OPENLANE, Inc. reported strong financial performance for the third quarter and the first nine months of 2024, reflecting significant improvements in revenue and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, operating revenues reached $448.4 million, an 8% increase from $416.3 million in Q3 2023. Auction fees contributed $113.2 million, up from $102.1 million, while purchased vehicle sales surged to $93.0 million, a 53% increase from $60.6 million in the prior year.

The company achieved an operating profit of $73.2 million for Q3 2024, compared to $66.5 million in Q3 2023. Net income for the quarter was $28.4 million, a substantial rise from $12.7 million in the same quarter last year. This translated to a basic and diluted net income per share of $0.12, compared to $0.01 in Q3 2023. The improvement in profitability was driven by increased auction fees and a recovery in purchased vehicle sales, despite a decline in service revenue primarily due to a drop in transportation revenue linked to a key customer contract change.

For the nine months ended September 30, 2024, total operating revenues were $1,296.5 million, up from $1,253.8 million in 2023. The company reported net income of $57.6 million, a significant recovery from a net loss of $168.4 million in the same period last year. Basic and diluted income per share for the nine months was $0.17, compared to a loss of $1.84 in 2023.

Operating expenses for Q3 2024 totaled $375.2 million, an increase from $349.8 million in Q3 2023. The increase in expenses was attributed to higher costs associated with the Marketplace segment, which reported an operating profit of $10.8 million, a turnaround from an operating loss of $1.3 million in the prior year. The Finance segment continued to perform strongly, generating an operating profit of $62.4 million, although this was down from $67.8 million in Q3 2023.

As of September 30, 2024, cash and cash equivalents stood at $132.1 million, up from $93.5 million at the end of 2023. The company also reported a decrease in finance receivables, totaling $2,192.5 million, down from $2,282.0 million at the end of 2023. Current liabilities increased to $650.8 million, compared to $556.6 million at the end of 2023, while total assets decreased to $4,625.8 million from $4,726.3 million.

Strategically, OPENLANE continues to focus on enhancing its digital marketplace for used vehicles, with ongoing investments in technology and customer solutions. The company has also extended its share repurchase program, reflecting confidence in its financial position and future growth prospects.