Vehicle ad company CarGurus Inc. recorded higher revenues in the third quarter, reflecting greater transactional skills and digital tools for the dealerships, while the net profit decreased.
The Cambridge, Mass.-Based company said Tuesday that the CarOffer wholesale trading platform continues to expand, along with a new online instant money offering feature that debuted earlier this year. At the same time, CarGurus’s major listings have shown business resilience despite continuing headwinds due to microchips and shortages, CEO Jason Trevisan told analysts on the company’s quarterly earnings call.
Revenues from CarGurus’ US market subscriptions and wholesale business both increased in the third quarter ended September 30.
CarGurus acquired a 51% stake in CarOffer in January. The platform allowed CarGurus to expand into wholesaling capabilities for the dealership’s customers, allowing retailers to create standing purchase orders and providing instant offers to sales retailers.
CarGurus reported that approximately 7,000 dealers have registered on the CarOffer platform as of the third quarter, compared to approximately 5,500 in the second quarter.
The novelty of the company Maximum instant cash offer feature, which allows consumers to sell vehicles fully online, is now in 22 states and Washington, DC, starting this week, CarGurus said Tuesday. It was launched in three states in July.
“This quarter’s performance was driven by three key factors: our continued evolution from ad business to an end-to-end transaction-enabled marketplace, our partnership with resellers to develop innovative digitally initiated solutions, and ultimately , our ability to provide consumers with a self-selective digital retail journey when buying or selling a vehicle, ”Trevisan said in a statement.
CarGurus reported 30,754 paying dealership customers as of September 30, compared to 30,162 as of September 30, 2020. US paying dealership customers were 23,979 as of September 30, up from 23,659 as of September 30, 2020.
Third quarter revenue: $ 222.9 million, up 51% over the previous year.
Consolidated net profit for the third quarter: $ 29.3 million, down 10% from the previous year.
Third quarter consolidated adjusted EBITDA: 65.9 million dollars, up 16% over the previous year.
Guide: Fourth quarter revenue, $ 273 million to $ 285 million; full-year revenue, from $ 885 million to $ 897 million.