CarGurus Inc (CARG) 2023 Q4 法說會逐字稿

Greetings and welcome to CarGurus fourth-quarter and full year 2023 earnings results conference. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 CarGurus 第四季和 2023 年全年財報發表會。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce you to your host, Kirndeep Singh, Head of Investor Relations. Thank you, Kirndeep. You may begin.

現在我很高興向您介紹東道主投資者關係主管 Kirndeep Singh。謝謝你，基恩迪普。你可以開始了。

Thank you, operator. Good afternoon. I'm delighted to welcome you to CarGurus fourth-quarter and full year 2023 earnings call. With me on the call today are Jason Trevisan, Chief Executive Officer; Sam Zales, President and Chief Operating Officer; and Elisa Palazzo, Chief Financial Officer.

謝謝你，接線生。午安.我很高興歡迎您參加 CarGurus 第四季和 2023 年全年財報電話會議。今天與我一起參加電話會議的是執行長 Jason Trevisan； Sam Zales，總裁兼營運長；和財務長 Elisa Palazzo。

During the call, we will be making forward-looking statements which are based on our current expectations and beliefs. These statements are subject to risks and uncertainties which could cause our actual results to differ materially from those reflected in such statements. Information concerning those risks and uncertainties is discussed in our SEC filings, which can be found on the SEC's website and in the investor relations section of our website. We undertake no obligation to update or revise forward-looking statements except as required by law.

在電話會議期間，我們將根據我們目前的期望和信念做出前瞻性聲明。這些陳述存在風險和不確定性，可能導致我們的實際結果與此類陳述中反映的結果有重大差異。有關這些風險和不確定性的資訊在我們向 SEC 提交的文件中進行了討論，這些文件可以在 SEC 網站和我們網站的投資者關係部分找到。除法律要求外，我們不承擔更新或修改前瞻性聲明的義務。

Further, during the course of our call today, we will refer to certain non-GAAP financial measures. A reconciliation of GAAP to comparable non-GAAP measures is included in our press release issued today, as well as in our updated investor presentation, which can be found on the Investor Relations section of our website. We believe that these non-GAAP financial measures provide useful information about our operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency as it relates to metrics used by our management in their financial and operational decision-making.

此外，在今天的電話會議中，我們將提及某些非公認會計準則財務指標。我們今天發布的新聞稿以及更新的投資者介紹中包含了 GAAP 與可比較的非 GAAP 衡量標準的調節，您可以在我們網站的投資者關係部分找到這些資訊。我們相信，這些非公認會計準則財務指標提供了有關我們經營業績的有用信息，增強了對過去財務業績和未來前景的整體了解，並提高了透明度，因為它與我們管理層在財務和運營決策中使用的指標相關。製作。

With that, I'll now turn the call over to Jason.

這樣，我現在將把電話轉給傑森。

Thank you, Kirndeep, and thank you to all those joining us today. As I shared at the beginning of last year, the theme of 2023 was monetization across our platform, and I'm pleased to report that we delivered outstanding results. Throughout the year, we expanded our product offering to enrich our value proposition and meet dealers' and consumers' evolving needs. This further strengthened our partnership with dealers and drove accelerating revenue growth in our foundational listings business.

謝謝你，基恩迪普，也謝謝今天加入我們的所有人。正如我去年初分享的那樣，2023 年的主題是整個平台的貨幣化，我很高興地報告，我們取得了出色的成果。在這一年中，我們擴大了產品範圍，以豐富我們的價值主張並滿足經銷商和消費者不斷變化的需求。這進一步加強了我們與經銷商的合作夥伴關係，並推動了我們基礎掛牌業務收入的加速成長。

While smaller in size, the international operations also contributed to the strength of our results. Revenue growth accelerated in Canada, and we achieved profitability in the UK, marking a significant milestone for car gurus achieving profitability in every market.

