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CarGurus CarGurus Announces Third Quarter 2021 Results November 9 , 2021 Third Quarter Highlights : • Total revenue of $ 222.9 million , an increase of 51 % year - over - year • GAAP operating income of $ 40.1 million ; non - GAAP operating income of $ 63.1 million • GAAP consolidated net income of $ 29.3 million ; non - GAAP consolidated net income of $ 49.5 million • GAAP net income attributable to common stockholders of $ 29.2 million ; non - GAAP net income attributable to common stockholders of $ 46.3 million • Cash , cash equivalents and short - term investments of $ 321.1 million • Consolidated Adjusted EBITDA of $ 65.9 million ; Adjusted EBITDA of $ 62.5 million CAMBRIDGE , Mass . , Nov. 09 , 2021 ( GLOBE NEWSWIRE ) -- CarGurus , Inc. ( Nasdaq : CARG ) , a multinational , online automotive platform for buying and selling vehicles , today announced financial results for the third quarter ended September 30 , 2021 . " We are thrilled to have exceeded our guidance for the quarter , " said Jason Trevisan , Chief Executive Officer of CarGurus . " Performance this quarter was driven by three key factors : our ongoing evolution from a listings business to an end - to - end transaction - enabled marketplace , our partnership with dealers to develop innovative digitally initiated solutions , and finally , our ability to provide consumers a self - selective digital retail journey when buying or selling a vehicle . With these three areas driving our performance during the third quarter , we were pleased to see strong dealer penetration of our CarOffer platform , swift execution and rapid expansion of CarGurus Instant Max Cash Offer , and continued innovation as we bring digitally initiated capabilities to our consumer audience and dealer partners . " Revenue • Total revenue was $ 222.9 million , an increase of 51 % compared to $ 147.5 million in the third quarter of 2020 . • Marketplace subscription revenue was $ 144.6 million , an increase of 11 % compared to $ 130.0 million in the third quarter of 2020 . • Wholesale and other revenue was $ 78.3 million , an increase of 347 % compared to $ 17.5 million in the third quarter of 2020 . Operating Income • GAAP operating income was $ 40.1 million , or 18 % of total revenue , compared to $ 43.6 million , or 30 % of total revenue , in the third quarter of 2020 . • Non - GAAP operating income was $ 63.1 million , or 28 % of total revenue , compared to $ 55.1 million , or 37 % of total revenue , in the third quarter of 2020 . Consolidated Net Income , Net Income Attributable to Common Stockholders , Consolidated Adjusted EBITDA , & Adjusted EBITDA • GAAP consolidated net income was $ 29.3 million during the third quarter ended September 30 , 2021 , compared to $ 32.6 million during the third quarter ended September 30 , 2020 . • Non - GAAP consolidated net income was $ 49.5 million during the third quarter ended September 30 , 2021 , compared to $ 41.9 million during the third quarter ended September 30 , 2020 . • GAAP net income attributable to common stockholders was $ 29.2 million , or $ 0.24 per fully diluted share , during the third quarter ended September 30 , 2021 , compared to $ 32.6 million , or $ 0.29 per fully diluted share , during the third quarter ended September 30 , 2020 . • Non - GAAP net income attributable to common stockholders was $ 46.3 million , or $ 0.38 per fully diluted share , during the third quarter ended September 30 , 2021 , compared to $ 41.9 million , or $ 0.37 per fully diluted share , during the third quarter ended September 30 , 2020 . • Consolidated Adjusted EBITDA , a non - GAAP metric , was $ 65.9 million for the third quarter ended September 30 , 2021 , compared to $ 57.0 million for the third quarter ended September 30 , 2020 . • Adjusted EBITDA , a non - GAAP metric , was $ 62.5 million for the third quarter ended September 30 , 2021 , compared to $ 57.0 million for the third quarter ended September 30 , 2020 . Balance Sheet and Cash Flow • As of September 30 , 2021 , CarGurus had cash , cash equivalents and short - term investments of $ 321.1 million and no debt . • CarGurus generated $ 53.7 million in cash from operations and $ 51.4 million in free cash flow , a non - GAAP metric , during the third quarter of 2021 , compared to having generated $ 73.9 million in cash from operations and $ 72.4 million in free cash flow during the third quarter of 2020 . Third Quarter Business Metrics ( 1 ) • U.S. revenue was $ 211.6 million in the third quarter of 2021 , an increase of 53 % compared to $ 138.4 million in the third quarter of 2020. U.S. marketplace subscription revenue was $ 134.3 million in the third quarter of 2021 , an increase of 10 % compared to $ 121.8 million in the third quarter of 2020. U.S. wholesale and other revenue was $ 77.3 million in the third quarter of 2021 , an increase of 366 % compared to $ 16.6 million in the third quarter of 2020. GAAP operating income in the U.S. was $ 41.9 million , a decrease of ( 10 % ) compared to $ 46.5 million in the third quarter of 2020 . • International revenue was $ 11.4 million in the third quarter of 2021 , an increase of 25 % compared to $ 9.1 million in the third quarter of 2020. International marketplace subscription revenue was $ 10.3 million in the third quarter of 2021 , an increase of 27 % compared to $ 8.1 million in the third quarter of 2020. International wholesale and other revenue was $ 1.0 million in the third quarter of 2021 , an increase of 12 % compared to $ 0.9 million in the third quarter of 2020. GAAP operating loss in International markets was ( $ 1.9 ) million , a reduction in loss of 36 % compared to a loss of ( $ 2.9 ) million in the third quarter of 2020 . • Total paying dealers were 30,754 at September 30 , 2021 , an increase of 2 % compared to 30,162 at September 30 , 2020. Of the total paying dealers at September 30 , 2021 , U.S. and International accounted for 23,979 and 6,775 , respectively , compared to 23,659 and 6,503 , respectively , at September 30 , 2020 . • Quarterly Average Revenue per Subscribing Dealer ( " QARSD " ) in the U.S. was $ 5,602 as of September 30 , 2021 , an increase of 9 % compared to $ 5,133 as of September 30 , 2020 . • QARSD in International markets was $ 1,524 as of September 30 , 2021 , an increase of 21 % compared to $ 1,256 as of September 30 , 2020 . • Website traffic and consumer engagement metrics for the third quarter of 2021 were as follows : o U.S. average monthly unique users were 28.8 million , a decrease of ( 25 % ) compared to 38.7 million in the third quarter of 2020. U.S. average monthly sessions were 71.2 million , a decrease of ( 25 % ) compared to 94.3 million in the third quarter of 2020 . o International average monthly unique users were 7.5 million , a decrease of ( 4 % ) compared to 7.8 million in the third quarter of 2020. International average monthly sessions were 17.1 million , a decrease of ( 6 % ) compared to 18.3 million in the third quarter of 2020 . ( 1 ) CarOffer is excluded from the metrics presented for paying dealers , QARSD , users and sessions . Fourth Quarter and Full - Year 2021 Guidance CarGurus anticipates total revenue , non - GAAP operating income , and non - GAAP earnings per share to be in the following ranges : Fourth Quarter 2021 : • Total revenue $ 273 million to $ 285 million