Kirndeep, you, us Thank thanks and everyone today. joining to
the of transformative XXXX, a across a As our XXXX the beginning year, platform. shared activation of I at year was following
of more theme able and geographies expand on Listings map, business, the guiding road Deal and new we Cash dealer Digital the were our Instant to With base XXXX with Offer. dealers activation launch Max grow the bring utilizing into foundational
year scale of mind. CarOffer’s changes encouraging caused While with dynamic results challenges Though early and in in we're in to recalibrate that profitability goals to required and our address of the conditions to us built the extremely proud improvement, operations these do we the to and experience we're challenges have activations, our products market some us tackling half pleased of automotive difficulties. second seeing are with are still these work that of signs efforts ensure in our and operational
with the of dealer difficulties, these price, short-term sell down confidently their consumer customers trust. best the vision well and destination selection, digital to buy Despite vehicles both for of on the being the number delivering and path one and convenience we're
an arising challenges evolving still market shortage. from market the remained chip the year, has and despite past vision automotive automotive Our the Throughout encountered steadfast, semiconductor landscape. volatile
two of XXXX, in an However, inflection to reversal brought point. a key factors us
rates lots. and which on days levels and drove curbed New quickly, to XXXX, rates demand not pre-pandemic albeit interest consumer lending below since inventory increased, seen rose levels driving automotive up
alike. a seasonality, that selling for well car outside factors of prices reduction to transitory as consumers The and difficult and prices decline dealers as retail activity. makes concurrent is environment it a down, to used impact creates and it of see these Though in wholesale both wholesale typical contributed a encouraging in buying trend
shop, remain and and to transient in finance, sell. remaining towards sell, innovation, end-to-end can growth consumers only remain continue we dealers thoughtful this closely fulfilling where our agile We and our market these factors platform, the of environment, buy in impact source, platform vision While monitor creating still and the long-term excited marching we're and balancing transaction-enabled profitability. while can trajectory about of the of
As external to met quarter. factors, balance we for exceeded that and/or I'm share internal our pleased continue and to we the guidance forecasted
gross dealer there's was Although Listings another XXXX attrition which has unpredictability, strategy marketplace marked business, our predictable, revenue remained combat constant adoption. of that challenging growing dealer automotive our landscape, several years and filled was focus in on with and one foundational reducing record profit. thing To year the and to
the year annual dealer up dealers, steady business adds, XXXX, As a fourth adjustments of the in efforts, these from of in reviews. ended the the paying commencement the compared resulting In dealer to prior saw except we XXX quarter our U.S., we seasonality from expected budget and year-end result with XX,XXX year.
toward cancellations quarter with rates, and acquiring concerns uncertainty Fourth were prices. rising driven demand declining by continued of softening inventory consumer interest
is dealers were their to turn rates to time, drive continue times in same some consumer the supercharging where at However, interest waning. and dealerships advertising shoppers to increase the
adding and business tiers. steps after or have we recurring to up moving resulted the our to our our strides and MRR. of process our packaging update greater in features These annual years taken revenue for ladder renewal value listings several reviews, simplifying monthly increasing by dealers have As renewals, listing dealers receive our pausing our broad-based by
the be But As grow ability QARSD paying we our trade-off per term. we in renewals, between ROI and and adds confident MRR grow dealers the through Dealer we and Revenue Quarterly remain to or provide growth. dealer over revenue long there Average a Subscribing will
dealers QARSD through average performance unit and increases by driven $X,XXX. approximately price new was quarter with listing year-over-year revenue monthly on signing higher U.S. product and expansion revenue, Fourth adoption. recurring grew upgrades to $XXX
year high additional or shoppers attach multiproduct attract to as fact, to more by their this products ready-to-purchase dealers In rate look XX% find inventory. for ways intent, three to increased
paying to able ROI an shoppers, our are to As innovate we exceptional and offerings high-intent provide we for target continue our product ready-to-transact dealers.