雖然規模較小，但國際業務也為我們的業績做出了貢獻。加拿大的營收成長加速，我們在英國實現了獲利，這標誌著汽車巨頭在每個市場中獲利的重要里程碑。

In December, we completed the acquisition of CarOffer, which will allow us to accelerate the connectivity between our retail and wholesale product offerings. This acquisition, coupled with our digital retail efforts, has expanded and diversified the range of monetizable transaction activities that holistically serve our dealer partners. Collectively, we believe that the expansion of product offerings, ongoing innovation, and data-driven insights fortify our ability to attract new dealer customers, increase the wallet share of the existing customer base, and progress toward our ultimate vision of an end-to-end transaction-enabled platform. As a result of our tremendous progress, I'm pleased to share that we ended the year exceeding our forecasted EBITDA guidance for the fourth quarter.

12 月，我們完成了對 CarOffer 的收購，這將使我們能夠加速零售和批發產品之間的連接。此次收購，加上我們的數位零售努力，擴大了可貨幣化交易活動的範圍並使其多樣化，為我們的經銷商合作夥伴提供全面服務。總的來說，我們相信，產品供應的擴展、持續的創新和數據驅動的洞察將增強我們吸引新經銷商客戶的能力，增加現有客戶群的錢包份額，並朝著我們端到端的最終願景邁進。終端交易支援平台。由於我們取得了巨大的進步，我很高興地告訴大家，我們今年結束時超出了我們對第四季度 EBITDA 的預測指導。

In 2023, the marketplace business significantly outperformed our expectations, exiting the year with approximately 10% revenue growth and meaningfully contributing to our EBITDA beat. In the challenging environment for our customers, characterized by weak consumer demand, lack of affordability, and heightened expenses linked to floor plan financing, our foundational listings business exhibited remarkable resiliency, pricing power, and growth acceleration. In fact, we ended the year growing US QARSD approximately 12% year over year to $6,532. This is our strongest year-over-year growth on record since introducing QARSD as a KPI excluding pandemic-related concessions and marks the 13th consecutive quarter of increase.

2023 年，市場業務的表現顯著超出了我們的預期，以約 10% 的收入成長結束了這一年，為我們的 EBITDA 成長做出了有意義的貢獻。在我們的客戶面臨的充滿挑戰的環境中，其特點是消費者需求疲軟、負擔能力不足以及與平面圖融資相關的費用增加，我們的基礎房源業務表現出顯著的彈性、定價能力和增長加速。事實上，年底我們的 US QARSD 年成長約 12%，達到 6,532 美元。這是自引入 QARSD 作為 KPI（不包括大流行相關優惠）以來我們有史以來最強勁的同比增長，並且標誌著連續 13 個季度增長。

In the fourth quarter, the largest drivers of QARSD growth came from adding on new dealers at market rates, package upgrades, and price increases. We also experienced robust adoption of add-on products and multi-product attach rates increased by 36% year over year as dealers continue to look for additional channels to attract high-intent, ready-to-purchase shoppers to their inventory. By providing dealers with greater value in our product offerings and simultaneously growing leads per paying dealer year over year, in Q4 we experienced the strongest MRR acquisition in 10 quarters.

第四季度，QARSD 成長的最大推動力來自於以市場價格增加新經銷商、套餐升級和價格上漲。我們也經歷了附加產品的強勁採用，並且隨著經銷商繼續尋找其他管道來吸引有意向、準備購買的購物者進入其庫存，多產品附加率同比增長了 36%。透過為經銷商提供更大的產品價值，同時每個付費經銷商的銷售線索逐年增長，我們在第四季度經歷了 10 個季度以來最強勁的 MRR 收購。

Evaluating the marketplace strategy for 2024, our approach consists of two key aspects. As we highlighted on the last earnings call, our number one priority is optimizing all drivers of QARSD. This commitment includes adding new dealers at market rates, expansion of existing dealer wallet share through listings upgrades, product innovation, and adoption, and lead quantity and quality. This commitment will allow us to deepen the value we provide our dealers and drive increased monetization.

