CarGurus (CARG)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 738,945 | 651,454 | 657,553 | 657,358 | 508,745 |
| Revenue | US$ in thousands | 894,384 | 914,242 | 1,655,040 | 951,373 | 551,451 |
| Gross profit margin | 82.62% | 71.26% | 39.73% | 69.10% | 92.26% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $738,945K ÷ $894,384K
= 82.62%
CarGurus' gross profit margin has displayed fluctuations over the years based on the provided data. The gross profit margin decreased significantly from 92.26% on December 31, 2020, to 69.10% on December 31, 2021. This decrease might indicate challenges in maintaining profitability or changes in the cost structure.
By December 31, 2022, the gross profit margin further declined to 39.73%, reflecting a substantial drop in profitability. This could suggest issues with cost management, pricing strategy, or changes in revenue streams.
However, by December 31, 2023, there was a notable recovery in the gross profit margin, which increased to 71.26%. This improvement indicates a positive trend in profitability, potentially driven by strategic initiatives or operational efficiencies.
Finally, as of December 31, 2024, CarGurus' gross profit margin stood at 82.62%, showing a strong rebound and surpassing the levels seen in previous years. This uptick suggests enhanced profitability and effective cost control measures implemented by the company.
Peer comparison
Dec 31, 2024