CarGurus (CARG) 10-Q 9 May 24 2024 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2024	May 02, 2024
Document And Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Registrant Name	CARGURUS, INC.
Trading Symbol	CARG
Entity Central Index Key	0001494259
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Current Reporting Status	Yes
Entity File Number	001-38233
Entity Tax Identification Number	04-3843478
Entity Address, Address Line One	55 Cambridge Parkway
Entity Address, Address Line Two	6th Floor
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02142
City Area Code	617
Local Phone Number	354-0068
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Incorporation, State or Country Code	DE
Title of 12(b) Security	Class A Common Stock, par value $0.001 per share
Security Exchange Name	NASDAQ
Class A Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		88,193,268
Class B Common Stock
Document And Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		15,999,173

Unaudited Condensed Consolidate

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 246,342	$ 291,363
Short-term investments		20,724
Accounts receivable, net of allowance for doubtful accounts of $610 and $610, respectively	44,298	39,963
Inventory	391	331
Prepaid expenses, prepaid income taxes and other current assets	18,893	25,152
Deferred contract costs	11,106	11,095
Restricted cash	2,786	2,563
Total current assets	323,816	391,191
Property and equipment, net	108,143	83,370
Intangible assets, net	21,131	23,056
Goodwill	157,566	157,898
Operating lease right-of-use assets	153,711	169,682
Deferred tax assets	82,392	73,356
Deferred contract costs, net of current portion	13,015	12,998
Other non-current assets	11,029	7,376
Total assets	870,803	918,927
Current liabilities:
Accounts payable	46,471	47,854
Accrued expenses, accrued income taxes and other current liabilities	38,353	33,718
Deferred revenue	21,432	21,322
Operating lease liabilities	10,063	12,284
Total current liabilities	116,319	115,178
Operating lease liabilities	181,052	182,106
Deferred tax liabilities	42	58
Other non–current liabilities	5,028	4,733
Total liabilities	302,441	302,075
Commitments and contingencies (Note 8)
Stockholders’ equity:
Preferred stock, $0.001 par value per share; 10,000,000 shares authorized; no shares issued and outstanding
Additional paid-in capital	194,309	263,498
Retained earnings	375,448	354,147
Accumulated other comprehensive loss	(1,500)	(901)
Total stockholders’ equity	568,362	616,852
Total liabilities, redeemable noncontrolling interest and stockholders’ equity	870,803	918,927
Class A Common Stock
Stockholders’ equity:
Common stock	89	92
Class B Common Stock
Stockholders’ equity:
Common stock	$ 16	$ 16

Unaudited Condensed Consolida_2

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Allowance for doubtful accounts	$ 610	$ 610
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	89,075,845	92,175,243
Common stock, shares outstanding	89,075,845	92,175,243
Class B Common Stock
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	15,999,173	15,999,173
Common stock, shares outstanding	15,999,173	15,999,173

Unaudited Condensed Consolida_3

Unaudited Condensed Consolidated Income Statements - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2024	Mar. 31, 2023
Revenue
Total Revenue		$ 215,796	$ 231,963
Cost of revenue
Total Cost of revenue	[1]	40,835	76,983
Gross profit		174,961	154,980
Operating expenses:
Sales and marketing		82,274	75,577
Product, technology, and development		35,545	36,607
General and administrative		28,066	24,919
Depreciation and amortization		2,792	3,818
Total operating expenses		148,677	140,921
Income from operations		26,284	14,059
Other income, net:
Interest income		3,906	3,743
Other (expense) income, net		(505)	595
Total other income, net		3,401	4,338
Income before income taxes		29,685	18,397
Provision for income taxes		8,384	6,531
Consolidated net income		21,301	11,866
Net loss attributable to redeemable noncontrolling interest		0	(4,266)
Net income attributable to common stockholders - basic		$ 21,301	$ 16,132
Net income per share attributable to common stockholders: (Note 10)
Basic		$ 0.2	$ 0.14
Diluted		$ 0.2	$ 0.1
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders:
Basic		107,174,812	115,358,475
Diluted		108,632,159	115,915,737
Marketplace
Revenue
Total Revenue		$ 187,219	$ 167,127
Cost of revenue
Total Cost of revenue	[1]	14,385	15,533
Wholesale
Revenue
Total Revenue		16,125	25,186
Cost of revenue
Total Cost of revenue	[1]	14,224	22,068
Product
Revenue
Total Revenue		12,452	39,650
Cost of revenue
Total Cost of revenue	[1]	$ 12,226	$ 39,382
[1] I ncludes depreciation and amortization expense for the three months ended March 31, 2024 and 2023 of $ 4,689 and $ 7,758 , respectively.

Unaudited Condensed Consolida_4

Unaudited Condensed Consolidated Income Statements (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Depreciation and amortization expense	$ 4,689	$ 7,758

Unaudited Condensed Consolida_5

Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Consolidated net income	$ 21,301	$ 11,866
Other comprehensive income:
Foreign currency translation adjustment	(599)	415
Consolidated comprehensive income	20,702	12,281
Comprehensive loss attributable to redeemable noncontrolling interests		(4,266)
Comprehensive income attributable to common stockholders	$ 20,702	$ 16,547

Unaudited Condensed Consolida_6

Unaudited Condensed Consolidated Statements of Redeemable Noncontrolling Interest and Stockholders' Equity - USD ($) $ in Thousands	Total	Class A Common Stock	Class B Common Stock	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2022	$ 734,609			$ 102	$ 16	$ 413,092	$ 323,043	$ (1,644)
Beginning balance, Shares at Dec. 31, 2022				101,636,649	15,999,173
Redeemable Noncontrolling Interest, Beginning balance at Dec. 31, 2022	36,749
Net (loss) income	16,132						16,132
Redeemable noncontrolling interest, net (loss) income	(4,266)
Stock–based compensation expense	16,049					16,049
Issuance of common stock upon exercise of stock options	19					19
Issuance of common stock upon exercise of stock options, Shares				7,700
Issuance of common stock upon vesting of restricted stock units, Shares				959,935
Payment of withholding taxes on net share settlements of restricted stock units	(5,652)					(5,652)
Payment of withholding taxes on net share settlements of restricted stock units, Shares				(335,448)
Repurchase of common stock	(65,764)			$ (4)		(65,760)
Repurchase of common stock, Shares				(3,989,861)
Tax distribution to redeemable noncontrolling interest holders	(8)
Foreign currency translation adjustment	415							415
Ending balance at Mar. 31, 2023	695,808			$ 98	$ 16	357,748	339,175	(1,229)
Ending balance, Shares at Mar. 31, 2023				98,278,975	15,999,173
Redeemable Noncontrolling Interest, Ending balance at Mar. 31, 2023	32,475
Beginning balance at Dec. 31, 2023	616,852			$ 92	$ 16	263,498	354,147	(901)
Beginning balance, Shares at Dec. 31, 2023		92,175,243	15,999,173	92,175,243	15,999,173
Redeemable Noncontrolling Interest, Beginning balance at Dec. 31, 2023	0
Net (loss) income	21,301						21,301
Stock–based compensation expense	17,649					17,649
Issuance of common stock upon exercise of stock options	11					11
Issuance of common stock upon exercise of stock options, Shares				36,455
Issuance of common stock upon vesting of restricted stock units				$ 1		(1)
Issuance of common stock upon vesting of restricted stock units, Shares				615,383
Payment of withholding taxes on net share settlements of restricted stock units	(5,097)					(5,097)
Payment of withholding taxes on net share settlements of restricted stock units, Shares				(213,042)
Repurchase of common stock	(81,755)			$ (4)		(81,751)
Repurchase of common stock, Shares				(3,538,194)
Foreign currency translation adjustment	(599)							(599)
Ending balance at Mar. 31, 2024	$ 568,362			$ 89	$ 16	$ 194,309	$ 375,448	$ (1,500)
Ending balance, Shares at Mar. 31, 2024		89,075,845	15,999,173	89,075,845	15,999,173

