After holding its IPO in October, CarGurus hosted its first earnings call as a public company on Tuesday. And results from the third quarter, which ended Sept. 30, didn’t disappoint.
Total revenue for the online vehicle marketplace came in at $83.0 million, which represents growth of 56 percent year-over-year.
“We are very pleased with our third-quarter results, which are highlighted by robust top line growth and ongoing profitability,” Langley Steinert, founder and chief executive officer of CarGurus, said.
“Our strategy of building the world’s most trusted and transparent automotive marketplace is delivering a disruptive value proposition to consumers,” he said.
Steinert went on to call the recent initial public offering — which generated net proceeds to the company of approximately $43.0 million — an “important milestone” for the business.
“CarGurus now has greater brand awareness and enhanced resources to execute our growth strategy and further extend our rapidly growing leadership position,” he explained.
As for what contributed to the impressive revenue growth in Q3, the company shared during the call that marketplace subscription revenue was at $73.9 million. This is a jump of 59 percent when compared to the same quarter last year. Advertising and other revenue came in at $9.1 million, which also increased considerably — 36 percent — compared to $6.7 million in Q3 of last year.
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