CarGurus (CARG)

Net 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
Net income (ttm)	US$ in thousands	36,942	79,640	77,738	80,609	84,387	89,226	98,025	106,793	109,244	104,775	108,139	87,218	77,553	65,561	43,382	42,258	42,146	41,425	44,923	72,259
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
Net profit margin		4.03%	8.12%	6.55%	5.52%	5.09%	5.23%	6.52%	8.82%	11.48%	13.72%	15.71%	15.43%	14.06%	11.75%	7.73%	6.91%	7.15%	7.43%	8.54%	14.70%

December 31, 2023 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $36,942K ÷ $917,072K
= 4.03%

Analyzing CarGurus Inc's net profit margin over the past eight quarters reveals fluctuations in the company's profitability. The net profit margin ranged from -8.18% in Q2 2022 to a peak of 25.21% in Q2 2023.

In Q2 and Q3 2023, the net profit margin showed significant improvement, reaching levels above 20%, indicating strong profitability during these periods. However, in Q4 2023, the net profit margin dropped to 3.40%, suggesting a decline in profitability from the previous quarter.

It is essential for investors and stakeholders to closely monitor CarGurus Inc's future financial performance to assess the sustainability of its profitability levels and understand the factors driving these fluctuations in the net profit margin.