Unaudited Condensed Consolida_7

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Operating Activities
Consolidated net income	$ 21,301	$ 11,866
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Depreciation and amortization	7,481	11,576
Gain on sale of property and equipment		(460)
Currency loss (gain) on foreign denominated transactions	384	(198)
Deferred taxes	(9,052)	(11,921)
Provision (Recoveries) for doubtful accounts	290	(300)
Stock-based compensation expense	15,822	14,904
Amortization of deferred financing costs	129	129
Amortization of deferred contract costs	3,258	2,737
Impairment of long-lived assets		175
Changes in operating assets and liabilities:
Accounts receivable	(4,182)	6,858
Inventory	(319)	3,645
Prepaid expenses, prepaid income taxes, and other assets	5,974	4,652
Deferred contract costs	(3,326)	(5,138)
Accounts payable	707	10,268
Accrued expenses, accrued income taxes, and other liabilities	681	4,542
Deferred revenue	120	8,557
Lease obligations	12,696	4,453
Net cash provided by operating activities	51,964	66,345
Investing Activities
Purchases of property and equipment	(28,665)	(2,398)
Capitalization of website development costs	(5,465)	(3,489)
Purchases of short-term investments	(494)
Sales of short-term investments	21,218
Advance payments to customers, net of collections	259
Net cash used in investing activities	(13,147)	(5,887)
Financing Activities
Proceeds from issuance of common stock upon exercise of stock options	11	19
Payment of withholding taxes on net share settlements of restricted stock units	(5,115)	(2,066)
Repurchases of common stock	(77,442)	(69,024)
Payment of finance lease obligations	(18)	(17)
Payment of tax distributions to redeemable noncontrolling interest holders		(28)
Change in gross advance payments received from third-party transaction processor	(474)	(2,122)
Net cash used in financing activities	(83,038)	(73,238)
Impact of foreign currency on cash, cash equivalents, and restricted cash	(577)	329
Net decrease in cash, cash equivalents, and restricted cash	(44,798)	(12,451)
Cash, cash equivalents, and restricted cash at beginning of period	293,926	484,132
Cash, cash equivalents, and restricted cash at end of period	249,128	471,681
Supplemental disclosure of cash flow information:
Cash paid for income taxes	1,132	2,410
Cash paid for operating lease liabilities	4,788	4,129
Cash paid for interest	143	144
Supplemental noncash disclosure of cash flow information:
Unpaid purchases of property and equipment and capitalized hosting arrangements	16,329	1,822
Receivable from sale of property and equipment		460
Unpaid withholding taxes on net share settlement of restricted stock units	119	3,590
Unpaid repurchases of common stock	3,658	456
Unpaid excise tax on repurchases of common stock	2,239	574
Capitalized stock-based compensation expense in website development and internal-use software costs and hosting arrangements	1,827	1,145
Obtaining a right-of-use asset in exchange for an operating lease liability	$ (3,536)	144,556
Accrued tax distributions to redeemable noncontrolling interest holders		$ (4)

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 21,301	$ 16,132

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	Rule 10b5-1 Plan Trading Arrangements During the three months ended March 31, 2024 , each of the following officers adopted a “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K) that is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and our policies on insider trading: Name & Title Date Adopted Aggregate Number of Shares of Class A Common Stock to be Purchased or Sold Pursuant to Trading Arrangement Expiration Date (1) Jason Trevisan Chief Executive Officer March 8, 2024 30,000 shares to be sold May 30, 2025 Matthew Quinn Chief Technology Officer March 5, 2024 Up to 50,757 shares to be sold (2) March 3, 2025 Javier Zamora General Counsel and Corporate Secretary March 4, 2024 22,808 shares to be sold (3) March 3, 2025 (1) The Rule 10b5-1 trading arrangement permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the date listed in the table. The arrangement also provides for automatic expiration in the event of liquidation, dissolution, bankruptcy, insolvency, or death of the adopting person. (2) The Rule 10b5-1 trading arrangement includes the sale of shares to be received upon future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The number of shares to be withheld, and thus the exact number of shares to be sold pursuant to Mr. Quinn’s Rule 10b5-1 trading arrangement, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have reported the gross number of shares to be received upon the future vesting of such equity awards, before subtracting any shares to be withheld by us to satisfy applicable taxes in connection with such future vesting events. Furthermore, the Rule 10b5-1 trading arrangement provides for the sale of 40% of the net shares that vest on the applicable vesting date. (3) The Rule 10b5-1 trading arrangement includes the sale of shares to be received upon future vesting of certain outstanding equity awards, net of any shares withheld by us to satisfy applicable taxes. The number of shares to be withheld, and thus the exact number of shares to be sold pursuant to Mr. Zamora’s Rule 10b5-1 trading arrangement, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have reported the gross number of shares to be received upon the future vesting of such equity awards, before subtracting any shares to be withheld by us to satisfy applicable taxes in connection with such future vesting events. On December 5, 2023 , Mr. Quinn adopted a “Rule 10b5-1 trading arrangement” that was intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act and our policies on insider trading, or the Quinn 2023 Plan. Pursuant to the Quinn 2023 Plan, $ 45,000 in shares were to be sold and it had an expiration date of December 31, 2024 . On March 4, 2024 , Mr. Quinn terminated the Quinn 2023 Plan. Other than those disclosed above, none of our directors or officers adopted , modified , or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” in each case as defined in Item 408 of Regulation S-K.
Jason Trevisan
Trading Arrangements, by Individual
Name	Jason Trevisan
Title	Chief Executive Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 8, 2024
Arrangement Duration	449 days
Aggregate Available	30,000
Trd Arr Expiration Date	May 30, 2025
Matthew Quinn
Trading Arrangements, by Individual
Name	Matthew Quinn
Title	Chief Technology Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 5, 2024
Arrangement Duration	364 days
Aggregate Available	50,757
Trd Arr Expiration Date	March 3, 2025
Javier Zamora
Trading Arrangements, by Individual
Name	Javier Zamora
Title	General Counsel and Corporate Secretary
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	March 4, 2024
Arrangement Duration	365 days
Aggregate Available	22,808
Trd Arr Expiration Date	March 3, 2025
Other Directors and Officers
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b 51 Arr Modified Flag	false
Non Rule 10b 51 Arr Modified Flag	false
Rule 10b5-1 Trading Arrangement | Matthew Quinn
Trading Arrangements, by Individual
Name	Mr. Quinn
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	December 5, 2023
Termination Date	March 4, 2024
Arrangement Duration	393 days
Aggregate Available	45,000
Trd Arr Expiration Date	December 31, 2024

Organization and Business Descr

Organization and Business Description	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Organization and Business Description	1. Organization and Business Description CarGurus, Inc. (the "Company") is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer, LLC ("CarOffer") online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The Company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. The Company operates principally in the United States (the "U.S."). In the U.S. it also operates as independent brands the Autolist online marketplace and the CarOffer online wholesale platform. In addition to the U.S., the Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom (the "U.K."). In the U.K. it also operates as an independent brand the PistonHeads online marketplace. The Company has subsidiaries in the U.S., Canada, Ireland, and the U.K. and it has two reportable segments, U.S. Marketplace and Digital Wholesale. See Note 12 of the Unaudited Condensed Consolidated Financial Statements (as defined below) for further segment reporting and geographic information.

