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Segment and Geographic Information
 3 Months Ended
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