Cargurus ( (CARG) ) has released its Q3 earnings. Here is a breakdown of the information Cargurus presented to its investors.
CarGurus, Inc. is a leading digital auto platform for buying and selling new and used vehicles, leveraging technology and data analytics to enhance the automotive shopping experience across the U.S., Canada, and the U.K. In its third quarter of 2024, CarGurus reported a significant increase in its marketplace revenue, which rose by 15% year-over-year. The company’s consolidated GAAP net income also saw a 19% increase, reaching $22.5 million, while non-GAAP consolidated adjusted EBITDA surged by 33% to $64.9 million.
The company highlighted the acceleration in its marketplace revenue and the strategic focus on operating efficiencies, which contributed to these positive financial outcomes. However, it faced challenges in its wholesale and product revenue segments, which decreased by 44% and 23% respectively. Despite these declines, the total revenue managed to climb by 5% from the previous year, reaching $231.4 million for the quarter.
CarGurus continues to expand its dealer network, with U.S. paying dealers growing by 1% and international paying dealers by 4%, totaling 31,684 paying dealers, a 2% increase year-over-year. The company’s U.S. marketplace segment revenue rose by 14%, and its operating income for the segment increased by 51%. However, the digital wholesale segment faced a significant operating loss, although this was somewhat mitigated by the company’s overall performance improvements.
Looking ahead, CarGurus has set forth optimistic guidance for the fourth quarter and the full year of 2024, expecting continued growth in marketplace revenue and adjusted EBITDA. The company’s strategic initiatives aimed at enhancing its platform’s value proposition and operational efficiencies are expected to support its growth trajectory in the coming quarters.
