CarGurus, Inc. reported a total revenue of $225.2 million for the first quarter of 2025, marking a 4% increase from $215.8 million in the same period last year. The growth was primarily driven by a 13% rise in marketplace revenue, which reached $212.2 million, up from $187.2 million. However, wholesale revenue saw a significant decline of 52%, dropping to $7.7 million from $16.1 million, while product revenue decreased by 58% to $5.2 million from $12.5 million. The company's net income for the quarter was $39.0 million, compared to $21.3 million in the prior year, resulting in a basic net income per share of $0.38, up from $0.20.
In terms of operational metrics, CarGurus reported an increase in the number of paying dealers, which rose to 32,372 from 31,175 year-over-year. The average quarterly revenue per subscribing dealer (QARSD) also improved, reaching $6,173, up from $5,664. The company experienced a decrease in transactions within its Digital Wholesale segment, with 5,209 vehicles processed compared to 10,302 in the previous year. This decline in transactions contributed to the drop in wholesale and product revenues.
The company has made strategic moves, including a share repurchase program that authorized the buyback of up to $200 million of its Class A common stock. During the first quarter of 2025, CarGurus repurchased 5.9 million shares for approximately $184.2 million. The company also reported a decrease in cash and cash equivalents, which fell to $172.9 million from $304.2 million at the end of 2024, largely due to the share repurchase activity.
Looking ahead, CarGurus anticipates continued growth in its marketplace segment, driven by new dealer sign-ups and product adoption. The company aims to enhance its digital retail solutions and expand its CarOffer platform, which is designed to facilitate vehicle transactions between dealers. However, it also acknowledges potential challenges, including macroeconomic factors such as inflation, interest rates, and supply chain disruptions that could impact its operations and financial performance. The company remains committed to leveraging its technology and data analytics to maintain a competitive edge in the automotive marketplace.
About CarGurus, Inc.
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