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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Domestic and Foreign Components of Income Before Income Taxes

For the years ended December 31, 2023, 2022, and 2021, the domestic and foreign components of income before income taxes are as follows:

		Year Ended December 31,
		2023				2022				2021
United States		$	50,632			$	110,213			$	148,037
Foreign			1,055				1,149				1,323
Income before income taxes		$	51,687			$	111,362			$	149,360

Schedule of Provision for (Benefit from) Income Taxes

For the years ended December 31, 2023, 2022, and 2021, the components of the provision for (benefit from) income taxes are as follows:

		Year Ended December 31,
		2023				2022				2021
Current provision:
Federal		$	52,352			$	43,207			$	22,133
State			14,614				11,140				10,438
Foreign			532				175				253
			67,498				54,522				32,824
Deferred (benefit) provision:
Federal			(37,583	)			(20,278	)			5,698
State			(272	)			(1,789	)			669
Foreign			(9	)			(47	)			(204	)
			(37,864	)			(22,114	)			6,163
Income tax provision		$	29,634			$	32,408			$	38,987

Schedule of Effective Tax Rates

For the year ended December 31, 2023, 2022, and 2021, the components of the effective tax rate are as follows:

		Year Ended December 31,
		2023				2022				2021
U.S. federal taxes at statutory rate			21.0	%			21.0	%			21.0	%
State taxes, net of federal benefit			22.1				7.7				7.5
Nondeductible expenses			1.4				0.5				0.3
Stock compensation			7.3				2.8				0.3
Foreign rate differential			(0.1	)			(0.1	)			(0.2	)
Federal and state credits			(9.5	)			(4.7	)			(2.6	)
Disallowed officer compensation			0.4				0.8				1.0
Investment in partnership			4.7				1.0				(0.3	)
Federal, state, and foreign provision to return differences			(1.4	)			(0.8	)			(0.7	)
Uncertain tax provision			0.4				0.5				—
CarOffer and AutoList M&A			2.9				—				—
Other			0.0			(0.0)					(0.2	)
Consolidated effective tax rate			49.2	%			28.7	%			26.1	%
Effective tax rate attributable to redeemable noncontrolling    interest			(4.7	)			(1.0	)			0.2
Effective tax rate attributable to CarGurus, Inc.			44.5	%			27.7	%			26.3	%

Schedule of Income Tax Effect of Each Type of Temporary Difference and Carryforward

As of December 31, 2023 and 2022, the approximate income tax effect of each type of temporary difference and carryforward is as follows:

		As of December 31,
		2023				2022
Deferred tax assets:
Net operating loss carryforwards		$	304			$	461
Credit carryforwards			928				928
Stock-based compensation			5,353				5,441
Lease liability			47,907				13,557
Investment in partnership			—				8,325
Accruals and reserves			4,642				3,770
Intangible assets			20,294				—
Capitalized research and development			45,468				25,342
			124,896				57,824
Valuation Allowance			(305	)			(258	)
			124,591				57,566
Deferred tax liabilities:
Prepaid expenses			(2,459	)			(2,466	)
Deferred commissions			(5,531	)			(4,200	)
Right of use assets			(42,531	)			(11,237	)
Intangible assets			—				(733	)
Capital lease			(72	)			—
Property and equipment			(700	)			(3,496	)
			(51,293	)			(22,132	)
Net deferred tax assets		$	73,298			$	35,434

Schedule of Unrecognized Tax Benefits, Excluding Interest and Penalties

As of December 31, 2023 and 2022, changes in the gross uncertain tax position (excluding interest and penalties) are as follows:

		As of December 31,
		2023				2022
Unrecognized tax benefits at beginning of year		$	598			$	—
Increase related to current year tax provision			178				198
Increase related to prior year tax provision			36				400
Unrecognized tax benefits at end of year		$	812			$	598

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