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Segment and Geographic Information | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Segment and Geographic Information | 12. Segment and Geographic Information The Company has two reportable segments, U.S. Marketplace and Digital Wholesale. Segment information is presented in the same manner as the Company’s chief operating decision maker (“CODM”), Jason Trevisan, Chief Executive Officer, reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews segment revenue and segment income (loss) from operations as a proxy for the performance of the Company’s operations. The CODM uses segment income (loss) from operations in the annual budgeting and monthly forecasting process. The CODM considers segment income (loss) from operations in analyses of the actual amounts against budgeted and forecasted values to evaluate the performance of each segment and to make decisions for the allocation of capital and other resources to each segment. 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 Unaudited Condensed 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. The Company’s significant segment expenses consist of cost of revenue and sales and marketing expense. The Company’s other segment items consist of product, technology, and development expense and general and administrative expense. The Company has disclosed depreciation and amortization expense separately from other segment items to meet disclosure requirements. Asset information by reportable segment is not provided to the CODM as asset information is assessed and reviewed on a consolidated basis. For the three months ended March 31, 2025 and 2024, segment revenue, significant segment expenses, segment depreciation and amortization, segment income (loss) from operations, and the reconciliation from segment income (loss) from operations to total income before income taxes were as follows:
|  | Three Months Ended March 31, |
|  | 2025 |
|  | U.S. Marketplace |  |  | Digital Wholesale |  |  | Total |
Revenue |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 195,228 |  |  | $ | 12,923 |  |  | $ | 208,151 |
Total segment revenue |  | $ | 195,228 |  |  | $ | 12,923 |  |  | $ | 208,151 |
Reconciliation of Revenue |  |  |  |  |  |  |  |  |
Other revenue |  |  |  |  |  |  |  |  | 17,007 |
Total revenue |  |  |  |  |  |  |  | $ | 225,158 |
Less: |  |  |  |  |  |  |  |  |
Cost of revenue(1) |  |  | 12,880 |  |  |  | 11,203 |  |  |  | 24,083 |
Sales and marketing |  |  | 72,230 |  |  |  | 3,329 |  |  |  | 75,559 |
Depreciation and amortization |  |  | 3,649 |  |  |  | 483 |  |  |  | 4,132 |
Other segment items |  |  | 56,688 |  |  |  | 3,687 |  |  |  | 60,375 |
Total segment expenses |  |  | 145,447 |  |  |  | 18,702 |  |  |  | 164,149 |
Total segment income (loss) from operations |  |  | 49,781 |  |  |  | (5,779 | ) |  |  | 44,002 |
Reconciliation of segment income (loss) from operations to income from operations: |  |  |  |  |  |  |  |  |
Other operating income |  |  |  |  |  |  |  |  | 1,753 |
Total income from operations |  |  |  |  |  |  |  |  | 45,755 |
Reconciliation of total income from operations to total income before income taxes: |  |  |  |  |  |  |  |  |
Total other income, net |  |  |  |  |  |  |  |  | 2,796 |
Total income before income taxes |  |  |  |  |  |  |  | $ | 48,551 |
(1) For the three months ended March 31, 2025, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $1,686 and $425, respectively.
|  | Three Months Ended March 31, |
|  | 2024 |
|  | U.S. Marketplace |  |  | Digital Wholesale |  |  | Total |
Revenue |  |  |  |  |  |  |  |  |
Revenue from external customers |  | $ | 172,988 |  |  | $ | 28,577 |  |  | $ | 201,565 |
Total segment revenue |  | $ | 172,988 |  |  | $ | 28,577 |  |  | $ | 201,565 |
Reconciliation of Revenue |  |  |  |  |  |  |  |  |
Other revenue |  |  |  |  |  |  |  |  | 14,231 |
Total revenue |  |  |  |  |  |  |  | $ | 215,796 |
Less: |  |  |  |  |  |  |  |  |
Cost of revenue(1) |  |  | 13,437 |  |  |  | 26,450 |  |  |  | 39,887 |
Sales and marketing |  |  | 67,008 |  |  |  | 5,885 |  |  |  | 72,893 |
Depreciation and amortization |  |  | 1,628 |  |  |  | 1,087 |  |  |  | 2,715 |
Other segment items |  |  | 56,698 |  |  |  | 5,495 |  |  |  | 62,193 |
Total segment expenses |  |  | 138,771 |  |  |  | 38,917 |  |  |  | 177,688 |
Total segment income (loss) from operations |  |  | 34,217 |  |  |  | (10,340 | ) |  |  | 23,877 |
Reconciliation of segment income (loss) from operations to income from operations: |  |  |  |  |  |  |  |  |
Other operating income |  |  |  |  |  |  |  |  | 2,407 |
Total income from operations |  |  |  |  |  |  |  |  | 26,284 |
Reconciliation of total income from operations to total income before income taxes: |  |  |  |  |  |  |  |  |
Total other income, net |  |  |  |  |  |  |  |  | 3,401 |
Total income before income taxes |  |  |  |  |  |  |  | $ | 29,685 |
(1) For the three months ended March 31, 2024, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $1,369 and $3,194, respectively. As of March 31, 2025 and December 31, 2024, segment assets were as follows:
|  | As of March 31, 2025 |  |  | As of December 31, 2024 |
Segment Assets: |  |  |  |  |  |
U.S. Marketplace |  | $ | 534,192 |  |  | $ | 674,138 |
Digital Wholesale |  |  | 106,438 |  |  |  | 108,890 |
Other |  |  | 48,485 |  |  |  | 41,508 |
Total |  | $ | 689,115 |  |  | $ | 824,536 |
For the three months ended March 31, 2025 and 2024, revenue by geographical region were as follows:
|  | Three Months Ended March 31, |
|  | 2025 |  |  | 2024 |
Revenue by Geographic Region: |  |  |  |  |  |
U.S. |  | $ | 208,151 |  |  | $ | 201,565 |
International |  |  | 17,007 |  |  |  | 14,231 |
Total |  | $ | 225,158 |  |  | $ | 215,796 |

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- Definition The entire disclosure for reporting segments including data and tables. 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