在評估 2024 年的市場策略時，我們的方法包括兩個關鍵面向。正如我們在上次財報電話會議上所強調的那樣，我們的首要任務是優化 QARSD 的所有驅動因素。這項承諾包括以市場價格增加新經銷商、透過名單升級、產品創新和採用以及潛在客戶數量和品質來擴大現有經銷商的錢包份額。這項承諾將使我們能夠深化為經銷商提供的價值並推動貨幣化的成長。

Secondly, our renewal strategy involves evaluating dealers and executing renewals to align terms with the ROI we provide, simultaneously exploring new product cross-sell and up-sell opportunities as we enhance the value proposition of our premium packages. For underpriced dealers that fall below market rates, we will conduct ABRs leveraging their proven success in 2023 as dealers recognize the ROI of our platform.

其次，我們的續訂策略包括評估經銷商並執行續訂，以使條款與我們提供的投資回報率保持一致，同時探索新產品交叉銷售和追加銷售機會，同時增強我們的優質套餐的價值主張。對於價格低於市場價格的低價經銷商，我們將利用他們在 2023 年取得的成功經驗進行 ABR，因為經銷商認識到我們平台的投資報酬率。

Throughout 2023 and carrying forward into 2024, we have invested in our QARSD lever of product innovation aimed at fostering enhanced value creation and strengthening dealer engagement throughout our platform. This commitment to innovation involves leveraging the power of artificial intelligence and data insights to elevate our platform and introducing new products to further enhance the ROI for our customers.

從 2023 年到 2024 年，我們對 QARSD 產品創新槓桿進行了投資，旨在促進整個平台的價值創造並加強經銷商參與度。這種對創新的承諾涉及利用人工智慧和數據洞察的力量來提升我們的平台並推出新產品以進一步提高客戶的投資回報率。

Our strategic emphasis on AI centers around three key areas, internal platform efficiencies, elevating the consumer experience, and delivering actionable insights for our dealers. In relation to the first two key areas, our latest development is a listing content generator. This tool produces an easily digestible list of vehicle features and streamlines the consumer experience by making it easier to locate keywords and features of relevance during the vehicle shopping journey.

我們對人工智慧的策略重點圍繞著三個關鍵領域：內部平台效率、提升消費者體驗以及為我們的經銷商提供可行的見解。關於前兩個關鍵領域，我們最新的開發是清單內容產生器。該工具可產生易於理解的車輛功能列表，並透過在車輛購買過程中更輕鬆地找到相關關鍵字和功能來簡化消費者體驗。

As for greater data insights, we continue to focus on our dealer data insights initiative. Last October, we released Next Best Deal Rating, a powerful report that helps dealers understand the least amount of price reduction needed to achieve the next best deal rating on CarGurus.

至於更深入的數據洞察，我們繼續關注經銷商數據洞察計劃。去年 10 月，我們發布了下一個最佳交易評級，這是一份功能強大的報告，可幫助經銷商了解在 CarGurus 上實現下一個最佳交易評級所需的最少降價量。

Since launching in October, we have already signed up over 10% of our dealers for daily or weekly reports to support their price analysis to improve VDP views and inventory turn times. In under three months, over 100,000 price adjustments were made as a result of the insights provided by Next Best Deal Rating.

自 10 月推出以來，我們已經與超過 10% 的經銷商簽訂了每日或每週報告，以支持他們的價格分析，從而改善 VDP 視圖和庫存週轉時間。在不到三個月的時間裡，根據 Next Best Deal Rating 提供的見解，進行了超過 100,000 次價格調整。

We've also developed yet another powerful tool that recommends inventory based on a dealer's turn time objectives. This early access tool allows each dealer to set a specific turn time goal, and we utilize the CarGurus listing scale to analyze turn time trends at a detailed level in local and adjacent markets. Additionally, we will leverage CarGurus site data to examine consumer trends or seeing changes in preferences as we look ahead.

