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Segment and Geographic Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment and Geographic Information

13. 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 June 30, 2025 and 2024 and for the six months ended June 30, 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 (loss) before income taxes were as follows:

 

 

 

Three Months Ended June 30,

 

 

 

2025

 

 

 

U.S. Marketplace

 

 

Digital Wholesale

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

202,652

 

 

$

12,035

 

 

$

214,687

 

Total segment revenue

 

$

202,652

 

 

$

12,035

 

 

$

214,687

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Revenue

 

 

 

 

 

 

 

 

 

Other revenue

 

 

 

 

 

 

 

 

19,346

 

Total revenue

 

 

 

 

 

 

 

$

234,033

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue(1)(2)

 

 

13,984

 

 

 

14,090

 

 

 

28,074

 

Sales and marketing

 

 

69,759

 

 

 

2,011

 

 

 

71,770

 

Depreciation and amortization

 

 

3,581

 

 

 

474

 

 

 

4,055

 

Other segment items(3)

 

 

56,566

 

 

 

32,501

 

 

 

89,067

 

Total segment expenses

 

 

143,890

 

 

 

49,076

 

 

 

192,966

 

Total segment income (loss) from operations

 

 

58,762

 

 

 

(37,041

)

 

 

21,721

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment income (loss) from operations to income from operations:

 

 

 

 

 

 

 

 

 

Other operating income

 

 

 

 

 

 

 

 

3,123

 

Total income from operations

 

 

 

 

 

 

 

 

24,844

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of total income from operations to total income before income taxes:

 

 

 

 

 

 

 

 

 

Total other income, net

 

 

 

 

 

 

 

 

2,564

 

Total income before income taxes

 

 

 

 

 

 

 

$

27,408

 
(1)
For the three months ended June 30, 2025, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $1,864 and $455, respectively.
(2)
For the three months ended June 30, 2025, Digital Wholesale cost of revenue includes impairment of $2,919. For further discussion of impairments, refer to Note 6 of the Unaudited Condensed Consolidated Financial Statements.
(3)
For the three months ended June 30, 2025, Digital Wholesale other segment items includes impairment of $29,633. For further discussion of impairments, refer to Note 6 of the Unaudited Condensed Consolidated Financial Statements.

 

 

 

Three Months Ended June 30,

 

 

 

2024

 

 

 

U.S. Marketplace

 

 

Digital Wholesale

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

180,052

 

 

$

23,525

 

 

$

203,577

 

Total segment revenue

 

$

180,052

 

 

$

23,525

 

 

$

203,577

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Revenue

 

 

 

 

 

 

 

 

 

Other revenue

 

 

 

 

 

 

 

 

15,115

 

Total revenue

 

 

 

 

 

 

 

$

218,692

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue(1)(2)

 

 

12,058

 

 

 

23,103

 

 

 

35,161

 

Sales and marketing

 

 

67,506

 

 

 

5,102

 

 

 

72,608

 

Depreciation and amortization

 

 

1,356

 

 

 

800

 

 

 

2,156

 

Other segment items(3)

 

 

57,089

 

 

 

132,678

 

 

 

189,767

 

Total segment expenses

 

 

138,009

 

 

 

161,683

 

 

 

299,692

 

Total segment income (loss) from operations

 

 

42,043

 

 

 

(138,158

)

 

 

(96,115

)

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment income (loss) from operations to loss from operations:

 

 

 

 

 

 

 

 

 

Other operating income

 

 

 

 

 

 

 

 

2,531

 

Total loss from operations

 

 

 

 

 

 

 

 

(93,584

)

 

 

 

 

 

 

 

 

 

 

Reconciliation of total loss from operations to total loss before income taxes:

 

 

 

 

 

 

 

 

 

Total other income, net

 

 

 

 

 

 

 

 

3,161

 

Total loss before income taxes

 

 

 

 

 

 

 

$

(90,423

)
(1)
For the three months ended June 30, 2024, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $631 and $2,636, respectively.
(2)
For the three months ended June 30, 2024, Digital Wholesale cost of revenue includes impairment of $180. For further discussion of impairments, refer to Note 6 of the consolidated financial statements contained within the Annual Report.
(3)
For the three months ended June 30, 2024, Digital Wholesale other segment items includes impairment of $127,475. For further discussion of impairments, refer to Note 6 of the consolidated financial statements contained within the Annual Report.

