You might also like
CarGurus, Inc. is a multinational online automotive platform that connects buyers and sellers of vehicles through its industry-leading listings marketplace. The company provides digital retail solutions and operates the CarOffer online wholesale platform, serving both consumers and dealerships. CarGurus leverages proprietary technology, search algorithms, and data analytics to enhance trust, transparency, and competitive pricing in the automotive shopping experience.
- U.S. Marketplace - Offers dealer subscriptions to listings packages, digital advertising, and digital retail services. Includes advertising by auto manufacturers and partnerships with financing services companies.
- Digital Wholesale - Facilitates Dealer-to-Dealer and Instant Max Cash Offer (IMCO) transactions through the CarOffer platform. Includes transaction fees, vehicle sales to dealers, and services like inspection and transportation.
- Other - Generates revenue from additional sources not categorized under the main segments, including operations in Canada and the United Kingdom.
| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Jason Trevisan ExecutiveBoard | Chief Executive Officer | None | Jason Trevisan has been CEO since January 2021, previously serving as CFO and Treasurer. He has a background in venture capital and holds an MBA from Dartmouth College. | |
Dafna Sarnoff Executive | Chief Marketing Officer | None | Dafna Sarnoff joined as CMO in December 2021, with a background in marketing for technology companies. | |
Elisa Palazzo Executive | Chief Financial Officer | None | Elisa Palazzo joined as CFO in December 2023, bringing nearly 20 years of experience in finance and investment roles. She holds an MBA from Harvard Business School. | |
Javier Zamora Executive | General Counsel and Corp. Sec. | None | Javier Zamora joined as General Counsel in August 2022, with prior roles at Converse and Nike. He holds a JD from DePaul University. | |
Matthew Quinn Executive | Chief Technology Officer | None | Matthew Quinn has been CTO since January 2022, with prior leadership roles at Audible and Amazon. | |
Samuel Zales Executive | President and COO | None | Samuel Zales has been with CarGurus since 2014, serving as President and COO since 2019. He has a strong background in operations and revenue growth. | |
Zachary Hallowell Executive | CEO of CarOffer | None | Zachary Hallowell became CEO of CarOffer in December 2023, with over two decades of experience in industry transformation. | |
Greg Schwartz Board | Board Member | CEO and Chairman of Tomo Networks, Inc. | Greg Schwartz has been a director since March 2018, with expertise in online marketplaces and executive leadership. | |
Langley Steinert Board | Executive Chair and Chair of Board | Co-founder of ApartmentAdvisor, Inc.; Board member at Tuck School of Business | Langley Steinert is the founder of CarGurus and served as CEO until January 2021. He is also involved with ApartmentAdvisor and Dartmouth College. | |
Lori Hickok Board | Board Member | Board member at 1stdibs.com, Inc.; Second Harvest Food Bank of East Tennessee | Lori Hickok has been on the Board since August 2018, with a strong finance background and board roles at other organizations. | |
Manik Gupta Board | Board Member | Corporate VP of Microsoft Teams; Advisor and Investor | Manik Gupta joined the Board in July 2023, with a background in product leadership at Microsoft and Uber. | |
Stephen Kaufer Board | Board Member | CEO of Give Freely, LLC; Board member at Neuroendocrine Tumor Research Foundation | Stephen Kaufer has been a director since 2007, with extensive experience in online marketplaces and executive leadership. |
- With your plan to invest more in international growth in 2025, what specific forms will these investments take, and how should we think about the long-term payback period and potential impacts on Marketplace margins?
- As Amazon enters the automotive dealer space, how do you see the CarGurus platform positioned against such a formidable competitor, and what strategies are you implementing to mitigate potential risks from their entry?
- Despite strong free cash flow margins and conversions, you did not repurchase any shares in the quarter; can you elaborate on your capital allocation priorities, and why there were no share repurchases despite the active program?
- The turnaround effort for CarOffer continues; can you provide a clearer timeline or milestones for when you expect CarOffer to reach profitability and fully unleash its potential within your platform?