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited (the “Unaudited Condensed Consolidated Financial Statements”). The Unaudited Condensed Consolidated Financial Statements and related disclosures have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board (“FASB”). The Unaudited Condensed Consolidated Financial Statements have also been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The Unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the Company’s financial statements for interim periods. These interim period results are not necessarily indicative of the results to be expected for any other interim period or the full year. The Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 26, 2024 (the “Annual Report”). While the Company disclosed unpaid excise tax on repurchases of common stock within unpaid repurchases of common stock in the Unaudited Condensed Consolidated Statements of Cash Flows in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 9, 2023, the accompanying Unaudited Condensed Consolidated Statements of Cash Flows for the quarter ended March 31, 2023 present unpaid excise tax on repurchases of common stock separately from unpaid repurchases of common stock to conform to the current year presentation. Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the Unaudited Condensed Consolidated Financial Statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure. Use of Estimates The preparation of the Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Changes in estimates are recognized in the period in which they become known. Critical estimates relied upon in preparing the Unaudited Condensed Consolidated Financial Statements include the determination of sales allowance and variable consideration in the Company’s revenue recognition, allowance for doubtful accounts, the impairment of long-lived assets, the capitalization of product, technology, and development costs for website development, internal-use software, and hosting arrangements, the valuation of acquired assets and liabilities, the valuation and recoverability of intangible assets and goodwill, the valuation of redeemable noncontrolling interest, the recoverability of the Company’s net deferred tax assets and related valuation allowance, the valuation of inventory, and the valuation of liability-classified compensation awards. Accordingly, the Company considers these to be its critical accounting estimates, and believes that of the Company’s significant accounting policies, these involve the greatest degree of judgment and complexity. For the three months ended March 31, 2024, there were no estimates related to the valuation of redeemable noncontrolling interest and the valuation of liability-classified compensation awards. Although no impairment was identified during the annual impairment test as of October 1, 2023, the excess of the fair value over the carrying value declined for the CarOffer reporting unit in the Digital Wholesale segment. If projected future operating results further decline, including as a result of economic conditions or operational challenges, the Company may need to record an impairment charge to reduce its goodwill at CarOffer, which could be material and negatively affect the Company's operations. During the three months ended March 31, 2024, the Company did not identify any triggering events that would require an interim impairment assessment. Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments, trade accounts receivable, and other receivables. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash and cash equivalents with multiple financial institutions, its deposits with each such financial institution exceed governmental insured limits. The Company routinely assesses the creditworthiness of its customers and does not require collateral. The Company generally has not experienced any material losses related to receivables from individual customers or groups of customers. The Company has had no material losses related to marketplace receivables as it was dispersed across a large number of customers. The Company has had no material losses related to wholesale and product receivables as the third-party transaction processor does not release the title to the vehicle until successfully collecting funds from the buying dealer. Titling is handled by the Company's third-party transaction processor and titles are held in escrow until it collects funds from the buying dealer (i.e., title is legally transferred from the selling party to the buying party upon signing of bill of sale, but title is held in escrow by the third-party transaction processor until payment is received). Due to these factors, no additional credit risk beyond amounts provided for collection losses was believed by management to be probable in the Company’s accounts receivable and other receivables. As of March 31, 2024 and December 31, 2023, no customer accounted for more than 10 % of net accounts receivable and other receivables. All of accounts receivable was dispersed among more than 1,000 customers. Therefore, there is no significant credit risk with respect to accounts receivable because credit risk is dispersed due to the large number of customers. For the three months ended March 31, 2024 and 2023, no customer accounted for more than 10% of total revenue. The Company is exposed to credit losses primarily through its trade accounts receivable, which includes receivables in transit, net of payables due, from a third-party transaction processor. The third-party transaction processor collects customer payments on the Company's behalf and remits them to the Company. Customer payments received by the third-party transaction processor, but not remitted to the Company as of period end, are deemed to be receivables in transit, net of payables due. Additionally, the third-party transaction processor provides payments in advance for certain selling dealers. If the third-party transaction processor does not receive buying dealer payments associated with the transaction paid in advance, the Company would guarantee losses incurred by the third-party transaction processor and the balance would be deducted from future remittances to the Company. To date, losses associated with these guarantees have not been material. The Company offsets trade accounts receivables in transit, net of payables due, from the third-party transaction processor with payments received in advance from the third-party transaction processor as it has the right of offset. At any point in time, the Company could have amounts due from the third-party transaction processor for funds the third-party transaction processor has collected from buying dealers and has not yet remitted to the Company (i.e., receivables in transit, net of payables due), as well as amounts paid by the third-party transaction processor to the Company in advance of collecting payments from buying dealers (i.e., payments received in advance). Therefore, as the Company has the right to offset, the Company can either have a net receivable balance due from the third-party transaction processor which is recognized within accounts receivable, net in the Unaudited Condensed Consolidated Balance Sheets, or the Company can have a net liability which is recognized within accrued expenses, accrued income taxes, and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets if the advance payments exceed the receivable position from the third-party transaction processor as of the balance sheet date. The change in payments received in advance from the third-party transaction processor is presented as cash flows from financing activities in the Unaudited Condensed Consolidated Statements of Cash Flows. As of March 31, 2024, trade accounts receivable from receivables in transit, net of payables due, from the third-party transaction processor was $ 3,916 , offset by payments received in advance of $ 1,541 , which resulted in a net receivable of $ 2,375 recognized within accounts receivable, net in the Unaudited Condensed Consolidated Balance Sheets. As of December 31, 2023 , trade accounts receivable from receivables in transit, net of payables due, from the third-party transaction processor was $ 2,868 , offset by payments received in advance of $ 2,015 , which resulted in a net receivable of $ 853 recognized within accounts receivable, net in the consolidated balance sheets. As of March 31, 2024 and December 31, 2023, $ 10,401 and $ 9,581 , respectively, was included in net accounts receivable, representing unbilled accounts receivable relating primarily to both advertising customers and dealers invoiced in the period subsequent to services rendered and revenue recognition adjustments for Company offered discounts given to dealers in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606"). Significant Accounting Policies The Unaudited Condensed Consolidated Financial Statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the Unaudited Condensed Consolidated Financial Statements. As of March 31, 2024 , there have been no material changes in the Company’s significant accounting policies, which are detailed in the Annual Report. Recent Accounting Pronouncements Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company on or prior to the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. As of March 31, 2024, there are no new accounting pronouncements that the Company is considering adopting, other than those described below. In December 2023 the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09") . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 addresses investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its future consolidated financial statements and related disclosures. In November 2023 the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 is intended to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations. ASU 2023-07 is intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its future consolidated financial statements and related disclosures. In October 2023 the FASB issued ASU 2023-06, Disclosure Improvements – Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). ASU 2023-06 modifies the disclosure and presentation requirements for a variety of topics in the ASC. The Company is currently evaluating the impact of ASU 2023-06 on its future consolidated financial statements and related disclosures.

Revenue Recognition

Revenue Recognition	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Revenue Recognition	3. Revenue Recognition The following table summarizes revenue from contracts with customers by services and products for the three months ended March 31, 2024 and 2023: Three Months Ended 2024 2023 Marketplace $ 187,219 $ 167,127 Dealer-to-Dealer 18,499 28,705 Sell My Car - Instant Max Cash Offer 10,078 36,131 Total $ 215,796 $ 231,963 The Company provides disaggregation of revenue by services and products, by income statement presentation, by segment, and by geographic region. Revenue by services and products is disaggregated by (i) marketplace services, (ii) Dealer-to-Dealer services and products, and (iii) Sell My Car - Instant Max Cash Offer ("IMCO") services and products as disclosed above. Revenue by income statement presentation is disaggregated by (i) marketplace, (ii) wholesale, and (iii) product revenue sources as disclosed in the Unaudited Condensed Consolidated Income Statements. Marketplace services are included within marketplace revenue in the Unaudited Condensed Consolidated Income Statements. Dealer-to-Dealer and IMCO services and products are included within both wholesale revenue and product revenue in the Unaudited Condensed Consolidated Income Statements. Revenue by segment is disaggregated by (i) U.S. Marketplace and (ii) Digital Wholesale segments as disclosed in Note 12 of the Unaudited Condensed Consolidated Financial Statements. Marketplace services are included in the U.S. Marketplace segment and in the Other category of segment reporting. Dealer-to-Dealer and IMCO services and products are included in the Digital Wholesale segment. Revenue by geographic region is disaggregated by (i) U.S. and (ii) International regions as disclosed in Note 12 of the Unaudited Condensed Consolidated Financial Statements. Marketplace services are provided in the U.S. and International regions. Dealer-to-Dealer and IMCO services and products are provided in the U.S. region. The Company believes these categories best depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. ASC 606 requires that the Company disclose the aggregate amount of transaction price that is allocated to performance obligations that have not yet been satisfied as of the relevant quarter end. For contracts with an original expected duration greater than one year, the aggregate amount of the transaction price allocated to the performance obligations that were unsatisfied as of March 31, 2024, was approximately $ 53.6 million, which the Company expects to recognize over the next twelve months. For contracts with an original expected duration of one year or less, the Company has applied the practical expedient available under ASC 606 to not disclose the amount of transaction price allocated to unsatisfied performance obligations as of March 31, 2024. For performance obligations not satisfied as of March 31, 2024, and to which this expedient applies, the nature of the performance obligations, the variable consideration, and any consideration from contracts with customers not included in the transaction price is consistent with performance obligations satisfied as of March 31, 2024. For the three months ended March 31, 2024 and 2023, revenue recognized from amounts included in deferred revenue at the beginning of the period was $ 21,322 and $ 12,249 , respectively.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	4. Fair Value of Financial Instruments As of March 31, 2024 and December 31, 2023, assets measured at fair value on a recurring basis consist of the following: As of March 31, 2024 Quoted Prices Significant Other Significant Total Cash equivalents: Mutual funds $ 115,980 $ — $ — $ 115,980 Total $ 115,980 $ — $ — $ 115,980 As of December 31, 2023 Quoted Prices Significant Other Significant Total Cash equivalents: Mutual funds $ 73,449 $ — $ — $ 73,449 Short-term investments: Mutual funds $ 20,724 — — 20,724 Total $ 94,173 $ — $ — $ 94,173 For the three months ended March 31, 2024, dividend income recognized within interest income in the Unaudited Condensed Consolidated Income Statements was immaterial. For the three months ended March 31, 2023 , there was no dividend income as the Company did not hold any investments. For the three months ended March 31, 2024, unrealized and realized gain on short-term investments in equity securities was immaterial. For the three months ended March 31, 2023 , there was no gain or loss investments in equity securities as the Company did no t hold any investments . As of March 31, 2024, the Company did not have any short-term investments as all were sold during the three months ended March 31, 2024 .

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	5. Property and Equipment, Net As of March 31, 2024 and December 31, 2023, property and equipment, net consist of the following: As of As of Capitalized equipment $ 1,081 $ 1,326 Capitalized internal-use software 13,957 12,279 Capitalized website development 64,016 57,158 Furniture and fixtures 8,174 8,149 Leasehold improvements 23,336 23,308 Construction in progress 61,601 39,835 Finance lease right-of-use assets 254 288 172,419 142,343 Less accumulated depreciation and amortization ( 64,276 ) ( 58,973 ) Total $ 108,143 $ 83,370 For the three months ended March 31, 2024 and 2023, depreciation and amortization expense, excluding amortization of intangible assets, amortization of capitalized hosting arrangements, and impairments, was $ 5,599 and $ 4,042 , respectively. For the three months ended March 31, 2024 , the Company did no t have any impairments. For the three months ended March 31, 2023, the Company impaired $ 175 of Digital Wholesale segment capitalized website development costs within wholesale cost of revenue in the Unaudited Condensed Consolidated Income Statements related to certain developed technology in which the Company decided to cease investment. During the three months ended March 31, 2024, capitalized website development costs increased $ 6,858 due to continued net investment in the Company's product offerings. During the three months ended March 31, 2024, construction in progress costs increased $ 21,766 due to the buildout of the Company's future headquarters located at 1001 Boylston Street.

