Total Revenue

Increased by approximately 2.4% (from $223.12M to $228.54M)

Revenue growth was modest and likely driven by increased subscription-based listings and product upgrades, reflecting organic expansion compared to Q4 2023's lower base. " "

Operating Income

Swing from a loss of $22.27M to a profit of $53.28M

The dramatic turnaround in operating income is largely due to significant cost reductions—notably a roughly 46% drop in Cost of Goods Sold (from $55.09M to $29.55M)—combined with improved operational efficiency compared to Q4 2023. " " "

Cost of Goods Sold

Decreased by about 46% (from $55.09M to $29.55M)

The steep decline in COGS indicates enhanced cost management and a shifting revenue mix toward higher-margin activities, which supported the operating income improvement relative to Q4 2023. " "

Net Income

Worsened by roughly 4.8% (from –$22.60M to –$23.68M)

Despite the operating turnaround, net income deteriorated slightly due to increased non-operating expenses or other financial charges that offset the operating gains, highlighting a divergence between operational performance and bottom-line profitability relative to Q4 2023. " "

Basic EPS

Deteriorated from –$0.21 to –$0.28

The decline in Basic EPS reflects the lower net income combined with share count factors, worsening the per-share loss compared to Q4 2023, even though underlying cost efficiencies improved. " "

Diluted EPS

Improved modestly from –$0.20 to –$0.19

The improvement in Diluted EPS, despite overall losses, is attributable to favorable adjustments in the weighted-average diluted share count and partial benefits from improved operating margins relative to Q4 2023. " "

Net Change in Cash

Reversed from a decline of –$73.03M to an increase of $55.49M

A substantial improvement in cash flow resulted from stronger operating cash generation and reduced cash outflows in investing activities, which overcame heavier financing outflows seen in Q4 2023, indicating better liquidity management in the current period. " " " "

Consolidated Revenue

Q1 2025

$219 million to $239 million "

$216 million to $236 million "

lowered

Marketplace Revenue

Q1 2025

$208 million to $213 million "

$209 million to $214 million "

raised

Non-GAAP Consolidated Adjusted EBITDA

Q1 2025

$72 million to $80 million "

$60 million to $68 million "

lowered

Non-GAAP Earnings Per Share (EPS)

Q1 2025

$0.50 to $0.55 "

$0.41 to $0.47 "

lowered

Diluted Weighted Average Common Shares Outstanding

Q1 2025

~106 million "

~107 million "

raised

Marketplace Growth

Q1: Reported a 12% YoY increase driven by strong subscription performance. " " Q2: Delivered 14% YoY growth with continued acceleration and improved margins. " " Q3: Emphasized steady 15% YoY growth fueled by robust dealer engagement. "

Q4: Achieved 15% YoY growth with Marketplace revenue at $210 million and a growing global dealer count, while noting that guidance for early 2025 may see modest tapering due to tougher comparisons. " "

Consistent and positive. Marketplace growth remains a core strength with evolving sentiment—optimistic on current performance but cautious about near-term tapering as comparisons get tougher.

Dealer Consolidation

Q1: Highlighted increases in dealer counts and efforts to deepen relationships. " " Q2: Noted a shift toward larger, more sophisticated dealers with better ROI. " " Q3: Emphasized benefits from consolidation, particularly among franchise dealers, enhancing wallet share. "

Q4: Continued focus on dealer consolidation with examples such as Asbury’s acquisition and a strategic shift where dealers concentrate spend to partner with high‐impact platforms. " "

Steady with evolving optimism. The theme has consistently supported growth, with sentiment gradually improving as larger dealer groups further validate the platform’s value proposition.

Product Innovation and Data-Driven Offerings

Q1: Focus on leveraging data for pricing and inventory insights via tools like Next Best Deal Rating. " " Q2: Expanded data-driven offerings—including predictive analytics and enhanced consumer app features—to boost dealer performance. " " " Q3: Advanced dealer data insights and AI-driven recommendations. " "

Q4: Continued emphasis on innovation with new AI and agentic technology pilots, an expanded Next Best Deal Rating deployment across regions, and new Digital Deal pilot features that integrate shopper finance information. " " "

Continuously positive. The innovation agenda is consistently strong, with deeper AI integration and more advanced data insights now extending across regions—solidifying its role in enhancing dealer workflows and consumer experience.

International Expansion

Q1: Reported 24% YoY international revenue growth with promising long-term prospects. " " Q2: Noted 21% YoY growth driven by expanding dealer base and higher traffic metrics. " " Q3: Focused on replicating the U.S. playbook in the U.K. and Canada with robust dealer and consumer engagement. " " "

Q4: Achieved 23% YoY revenue growth internationally with product launches like Digital Deal in Canada and plans for further investments in go-to-market strategies. " " " "

Consistently strong. International expansion has emerged as a core revenue driver with continuous positive momentum and strategic investments to replicate domestic success abroad.