through apart from the profitable is and the with new It with is of value Listings We're of to continued customers innovation partnering success competition. us the sets business A drive and Listings capabilities. continued and we're innovation growth business. component our to our key to our sustained that that product able highly product pleased the with offerings growth
remain focus capabilities continue as for share to to retail a market dealers transactions competitive Digital online for grow. continues
for a more are to only their XX% next small over now convenience say they of of from While done transactions online, prefer percentage fully of home being purchase. do buyers their the
complete vehicle to the arm shopping capabilities levels, higher to pre-pandemic leads. quality with forces look our their As flexibility added operate compared smaller are focusing enhancing evolving consumers dealers meet needs toolkit while with to elements for sales more to dealers online and consumer of journey on we
to XXXX, deposit vehicle of dealer choice build an near with deal place May on offering to with either of a allows a products which in-store Deal Digital vehicle-specific In consumers penny their seamless experience. or then finance online a and perfect we launched and insurance
newly to customers. fourth of serve As quarter, the their utilizing there deployed are dealers capability X,XXX better this now
enabled U.S. best major selection all more we're online consumers retailer, convenient, digitally automotive in listings the the while self-selective the of purchasing online from transparency than available other and largest inventory journey, trust, in pricing among With providing providing marketplaces a with
reach by Deal enabling to to business for Digital utilized continues shoppers foundational growth deliver at more Listings high-intent even dealers opportunities cargurus.com. our
through Our buying steps allowing appointment experience, effort to through consumer the our them research and marketplace, online selection coupled complete with store. of schedule Digital Deal the majority in their CarGurus to frontloads remaining
to the The understand dealers directly to the CarGurus, to work ROI. consumers inventory, through do doing better has less legwork And able are dealer the move of higher with lead. attribution a their the
are Digital that an times X likely over analysis data to prequalification times regular leads fact, leads, In based leads latest is close. reveals and likely close Deal CarGurus including to IHS more on email than X are
money, are on to consumers our next faster. their allowing ready saving the highly attract dealers leads purchase funnel testament time high-value who Our them a move to sale to to ability to in are lower engaged and
The seamless remarkably consumers for dealers. has a resulted user experience and Scores Net both high Promoter in
as we partners. are better of of Digital dealer providing value beginning year, this with to the we the have of price increased our our align Deal so, offering the And
complete Our dealers their works for choice suite digital more optionality serves offering manner product individual for that consumers a increase best consumers capabilities in providing retail dealers sale tailor purchase flexibility that convenience and needs. business them best their a both and to to and by or
dealer The to platform to wish future for who are of to greater our to digital drive inventory to partners the unable and/or audience field CarGurus consumers provide through these solutions retail largest profitability. will the level consumer sell additional own playing their utilize on our
While we've seen by of with business Wholesale half and was in our second more businesses, Digital Digital the XXXX. the impacted Marketplace greatly difficulties Retail success
a worked in were that call, rising As were we a an lower of systems CarOffer insufficient declining mentioned already rates. to were that in conversion contributing These and challenges counteract and price our encountered macro on to challenges tough wholesale we earnings last for to optimize identified environment, and quickly negatively market processes optimized this operational decline. declining dynamic reporting, prices wholesale October,
the path we're the short-term addressed produce immediate defined and to concerns, action have newly to remediation we our efforts in are profitability. continuously vigilant policies While that resilient business confident fast processes remain a monitoring ensure and
our for since process. that that lead our short example, seen trends are have inspection working. the to positive the place, In us Take, solutions in been efforts believe period we've
consistently less the their Since of sent more through the perform buying we've more we which half overall the we than for doing of quality. fail vehicle to before so, allowing was inspection new mechanical, vehicles inspection As To to broadened it a dive this promote identifying into is believe checks. undergo our frame platform, and problematic rigor areas quarter, determined complete thorough we check. damage process confirms unwind making and to us operations did scalability, rise addition mechanical this the more lacking our network vehicles a partner our in rates dealer. our are deep we seen engine improvement, partners, In that transaction inspection combat of way
With to the these Instant CarOffer to the review submit more relates that transaction they adjust a transport short, intake their Max allowing in of CarOffer self-inspection before while pilot the or photos we can not requirements, the arbitration the wait the it car's include claims, and to Max, to meet vehicle inspect reduce vehicle. meets to Offer our evolved we for consumers the terminate use or does deploying improvements now resources spiked thorough documents. year. second additional completed to self-inspection of vehicle, the and CarOffer which their expect If to for process inspections, the validate As condition Cash have can half offer videos Instant criteria.