Accrued Expenses, Accrued Incom

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accrued Expenses, Accrued Income Taxes and Other Current Liabilities	6. Accrued Expenses, Accrued Income Taxes, and Other Current Liabilities As of March 31, 2024 and December 31, 2023, accrued expenses, accrued income taxes, and other current liabilities consist of the following: As of As of Accrued bonus $ 6,114 $ 15,247 Accrued repurchases of common stock, including excise taxes 5,897 1,584 Accrued income taxes 8,942 1,095 Other accrued expenses and other current liabilities 17,400 15,792 Total $ 38,353 $ 33,718 The decrease of $ 9,133 in accrued bonus was due primarily to the payout of the second portion of the fiscal year 2023 bonuses in the first quarter of 2024, offset in part by the accrual for the fiscal year 2024 bonuses. The increase of $ 4,313 in accrued repurchases of common stock, including excise taxes was due primarily to shares purchased but not yet settled as of March 31, 2024, under the Company’s 2024 Share Repurchase Program (as defined below) as well as unpaid excise taxes. The increase of $ 7,847 in accrued income taxes was due primarily to the timing of income tax payments, which were paid subsequent to March 31, 2024.

Debt

Debt	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Debt	7. Debt As of March 31, 2024 and December 31, 2023 , the Company had no long-term debt outstanding. Revolving Credit Facility On September 26, 2022, the Company entered into a Credit Agreement (the “Credit Agreement”) with PNC Bank, National Association, as administrative agent and collateral agent and an L/C Issuer (as defined in the Credit Agreement), and the other lenders, L/C Issuers, and parties thereto from time to time. The Credit Agreement consists of a revolving credit facility (the “2022 Revolver” ), which allows the Company to borrow up to $ 400.0 million, $ 50.0 million of which may be comprised of a letter of credit sub-facility (the "2022 Revolver Sub-facility"). The borrowing capacity under the Credit Agreement may be increased in accordance with the terms and subject to the adjustments as set forth in the Credit Agreement. Specifically, the borrowing capacity may be increased by an amount up to the greater of $ 250.0 million or 100 % of Four Quarter Consolidated EBITDA (as defined in the Credit Agreement) if certain criteria are met and subject to certain restrictions. Any such increase requires lender approval. Proceeds of any borrowings may be used for general corporate purposes. The 2022 Revolver is scheduled to mature on September 26, 2027 . The applicable interest rate is, at the Company's option, based on a number of different benchmark rates and applicable spreads, based on the ratio of the outstanding principal amount of the Company’s secured indebtedness to the trailing four quarters of consolidated EBITDA (as determined under the Credit Agreement, the “Consolidated Secured Net Leverage Ratio”). The Credit Agreement also requires the Company to pay a commitment fee to the lenders with respect of the unutilized revolving commitments at a rate ranging from 0.125 % to 0.175 % per annum based on the Consolidated Secured Net Leverage Ratio, as determined on a quarterly basis. The 2022 Revolver is secured by a first priority lien on substantially all tangible and intangible property of the Company, as well as any future guarantors, and pledges of the equity of certain wholly-owned subsidiaries, in each case subject to certain exceptions, limitations, and exclusions from the collateral. The Credit Agreement includes customary events of default and requires the Company to comply with customary affirmative and negative covenants, including a financial covenant requiring that the Company not exceed certain Consolidated Secured Net Leverage Ratio ranges at the end of each fiscal quarter. The Company was in compliance with all covenants as of March 31, 2024. As of both March 31, 2024 and December 31, 2023 , there were no borrowings and $ 9,627 in letters of credit outstanding under the 2022 Revolver associated with the Company's leases, which reduces the borrowing capacity under the 2022 Revolver to $ 390,373 . As of March 31, 2024 and December 31, 2023, deferred financing costs were $ 1,798 and $ 1,927 , respectively. For both the three months ended March 31, 2024 and 2023, amortization expense associated with deferred financing costs was $ 129 . For the three months ended March 31, 2024 and 2023, commitment fees under the 2022 Revolver were immaterial.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	8. Commitments and Contingencies Contractual Obligations and Commitments As of March 31, 2024, all of the Company’s property and equipment and hosting arrangements have been purchased with cash with the exception of unpaid amounts as disclosed in the Unaudited Condensed Consolidated Statements of Cash Flows. In connection with the Company’s operating lease agreement in Boston, Massachusetts for 225,428 square feet at 1001 Boylston Street (the “1001 Boylston Street Lease"), the Company expects to spend an additional $ 35,171 to complete its buildout, of which $ 26,285 has been committed and remains unspent as of March 31, 2024. These costs will be partially reimbursable under the tenant improvement allowance. The Company is subject to a number of risks and uncertainties common to companies in its and similar industries and stages of development including, but not limited to, rapid technological changes, competition from substitute products and services from larger companies, management of international activities, protection of proprietary rights, patent litigation, and dependence on key individuals. Leases The Company’s material lease obligations consist of various leases for office space in: Boston, Massachusetts; Cambridge, Massachusetts; Addison, Texas; and Dublin, Ireland. As of March 31, 2024, there were no material changes in the Company’s leases from those disclosed in the Annual Report, other than those described below. On March 19, 2024, the Company entered into a letter agreement regarding the 1001 Boylston Street Lease (the "2024 Letter Agreement"). The 2024 Letter Agreement memorializes the Substantial Completion Date, Commencement Date, Fixed Rent Commencement Date (as each term is defined in the 1001 Boylston Street Lease), and the rental credits and holdover compensation owed to the Company per the 1001 Boylston Street Lease. The 2024 Letter Agreement also modifies the parking privileges and payments, which will now commence on June 1, 2024. The 2024 Letter Agreement also provides reimbursement from the landlord to the Company for additional unexpected costs incurred. The Company accounted for the 2024 Letter Agreement as a remeasurement of the 1001 Boylston Street Lease, using an incremental borrowing rate as of the modification date. The lease remeasurement resulted in a decrease in the lease liability and right-of-use asset on the Unaudited Condensed Consolidated Balance Sheets of $ 3,536 . There was not a material impact on the Unaudited Condensed Consolidated Income Statement or future minimum lease payments . Restricted Cash As of March 31, 2024 and December 31, 2023, restricted cash was $ 2,786 and $ 2,563 , respectively, and in each case primarily related to pass-through payments from customers related to the Company’s Digital Wholesale business. Legal Matters From time to time, the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. The Company recognizes a liability when it believes that it is both probable that a liability has been incurred and the amount of loss can be reasonably estimated. Judgment is required to determine both the probability of having incurred a liability and the estimated amount of the liability. The Company is not presently subject to any pending or threatened litigation that it believes, if determined adversely to the Company, individually, or taken together, would reasonably be expected to have a material adverse effect on its business or financial results. However, litigation is inherently unpredictable and the future outcome of legal proceedings and other contingencies may be unexpected or differ from the Company’s estimated liabilities, which could have a material adverse effect on the Company’s future financial results. Guarantees and Indemnification Obligations In the ordinary course of business, the Company enters into agreements with its customers, partners, and service providers that include commercial provisions with respect to licensing, infringement, guarantees, indemnification, and other common provisions. The Company provides certain guarantees to dealers through products such as its 45 -Day Guarantee and OfferGuard service offerings on the CarOffer platform, which are accounted for under ASC Topic 460, Guarantees . 45-Day Guarantee is an arrangement through which a selling dealer lists a car on the CarOffer platform, and the Company provides an offer to purchase the vehicle listed at a specified price at any time over a 45-day period. This provides the seller with a put option, where they have the right, but not the obligation, to require the Company to purchase the vehicle during this window. OfferGuard is an arrangement through which a buying dealer purchases a car on the CarOffer platform, and the Company provides an offer to purchase the vehicle at a specified price between days 1 and 3, and days 42 and 45 if the dealer is not able to sell the vehicle after 42 days. For the three months ended March 31, 2024 and 2023, income for guarantees purchased by dealers was $ 236 and $ 614 , respectively. For the three months ended March 31, 2024 and 2023, the net gains or losses recognized within cost of revenue in the Unaudited Condensed Consolidated Income Statements resulting from dealers' exercise of guarantees was immaterial. As of March 31, 2024, the maximum potential amount of future payments that the Company could be required to make under these guarantees was $ 5,887 . Of the maximum potential amount of future payments, the losses that were probable were not material. As such, as of March 31, 2024, the Company had no material contingent loss liabilities. As of December 31, 2023, the maximum potential amount of future payments that the Company could be required to make under these guarantees was $ 10,158 . Of the maximum potential amount of future payments, the losses that were probable were not material. As such, as of December 31, 2023 , the Company had no material contingent loss liabilities.

