James Lewis

James Lewis asked how CarGurus balances monetizing newer analytics products like DDI and Price Vantage via subscriptions against providing greater value to dealers, especially with upcoming offerings like the instant market value model. He also requested more specific color on the relative investment intensity across product offerings, brand investments, and international expansion for the year.

Answer

CEO Jason Trevisan explained that CarGurus employs a mix of art and science in pricing, packaging, and delivering products, aiming to grow engagement as dealers who engage more perform better. He stated that the primary investment intensity is in product and technology, followed by international expansion, and then account management.

James Lewis asked how CarGurus balances monetizing newer analytics products like Dealer Data Insights (DDI) and Price Vantage via subscriptions against providing greater value to dealers, especially with offerings like Instant Market Value. He also sought a rank-order of investment intensity across product offerings, brand investments, and international expansion.

Answer

Jason Trevisan, Chief Executive Officer, explained that as CarGurus' data and products grow, the company is becoming more sophisticated in its pricing, packaging, and delivery strategies. He noted there isn't a single formula, but the goal is to increase dealer engagement, as more engaged dealers perform better on the platform. He reiterated the investment intensity ranking: 1) products and technology, 2) international expansion, and 3) account management.