CarGurus (CARG)

Operating 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
Operating income (ttm)	US$ in thousands	140,887	65,344	61,005	44,852	32,627	84,513	90,074	95,878	108,478	122,781	134,201	149,136	148,268	137,805	141,296	111,528	97,756	77,930	44,067	38,906
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
Operating profit margin		15.75%	7.35%	6.96%	4.99%	3.57%	8.64%	7.60%	6.58%	6.55%	7.19%	8.92%	12.32%	15.58%	18.05%	20.53%	19.73%	17.73%	13.96%	7.85%	6.36%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $140,887K ÷ $894,384K
= 15.75%

CarGurus' operating profit margin has shown fluctuation over the period from March 31, 2020, to December 31, 2024. The margin started at 6.36% in March 2020 and increased steadily to reach its peak at 20.53% in June 2021. Subsequently, there was a decline in the operating profit margin, dropping to 3.57% by December 2023.

However, the margin saw a recovery in the following quarters, increasing to 15.75% by December 31, 2024. Despite the fluctuations, it is worth noting that CarGurus managed to maintain an operating profit margin above 6% throughout the period, with an average of approximately 10.5%.

The downward trend observed in the later quarters of 2023 followed by a significant recovery in December 2024 suggests that CarGurus may have implemented strategic measures to address any operational inefficiencies and enhance profitability. Moving forward, it will be important to monitor the company's operating efficiency and cost management strategies to ensure sustained profitability.