CarGurus, Inc. reported a total revenue of $894.4 million for the fiscal year ended December 31, 2024, reflecting a 2% decrease from $914.2 million in the previous year. The decline was primarily attributed to a significant drop in revenue from the Digital Wholesale segment, which fell by 55% to $97.8 million, compared to $216 million in 2023. In contrast, revenue from the U.S. Marketplace segment increased by 13% to $733.7 million, driven by a rise in dealer subscriptions and advertising revenue. The company also recorded a consolidated net income of $21.0 million, down from $22.1 million in 2023, while Consolidated Adjusted EBITDA rose to $247.2 million from $195.8 million.
The filing highlighted several strategic developments, including the completion of the acquisition of the remaining minority equity interests in CarOffer on December 1, 2023, for $75 million. This acquisition has positioned CarGurus to enhance its digital wholesale offerings. Additionally, the company has focused on expanding its product offerings, including the Instant Max Cash Offer service, which allows consumers to sell vehicles online. However, the company faced challenges in the Digital Wholesale segment, with transaction volumes declining significantly, leading to a $127.5 million impairment charge related to the CarOffer reporting unit.
Operationally, CarGurus reported an increase in the number of paying dealers, which rose to 32,010 from 30,935 in the previous year. The average monthly unique users in the U.S. marketplace reached 29.3 million, contributing to a total of 38.4 million unique users across all platforms. The company also noted a significant increase in Quarterly Average Revenue per Subscribing Dealer (QARSD), which rose to $6,144, up from $5,503 in 2023. Despite these positive metrics, the Digital Wholesale segment's performance was adversely affected by a 47% decrease in transactions, which totaled 34,395 for the year.
Looking ahead, CarGurus expressed cautious optimism regarding its growth strategies, emphasizing the importance of enhancing its product offerings and maintaining strong relationships with dealers. The company plans to continue investing in technology and product development to adapt to changing market conditions and consumer preferences. However, it acknowledged potential risks, including macroeconomic factors such as inflation, interest rates, and competition, which could impact future performance. The company also highlighted its commitment to improving internal controls and compliance, having remediated a previously identified material weakness in its financial reporting processes.
About CarGurus, Inc.
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