Stock-based Compensation and Co

Stock-based Compensation and Common Stock Share Repurchases	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Stock-based Compensation and Common Stock Share Repurchases	9. Stock-based Comp ensation and Common Stock Share Repurchases Stock-based Compensation Expense For the three months ended March 31, 2024 and 2023, stock-based compensation expense by award type and where the stock-based compensation expense was recognized in the Unaudited Condensed Consolidated Income Statements is as follows: Three Months Ended 2024 2023 Options $ 591 $ 614 Restricted Stock Units 15,231 14,363 Total $ 15,822 $ 14,977 Three Months Ended 2024 2023 Cost of revenue $ 231 $ 143 Sales and marketing expense 2,874 3,084 Product, technology, and development expense 5,977 6,289 General and administrative expense 6,740 5,461 Total $ 15,822 $ 14,977 For the three months ended March 31, 2024 and 2023, stock-based compensation expense excluded $ 1,827 and $ 1,145 , respectively, of capitalized website development costs, capitalized internal-use software costs, and capitalized hosting arrangements. Common Stock Share Repurchases On November 7, 2023, the Company announced that the Board of Directors authorized a share repurchase program (the "2024 Share Repurchase Program") pursuant to which the Company may, from time to time, purchase shares of its Class A common stock for an aggregate purchase price not to exceed $ 250.0 million. Share repurchases under the 2024 Share Repurchase Program may be made through a variety of methods, including but not limited to open market purchases, privately negotiated transactions, and transactions that may be effected pursuant to one or more plans under Rule 10b5-1 and/or Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The 2024 Share Repurchase Program does not obligate the Company to repurchase any minimum dollar amount or number of shares. The 2024 Share Repurchase Program has an effective date of January 1, 2024 , and an expiration date of December 31, 2024 , and prior to its expiration may be modified, suspended, or discontinued by the Board of Directors at any time without prior notice. All repurchased shares of Class A common stock under the 2024 Share Repurchase Program will be retired. The Company has funded and expects to continue to fund any additional share repurchases under the 2024 Share Repurchase Program through cash on hand and cash generated from operations . On December 8, 2022, the Company announced that the Board of Directors authorized a share repurchase program (the “2022 Share Repurchase Program”) pursuant to which the Company could, from time to time, purchase shares of its Class A common stock for an aggregate purchase price not to exceed $ 250.0 million. The 2022 Share Repurchase Program expired on December 31, 2023. The 2022 Share Repurchase Program did not obligate the Company to repurchase any minimum dollar amount or number of shares. All repurchased shares of Class A common stock under the 2022 Share Repurchase Program were retired. The Company funded share repurchases under the 2022 Share Repurchase Program through cash on hand and cash generated from operations. During the three months ended March 31, 2024, the Company repurchased and retired 3,538,194 shares for $ 81,067 , exclusive of commissions and excise tax, at an average cost of $ 22.91 per share, under the 2024 Share Repurchase Program. As of March 31, 2024, the Company had remaining authorization to purchase up to $ 168,933 of the Company's Class A common stock under the 2024 Share Repurchase Program. During the three months ended March 31, 2023, the Company repurchased and retired 3,989,861 shares for $ 65,151 , exclusive of commissions and excise tax, at an average cost of $ 16.33 per share, under the 2022 Share Repurchase Program.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Earnings Per Share	10. Earnings Per Share The Company has two classes of common stock authorized: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share . Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time or automatically upon certain events described in the Company’s fourth amended and restated certificate of incorporation, including upon either the death or voluntary termination of the Company’s Executive Chair. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one‑to‑one basis when computing net income per share. As a result, basic and diluted net income per share of Class A common stock and per share of Class B common stock are equivalent. During the three months ended March 31, 2024 and 2023, no shares of Class B common stock were converted into Class A common stock. Basic net income per share (“Basic EPS”) is computed by dividing consolidated net income adjusted for net loss attributable to redeemable noncontrolling interest and changes in the redemption value of redeemable noncontrolling interest, if applicable, by the weighted-average number of common shares outstanding during the reporting period. The Company computes the weighted-average number of common shares outstanding during the reporting period using the total number of shares of Class A common stock and Class B common stock outstanding as of the last day of the previous year plus the weighted-average of any additional shares issued and outstanding during the reporting period, less the weighted-average of any shares repurchased during the period. Diluted net income per share (“Diluted EPS”) gives effect to all potentially dilutive securities. Diluted EPS is computed by dividing consolidated net income adjusted for net loss attributable to redeemable noncontrolling interest and changes in the redemption value of redeemable noncontrolling interest, if applicable and dilutive, by the weighted-average number of common shares outstanding during the reporting period using (i) the number of shares of common stock used in the Basic EPS calculation as indicated above, and (ii) if dilutive, the incremental weighted-average common stock that the Company would issue upon the exercise of stock options and the vesting of RSUs. The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method. For previous periods, the if-converted method was used to calculate the number of shares issuable upon exercise of the 2024 Put Right (as defined in Note 2 to the consolidated financial statements contained within the Annual Report), inclusive of CarOffer noncontrolling interest and CO Incentive and Subject Units (as each term is defined in Note 2 to the consolidated financial statements contained within the Annual Report), that would have been issuable as of the end of the reporting period assuming the end of the reporting period was also the end of the contingency period. For the three months ended March 31, 2024 and 2023, a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows: Three Months Ended 2024 2023 Numerator: Consolidated net income $ 21,301 $ 11,866 Net loss attributable to redeemable noncontrolling interest — ( 4,266 ) Net income attributable to common stockholders — basic $ 21,301 $ 16,132 Net loss attributable to redeemable noncontrolling interest — ( 4,266 ) Net income attributable to common stockholders — diluted $ 21,301 $ 11,866 Denominator: Weighted-average number of shares of common stock used 107,174,812 115,358,475 Dilutive effect of share equivalents resulting from stock 215,891 229,679 Dilutive effect of share equivalents resulting from 1,241,456 327,583 Weighted-average number of shares of common stock 108,632,159 115,915,737 Net income per share attributable to common stockholders: Basic $ 0.20 $ 0.14 Diluted $ 0.20 $ 0.10 For the three months ended March 31, 2024 and 2023, potentially dilutive common stock equivalents that have been excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive are as follows: Three Months Ended 2024 2023 Stock options outstanding 537,981 560,027 Restricted stock units outstanding 1,178,036 3,207,191 For the three months ended March 31, 2024, there were no contingently issuable shares as a result of the acquisition of remaining minority equity interests in CarOffer . For the three months ended March 31, 2023 , the number of issuable shares estimated upon exercise of the 2024 Put Right was zero.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
Income Taxes	11. Income Taxes During the three months ended March 31, 2024, the Company recorded an income tax provision of $ 8,384 , representing an effective tax rate of 28.2 % . The effective tax rate for the three months ended March 31, 2024 , was greater than the statutory tax rate of 21 %, principally due to state and local income taxes, the Section 162(m) excess officer compensation limitation, and non-deductible meals and commuter fringe benefits, partially offset by federal and state research and development tax credits. During the three months ended March 31 2023, the Company recorded an income tax provision of $ 6,531 , representing an effective tax rate of 28.8 % . The effective tax rate for the three months ended March 31, 2023, was greater than the statutory rate of 21 %, principally due to state and local income taxes, shortfalls on the taxable compensation of share-based awards, and the Section 162(m) excess officer compensation limitation, partially offset by federal and state research and development tax credits. The Organisation for Economic Co-operation and Development introduced an international tax framework under Pillar Two which includes a global minimum tax of 15 %. Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions where the Company operates. The Pillar Two legislation became effective for the Company's fiscal year beginning January 1, 2024. The Company has performed an assessment of its potential exposure to Pillar Two income taxes based on the Company's most recent tax filings, country-by-country reporting, and financial statements for the constituent entities within the Company. Based on the assessment performed, the Company meets the Pillar Two transitional safe harbor effective tax rate relief as all jurisdictions in which the Company operates are above 15 %. The Company does not expect any exposure to Pillar Two income taxes in any jurisdictions. The Company and its subsidiaries are subject to various U.S. federal, state, and foreign income tax examinations. The Company is currently not subject to income tax examination for the tax years 2019 and prior as a result of applicable statute of limitations of the Internal Revenue Service and a majority of applicable state jurisdictions. The Company is currently not subject to examination in its foreign jurisdictions for the tax years 2018 and prior.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2024
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 CODM reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews segment revenue and segment operating income (loss) as a proxy for the performance of the Company's operations. The Company’s Chief Executive Officer is the CODM on behalf of both reportable segments. 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. For the three months ended March 31, 2023, Digital Wholesale segment income (loss) from operations also reflects certain IMCO marketing and lead generation fees allocated from the U.S. Marketplace segment. 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, 2024 and 2023, segment revenue, segment income (loss) from operations, and segment depreciation and amortization are as follows: Three Months Ended 2024 2023 Segment Revenue: U.S. Marketplace $ 172,988 $ 155,621 Digital Wholesale 28,577 64,836 Other 14,231 11,506 Total $ 215,796 $ 231,963 Three Months Ended 2024 2023 Segment Income (Loss) from Operations: U.S. Marketplace $ 34,217 $ 26,539 Digital Wholesale ( 10,340 ) ( 11,225 ) Other 2,407 ( 1,255 ) Total $ 26,284 $ 14,059 Three Months Ended 2024 2023 Segment Depreciation and Amortization: U.S. Marketplace $ 2,997 $ 2,740 Digital Wholesale 4,281 8,693 Other 203 143 Total $ 7,481 $ 11,576 For the three months ended March 31, 2024 and 2023, a reconciliation between total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended 2024 2023 Total segment income from operations $ 26,284 $ 14,059 Total other income, net 3,401 4,338 Consolidated income before income taxes $ 29,685 $ 18,397 As of March 31, 2024 and December 31, 2023, segment assets are as follows: As of As of Segment Assets: U.S. Marketplace $ 603,315 $ 607,307 Digital Wholesale 214,553 258,458 Other 52,935 53,162 Total $ 870,803 $ 918,927 For the three months ended March 31, 2024 and 2023, revenue by geographical region is as follows: Three Months Ended 2024 2023 Revenue by Geographic Region: United States $ 201,565 $ 220,457 International 14,231 11,506 Total $ 215,796 $ 231,963

