CarGurus, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 30, 2024, total revenue reached $231.4 million, a 5% increase from $219.4 million in the same period of 2023. This growth was primarily driven by a 15% rise in marketplace revenue, which amounted to $204.0 million, up from $177.9 million in 2023. However, for the nine months ended September 30, 2024, total revenue decreased by 4% to $665.8 million, down from $691.1 million in the prior year.
The company's profitability showed contrasting trends. Consolidated net income for the third quarter was $22.5 million, an increase from $19.0 million in the same quarter of 2023. In contrast, the nine-month period ended with a net loss of $24.9 million, a significant decline from a net income of $54.7 million in the same period of 2023. The Digital Wholesale segment faced challenges, reporting a loss of $173.8 million for the nine months, compared to a loss of $29.2 million in the previous year, largely due to a $127.5 million impairment charge related to the CarOffer reporting unit.
Operationally, the U.S. Marketplace segment performed well, with revenue increasing to $540.3 million for the nine months, up from $478.4 million in 2023. This segment's income from operations also improved, rising to $126.7 million, compared to $84.4 million in the prior year. However, the Digital Wholesale segment's revenue plummeted to $79.4 million, down from $175.1 million, reflecting a 55% decrease in transactions processed.
Strategically, CarGurus ended its CG Buy Online pilot program, resulting in impairment charges of approximately $15.8 million. The company also repurchased 6.4 million shares for $146.1 million during the nine months, with a remaining authorization of $103.9 million under its share repurchase program. As of September 30, 2024, cash and cash equivalents totaled $246.7 million, down from $291.4 million at the end of 2023.
The company continues to face macroeconomic challenges, including fluctuating wholesale vehicle sales and the impact of higher interest rates. Despite these challenges, CarGurus remains focused on enhancing its marketplace offerings and managing operational costs effectively.
About CarGurus, Inc.
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