vehicle policies and depreciation Historically, there dealers, amongst We, to complies stricter of claims in the arbitration therefore, must policies was has maturing Another leniency instituted step arbitration we've rematching if CarOffer regard taken a stricter create our allows arbitration and with within on CarOffer an effectively. to a operations goodwill placing adherence an such This handle with a helps to relates to vehicle, towards they ensure days. policies. issue make dealer us. dealer a that and the quickly to window, effort burden claim more claims that with
high price platform. To of of shorter limit the unnecessary Through we locations. also get the arbitration market to vehicle has and environment. risk higher is faster of expenses strict arbitrated an exposure, cause bidder transportation coupled claims, which allowed critical to a the reduce number to number vehicles further delayed act rematched, declining shorter enforced window which with of liquidate the Fewer arbitration we next highest rematches, moving transportation vehicles arbitration, losses witnessed on and support in rematches us a a
our inspections, business Through allowed Wholesale Digital stricter This the us and process management implementation without overhead to the control. with on we levers our enforcement volume. more arbitration down slowed better the that the policies, of in managing of were the of changes rigorous focus of
slowdown our space. a by slowdown wholesale general While this compounded was self-imposed was conscious the a decision, in
transactions merchandise $XXX.X a fourth a is our Max and Cash that the and of and or Wholesale Similarly, in for conducted our quarter Transactions press and Instant is segment, year-over-year. $XXX revenue Offer which issued down today. both is result, Instant Digital million, was metric dealer-to-dealer Max, down were dealer-to-dealer release GMS, from our transactions sales, was business XX,XXX gross and key business includes transactions GMS quarter million, discussed new further we As approximately year-over-year. transactions. XX% comprised
the the to our were transactions by we in offering Challenges ability affected prices similarly Offer interest Instant matrix. where to which spend working our have the Cash system. traffic reduce our up spend shrink flowing Max is to down through In trade our our dealer-to-dealer as improve impacted it the quickly Instant we the With site limit was marketing toggle business, consumer-facing or well. Max, coming quickly to were wholesale our number operations, product powered to or vehicle. grow of to declining, an also the marketing felt to best in and environment we CarOffer
further Additionally, offers, competitive less our platform. reduced we had conversion on which rates
set us fix million believe to did decision Instant Cash we Offer we from perspective, our and quarter, volume fourth the to our with work them. challenges this Max share generated In not guidance. While right in back a it market while fourth $XX.X exacerbate ensure the was line quarter in revenue, we
will and team over ensure signify We're business. one business scales as that can CarOffer, number members that to the towards and Our benchmarks are increased in at objective sustainable so KPIs processes, place on goals, the of progress is we predictably we build right stability policies focusing our a time.
we dealers transactions increases, share intend with goal of wallet and dealer stability platform. capturing share back shift reengagement to on to market and prioritizing growing with that the the As
automatically rules-based these we work time, technology allows up through that that market for unlike we at success. issues, dealers matrix CarOffer’s anything in to operational as to a the and strategies CarOffer today. And and selling setting are is believe create we buying transact offered any using experience
growth headwinds of towards the progress end-to-end for XXXX and self-imposed our of team's was fulfilling Despite transaction-enabled slowdowns, vision of proud and immensely building year platform. I'm a the automotive CarGurus only
to At CarGurus, reach their people we the give destination. power
in the U.S. means this to network and finance, confidently dealers and the with consumers, buy sell and information their of inventory them in For necessary shop, tools the empowering largest
our they and innovative and means an Retail to foundational combination by solutions efficiently we're as create proposition provide them it to unique Digital a to and solutions Wholesale their business forward-looking Listings dealers, businesses dealer our Digital business consumer is capabilities giving the For resilient continuing need ecosystem. and of able offerings, automotive It the resources value grow innovative profitably. through that differentiated and
profitability technology sector As balance broader for supply demand of economic to innovation, the prime healthy financial unprecedented between pricing a a disciplined I that and in in growth mentioned a our In that strength. strategic an we earlier, striking is chain market and competitive and we're mindful business of uncertainty, maintain volatility, scale it's that is remain is largely market. back and subsector important auto growing experiencing pulling and a position
acquiring growth a and a judicious demonstrated approach line decision-making milestone-based program in securing foregoing of Digital million repurchase additional we XXXX, CarOffer. Retail, thoughtful through authorizing investment share equity In our $XXX and credit, and
in also hiring. our expense strengthening with our to operational innovation and fueling with trusted of a critical centricity consumers our demonstrate and We spend, a managing partner. driver dealers and continue thoughtful customer remarkable in focus discipline both improvements marketing we're operating it as all, as product we success, relationships developments, Through on remain our nimble remains and
our for have and we customers persevere the to As term, strengthened difficulties to we continue believe have the challenges, our I both enhancing for these benefits these long address shareholders. the through transitory decisions firmly resiliency made our
overview performance, for me XXXX. our and our I'll full quarter our guidance first financial followed quarter by through detailed fourth Now, provide of results. a year of let walk the
with Beginning better with reporting and business we we business, our financials better reportable of our new end-to-end our have new this We undergone reporting Wholesale otherwise transformation to segments: have external Digital CarOffer. This prospectively XX-K, structure platform. allows key will find its our Marketplace two-segment to our and the to components understand you filings, view. In as U.S. our performance. incorporate business evolved an known stakeholders now as corresponding updated have transaction-enabled align two
year $X.XXX the year-over-year heavily wholesale This ahead fourth will over by $XXX.X $X the Revenue revenue of XX% up discuss range. I the was product our quarter was which for influenced midpoint of XX% billion, was year. Total prior guidance full million nearly down but revenues, our and million, shortly.