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim condensed consolidated financial statements are unaudited (the “Unaudited Condensed Consolidated Financial Statements”). The Unaudited Condensed Consolidated Financial Statements and related disclosures have been prepared in conformity with accounting principles generally accepted in the U.S. (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update ("ASU") of the Financial Accounting Standards Board (“FASB”). The Unaudited Condensed Consolidated Financial Statements have also been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The Unaudited Condensed Consolidated Financial Statements reflect all adjustments, consisting of only normal recurring adjustments, necessary for the fair presentation of the Company’s financial statements for interim periods. These interim period results are not necessarily indicative of the results to be expected for any other interim period or the full year. The Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 26, 2024 (the “Annual Report”). While the Company disclosed unpaid excise tax on repurchases of common stock within unpaid repurchases of common stock in the Unaudited Condensed Consolidated Statements of Cash Flows in the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, filed with the SEC on May 9, 2023, the accompanying Unaudited Condensed Consolidated Statements of Cash Flows for the quarter ended March 31, 2023 present unpaid excise tax on repurchases of common stock separately from unpaid repurchases of common stock to conform to the current year presentation.
Principles of Consolidation	Principles of Consolidation The Unaudited Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Subsequent Event Considerations	Subsequent Event Considerations The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the Unaudited Condensed Consolidated Financial Statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure.
Use of Estimates	Use of Estimates The preparation of the Unaudited Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results may differ from management’s estimates if these results differ from historical experience, or other assumptions do not turn out to be substantially accurate, even if such assumptions are reasonable when made. Changes in estimates are recognized in the period in which they become known. Critical estimates relied upon in preparing the Unaudited Condensed Consolidated Financial Statements include the determination of sales allowance and variable consideration in the Company’s revenue recognition, allowance for doubtful accounts, the impairment of long-lived assets, the capitalization of product, technology, and development costs for website development, internal-use software, and hosting arrangements, the valuation of acquired assets and liabilities, the valuation and recoverability of intangible assets and goodwill, the valuation of redeemable noncontrolling interest, the recoverability of the Company’s net deferred tax assets and related valuation allowance, the valuation of inventory, and the valuation of liability-classified compensation awards. Accordingly, the Company considers these to be its critical accounting estimates, and believes that of the Company’s significant accounting policies, these involve the greatest degree of judgment and complexity. For the three months ended March 31, 2024, there were no estimates related to the valuation of redeemable noncontrolling interest and the valuation of liability-classified compensation awards. Although no impairment was identified during the annual impairment test as of October 1, 2023, the excess of the fair value over the carrying value declined for the CarOffer reporting unit in the Digital Wholesale segment. If projected future operating results further decline, including as a result of economic conditions or operational challenges, the Company may need to record an impairment charge to reduce its goodwill at CarOffer, which could be material and negatively affect the Company's operations. During the three months ended March 31, 2024, the Company did not identify any triggering events that would require an interim impairment assessment.
Concentration of Credit Risk	Concentration of Credit Risk The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements. Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, cash equivalents, short-term investments, trade accounts receivable, and other receivables. The Company maintains its cash and cash equivalents principally with accredited financial institutions of high credit standing. Although the Company deposits its cash and cash equivalents with multiple financial institutions, its deposits with each such financial institution exceed governmental insured limits. The Company routinely assesses the creditworthiness of its customers and does not require collateral. The Company generally has not experienced any material losses related to receivables from individual customers or groups of customers. The Company has had no material losses related to marketplace receivables as it was dispersed across a large number of customers. The Company has had no material losses related to wholesale and product receivables as the third-party transaction processor does not release the title to the vehicle until successfully collecting funds from the buying dealer. Titling is handled by the Company's third-party transaction processor and titles are held in escrow until it collects funds from the buying dealer (i.e., title is legally transferred from the selling party to the buying party upon signing of bill of sale, but title is held in escrow by the third-party transaction processor until payment is received). Due to these factors, no additional credit risk beyond amounts provided for collection losses was believed by management to be probable in the Company’s accounts receivable and other receivables. As of March 31, 2024 and December 31, 2023, no customer accounted for more than 10 % of net accounts receivable and other receivables. All of accounts receivable was dispersed among more than 1,000 customers. Therefore, there is no significant credit risk with respect to accounts receivable because credit risk is dispersed due to the large number of customers. For the three months ended March 31, 2024 and 2023, no customer accounted for more than 10% of total revenue. The Company is exposed to credit losses primarily through its trade accounts receivable, which includes receivables in transit, net of payables due, from a third-party transaction processor. The third-party transaction processor collects customer payments on the Company's behalf and remits them to the Company. Customer payments received by the third-party transaction processor, but not remitted to the Company as of period end, are deemed to be receivables in transit, net of payables due. Additionally, the third-party transaction processor provides payments in advance for certain selling dealers. If the third-party transaction processor does not receive buying dealer payments associated with the transaction paid in advance, the Company would guarantee losses incurred by the third-party transaction processor and the balance would be deducted from future remittances to the Company. To date, losses associated with these guarantees have not been material. The Company offsets trade accounts receivables in transit, net of payables due, from the third-party transaction processor with payments received in advance from the third-party transaction processor as it has the right of offset. At any point in time, the Company could have amounts due from the third-party transaction processor for funds the third-party transaction processor has collected from buying dealers and has not yet remitted to the Company (i.e., receivables in transit, net of payables due), as well as amounts paid by the third-party transaction processor to the Company in advance of collecting payments from buying dealers (i.e., payments received in advance). Therefore, as the Company has the right to offset, the Company can either have a net receivable balance due from the third-party transaction processor which is recognized within accounts receivable, net in the Unaudited Condensed Consolidated Balance Sheets, or the Company can have a net liability which is recognized within accrued expenses, accrued income taxes, and other current liabilities in the Unaudited Condensed Consolidated Balance Sheets if the advance payments exceed the receivable position from the third-party transaction processor as of the balance sheet date. The change in payments received in advance from the third-party transaction processor is presented as cash flows from financing activities in the Unaudited Condensed Consolidated Statements of Cash Flows. As of March 31, 2024, trade accounts receivable from receivables in transit, net of payables due, from the third-party transaction processor was $ 3,916 , offset by payments received in advance of $ 1,541 , which resulted in a net receivable of $ 2,375 recognized within accounts receivable, net in the Unaudited Condensed Consolidated Balance Sheets. As of December 31, 2023 , trade accounts receivable from receivables in transit, net of payables due, from the third-party transaction processor was $ 2,868 , offset by payments received in advance of $ 2,015 , which resulted in a net receivable of $ 853 recognized within accounts receivable, net in the consolidated balance sheets. As of March 31, 2024 and December 31, 2023, $ 10,401 and $ 9,581 , respectively, was included in net accounts receivable, representing unbilled accounts receivable relating primarily to both advertising customers and dealers invoiced in the period subsequent to services rendered and revenue recognition adjustments for Company offered discounts given to dealers in accordance with ASC Topic 606, Revenue from Contracts with Customers ("ASC 606").
Significant Accounting Policies	Significant Accounting Policies The Unaudited Condensed Consolidated Financial Statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes to the Unaudited Condensed Consolidated Financial Statements. As of March 31, 2024 , there have been no material changes in the Company’s significant accounting policies, which are detailed in the Annual Report.
Recent Accounting Pronouncements Not Yet Adopted	Recent Accounting Pronouncements Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB or other standard setting bodies and adopted by the Company on or prior to the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption. As of March 31, 2024, there are no new accounting pronouncements that the Company is considering adopting, other than those described below. In December 2023 the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09") . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 addresses investor requests for enhanced income tax information primarily through changes to the rate reconciliation and income taxes paid information. Early adoption is permitted. A public entity should apply ASU 2023-09 prospectively to all annual periods beginning after December 15, 2024. The Company is currently evaluating the impact of ASU 2023-09 on its future consolidated financial statements and related disclosures. In November 2023 the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures ("ASU 2023-07"). ASU 2023-07 is intended to enhance disclosures for significant segment expenses for all public entities required to report segment information in accordance with ASC Topic 280, Segment Reporting ("ASC 280"). ASC 280 requires a public entity to report for each reportable segment a measure of segment profit or loss that its chief operating decision maker (“CODM”) uses to assess segment performance and to make decisions about resource allocations. ASU 2023-07 is intended to improve financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities to enable investors to develop more useful financial analyses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply ASU 2023-07 retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact of ASU 2023-07 on its future consolidated financial statements and related disclosures. In October 2023 the FASB issued ASU 2023-06, Disclosure Improvements – Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative ("ASU 2023-06"). ASU 2023-06 modifies the disclosure and presentation requirements for a variety of topics in the ASC. The Company is currently evaluating the impact of ASU 2023-06 on its future consolidated financial statements and related disclosures.
Earnings Per Share	The Company has two classes of common stock authorized: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share . Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time or automatically upon certain events described in the Company’s fourth amended and restated certificate of incorporation, including upon either the death or voluntary termination of the Company’s Executive Chair. The Company allocates undistributed earnings attributable to common stock between the common stock classes on a one‑to‑one basis when computing net income per share. As a result, basic and diluted net income per share of Class A common stock and per share of Class B common stock are equivalent.

