CarGurus (CARG)

Gross profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	651,454	620,461	606,948	630,658	657,553	700,246	712,343	691,923	657,358	617,722	592,550	509,976	508,745	516,239	519,599	571,145	552,616	524,242	495,885	463,819
Revenue (ttm)	US$ in thousands	917,072	980,534	1,187,569	1,459,061	1,657,093	1,707,547	1,504,008	1,210,527	951,422	763,580	688,137	565,126	551,498	558,153	561,143	611,437	589,749	557,686	526,266	491,560
Gross profit margin		71.04%	63.28%	51.11%	43.22%	39.68%	41.01%	47.36%	57.16%	69.09%	80.90%	86.11%	90.24%	92.25%	92.49%	92.60%	93.41%	93.70%	94.00%	94.23%	94.36%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $651,454K ÷ $917,072K
= 71.04%

CarGurus Inc's gross profit margin has displayed fluctuations over the past eight quarters. The trend indicates an increasing trend, starting at 39.73% in Q4 2022 and reaching a peak of 71.26% in Q4 2023. This suggests that the company has been able to effectively manage its cost of goods sold and improve its efficiency in generating gross profit from revenue.

The significant improvement in gross profit margin from 39.73% in Q4 2022 to 71.26% in Q4 2023 reflects positively on the company's operations. It indicates that CarGurus Inc may have successfully implemented cost-saving measures or improved pricing strategies.

However, it is important to note that while the overall trend is positive, there have been fluctuations within quarters, such as the decrease from 63.45% in Q3 2023 to 51.22% in Q2 2023. These fluctuations could be influenced by various factors such as changes in input costs, sales mix, or pricing strategies.

Overall, the upward trend in CarGurus Inc's gross profit margin demonstrates improving operational efficiency and effective management of costs, which can positively impact the company's profitability and financial performance.