CarGurus, the fastest-growing automotive site in the U.S., posted another quarter of surging revenues: $145 million in Q2 — representing a 31% year-on-year increase. Net income was $6 million compared to $33.3 million for Q2 2018.
CarGurus counted 34,267 paying dealers at the end of the quarter — 14 percent more than a year before.
Dealer count grew in both the U.S. and abroad. The company counted 28,431 domestic clients and 5,836 international compared to 26,871 and 3,098, respectively, on June 30, 2018. CarGurus is also getting a lot more revenue per dealer: $16,188 per year — an increase of 23% compared to a year before.
Growth in web traffic, by contrast, has slowed down. Average monthly unique visitors in the U.S. were 36.9 million — a bump of just 2% year-on-year. Outside the U.S., average monthly unique users were 9.8 million, almost triple the 3.5 million reported for Q2 of 2018.
Commenting on the report, founder and CEO Langley Steinert touted the company’s digital retail initiatives. CarGurus recently started offering online transactions for vehicle financing from Capital One. It now facilitates peer-to-peer used car sales.
“We also delivered our best quarter ever of organic international net dealer adds and have begun commercializing our Italian marketplace, expanding our business’s global reach,” Steinert added.
The company now predicts 2019 full-year revenue of $576.5 to $582.5 million — a 28% jump from 2018. If the company pulls off two years of 20 percent growth, and competitors Autotrader.com and Cars.com continue with flat top lines, CarGurus will be the top automotive site in revenue.
CarGurus’s Q2 2019 earnings report is summarized here.