我們還開發了另一個強大的工具，可以根據經銷商的周轉時間目標推薦庫存。這種早期存取工具可讓每個經銷商設定特定的周轉時間目標，我們利用 CarGurus 清單規模來詳細分析本地和鄰近市場的周轉時間趨勢。此外，我們將利用 CarGurus 網站資料來研究消費者趨勢或在展望未來時了解偏好的變化。

By combining consumer and inventory data, we generate personalized reports for dealers, predicting vehicles that align with their turn time objectives. Our aim is for dealers to integrate these insights into their wholesale strategies, optimizing operations and achieving their goals while fostering synergies with our CarOffer wholesale business.

透過結合消費者和庫存數據，我們為經銷商產生個人化報告，預測符合其周轉時間目標的車輛。我們的目標是讓經銷商將這些見解整合到他們的批發策略中，優化營運並實現他們的目標，同時促進與我們的 CarOffer 批發業務的協同效應。

As we develop an end-to-end transaction enabled platform, we're a leading provider of real time retail and wholesale insights, empowering dealers' decision making and helping them run a smarter business.

隨著我們開發端到端交易支援平台，我們成為即時零售和批發洞察的領先供應商，幫助經銷商決策並幫助他們經營更聰明的業務。

As we merge retail with wholesale from a product development perspective, we're able to offer dealers even more ways to access consumer inventory and give consumers even more choice in how they sell their vehicles. Sell My Car presents consumers with two types of offers, a 100% online offer as well as offers from local dealers known as top dealer offers.

當我們從產品開發的角度將零售與批發合併時，我們能夠為經銷商提供更多獲取消費者庫存的方式，並為消費者提供更多銷售車輛的選擇。Sell My Car 向消費者提供兩種類型的折扣：100% 線上優惠以及來自當地經銷商的折扣（稱為頂級經銷商優惠）。

Since launching top dealer offers, we have seen conversion rates more than double as consumers value the ability to choose how they sell their vehicle. The primary focus during this early access phase is to guarantee an outstanding customer experience while also catering to the needs of our dealer partners. While we have achieved remarkably high seller net promoter scores, we aim to uphold the quality of the offering as it expands. To achieve this, we are testing with select dealers an intake tool designed to establish trust between consumers and dealers while providing us with a valuable feedback loop of real-time insights for each transaction. The goal is to further scale top dealer offers in 2024, and as an added benefit, top dealer offers is powered by CarOffer's matrix technology, creating inherent synergies by introducing CarGurus dealers to the CarOffer wholesale platform.

自從推出頂級經銷商優惠以來，我們看到轉換率增加了一倍多，因為消費者重視選擇如何銷售車輛的能力。早期訪問階段的主要重點是確保出色的客戶體驗，同時滿足我們經銷商合作夥伴的需求。雖然我們取得了非常高的賣家淨推薦值，但我們的目標是在產品擴展的同時保持產品的品質。為了實現這一目標，我們正在與選定的經銷商一起測試一種吸收工具，旨在建立消費者和經銷商之間的信任，同時為我們提供每筆交易的即時洞察的寶貴反饋循環。我們的目標是在 2024 年進一步擴大頂級經銷商的報價，作為額外的好處，頂級經銷商的報價由 CarOffer 的矩陣技術提供支持，透過將 CarGurus 經銷商引入 CarOffer 批發平台來創造固有的協同效應。

In 2021, we chose to acquire a stake in CarOffer as it stood as a unique offering, enabling dealers to efficiently buy and sell wholesale inventory programmatically. This decision was driven by our vision to build a distinctive end-to-end wholesale-to-retail transaction-enabled platform that is unavailable elsewhere. Our enthusiasm for this opportunity is greater than ever since accelerating the acquisition and appointing Zach Hallowell as CEO. Our platform is ideal for large players who continue to find programmatic buying to be an efficient and effective way to source and sell inventory.

