header_main_area":true,"zakra_site_logo_width":0,"zakra_header_top_enabled":"customizer","zakra_header_top_style":"customizer","zakra_primary_menu_item_style":"customizer","zakra_page_header_text_color":"","zakra_page_header_layout":"customizer","zakra_page_title_bg":"","zakra_footer_widgets_bg_image":0,"zakra_page_title_bg_repeat":"customizer","zakra_page_title_bg_position":"customizer","zakra_page_title_bg_size":"customizer","zakra_page_title_bg_attachment":"customizer","zakra_breadcrumbs_enabled":"customizer","zakra_breadcrumbs_text_color":"","zakra_breadcrumbs_separator_color":"","zakra_breadcrumbs_link_color":"","zakra_breadcrumbs_link_hover_color":"","zakra_page_title_bg_image":0,"zakra_footer_widgets_enabled":"customizer","zakra_footer_column_layout_1_style":"customizer","zakra_footer_widgets_bg":"","zakra_footer_widgets_bg_repeat":"customizer","zakra_footer_widgets_bg_position":"customizer","zakra_footer_widgets_bg_size":"customizer","zakra_footer_widgets_bg_attachment":"customizer","zakra_footer_bar_enabled":"customizer","zakra_footer_bar_style":"customizer","footnotes":""},"categories":[24],"tags":[1350],"class_list":["post-3100","post","type-post","status-publish","format-standard","hentry","category-ipo","tag-carg"],"_links":{"self":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/3100","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/comments?post=3100"}],"version-history":[{"count":1,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/3100\/revisions"}],"predecessor-version":[{"id":3104,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/posts\/3100\/revisions\/3104"}],"wp:attachment":[{"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/media?parent=3100"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/categories?post=3100"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ipoboutique.com\/blog\/wp-json\/wp\/v2\/tags?post=3100"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}