v3.24.3
Segment and Geographic Information
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment and Geographic Information

13. Segment and Geographic Information

The Company has two reportable segments, U.S. Marketplace and Digital Wholesale. Segment information is presented in the same manner as the Company’s 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 primarily 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 and nine months ended September 30, 2023, Digital Wholesale segment 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 September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, segment revenue, segment income (loss) from operations, and segment depreciation and amortization are as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Segment Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

187,253

 

 

$

164,323

 

 

$

540,293

 

 

$

478,387

 

Digital Wholesale

 

 

27,339

 

 

 

41,510

 

 

 

79,441

 

 

 

175,133

 

Other

 

 

16,766

 

 

 

13,586

 

 

 

46,112

 

 

 

37,599

 

Total

 

$

231,358

 

 

$

219,419

 

 

$

665,846

 

 

$

691,119

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Segment Income (Loss) from Operations:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

50,410

 

 

$

33,285

 

 

$

126,670

 

 

$

84,443

 

Digital Wholesale

 

 

(25,317

)

 

$

(11,652

)

 

 

(173,815

)

 

$

(29,184

)

Other

 

 

2,341

 

 

$

1,462

 

 

 

7,279

 

 

$

(367

)

Total

 

$

27,434

 

 

$

23,095

 

 

$

(39,866

)

 

$

54,892

 

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Segment Depreciation and Amortization:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Marketplace

 

$

2,594

 

 

$

2,971

 

 

$

7,578

 

 

$

8,534

 

Digital Wholesale

 

 

2,286

 

 

 

9,334

 

 

 

10,003

 

 

 

26,728

 

Other

 

 

298

 

 

 

165

 

 

 

741

 

 

 

451

 

Total

 

$

5,178

 

 

$

12,470

 

 

$

18,322

 

 

$

35,713

 

For the three months ended September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, a reconciliation between total segment income (loss) from operations to consolidated income (loss) before income taxes is as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Total segment income (loss) from operations

 

$

27,434

 

 

$

23,095

 

 

$

(39,866

)

 

$

54,892

 

Total other income, net

 

 

2,623

 

 

 

4,167

 

 

 

9,185

 

 

 

13,185

 

Consolidated income (loss) before income taxes

 

$

30,057

 

 

$

27,262

 

 

$

(30,681

)

 

$

68,077

 

As of September 30, 2024 and December 31, 2023, segment assets are as follows:

 

 

 

As of
September 30,
2024

 

 

As of
December 31,
2023

 

Segment Assets:

 

 

 

 

 

 

U.S. Marketplace

 

$

615,771

 

 

$

607,307

 

Digital Wholesale

 

 

118,839

 

 

 

258,458

 

Other

 

 

43,551

 

 

 

53,162

 

Total

 

$

778,161

 

 

$

918,927

 

 

Digital Wholesale segment assets decreased $139,619, due primarily to goodwill and other asset impairments. As of September 30, 2024, the Company recognized a $127,475 CarOffer reporting unit impairment and a $16,776 CG Buy Online reporting unit impairment due to the end of the CG Buy Online pilot. For further discussion of goodwill and other asset impairments, see Note 6 of the Unaudited Condensed Consolidated Financial Statements.

 

For the three months ended September 30, 2024 and 2023 and for the nine months ended September 30, 2024 and 2023, revenue by geographical region is as follows:

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Revenue by Geographic Region:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

214,592

 

 

$

205,833

 

 

$

619,734

 

 

$

653,520

 

International

 

 

16,766

 

 

 

13,586

 

 

 

46,112

 

 

 

37,599

 

Total

 

$

231,358

 

 

$

219,419

 

 

$

665,846

 

 

$

691,119