Ryan (on for John Murphy)'s questions to OPENLANE (KAR) leadership • Q4 2024
Question
Asked about the source of projected organic EBITDA growth between segments, dealer reception to technology changes, the breakdown of franchise versus independent dealers in the D2D marketplace, and the opportunity to grow franchise dealer participation.
Answer
Most of the guided EBITDA growth is expected from the Marketplace segment. The company manages technology changes carefully to maintain ease of use, which dealers appreciate. In the D2D market, franchise dealers are the primary sellers and independent dealers are the primary buyers, but there is an opportunity to grow franchise participation on both the buy and sell sides.