2021 年，我們選擇收購 CarOffer 的股份，因為它是一項獨特的產品，使經銷商能夠以程式設計方式有效地買賣批發庫存。這項決定是由我們的願景所推動的，即建立一個獨特的端到端批發到零售交易平台，這是其他地方無法提供的。自從加速收購並任命 Zach Hallowell 擔任執行長以來，我們對這一機會的熱情比以往任何時候都更加強烈。我們的平台非常適合那些持續發現程序化購買是一種高效且有效的採購和銷售庫存方式的大型企業。

In 2024, our primary focus lies in refining the product capabilities, advancing the CarOffer technology through predictive analytics, and incorporating CarGurus consumer and retail data to further differentiate our platform.

2024 年，我們的主要重點在於完善產品功能，透過預測分析來推進 CarOffer 技術，並整合 CarGurus 消費者和零售數據以進一步差異化我們的平台。

Despite the tremendous advancements in CarOffer's operational efficiency over the past year, particularly in mechanical inspections, title transfers, and transportation, we will look to enhance our capabilities even further to optimize the dealer experience and drive cost efficiencies. We plan to use the next few quarters to drive our strategic and operational initiatives while applying financial discipline to strengthen our business, and it may take several quarters before the business returns to profitable growth.

儘管過去一年 CarOffer 的營運效率取得了巨大進步，特別是在機械檢查、所有權轉讓和運輸方面，但我們仍將尋求進一步增強我們的能力，以優化經銷商體驗並提高成本效率。我們計劃利用接下來的幾個季度來推動我們的策略和營運計劃，同時運用財務紀律來加強我們的業務，並且業務可能需要幾個季度才能恢復獲利成長。

Similar to advancing our digital wholesale capabilities, we have also been investing strategically in building our digital retail platform, where our products allow dealers to serve a broad array of consumers with varying degrees of readiness to purchase their cars.

與提升我們的數位批發能力類似，我們也一直在策略性投資建立我們的數位零售平台，我們的產品使經銷商能夠為廣大消費者提供不同程度的汽車購買準備服務。

Since beginning our journey, we have developed two product offerings. The first is Digital Deal. As of year-end, we had 4,667 dealers on Digital Deal, growing approximately 200% year over year, and nearly doubling our digitally enabled vehicle listings to approximately 400,000. A component of the accelerated sequential growth is the unique bundling and packaging opportunities we have created with the two highest listing tiers. As of October, dealers upgrading to the Featured Plus or Featured Priority Plus listings tiers receive Digital Deal included in their package.

自從開始我們的旅程以來，我們開發了兩種產品。第一個是數位交易。截至年底，我們在 Digital Deal 上擁有 4,667 家經銷商，年增約 200%，我們的數位化車輛清單幾乎翻了一番，達到約 40 萬輛。加速連續成長的一個組成部分是我們透過兩個最高的清單層創造的獨特的捆綁和包裝機會。從 10 月開始，升級到「精選+」或「精選優先+」清單等級的經銷商將收到包含在其套餐中的數位優惠。

Another product that has performed well from a bundling and packaging standpoint is Digital Deal with Geographic Expansion. In bundling Digital Deal and Geographic Expansion, we have seen an approximately 30% increase in adoption year over year. With more digitally enabled listings available than any other online retailer, we are providing consumers with a convenient, self-selective purchasing journey, all while providing trust, transparency, and the best pricing from the largest selection of inventory among major online automotive marketplaces in the US.

從捆綁和包裝的角度來看，另一個表現良好的產品是具有地理擴展的數位交易。透過將數位交易和地理擴張捆綁在一起，我們發現採用率比去年同期增長了約 30%。與任何其他線上零售商相比，我們擁有更多的數位化列表，為消費者提供便利、自主選擇的購買之旅，同時提供信任、透明度，並從全球主要線上汽車市場中最大的庫存選擇中提供最佳定價。我們。

As consumers look to do more of the shopping journey at home, we are seeing digitally enabled leads continue to increase as a percentage of a dealer's overall leads. Digital Deal leads now account for 20% of a dealer's email leads, or 30% for top-performing dealers, and are up to five times more likely to close than traditional email leads.

