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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment and Geographic Information

14. Segment and Geographic Information

Effective as of the fourth quarter of 2022, the Company revised its segment reporting from one reportable segment to two reportable segments, U.S. Marketplace and Digital Wholesale. The change in segment reporting was a triggering event for an evaluation of goodwill impairment. As such, the Company evaluated for goodwill impairment on December 31, 2022, and did not identify any impairment to its goodwill. The change in segment reporting was made to align with financial reporting results regularly provided to the Company's CODM to assess the business. The CODM reviews segment revenue and segment income (loss) from operations as a proxy for the performance of the Company’s operations.

The U.S. Marketplace segment derives revenue from marketplace services from customers within the U.S. The Digital Wholesale segment derives revenue from Dealer-to-Dealer and IMCO services and products which are sold on the CarOffer platform. The Company also has two operating segments which are individually immaterial and therefore aggregated into the Other category to reconcile reportable segments to the consolidated income statements. The Other category derives revenue from marketplace services from customers outside of the U.S.

Revenue and costs discretely incurred by reportable segments, including depreciation and amortization, are included in the calculation of reportable segment income (loss) from operations. For the year ended December 31, 2022, Digital Wholesale segment income (loss) from operations did not reflect certain Dealer-to-Dealer and IMCO-related capitalized website development amortization incurred by the U.S. Marketplace segment. During the three months ended March 31, 2023, the Company updated Digital Wholesale segment income (loss) from operations to reflect certain Dealer-to-Dealer and IMCO-related capitalized website development amortization incurred by the U.S. Marketplace segment and accordingly updated Digital Wholesale segment income (loss) from operations for the twelve months ended December 31, 2022, for comparative purposes. Digital Wholesale segment income (loss) from operations also reflects certain IMCO marketing and lead generation fees allocated from the U.S. Marketplace segment. Asset information by reportable segment is not provided to the CODM as asset information is assessed and reviewed on a consolidated basis.

For the years December 31, 2023, 2022, and 2021, segment revenue, segment income (loss) from operations, and segment depreciation and amortization are as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Segment Revenue

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

647,284

 

 

$

614,136

 

 

$

594,602

 

Digital Wholesale

 

 

216,005

 

 

 

996,264

 

 

 

314,431

 

Other

 

 

50,953

 

 

 

44,635

 

 

 

42,340

 

Total

 

$

914,242

 

 

$

1,655,035

 

 

$

951,373

 

 

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022 (1)

 

 

2021 (1)

 

Segment Income (Loss) from Operations:

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

127,724

 

 

$

128,455

 

 

$

152,006

 

Digital Wholesale

 

 

(96,383

)

 

 

(11,834

)

 

 

6,526

 

Other

 

 

1,286

 

 

 

(8,143

)

 

 

(10,264

)

Total

 

$

32,627

 

 

$

108,478

 

 

$

148,268

 
(1)
As of December 31, 2022 and 2021, Digital Wholesale segment loss (income) did not reflect certain Dealer-to-Dealer and IMCO related capitalized website development expense from the U.S. Marketplace segment. During the three months ended March 31, 2023, the Company updated Digital Wholesale Depreciation and Amortization to reflect certain Dealer-to-Dealer and IMCO related capitalized website development amortization expense from the U.S. Marketplace segment and accordingly updated Digital Wholesale Depreciation as of December 31, 2022 and 2021 for comparative purposes.

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022 (1)

 

 

2021 (1)

 

Segment Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

11,561

 

 

$

11,554

 

 

$

10,648

 

Digital Wholesale

 

 

36,265

 

 

 

33,350

 

 

 

29,059

 

Other

 

 

648

 

 

 

430

 

 

 

769

 

Total

 

$

48,474

 

 

$

45,334

 

 

$

40,476

 
(1)
As of December 31, 2022, Digital Wholesale Depreciation and Amortization did not reflect certain Dealer-to-Dealer and IMCO related capitalized website development expense from the U.S. Marketplace segment. During the three months ended March 31, 2023, the Company updated Digital Wholesale Depreciation and Amortization to reflect certain Dealer-to-Dealer and IMCO related capitalized website development amortization expense from the U.S. Marketplace segment and accordingly updated Digital Wholesale Depreciation as of December 31, 2022 and 2021 for comparative purposes.

For the years December 31, 2023, 2022, and 2021, a reconciliation between total segment income from operations to consolidated income before income taxes is as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Total segment income from operations

 

$

32,627

 

 

$

108,478

 

 

$

148,268

 

Other income, net

 

 

19,060

 

 

 

2,884

 

 

 

1,092

 

Consolidated income before income taxes

 

$

51,687

 

 

$

111,362

 

 

$

149,360

 

As of December 31, 2023, 2022, and 2021, segment assets are as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022(1)

 

 

2021(1)

 

Segment Assets:

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

607,307

 

 

$

525,103

 

 

$

449,230

 

Digital Wholesale

 

 

258,458

 

 

 

358,289

 

 

 

446,823

 

Other

 

 

53,162

 

 

 

43,710

 

 

 

35,521

 

Total

 

$

918,927

 

 

$

927,102

 

 

$

931,574

 
(1)
As of December 31, 2022, Digital Wholesale assets did not reflect certain Dealer-to-Dealer and IMCO related capitalized website development assets from the U.S. Marketplace segment. During the three months ended March 31, 2023, the Company updated Digital Wholesale assets to reflect certain Dealer-to-Dealer and IMCO related capitalized website development amortization assets from the U.S. Marketplace segment and accordingly updated Digital Wholesale assets as of December 31, 2022 and 2021 for comparative purposes.

For the years ended December 31, 2023, 2022, and 2021, revenue by geographical region is as follows:

 

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Revenue by Geographic Region:

 

 

 

 

 

 

 

 

 

United States

 

$

863,289

 

 

$

1,610,400

 

 

$

909,033

 

International

 

 

50,953

 

 

 

44,635

 

 

 

42,340

 

Total

 

$

914,242

 

 

$

1,655,035

 

 

$

951,373

 

As of December 31, 2023, 2022, and 2021, long-lived assets outside of the U.S. were immaterial.