 

 

Six Months Ended June 30,

 

 

 

2025

 

 

 

U.S. Marketplace

 

 

Digital Wholesale

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

397,880

 

 

$

24,958

 

 

$

422,838

 

Total segment revenue

 

$

397,880

 

 

$

24,958

 

 

$

422,838

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Revenue

 

 

 

 

 

 

 

 

 

Other revenue

 

 

 

 

 

 

 

 

36,353

 

Total revenue

 

 

 

 

 

 

 

$

459,191

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue(1)(2)

 

 

26,864

 

 

 

25,293

 

 

 

52,157

 

Sales and marketing

 

 

141,989

 

 

 

5,340

 

 

 

147,329

 

Depreciation and amortization

 

 

7,230

 

 

 

957

 

 

 

8,187

 

Other segment items(3)

 

 

113,254

 

 

 

36,188

 

 

 

149,442

 

Total segment expenses

 

 

289,337

 

 

 

67,778

 

 

 

357,115

 

Total segment income (loss) from operations

 

 

108,543

 

 

 

(42,820

)

 

 

65,723

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment income (loss) from operations to income from operations:

 

 

 

 

 

 

 

 

 

Other operating income

 

 

 

 

 

 

 

 

4,876

 

Total income from operations

 

 

 

 

 

 

 

 

70,599

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of total income from operations to total income before income taxes:

 

 

 

 

 

 

 

 

 

Total other income, net

 

 

 

 

 

 

 

 

5,360

 

Total income before income taxes

 

 

 

 

 

 

 

$

75,959

 
(1)
For the six months ended June 30, 2025, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $3,550 and $880, respectively.
(2)
For the six months ended June 30, 2025, Digital Wholesale cost of revenue includes impairment of $2,919. For further discussion of impairments, refer to Note 6 of the Unaudited Condensed Consolidated Financial Statements.
(3)
For the six months ended June 30, 2025, Digital Wholesale other segment items includes impairment of $29,633. For further discussion of impairments, refer to Note 6 of the Unaudited Condensed Consolidated Financial Statements.

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2024

 

 

 

U.S. Marketplace

 

 

Digital Wholesale

 

 

Total

 

Revenue

 

 

 

 

 

 

 

 

 

Revenue from external customers

 

$

353,040

 

 

$

52,102

 

 

$

405,142

 

Total segment revenue

 

$

353,040

 

 

$

52,102

 

 

$

405,142

 

 

 

 

 

 

 

 

 

 

 

Reconciliation of Revenue

 

 

 

 

 

 

 

 

 

Other revenue

 

 

 

 

 

 

 

 

29,346

 

Total revenue

 

 

 

 

 

 

 

$

434,488

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

Cost of revenue(1)(2)

 

 

25,495

 

 

 

49,553

 

 

 

75,048

 

Sales and marketing

 

 

134,514

 

 

 

10,987

 

 

 

145,501

 

Depreciation and amortization

 

 

2,984

 

 

 

1,887

 

 

 

4,871

 

Other segment items(3)

 

 

113,787

 

 

 

138,173

 

 

 

251,960

 

Total segment expenses

 

 

276,780

 

 

 

200,600

 

 

 

477,380

 

Total segment income (loss) from operations

 

 

76,260

 

 

 

(148,498

)

 

 

(72,238

)

 

 

 

 

 

 

 

 

 

 

Reconciliation of segment income (loss) from operations to loss from operations:

 

 

 

 

 

 

 

 

 

Other operating income

 

 

 

 

 

 

 

 

4,938

 

Total loss from operations

 

 

 

 

 

 

 

 

(67,300

)

 

 

 

 

 

 

 

 

 

 

Reconciliation of total loss from operations to total loss before income taxes:

 

 

 

 

 

 

 

 

 

Total other income, net

 

 

 

 

 

 

 

 

6,562

 

Total loss before income taxes

 

 

 

 

 

 

 

$

(60,738

)
(1)
For the six months ended June 30, 2024, U.S. Marketplace and Digital Wholesale cost of revenue includes depreciation and amortization expense of $2,000 and $5,830, respectively.
(2)
For the six months ended June 30, 2024, Digital Wholesale cost of revenue includes impairment expense of $180. For further discussion of impairments, refer to Note 6 of the consolidated financial statements contained within the Annual Report.
(3)
For the six months ended June 30, 2024, Digital Wholesale other segment items includes impairment of $127,475. For further discussion of impairments, refer to Note 6 of the consolidated financial statements contained within the Annual Report.

As of June 30, 2025 and December 31, 2024, segment assets were as follows:

 

 

 

As of
June 30,
2025

 

 

As of
December 31,
2024

 

Segment Assets:

 

 

 

 

 

 

U.S. Marketplace

 

$

595,791

 

 

$

674,138

 

Digital Wholesale

 

 

75,594

 

 

 

108,890

 

Other

 

 

54,736

 

 

 

41,508

 

Total

 

$

726,121

 

 

$

824,536

 

 

For the three months ended June 30, 2025 and 2024 and for the six months ended June 30, 2025 and 2024, revenue by geographical region were as follows:

 

 

 

Three Months Ended
June 30,

 

 

Six Months Ended
June 30,

 

 

 

2025

 

 

2024

 

 

2025

 

 

2024

 

Revenue by Geographic Region:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

214,687

 

 

$

203,577

 

 

$

422,838

 

 

$

405,142

 

International

 

 

19,346

 

 

 

15,115

 

 

 

36,353

 

 

 

29,346

 

Total

 

$

234,033

 

 

$

218,692

 

 

$

459,191

 

 

$

434,488