Revenue Recognition (Tables)

Revenue Recognition (Tables)	3 Months Ended
	Mar. 31, 2024
Revenue from Contract with Customer [Abstract]
Summary of Revenue from Contracts with Customers by Services and Products	The following table summarizes revenue from contracts with customers by services and products for the three months ended March 31, 2024 and 2023: Three Months Ended 2024 2023 Marketplace $ 187,219 $ 167,127 Dealer-to-Dealer 18,499 28,705 Sell My Car - Instant Max Cash Offer 10,078 36,131 Total $ 215,796 $ 231,963

Fair Value of Financial Instr_2

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value Levels, Assets Measured at Fair Value on Recurring Basis	As of March 31, 2024 and December 31, 2023, assets measured at fair value on a recurring basis consist of the following: As of March 31, 2024 Quoted Prices Significant Other Significant Total Cash equivalents: Mutual funds $ 115,980 $ — $ — $ 115,980 Total $ 115,980 $ — $ — $ 115,980 As of December 31, 2023 Quoted Prices Significant Other Significant Total Cash equivalents: Mutual funds $ 73,449 $ — $ — $ 73,449 Short-term investments: Mutual funds $ 20,724 — — 20,724 Total $ 94,173 $ — $ — $ 94,173 For the three months ended March 31, 2024, dividend income recognized within interest income in the Unaudited Condensed Consolidated Income Statements was immaterial. For the three months ended March 31, 2023 , there was no dividend income as the Company did not hold any investments.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2024
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	As of March 31, 2024 and December 31, 2023, property and equipment, net consist of the following: As of As of Capitalized equipment $ 1,081 $ 1,326 Capitalized internal-use software 13,957 12,279 Capitalized website development 64,016 57,158 Furniture and fixtures 8,174 8,149 Leasehold improvements 23,336 23,308 Construction in progress 61,601 39,835 Finance lease right-of-use assets 254 288 172,419 142,343 Less accumulated depreciation and amortization ( 64,276 ) ( 58,973 ) Total $ 108,143 $ 83,370

Accrued Expenses, Accrued Inc_2

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Expenses, Accrued Income Taxes and Other Current Liabilities	As of March 31, 2024 and December 31, 2023, accrued expenses, accrued income taxes, and other current liabilities consist of the following: As of As of Accrued bonus $ 6,114 $ 15,247 Accrued repurchases of common stock, including excise taxes 5,897 1,584 Accrued income taxes 8,942 1,095 Other accrued expenses and other current liabilities 17,400 15,792 Total $ 38,353 $ 33,718

Stock-based Compensation and _2

Stock-based Compensation and Common Stock Share Repurchases (Tables)	3 Months Ended
	Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]
Summary of Stock-based Compensation Expense by Award Type	For the three months ended March 31, 2024 and 2023, stock-based compensation expense by award type and where the stock-based compensation expense was recognized in the Unaudited Condensed Consolidated Income Statements is as follows: Three Months Ended 2024 2023 Options $ 591 $ 614 Restricted Stock Units 15,231 14,363 Total $ 15,822 $ 14,977
Summary of Allocation of Stock-based Compensation Expense	Three Months Ended 2024 2023 Cost of revenue $ 231 $ 143 Sales and marketing expense 2,874 3,084 Product, technology, and development expense 5,977 6,289 General and administrative expense 6,740 5,461 Total $ 15,822 $ 14,977

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2024
Earnings Per Share [Abstract]
Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share	For the three months ended March 31, 2024 and 2023, a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows: Three Months Ended 2024 2023 Numerator: Consolidated net income $ 21,301 $ 11,866 Net loss attributable to redeemable noncontrolling interest — ( 4,266 ) Net income attributable to common stockholders — basic $ 21,301 $ 16,132 Net loss attributable to redeemable noncontrolling interest — ( 4,266 ) Net income attributable to common stockholders — diluted $ 21,301 $ 11,866 Denominator: Weighted-average number of shares of common stock used 107,174,812 115,358,475 Dilutive effect of share equivalents resulting from stock 215,891 229,679 Dilutive effect of share equivalents resulting from 1,241,456 327,583 Weighted-average number of shares of common stock 108,632,159 115,915,737 Net income per share attributable to common stockholders: Basic $ 0.20 $ 0.14 Diluted $ 0.20 $ 0.10
Schedule of Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Weighted-average Shares Outstanding	For the three months ended March 31, 2024 and 2023, potentially dilutive common stock equivalents that have been excluded from the calculation of diluted weighted-average shares outstanding as their effect would have been anti-dilutive are as follows: Three Months Ended 2024 2023 Stock options outstanding 537,981 560,027 Restricted stock units outstanding 1,178,036 3,207,191 For the three months ended March 31, 2024, there were no contingently issuable shares as a result of the acquisition of remaining minority equity interests in CarOffer .

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Summary of Segment Revenue, Income (Loss) and Depreciation and Amortization	For the three months ended March 31, 2024 and 2023, segment revenue, segment income (loss) from operations, and segment depreciation and amortization are as follows: Three Months Ended 2024 2023 Segment Revenue: U.S. Marketplace $ 172,988 $ 155,621 Digital Wholesale 28,577 64,836 Other 14,231 11,506 Total $ 215,796 $ 231,963 Three Months Ended 2024 2023 Segment Income (Loss) from Operations: U.S. Marketplace $ 34,217 $ 26,539 Digital Wholesale ( 10,340 ) ( 11,225 ) Other 2,407 ( 1,255 ) Total $ 26,284 $ 14,059 Three Months Ended 2024 2023 Segment Depreciation and Amortization: U.S. Marketplace $ 2,997 $ 2,740 Digital Wholesale 4,281 8,693 Other 203 143 Total $ 7,481 $ 11,576
Summary of Reconciliation Between Segment Income from Operations	For the three months ended March 31, 2024 and 2023, a reconciliation between total segment income from operations to consolidated income before income taxes is as follows: Three Months Ended 2024 2023 Total segment income from operations $ 26,284 $ 14,059 Total other income, net 3,401 4,338 Consolidated income before income taxes $ 29,685 $ 18,397
Summary of Assets by Segment	As of March 31, 2024 and December 31, 2023, segment assets are as follows: As of As of Segment Assets: U.S. Marketplace $ 603,315 $ 607,307 Digital Wholesale 214,553 258,458 Other 52,935 53,162 Total $ 870,803 $ 918,927
Summary of Revenue by Geographical Region	For the three months ended March 31, 2024 and 2023, revenue by geographical region is as follows: Three Months Ended 2024 2023 Revenue by Geographic Region: United States $ 201,565 $ 220,457 International 14,231 11,506 Total $ 215,796 $ 231,963

Organization and Business Des_2

Organization and Business Description - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of reportable segments	2	2

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended		12 Months Ended
	Mar. 31, 2024 USD ($) Customer	Mar. 31, 2023 Customer	Dec. 31, 2023 USD ($) Customer
Summary Of Significant Accounting Policies [Line Items]
Description of significant off-balance sheet risk	The Company has no significant off-balance sheet risk, such as foreign exchange contracts, option contracts, or other foreign hedging arrangements.
Accounts receivable, net	$ 44,298		$ 39,963
Trade Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Trade accounts receivable from receivables in transit, net of payables due, from the third-party payment processor	3,916		2,868
Receivables offset by payments received in advance	1,541		2,015
Accounts receivable, net	$ 2,375		853
Sales Revenue, Net | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of major customers | Customer	0	0
Net Accounts Receivable | Advertising Customers
Summary Of Significant Accounting Policies [Line Items]
Unbilled accounts receivable	$ 10,401		$ 9,581
Net Accounts Receivable | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of major customers | Customer	0		0
Net Accounts Receivable | Customer Concentration Risk | Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage	10%		10%
Minimum | Net Accounts Receivable | Customer Concentration Risk
Summary Of Significant Accounting Policies [Line Items]
Number of major customers | Customer	1,000		1,000

Revenue Recognition - Summary o

Revenue Recognition - Summary of Revenue from Contracts with Customers by Services and Products (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue	$ 215,796	$ 231,963
Marketplace
Disaggregation of Revenue [Line Items]
Revenue	187,219	167,127
Dealer-to-Dealer
Disaggregation of Revenue [Line Items]
Revenue	18,499	28,705
Sell My Car - Instant Max Cash Offer
Disaggregation of Revenue [Line Items]
Revenue	$ 10,078	$ 36,131

Revenue Recognition - Additiona

Revenue Recognition - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Performance obligation unsatisfied	$ 53,600
Revenue recognized	$ 21,322	$ 12,249

Fair Value of Financial Instr_3

Fair Value of Financial Instruments - Schedule of Fair Value Levels, Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment, Type [Extensible Enumeration]	Mutual Fund [Member]	Mutual Fund [Member]
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	$ 115,980	$ 73,449
Short-term investments		20,724
Total	115,980	94,173
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents:	115,980	73,449
Short-term investments		20,724
Total	$ 115,980	$ 94,173

Fair Value of Financial Instr_4

Fair Value of Financial Instruments - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value Disclosures [Abstract]
Investments	$ 0
Gain or loss investments in equity securities	0
Equity Securities, FV-NI	$ 0