product from up our Marketplace third of million Looking million the components revenue year. fourth at and and Marketplace Fourth the approximately on revenue upgrades offset existing headwinds $XXX.X advertising quarter to foreign the a attributable UK average was was business. for consumer in dealers revenue This high-margin $XXX.X new in quarter. growth as revenue for with business. dealers in was by through partly add-ons and and increase quarter expansion and X% Marketplace period monthly finance revenue X% was The as for exchange from revenues revenue. subscription higher year-ago full in the Listings our well recurring our decline the
year, to predominantly earlier XXXX. market Wholesale transaction and same our revenue full declined the quarter. volumes was began year compared business. declined XX% million which million The by resulting year Wholesale for and XX% for $XX.X in in third the quarter dealer-to-dealer the continued to in fourth period due the the the prior decline was decreased $XXX.X for the softening by from revenue
As the quarter. expected, resulted decreased volumes and transaction fees revenue for transportation reduced in
fourth year reduced was grew million revenue decrease Max the Cash XX% and with by by average million associated and product transaction third for revenue volumes XXXX. from and Lastly, product for in was revenue Offer. $XXX.X quarter. quarter The $XX.X prices full declining continued the to Instant the X% due declined Product selling year-over-year
As our the and earlier, was million. and otherwise Wholesale CarOffer known wholesale top line year this CarOffer our Offer fourth operations. for Digital as was full to quarter, quarter product million traffic I the on quarter the make up we focused for our Together, Max revenue line Total marketing in Cash range. which $XXX.X Digital revenue guidance the $XX.X recent of segment. was $XXX.X reduce most revenue Max in Instant materially mentioned items Fourth business, Wholesale was in decreased improving million, Instant efforts funnel and with investments our
compensation to non-GAAP income non-controlling intangible basis, and a assets, which net interest. expenses loss amortization expenses I'll attributable redeemable now discuss our on backs stock-based acquired acquisition-related or our of profitability expense, and out
XX% gross in XX% margin third to the wholesale change primarily quarter, profit a year-ago revenue profit margin to the in Non-GAAP in primarily non-GAAP the fourth quarter lower from in to compared profit was gross quarter margin due is increased mix. shift margin non-GAAP and product. gross gross in quarter. profile in The XX% to the XX% due Fourth
Our Marketplace margin in Wholesale profit business continued gross more percentage percentage fourth drive even representing the with gross of This quarter. to significant business smaller pronounced revenue. a the Digital our our profit in was margins
in Wholesale volumes Digital in to the of our the though resulted be at quarter in should business, Wholesale as even declining. arbitrations noted a up the and fourth and arbitration the Digital liquidation gross decline that increased generate prices we the profit business the in Marketplace September increase It continued that built end lower the occurred, losses inventory that October built increase in However, the in in coupled with liquidated the third inventory quarter, margin quarter. as in were November up primarily the in of
$X.X Improved control inclusive liquidated a to in we as reduced December. end quarter, and operational vehicle at have million fourth rigor our profit in of inventory the gross inventory depreciation resulted CarOffer impact the mid-single-digit inventory of significant balance millions. books, of had In this flush estimate we a the from
incremental operating flat grow our period non-GAAP expense marketing and and year-over-year. $XX.X were year-over-year alignment develop revenue, sales line expenses million. sales to represented marketing to in decrease speaks quarter continue QX. to $XXX.X investments to XX% we remain brand XX% The the expense material fourth in year. our same of Total growth. campaign thoughtful the and business marketing million, without expense decreased of with investments We marketing to our last expenses year-over-year down strategic X% as Non-GAAP top Non-GAAP
technology as to development non-GAAP due the expenses employee-related $XX to coming our the quarter period technology and million. in grew increase increase fourth and in Wholesale earlier XX% Retail grow Our increase XX% year-ago result a our in product, an year. headcount year, the in continued areas a new teams investment of Digital costs and Digital The in to primarily from is in versus
