CarGurus Profits: Third Quarter Revenue Increase; decrease in net income
Vehicle ad company CarGurus Inc. reported higher revenue in the third quarter, reflecting increased transactional capabilities and digital tools for dealerships, while net profit declined.
The Cambridge, Massachusetts-based company said on Tuesday that the CarOffer wholesale platform continues to grow, along with a new online instant cash offer feature that debuted earlier this week. year. At the same time, CarGurus’ SEO business has shown resilience despite persistent headwinds from microchips and inventory shortages, CEO Jason Trevisan told analysts during the company’s quarterly earnings call. .
Revenue from US market subscriptions and CarGurus wholesale operations both increased in the third quarter ended September 30.
CarGurus acquired a 51 percent stake in CarOffer in January. The platform has enabled CarGurus to expand its wholesale capabilities for dealership customers, allowing dealers to create standing purchase orders and provide instant offers to selling dealerships.
CarGurus reported that approximately 7,000 dealers were registered on the CarOffer platform in the third quarter, compared to approximately 5,500 in the second quarter.
The company’s new Instant Max Cash Offer feature, which allows consumers to sell vehicles entirely online, is now available in 22 states and Washington, DC, as of this week, CarGurus said Tuesday. It was launched in three states in July.
âThis quarter’s performance was driven by three key factors: our continued evolution from SEO activity to an end-to-end market enabling transactions, our partnership with dealerships to develop innovative digital-initiated solutions, and and our ability to provide consumers with a self-selective digital retail journey when buying or selling a vehicle, âTrevisan said in a statement.
CarGurus reported 30,754 paid dealer customers as of September 30, up from 30,162 as of September 30, 2020. The number of paid dealer customers in the United States was 23,979 as of September 30, compared to 23,659 as of September 30, 2020.
Q3 turnover: $ 222.9 million, up 51% from the previous year.
Consolidated net income Q3: $ 29.3 million, down 10% from the previous year.
Q3 consolidated adjusted EBITDA: $ 65.9 million, up 16% from the previous year.
Advice: Fourth quarter revenue of $ 273 million to $ 285 million; full-year revenue of $ 885 million to $ 897 million.