CarGurus (CARG)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	733,920	702,966	684,713	668,643	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
Revenue (ttm)	US$ in thousands	894,384	888,969	877,030	898,075	914,242	977,863	1,184,898	1,456,390	1,655,035	1,707,633	1,504,094	1,210,613	951,373	763,584	688,141	565,130	551,451	558,051	561,041	611,335
Gross profit margin		82.06%	79.08%	78.07%	74.45%	71.26%	63.45%	51.22%	43.30%	39.73%	41.01%	47.36%	57.15%	69.10%	80.90%	86.11%	90.24%	92.26%	92.51%	92.61%	93.43%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $733,920K ÷ $894,384K
= 82.06%

CarGurus' gross profit margin has shown a decreasing trend from March 31, 2020, to December 31, 2021, dropping from 93.43% to 69.10%. This decline could indicate challenges in maintaining profitability or increasing costs relative to revenue during this period.

However, there seems to be a turnaround in the trend starting from March 31, 2022, as the gross profit margin increased to 57.15% and continued to rise steadily in the following quarters. This positive momentum suggests that CarGurus may have implemented strategies to improve its cost management or revenue generation, resulting in a healthier margin.

By December 31, 2024, the gross profit margin reached 82.06%, indicating a significant recovery compared to the low point in December 2021. This improvement suggests that CarGurus may have successfully adjusted its operations to enhance profitability and efficiency.

Overall, the fluctuation in CarGurus' gross profit margin reflects the company's ability to adapt to changing market conditions and implement effective strategies to enhance financial performance.