continue continue to offerings to expanded expense develop grow and this transaction-enabled our to platform. product as increase expect we build We end-to-end our to
due expense and EBITDA of vehicle of operating arbitrations, income of to the business million margin $XX.X resulting representing quarter, lower CarOffer reduced volumes, rematches in non-GAAP We improved improved $XX.X million, generated range strong consolidated X%. of almost and operating adjusted and high $XX transportation continued guidance for prudent performance, losses. ahead generated the albeit our end million of an lower subscription effective management operations, at We
attributable shareholders $X.XX the quarter, range. end Non-GAAP $X.XX of to high the fourth net was guidance common diluted share income per above our for
year-ago On GAAP quarter we to GAAP a to period. basis, the Wholesale gross primarily our due is the profile margin XX% in of margin Digital contraction compared lower gross of margin business. generated fourth XX% The in
incurred quarter, fourth expenses down the XX% roughly $XXX.X total operating we million, In of year-over-year.
income quarter consolidated Fourth XX% net quarter $XX.X decreased We of common income with of increase net Fourth GAAP GAAP end the $XX.X million. quarter income from million cash quarter to the was in million $XX.X CarGurus to income of investments, the Net attributable to and shareholders $XXX.X an operating $XX.X and million GAAP year-over-year fourth ended attributable totaled fourth million. $XXX.X million third quarter.
by of of We website an operations expenditure well $XX.X driven million fourth in generated increase results and primarily movements. million. capitalized provided as by cash capital million, of fourth the capital our million working $XX $XX.X and quarter which in includes in operations was driven $X.X from cash as quarter flow, development by free Cash non-GAAP costs the
share $XXX million. initiated program we December, a In amount repurchase in of the
an fourth price quarter, shares repurchased $XX.X of aggregate for the million we purchase million. During X.X
As for repurchases. $XXX.X available of had share XXst, December additional approximately million we
I'll conclude with the outlook for quarter. the first
of quarter million. to be $XXX range We million to expect first our in the revenue $XXX
We in our expect Marketplace XXXX healthy to growth business. see for
first in related quarter-over-quarter quarter, advertising to the growth. modest OEM headwinds However, revenue we subscription to offset expect
limit business, Wholesale Max Offer. plan we to Digital Instant our marketing further our Cash investment for For
item. that GAAP in product part $XX $XX driven item to expect product Please our slowdown, to aligns be line our revenue to for million volumes, with range With in by quarter which and factors in note guiding coupled materially the first of be our financial revenue, lower statements we purposeful with our reduction macro substantial million. transaction now marketing, we line we’ll
revenue, inspection As transportation Instant and to mentioned, arbitration excludes revenue includes revenue related our Offer Max previously includes revenue business. and have Cash dealer-to-dealer we but product
consolidated be expect $XX earnings We of of EBITDA first $X.XX $X.XX. our the $XX share range range quarter in per non-GAAP to and to in non-GAAP million adjusted to the million
As profitability. expect improvements Moreover, relates awareness. we it campaign, to see business, Wholesale for we expenses, further our in operational reduction it Gurus. We're transactions, on compressed operating our to earlier as to month, in this thrilled make continue brand of our we brand increasing Digital journey launched Get long-anticipated embark resulting to continued this with a our
in doing However, so, quarter. we expect brand increase spend to in see slight our a the first in
prudent our marketing spend Max marketing. we modestly remain expect to XXXX for our and year be in the due Cash However, below it in reduction spend to Offer full Instant
our Additionally, in to expect year beginning expense of costs. see first officially to we we the new expect as Boston, our headquarters people full corporate and commences lease in the grow for base over our impact increase quarter, people-related and
None as bring unwavering in life hard In progress work XXXX, end-to-end our only whose continuing we're instrumental or vision without to would vision and globally been the across transaction-enabled we And we have a platform. reality. activated as in making possible the our incredible employees achieved has business. to many XXXX, our dedication significant of the been automotive milestones results
call up With the for that, Q&A. I'll open