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 172,419	$ 142,343
Less accumulated depreciation and amortization	(64,276)	(58,973)
Property and equipment, net	108,143	83,370
Capitalized Equipment
Property Plant And Equipment [Line Items]
Property and equipment, gross	1,081	1,326
Capitalized Internal-Use Software
Property Plant And Equipment [Line Items]
Property and equipment, gross	13,957	12,279
Capitalized Website Development
Property Plant And Equipment [Line Items]
Property and equipment, gross	64,016	57,158
Furniture and Fixtures
Property Plant And Equipment [Line Items]
Property and equipment, gross	8,174	8,149
Leasehold Improvements
Property Plant And Equipment [Line Items]
Property and equipment, gross	23,336	23,308
Construction in Progress
Property Plant And Equipment [Line Items]
Property and equipment, gross	61,601	39,835
Finance Lease Right-of-use Assets
Property Plant And Equipment [Line Items]
Property and equipment, gross	$ 254	$ 288

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Property, Plant and Equipment [Line Items]
Depreciation and amortization excluding amortization of intangible assets, capitalized hosting arrangements and impairments	$ 5,599	$ 4,042
Digital Wholesale
Property, Plant and Equipment [Line Items]
Impairments in capitalized website development costs	0	$ 175
Capitalized Website Development
Property, Plant and Equipment [Line Items]
Increase (decrease) in property and equipment	6,858
Construction in Progress
Property, Plant and Equipment [Line Items]
Increase (decrease) in property and equipment	$ 21,766

Accrued Expenses, Accrued Inc_3

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities - Schedule of Accrued Expenses, Accrued Income Taxes and Other Current Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Accrued Liabilities, Current [Abstract]
Accrued bonus	$ 6,114	$ 15,247
Accrued repurchases of common stock, including excise taxes	5,897	1,584
Accrued income taxes	8,942	1,095
Other accrued expenses and other current liabilities	17,400	15,792
Total	$ 38,353	$ 33,718

Accrued Expenses, Accrued Inc_4

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Payables and Accruals [Abstract]
Decrease in accrued bonus	$ 9,133
Increase in accrued repurchase of common stock	4,313
Increase in accured income taxes	$ 7,847

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)		3 Months Ended
	Sep. 26, 2022	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term debt outstanding		$ 0		$ 0
Line of credit facility maturity date		Sep. 26, 2027
Amortization of deferred financing costs		$ 129,000	$ 129,000
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility maximum borrowing amount	$ 400,000,000	390,373,000
Letter of credit facility		0		0
Line of credit facility increased in maximum borrowing capacity	$ 250,000,000
Increase in borrowing capacity equal to percentage of four quarter EBDITA	100%
Deferred financing costs		1,798,000		1,927,000
Amortization of deferred financing costs		129,000	$ 129,000
Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility unutilized commitment fee percentage	0.125%
Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit facility unutilized commitment fee percentage	0.175%
Letter of Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Letter of credit facility	$ 50,000,000	$ 9,627,000		$ 9,627,000

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) ft² Days	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($)
Commitments And Contingencies [Line Items]
Decrease in lease liability	$ 3,536
Operating lease, decrease in right-of-use asset due to re-measurement from lease amendment	3,536
Restricted cash	2,786		$ 2,563
Guarantee income	236	$ 614
Maximum potential amount of future payments required to make under guarantees	5,887		$ 10,158
1001 Boylston Street
Commitments And Contingencies [Line Items]
Contract commitments	26,285
Expected spend amount remaining for construction	$ 35,171
Area of land | ft²	225,428
Car Offer
Commitments And Contingencies [Line Items]
Guarantees, description	provides certain guarantees to dealers through products such as its 45-Day Guarantee and OfferGuard service offerings on the CarOffer platform, which are accounted for under ASC Topic 460, Guarantees.
Number of days guarantee period | Days	45

Stock-based Compensation and _3

Stock-based Compensation and Common Stock Share Repurchases - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended
	Nov. 07, 2023	Mar. 31, 2024	Mar. 31, 2023	Dec. 08, 2022
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Capitalized website development and internal-use software costs excluded from stock-based compensation expense		$ 1,827	$ 1,145
Share repurchase program effective date	Jan. 01, 2024
Share repurchase program expiration date	Dec. 31, 2024
Number of shares repurchased and retired		3,538,194	3,989,861
Share repurchased and retired, value		$ 81,067	$ 65,151
Share repurchased and retired at average cost price per share		$ 22.91	$ 16.33
Class A Common Stock | Maximum
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Aggregate share repurchase price	$ 250,000			$ 250,000
Remaining value of authorized shares repurchased		$ 168,933

Stock-based Compensation and _4

Stock-based Compensation and Common Stock Share Repurchases - Summary of Stock-based Compensation Expense by Award Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 15,822	$ 14,977
Employee Stock Option
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	591	614
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 15,231	$ 14,363

Stock-based Compensation and _5

Stock-based Compensation and Common Stock Share Repurchases - Summary of Allocation of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total	$ 15,822	$ 14,977
Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total	231	143
Sales and Marketing Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total	2,874	3,084
Product, Technology, and Development Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total	5,977	6,289
General and Administrative Expense
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Total	$ 6,740	$ 5,461

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details)	3 Months Ended
	Mar. 31, 2024 Vote shares	Mar. 31, 2023 shares
Earnings Per Share Basic [Line Items]
Conversion of stock, description	Each share of Class B common stock is convertible into one share of Class A common stock at the option of the holder at any time or automatically upon certain events described in the Company’s fourth amended and restated certificate of incorporation, including upon either the death or voluntary termination of the Company’s Executive Chair.
Undistributed earnings ratio used to calculate allocation to class of stock	100%
Class A Common Stock
Earnings Per Share Basic [Line Items]
Right to voting	one vote per share
Number of votes entitled to stockholders per share | Vote	1
Conversion of stock | shares	0	0
Class B Common Stock
Earnings Per Share Basic [Line Items]
Right to voting	ten votes per share
Number of votes entitled to stockholders per share | Vote	10
Class of share converted to another class	one share of Class A common stock
Conversion of stock | shares	1

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Consolidated net income	$ 21,301	$ 11,866
Net loss attributable to redeemable noncontrolling interest	0	(4,266)
Net income attributable to common stockholders - basic	21,301	16,132
Net loss attributable to redeemable noncontrolling interest		(4,266)
Net income attributable to common stockholders - diluted	$ 21,301	$ 11,866
Denominator:
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders — basic	107,174,812	115,358,475
Dilutive effect of share equivalents resulting from stock options	215,891	229,679
Dilutive effect of share equivalents resulting from unvested restricted stock units	1,241,456	327,583
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders — diluted	108,632,159	115,915,737
Net income per share attributable to common stockholders:
Basic	$ 0.2	$ 0.14
Diluted	$ 0.2	$ 0.1

Earnings Per Share - Schedule_2

Earnings Per Share - Schedule of Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Weighted-average Shares Outstanding (Details) - shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Options Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents excluded from calculation of diluted weighted-average shares outstanding	537,981	560,027
Restricted Stock Units Outstanding
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Potentially dilutive common stock equivalents excluded from calculation of diluted weighted-average shares outstanding	1,178,036	3,207,191

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Examination [Line Items]
Income tax provision (benefit)	$ 8,384	$ 6,531
Effective income tax rate	28.20%	28.80%
Statutory tax rate	21%	21%
Pillar Two Legislation
Income Tax Examination [Line Items]
Effective income tax rate	15%
Revenue Commissioners, Ireland | Foreign
Income Tax Examination [Line Items]
Open tax year	2018
Internal Revenue Service
Income Tax Examination [Line Items]
Open tax year	2019

Segment and Geographic Inform_3

Segment and Geographic Information - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Number of reportable segments	2	2

Segment and Geographic Inform_4

Segment and Geographic Information - Summary of Segment Revenue, Income (Loss) and Depreciation and Amortization (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting Information [Line Items]
Total Revenue	$ 215,796	$ 231,963
Income (Loss) from Operations	26,284	14,059
Depreciation and Amortization	7,481	11,576
U.S. Marketplace
Segment Reporting Information [Line Items]
Total Revenue	172,988	155,621
Income (Loss) from Operations	34,217	26,539
Depreciation and Amortization	2,997	2,740
Digital Wholesale
Segment Reporting Information [Line Items]
Total Revenue	28,577	64,836
Income (Loss) from Operations	(10,340)	(11,225)
Depreciation and Amortization	4,281	8,693
Other
Segment Reporting Information [Line Items]
Total Revenue	14,231	11,506
Income (Loss) from Operations	2,407	(1,255)
Depreciation and Amortization	$ 203	$ 143

Segment and Geographic Inform_5

Segment and Geographic Information - Summary of Reconciliation Between Segment Income from Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Segment Reporting [Abstract]
Total segment income from operations	$ 26,284	$ 14,059
Total other income, net	3,401	4,338
Income before income taxes	$ 29,685	$ 18,397

Segment and Geographic Inform_6

Segment and Geographic Information - Summary of Assets by Segment (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Segment Reporting Information [Line Items]
Total assets	$ 870,803	$ 918,927
U.S. Marketplace
Segment Reporting Information [Line Items]
Total assets	603,315	607,307
Digital Wholesale
Segment Reporting Information [Line Items]
Total assets	214,553	258,458
Other
Segment Reporting Information [Line Items]
Total assets	$ 52,935	$ 53,162

Segment and Geographic Inform_7

Segment and Geographic Information - Summary of Revenue by Geographical Region (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Revenue by Geographic Region:
Total Revenue	$ 215,796	$ 231,963
United States
Revenue by Geographic Region:
Total Revenue	201,565	220,457
International
Revenue by Geographic Region:
Total Revenue	$ 14,231	$ 11,506