As subscription revenues increased 28 percent, adjusted EBITDA figures leaped from US$12.7 million in 2018 to US$20.6 million in Q3 2019.
CarGurus (NASDAQ:GURUS), an online automotive marketplace announced steady results for its third quarter earnings, with revenues accelerating 26 percent year-over-year to US$150.5 million and net income coming in at US$10.4 million. Propelling growth is growing market subscription revenue as it expands its international presence.
As quoted in the press release:
“CarGurus delivered a strong third quarter featuring several important accomplishments. We grew our industry-leading U.S. audience and generated year-over-year U.S. leads growth of 13%, providing strong value to our dealers and aiding growth in our core listings business,” said Langley Steinert, Founder and Chief Executive Officer of CarGurus. “Our brand investments are driving more direct traffic, and our new “My Car, My Deal” campaign that launched in Q3 highlights CarGurus’ unique consumer benefits. Finally, our international business continues to deliver strong growth, evidenced by our highest total international net dealer additions and triple-digit year-over-year audience growth.”
Total revenue was $150.5 million, an increase of 26% compared to $119.1 million in the third quarter of 2018.
Marketplace subscription revenue was $135.5 million, an increase of 28% compared to $105.9 million in the third quarter of 2018.
Advertising and other revenue was $14.9 million, an increase of 13% compared to $13.2 million in the third quarter of 2018.