CarGurus, Inc. (CARG) Earnings Call Transcript & Summary

Hello, and welcome to the CarGurus, Inc. 2020 Annual Meeting of Stockholders. And now I'd like to turn the conference over to Langley Steinert, Founder, CEO and Chairman of CarGurus.

Good afternoon. And I'm Langley Steinert, the Founder, CEO and Chairman of CarGurus. Let me take this opportunity to welcome you to the Annual Meeting of Stockholders of CarGurus, Inc. We're excited to be hosting our annual meeting virtually this year, which allows us to be more inclusive and reach a greater number of stockholders. We'll conduct the business portion of our meeting first and answer questions at the end of the meeting. So we may not be able to answer all the questions posed. We expect to provide a response to as many questions as possible, but only questions that are germane to the meeting will be addressed. It is now shortly after 1:00 Eastern Time on June 2, 2020, and this meeting is officially called to order. We have members of our executive team, certain employees and invited guests attending via the web portal in addition to stockholders. I would like first to introduce the other members of the Board of Directors in attendance today, Steve Conine, Lori Hickok, Steve Kaufer, Tas Parafestas, Greg Schwartz and Ian Smith. Joining me in the audio portion of the meeting today are Sam Zales, our President and Chief Operating Officer; Jason Trevisan, our Chief Financial Officer, Treasurer and President, International; Kathleen Patton, our General Counsel and Secretary; and Rodney Nelson, our Head of Investor Relations. Kathleen will serve as the Secretary for today's meeting. We are also joined say by Larry Silverstein and Brian Jazaeri of Morgan Lewis, counsel to the company; as well as Matt MacDonald of Ernst & Young, the company's independent registered public accounting firm. Mr. MacDonald will be available during the question-and-answer session today to respond to appropriate questions. And finally, the company has designated Terence Hassett of CT Hagberg LLC to serve as the Inspector of election. You'll see an agenda for today's meeting and the rules of conduct on the web portal. After the formal meeting has adjourned, we will provide time for general questions. Only validated stockholders may ask questions in the designated field on the web portal. Out of consideration for others, please limit yourself to 2 questions and abide by the rules of conduct. Please note that this meeting is being recorded. However, no one attending via the webcast or telephone is permitted to use any audio recording device. I have received a report from Mr. Hassett confirming that they are present at today's meeting a majority of the total number of votes outstanding and entitled to vote at the meeting. Therefore, a quorum is present to transact business and the following matters are properly before this meeting. Number one, the proposed election of Ian Smith and me, Langley Steinert, as Class III directors; a proposal to ratify the appointment of Ernst & Young as the company's independent registered public accounting firm for the fiscal year ending December 31, 2020; and the proposed nonbinding advisory vote to approve the compensation of the company's named executive officers. Voting is now open. Any stockholder who isn't yet voted or who wishes to change their vote may do so by clicking on the voting button on the web portal and following the instructions there. Stockholders who have sent in proxies or voted by telephone or the Internet and do not want to change their vote do not need to take any further action. I will pause briefly for the completion of voting. [Voting] Now that everyone had the opportunity to vote, I hereby declare the polls closed. The ballots and proxies will be held in the possession of the Inspector of election. The Inspector of election will count the votes and prepare a final report. I now ask Kathleen Patton our Secretary to report the preliminary results of the voting.

Thank you, Langley. We have been informed by the Inspector of election that the preliminary vote report indicates that, number one, shares of common stock representing a plurality of the votes cast have voted for the election of each of the nominees to serve as Class III Director. Number two, shares of voting stock representing at least a majority of the votes cast have voted for the proposal to ratify the appointment of Ernst & Young as the company's independent registered public accounting firm for the fiscal year ending December 31, 2020. And three, shares of common stock representing at least a majority of the votes cast has voted for the approval, on a nonbinding advisory basis, of the compensation of the company's named executive officers. The final vote results will be filed with the SEC on a current report on Form 8-K and posted on our website.

There being no further business to come before the meeting, the 2020 Annual Meeting of Stockholders of CarGurus, Inc. is now adjourned. Now we would like to open the discussion of stockholder questions that have been entered today on the web portal. We expect to answer as many questions as time allows, but only questions that are germane to the meeting will be addressed.

We have no questions.

With no further questions, that concludes the annual meeting. Thank you all very much for attending. Have a great day.

This concludes today's conference call. Thank you for attending today's presentation. You may now disconnect your lines.