CarGurus Inc. (NASDAQ: CARG) saw its shares hit a new high on Wednesday following the release of its most recent quarterly results. The company said that it had $0.02 in earnings per share (EPS) and $83.0 million in revenue, which compares with consensus estimates that called for breakeven earnings on revenue of $79.23 million.
During the quarter, marketplace subscription revenue totaled $73.9 million, an increase of 59%, and advertising and other revenue amounted to $9.1 million, an increase of 36% year over year.
The total number of paying dealers was 26,553 at the end of the period, an increase of 37% compared to 19,403 at the end of the third quarter of 2016. Out of the total paying dealers, United States and international accounted for 24,313 and 2,240, respectively, compared to 18,777 and 626, respectively, at the end of the third quarter of 2016.
Average annual revenue per subscribing dealer in the United States was $11,526, an increase of 16% year over year. International revenue was $2.6 million, compared to $0.7 million last year.
In terms of guidance for the fourth quarter, management expects to see EPS in the range of $0.01 to $0.02 and revenues between $85 million and $86 million. The consensus estimates are $0.01 in EPS and $81.82 million in revenue for the quarter.
Langley Steinert, founder and CEO of CarGurus, commented on the quarter:
We are very pleased with our third quarter results, which are highlighted by robust top line growth and ongoing profitability. Our strategy of building the world’s most trusted and transparent automotive marketplace is delivering a disruptive value proposition to consumers.
The recent completion of our initial public offering was an important milestone for our company. CarGurus now has greater brand awareness and enhanced resources to execute our growth strategy and further extend our rapidly growing leadership position.
Shares of CarGurus were last seen up nearly 10% at $32.75, with a consensus analyst price target of $29.00 and a post-IPO range of $25.85 to $35.42.