隨著消費者希望在家中完成更多的購物旅程，我們發現數位化潛在客戶佔經銷商整體潛在客戶的百分比持續增加。目前，數位交易線索佔經銷商電子郵件線索的 20%，對於表現最佳的經銷商而言，這一比例為 30%，且成交可能性比傳統電子郵件線索高出五倍。

Our second offering in digital retail further advances our digitally native transaction capabilities, and is formally known as CG Buy Online. This pilot is an asset-light, end-to-end solution that empowers dealers to sell cars to out-of-market shoppers entirely online, and boost online sales by providing dealers with the marketing, technology, and logistics needed to support these transactions. We are currently live with a small subset of dealers, and our goal in 2024 is to collaborate closely with pilot dealers, further validating the product market fit, and developing an outstanding experience for both consumers and dealers alike. Through our digital retail initiatives, we aim to equip dealerships with a broad range of tools and capabilities, enabling them to effectively compete and streamline vehicle sales to digitally-savvy or out-of-market shoppers.

我們在數位零售領域的第二個產品進一步提高了我們的數位原生交易能力，正式名稱為 CG Buy Online。該試點是一種輕資產、端到端解決方案，使經銷商能夠完全在線向市場外購物者銷售汽車，並透過為經銷商提供支援這些交易所需的行銷、技術和物流來促進線上銷售。目前，我們正在與一小部分經銷商合作，我們的目標是在 2024 年與試點經銷商密切合作，進一步驗證產品的市場契合度，並為消費者和經銷商提供卓越的體驗。透過我們的數位零售計劃，我們的目標是為經銷商配備廣泛的工具和能力，使他們能夠有效競爭並簡化對精通數位或市場外購物者的汽車銷售。

In a landscape where consumers increasingly opt for online channels in their car-buying and selling journey, it's essential to convey to shoppers that our platform is specifically designed to meet their needs, giving them the flexibility to handle as much or as little as they prefer online.

在消費者越來越多地選擇在線渠道購買和銷售汽車的情況下，必須向購物者傳達我們的平台是專門為滿足他們的需求而設計的，讓他們能夠靈活地處理他們喜歡的數量在線的。

As we progress further down the sales funnel and guide consumers toward completing transactions entirely online, a task that requires a considerable amount of trust when sharing sensitive personal information, it becomes crucial to amplify our brand awareness. In pursuit of this objective, we kicked off an extension of our 2023 campaign called Your Car, Your Way in January, spotlighting the gratifying experience of everything falling into place just as desired.

隨著我們進一步深入銷售管道並引導消費者完全在線完成交易（這項任務在共享敏感個人資訊時需要相當大的信任），擴大我們的品牌知名度變得至關重要。為了實現這一目標，我們於 1 月啟動了 2023 年活動的延伸活動，名為“Your Car, Your Way”，重點關註一切按預期順利進行的令人滿意的體驗。

As we persist in our efforts to drive direct and own-channel traffic, we've placed a strong emphasis on enhancing brand awareness. Notably, CarGurus ended 2023 as the number one automotive app in terms of downloads on both iOS and Android, with an average rating of 4.8 stars. This achievement represents a significant milestone for us, considering that our app plays a crucial role as a source of organic traffic that converts at a higher rate than traditional leads. Our app accounted for a quarter of leads in 2023, growing from only 10% in 2020. As we drive more organic traffic and amplify our brand, we are building a platform that creates consumer loyalty.