- Facing tougher comps in 2025, especially in the back half of the year, how confident are you in sustaining Marketplace revenue growth, and what are the primary drivers that will support this growth amidst increasing competition and market challenges?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
AutoTrader.com | Major U.S. online automotive marketplace that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Carfax.com | Major U.S. online automotive marketplace that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Major U.S. online automotive marketplace that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. | |
TrueCar.com | Major U.S. online automotive marketplace that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Edmunds.com | U.S. automotive website that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
KBB.com | U.S. automotive website that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Carvana.com | Online dealership that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Craigslist.com | Peer-to-peer marketplace that competes with the company to attract consumers and paying dealers to its marketplaces and services, and to attract advertisers to purchase advertising products and services. |
Vehicle auction company, including digital wholesale platforms, that competes with the company to attract consumers and dealers searching for vehicles. | |
OPENLANE | Vehicle auction company, including digital wholesale platforms, that competes with the company to attract consumers and dealers searching for vehicles. |
E INC | Vehicle auction company, including digital wholesale platforms, that competes with the company to attract consumers and dealers searching for vehicles. |
E-commerce site that has a partnership with Hyundai to sell cars on its platform, competing with the company to attract consumers and paying dealers to its marketplaces and services. |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
CarOffer, LLC | 2023 | CarGurus acquired the remaining minority equity interests in CarOffer for $75 million in cash, with the transaction completed on December 1, 2023, via a Membership Interest Purchase Agreement including escrow provisions to secure indemnification and payment obligations. This deal is strategically aimed at integrating CarOffer's digital wholesale capabilities—such as its BuyingMatrix™ technology—to enhance CarGurus’ retail platform, and it involved operational enhancements along with the appointment of a new CEO, while maintaining CarOffer as a standalone brand in Addison, Texas. |
CarOffer, LLC | 2021 | CarGurus acquired a 51% stake in CarOffer in January 2021 for approximately $170 million through a mix of cash and stock, including the issuance of 3,115,282 shares at $22.51 per share and a retention pool for employees. This acquisition was intended to integrate wholesale vehicle trading capabilities with CarGurus’ Instant Market Value data, strengthening its digital solution for dealer transactions while keeping CarOffer’s operations based in Plano, Texas. |
Recent press releases and 8-K filings for CARG.
- CarGurus, Inc. held its 2025 annual stockholder meeting on June 4, 2025, during which key proposals were presented and voted on.
- Directors were elected, with vote counts provided for nominees such as Steven Conine and Stephen Kaufer, and the appointment of Ernst & Young LLP as independent auditors was ratified.
- Non-binding advisory votes on executive compensation and future voting frequency were approved, with the next stockholder vote expected in 2031.
- Business Model Evolution: CarGurus outlined its transformation from a simple lead-generation model to a full-service online automotive marketplace focused on enhancing both consumer research and dealer operations through greater transparency and diversified products.
- Strategic Pricing & Contracting: The company is shifting from monthly auto-renew contracts to longer-term agreements (six or twelve months) and raising pricing to align with market rates, reflecting steady revenue acceleration.
- Innovation & Digital Wholesale Expansion: Emphasis was placed on investing in product innovation, including enhanced data insights, predictive pricing, and the integration of CarOffer, its digital wholesale platform, to drive improved dealer sourcing.
- International Growth: CarGurus highlighted faster growth and increasing market share in its international markets in Canada and the UK, positioning these units as key drivers for future expansion.
- CEO Jason Trevisan outlined CarGurus’ evolution from a traditional lead generator to a comprehensive dealer solutions provider, emphasizing improved consumer engagement and dealer support through expanded product functionality.
- The call stressed a robust ROI proposition for dealers via a subscription model bolstered by pricing intelligence and enhanced account management, driving higher retention and sustainable dealer growth.
- Significant focus was placed on leveraging AI and advanced analytics to enhance both consumer search experiences and dealer operational efficiency across pricing, merchandising, and lead conversion.
- The discussion also detailed strategic capital allocation plans including continued investments in product innovation, an active M&A pipeline in dealer technology, and share buybacks to return capital to shareholders.
- Q1 2025 financial highlights: Total revenue reached $225 million, with Marketplace revenue reported between $210 million and $212 million (≈13% YoY growth) and Non-GAAP Adjusted EBITDA of $66.3 million (up 32% YoY) .
- GAAP net income reached $39.0 million in Q1 2025 .
- The Digital Wholesale segment delivered $13 million in revenue with a $3 million loss in Adjusted EBITDA .
- Expanded operations by adding 734 paying U.S. dealers and achieving a 20% revenue increase in international markets, driven by innovations such as VIN-level targeting .
- Q2 2025 guidance projects total revenue between $222M and $242M, Non-GAAP EPS of $0.52–$0.58 , and Non-GAAP Adjusted EBITDA expected between $71.5M and $79.5M .
- Executed a significant share buyback of $184.2 million (representing 6% of outstanding capital) .