CarOffer Platform Rebuilding and Integration Challenges

Q1: Initiated rebuilding efforts with a focus on integrating retail and wholesale insights and restructuring sales. " " " Q2: Detailed significant restructuring and product enhancements, although progress was slower than expected. " " " " Q3: Reported operational improvements alongside a decline in dealer-to-dealer transactions, reflecting mixed sentiment. " " "

Q4: Acknowledged that CarOffer is still in the early innings of its turnaround—with operational improvements in inspections and transportation yet to fully validate broader market adoption. " " "

Mixed and ongoing. This topic remains a challenge with gradual progress; while the rebuild is underway and early operational gains are noted, the sentiment remains cautious about the timeline for fully achieving strategic transformation.

Digital Wholesale Segment Performance

Q1: Noted a $4.5 million adjusted EBITDA loss amid lower transaction volumes. " " Q2: Persistently underperformed with losses and a significant goodwill impairment related to CarOffer. " " Q3: Continued to struggle with losses, evidenced by a $5.2 million EBITDA loss and additional impairment charges. " "

Q4: Still facing persistent losses—with an adjusted EBITDA loss of $2.9 million—but showing sequential improvement due to lower amortization costs following the discontinuation of CG Buy Online. "

Long-standing challenge. Despite incremental improvements, Digital Wholesale remains a drag on profitability, reflecting ongoing structural challenges in scaling the segment profitably.

Operating Expenses and Margin Pressure

Q1: Experienced elevated marketing expenses due to front-loaded campaigns, with expectations for a decline later in the year. " " " Q2: Achieved effective cost management with improved margins—non-GAAP gross margins expanded significantly. " Q3: Maintained stable operating expenses and strong margin expansion despite minor headwinds. "

Q4: Reported operating expenses up 8% YoY (partly seasonal) with plans for modest increases in Q1 2025 due to investments, though overall margins remain sustainable with a strategic focus on cost optimization. " "

Balanced outlook. While rising costs are acknowledged, effective cost management and operating leverage—especially in the high-margin Marketplace—help mitigate margin pressure, although near-term challenges are noted for Q1 2025.

New Digital Product Launches

Q1: Introduced key products like Digital Deal, Next Best Deal Rating, and an inventory acquisition tool to drive dealer efficiency. " " Q2: Expanded the portfolio with products such as Maximize Margin and Acquisition Insights Report alongside Digital Deal enhancements. " " Q3: Saw significant adoption, with strong growth in Digital Deal penetration and Next Best Deal Rating utilization. " "

Q4: Further refined the product suite with advanced pilots—such as Digital Deal enhancements integrating full shopper credit applications—and expanded Next Best Deal Rating to over 14,000 dealers, reinforcing integration into dealer workflows. " "

Continually evolving. There is a robust and consistent focus on new digital products, with ongoing enhancements and cross-regional adoption reinforcing CarGurus’ competitive advantage in digital innovation.

Mobile App Dominance and Enhanced User Engagement

Q1: Positioned the app as the #1 automotive app, contributing over 25% of total leads with high session frequency and strong registration rates. " " " Q2: Improved personalization and retention with a 28% lead contribution and a 16% increase in 1‑month retention, aided by AI integration. " Q3: Maintained an industry-best rating (4.9 stars) and drove nearly 30% of leads with 2x conversion relative to desktop. "

Q4: Continued to deliver 30% of leads and enhanced user engagement through cross‑platform syncing and AI‑driven personalization, reaffirming the mobile app as a cornerstone competitive driver. "

Steady and strengthening. Mobile app dominance remains a key driver, with consistently strong engagement metrics and ongoing feature enhancements solidifying its role as a competitive advantage.

OEM Advertising Growth

Q1: No information provided. Q2: Reported strong YoY growth driven by recovering new vehicle inventory and high-intent consumer engagement, prompting shifts from programmatic buys to direct purchases. " " Q3: Emphasized double-digit YoY growth with wins in both domestic and import brands, underlining effective lead generation. " " "

Q4: Reported renewed double-digit YoY growth, attributed to replenished new car supply, superior consumer targeting, and strong OEM renewal rates that even won back previously lost OEM business. " "

Emerging and positive. Although not mentioned in Q1, OEM Advertising has rapidly become a renewed revenue stream, driven by improved market conditions and strong reengagement efforts with OEMs, representing a significant new avenue for revenue growth.

Discontinuation of CG Buy Online

Q1: CG Buy Online was in a pilot phase with ongoing validation of its product‐market fit. " Q2: No mention of discontinuation. Q3: Announced discontinuation with a $16.8 million noncash impairment charge and resource reallocation to other initiatives. " "

Q4: Continued to underscore that discontinuation led to lower amortization costs and contributed to a $2.4 million sequential improvement in Digital Wholesale adjusted EBITDA loss, signaling a strategic shift in focus. "

New strategic shift. Initially piloted in Q1, the platform was discontinued by Q3 and remains out of scope in Q4—reflecting a deliberate move away from lower-margin digital transactions in favor of more scalable, profitable segments.