Vehicle listings company CarGurus has rebounded from the early months of the coronavirus pandemic, with both revenue and profit soaring in the second quarter.
The Cambridge, Mass., company on Thursday reported revenue of $217.7 million in the quarter ended June 30, up 130 percent from the same quarter a year earlier. Subscription revenue generated by its listings marketplace rose 80 percent to $144.2 million — $134.1 million of that in the U.S.
The company said consolidated net income more than tripled to $27.4 million from $7.1 million a year earlier. That came as CarGurus restored some of its operating expenses, particularly around sales and marketing — spending the company had cut back in recent quarters.
“Our core listings business demonstrated durability and resiliency, despite industrywide macroeconomic headwinds, while growth accelerated in digital wholesale with our CarOffer platform,” CEO Jason Trevisan said in a statement. “Now, more than ever, we feel that CarGurus is becoming a fully integrated transaction-enabled marketplace for consumers and dealers.”
Shares in CarGurus, which reported earnings after market close on Thursday, rose 3 percent to $30.20 in after-hours trading.
In the year-earlier quarter, CarGurus managed to post a profit despite lower revenue in the early months of the coronavirus pandemic in the U.S. The company discounted subscriptions for its listings dealership customers by 50 percent in April and May last year and 20 percent in June 2020. In April 2020, the company said it would lay off 13 percent of its work force across the globe and end its operations in Germany, Italy and Spain.
Paying dealership subscribers dwindled during the pandemic, as dealerships pulled back on marketing spending during a period that saw state and local governments issue restrictions on in-person business activity — in some cases, requiring showrooms to close. Since then, CarGurus’ paying dealership count had recovered to 30,727 as of June 30, up 1.6 percent from the same quarter a year ago.
In the U.S., CarGurus’ paying dealership customer count was 23,950 as of June 30, up from 23,806 as of June 30, 2020. CarGurus defines a paying dealer as one “with an active, paid marketplace subscription at the end of a defined period.”
CarGurus on Thursday issued revenue guidance for the third quarter of $210 million to $216 million.
