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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

Note 15. Segment Information

 

Operating segments are components of an enterprise where separate financial information is available that is evaluated regularly by the chief operating decision maker (the "CODM"), or decision-making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is the Cars Commerce Chief Executive Officer. The CODM makes resource allocation decisions to maximize the Company’s consolidated financial results. No asset information is provided to the CODM.

 

For the years ended December 31, 2024, 2023 and 2022, the Company had one operating and reportable segment. The Company's significant segment expenses are as follows:

 

 

 

Year Ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Revenue:

 

 

 

 

 

 

 

 

 

Dealer

 

$

640,722

 

 

$

621,661

 

 

$

579,222

 

OEM and National

 

 

65,894

 

 

 

55,904

 

 

 

58,557

 

Other

 

 

12,536

 

 

 

11,618

 

 

 

16,097

 

Total revenue

 

 

719,152

 

 

 

689,183

 

 

 

653,876

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Employee expense (1)

 

 

237,943

 

 

 

227,047

 

 

 

204,080

 

Marketing and advertising

 

 

112,134

 

 

 

116,766

 

 

 

113,020

 

Direct costs

 

 

86,506

 

 

 

84,024

 

 

 

79,970

 

Hardware, software and supplies

 

 

30,949

 

 

 

26,002

 

 

 

23,605

 

Stock-based compensation

 

 

30,553

 

 

 

28,491

 

 

 

22,342

 

Depreciation and amortization

 

 

107,182

 

 

 

101,000

 

 

 

94,394

 

Other (2)

 

 

60,387

 

 

 

51,737

 

 

 

50,429

 

Total operating expenses

 

 

665,654

 

 

 

635,067

 

 

 

587,840

 

Operating income

 

 

53,498

 

 

 

54,116

 

 

 

66,036

 

Nonoperating income (expense), net

 

 

8,365

 

 

 

(36,011

)

 

 

(43,460

)

Income before income taxes

 

 

61,863

 

 

 

18,105

 

 

 

22,576

 

Income tax expense (benefit)

 

 

13,675

 

 

 

(100,337

)

 

 

5,370

 

Net income

 

$

48,188

 

 

$

118,442

 

 

$

17,206

 

 

(1)
Employee expense excludes stock-based compensation, which is shown separately, and earnout compensation related to the D2C Media Acquisition, which is included in Other.

 

(2)
Other primarily includes total lease cost, utilities, consulting and professional fees, earnout compensation related to the D2C Media Acquisition and travel and expense, training and conferences. For more information on the D2C Media earnout, see Note 3 (Business Combinations).

 

For the years ended December 31, 2024, 2023 and 2022, the Company did not have any one customer that generated greater than 10% of total revenue. Substantially all revenue and long-lived assets were generated and located within the U.S.