Sustainability of QARSD Growth
Q: Can QARSD growth continue in 2025 despite tough comparisons?
A: Despite acknowledging tougher comps in 2025  , management is confident that continued value addition through new products and features will drive further QARSD growth. By packing more value into higher-tier packages and offering new cross-sell opportunities, they see no imminent ceiling. As long as they remain ROI-focused, they expect a runway in QARSD growth.

Pricing Power and Strategy
Q: How does pricing work, and can you continue raising prices over time?
A: Pricing is based on lead volume, quality, and the value delivered to dealers, not seasonally based. With dealers recognizing them as the #1 provider in ROI, nearly 3x over the closest competitor  , they have leverage to adjust prices. They bring in dealers at the right price point and raise prices over time through annual business reviews for underpriced dealers. Higher dealer engagement and adoption of value-added services are increasing dealer spend.

International Growth Trajectory
Q: What is driving growth in international markets, and how should we think about it?
A: The U.K. and Canada businesses are growing fast, profitable, and significantly contributing to the bottom line. By adopting the U.S. playbook, they are gaining dealer adoption at competitive price points and increasing new dealer counts. Launching products like digital deal and Next Best Deal Rating in Canada has led to new customer growth, QARSD growth, and record customer retention, driving both revenue growth and profitability.

Dealer Mix and OEM Opportunities
Q: With more franchise customers, what are the monetization opportunities with manufacturers?
A: Growth in the franchise dealer segment has been strong, driving QARSD growth faster than the market. They are capturing more wallet share and have positive net dealer additions. The advertising business with OEMs has seen two quarters of double-digit growth as supply returns in the new car market. They have won back both domestic and import brands, and some OEM relationships drive lead generation programs for dealers, creating synergistic growth.

Consumer Demand Outlook
Q: How is consumer demand and dealer activity compared to 90 days ago?
A: The third quarter saw a stronger used retail and wholesale market, partially due to interest rates decreasing at the end of the quarter. Although Q3 is typically down, it was slightly stronger. Inventory is sitting on lots longer. Q4 is typically the weakest for used vehicle sales, but in challenging times, dealers turn to CarGurus for the largest audience and highest quality leads.

Discontinuation of CG Buy Online
Q: Why did you decide to discontinue CG Buy Online?
A: After careful consideration and detailed analysis, they concluded it was appropriate to redeploy resources from CG Buy Online pilots to other projects. They periodically review investments based on financial returns, strategic fit, ability to execute, and market demands.

Brand Marketing Investments
Q: Will you invest more in brand marketing next year to boost consumer awareness?
A: There is seasonality to brand marketing, and an increase is expected at the new year. They are becoming more sophisticated in marketing to capture a larger audience at different stages of the shopping journey. Historically focused on the low funnel, they are now focusing on mid and higher funnel efforts to grow brand awareness. They are trying new channels and have found success, aiming to build the brand as quickly as possible.