Core Insights - CarGurus aims to double its total addressable market by introducing AI-powered products beyond its current automotive shopping platform [1][2] - The company is expanding its addressable market to include $3.5 billion spent by U.S. dealers on marketplaces and an additional $4 billion on software and data products [2] Product Development - CarGurus has launched PriceVantage, a machine learning-based pricing solution for dealers that utilizes real-time consumer demand data [3][4] - PriceVantage helps dealers enhance pricing strategies, improve turn times, and increase profitability by providing data-driven recommendations [4] Performance Metrics - Early beta results for PriceVantage show that engaged dealers experienced a 5X improvement in turn-time compared to competitors, with price-drop recommendations leading to a 68% median increase in daily vehicle detail page views [5] - 77% of the recommendations from PriceVantage met or exceeded predicted sales velocity outcomes [5] Consumer-Focused Innovations - CarGurus introduced CG Discover, a generative AI-powered shopping assistant that personalizes vehicle recommendations based on consumer needs, with traffic to this tool tripling quarter over quarter [6] - Another tool, Dealership Mode, provides real-time support to consumers at dealerships, enhancing their experience by offering vehicle pricing, ratings, and financing calculators [6][7] Market Opportunity - Research indicates that 80% of consumers are open to using AI in their car-buying journey, highlighting significant growth potential for CarGurus' AI initiatives [6]

CarGurus (NasdaqGS:CARG) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Company ParticipantsJason Trevisan - CEOSam Zales - President and COOKirndeep Singh - VP and Head of Investor RelationsConference Call ParticipantsJames Sherman-Lewis - AnalystRajat Gupta - AnalystNone - AnalystChris Pierce - AnalystVincent Kardos - AnalystMarvin Fong - AnalystRyan Powell - AnalystOperatorGood day and welcome to the CarGurus Earnings Call. Please note that this event is being recorded. I would now like to turn the ...

CarGurus (NasdaqGS:CARG) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Company ParticipantsJason Trevisan - CEOSam Zales - President and COOKirndeep Singh - VP and Head of Investor RelationsConference Call ParticipantsJames Sherman-Lewis - AnalystRajat Gupta - AnalystNone - AnalystChris Pierce - AnalystVincent Kardos - AnalystMarvin Fong - AnalystRyan Powell - AnalystOperatorGood day and welcome to the CarGurus earnings call. Please note that this event is being recorded. I would now like to turn the ...

CarGurus (NasdaqGS:CARG) Q3 2025 Earnings Call November 06, 2025 05:00 PM ET Speaker1Good day and welcome to the CarGurus Earnings Call. Please note that this event is being recorded. I would now like to turn the conference over to Kirndeep Singh, Vice President and Head of Investor Relations. Please go ahead.Speaker2Thank you, Operator. Good afternoon. I'm delighted to welcome you to CarGurus' Third Quarter 2025 Earnings Call. With me on the call today are Jason Trevisan, Chief Executive Officer, and Sam Z ...

Core Insights - CarGurus reported a 14% year-over-year growth in Marketplace revenue, reaching $232 million, which exceeded the midpoint of guidance [1] - The company achieved a GAAP operating income of $64.1 million and a Non-GAAP Adjusted EBITDA of $82.4 million, reflecting an 18% increase year-over-year [1] - The firm has repurchased $111 million worth of shares since initiating its buyback program in December 2022, representing 23% of shares outstanding [1] Financial Performance - Marketplace Revenue for Q3 2025 was $231.7 million, a 14% increase from the previous year, while total revenue increased by 3% to $238.7 million [4] - Gross profit rose to $213.5 million, marking a 17% increase, with a gross margin of 89%, up 1,055 basis points year-over-year [4] - GAAP Net Income for Q3 2025 was $44.7 million, a 99% increase compared to the same quarter last year, with a net income margin of 19% [4] Key Performance Indicators - The number of U.S. paying dealers increased by 5% to 25,743, while international paying dealers grew by 11% to 7,930, resulting in a total of 33,673 paying dealers, a 6% increase [9] - The U.S. QARSD (Quarterly Average Revenue per Selling Dealer) was $7,742, an 8% increase, while international QARSD was $2,375, a 15% increase [9] - The U.S. Marketplace Segment Revenue was $210.4 million, a 12% increase, with operating income of $61.0 million, reflecting a 21% increase year-over-year [9] Shareholder Returns - The company repurchased $111 million in shares during Q3 2025, contributing to a total of 23% of shares outstanding repurchased since the buyback program began [1] - Non-GAAP earnings per share guidance for Q4 2025 is projected to be between $0.61 and $0.67 [12] Future Guidance - For Q4 2025, CarGurus expects Marketplace Revenue to be between $236 million and $241 million, with Non-GAAP Adjusted EBITDA projected between $83 million and $91 million [12] - Full-year 2025 guidance estimates Marketplace Revenue between $902 million and $907 million, with Non-GAAP Adjusted EBITDA expected to be between $313 million and $321 million [14]