在我們堅持努力推動直接和自有通路流量的同時，我們非常重視提高品牌知名度。值得注意的是，CarGurus 在 2023 年底成為 iOS 和 Android 上下載量第一的汽車應用程序，平均評分為 4.8 顆星。這項成就對我們來說是一個重要的里程碑，因為我們的應用程式作為有機流量來源發揮著至關重要的作用，其轉換率比傳統潛在客戶更高。到 2023 年，我們的應用程式佔據了四分之一的銷售線索，而 2020 年僅佔 10%。隨著我們推動更多的自然流量並擴大我們的品牌，我們正在建立一個可以提高消費者忠誠度的平台。

In 2023, our accomplishments strengthened our market and product leadership, reaccelerated revenue growth, and drove significant progress toward our vision of being the only end-to-end automotive transaction-enabled platform where dealers can source, market, and sell, and consumers can shop, finance, buy, and sell vehicles.

到2023 年，我們的成就加強了我們的市場和產品領導地位，重新加速了收入成長，並推動我們的願景取得重大進展，即成為經銷商可以採購、行銷和銷售、消費者可以進行採購、行銷和銷售的唯一端到端汽車交易平台。購物、融資、購買和銷售車輛。

Looking ahead to 2024, we expect a further build on this momentum. We're very excited about our areas of opportunity, including capturing more value in the marketplace business, integrating and expanding CarOffer while increasing our share of the growing digital wholesale market, and continuing to invest in innovative growth initiatives such as digital retail. Through it all, we plan to offer our dealer customers even greater insights and value by linking the wholesale and retail process together in one seamless platform.

展望 2024 年，我們預計這一勢頭將進一步發展。我們對我們的機會領域感到非常興奮，包括在市場業務中獲取更多價值，整合和擴展 CarOffer，同時增加我們在不斷增長的數位批發市場的份額，以及繼續投資於數位零售等創新增長計劃。透過這一切，我們計劃透過在一個無縫平台上將批發和零售流程連接在一起，為經銷商客戶提供更大的見解和價值。

While we will continue to invest in our business, we do so by maintaining financial discipline and prioritizing operational excellence and efficient capital allocation. We believe this will allow us to enhance our profitability and create shareholder value as we continue to expand in both existing and new growth opportunities. We're very pleased with our 2023 accomplishments and financial results, and we look forward to accelerating our momentum in 2024.

雖然我們將繼續投資於我們的業務，但我們將透過維持財務紀律並優先考慮卓越營運和高效資本配置來實現這一目標。我們相信，隨著我們繼續擴大現有和新的成長機會，這將使我們能夠提高獲利能力並創造股東價值。我們對 2023 年的成就和財務表現感到非常滿意，並期待在 2024 年加速我們的發展勢頭。

And now, let me turn it over to Elisa to discuss our financial results.

現在，讓我將其交給 Elisa 來討論我們的財務表現。

Thank you, Jason, and good afternoon, everyone. Before I dive into the fourth-quarter results, I would like to express my excitement about joining CarGurus. Our marketplace business is a unique asset with the largest network of dealers and the broadest selection of inventory in the US, unrivaled product innovation, and ROI leadership. It represents an enviable foundation to build a digital platform that captures the full life cycle of a vehicle transaction. And joining the company at a pivotal moment in its growth journey is our highly profitable listings business re-accelerates, and we continue to enhance and integrate existing and new transaction capabilities and product features. We are in the early innings of building our vision and unlocking what we believe to be the full potential of our franchise.

謝謝傑森，大家下午好。在深入了解第四季度業績之前，我想先表達一下我對加入 CarGurus 的興奮之情。我們的市場業務是一項獨特的資產，擁有美國最大的經銷商網路和最廣泛的庫存選擇、無與倫比的產品創新和投資回報率領先地位。它為構建捕獲車輛交易的整個生命週期的數位平台奠定了令人羨慕的基礎。在公司成長歷程的關鍵時刻加入公司，是我們高利潤的上市業務重新加速，我們不斷增強和整合現有和新的交易能力和產品功能。我們正處於建立願景和釋放我們認為的特許經營全部潛力的早期階段。

I will now turn to our results. Since our business mix has changed substantially versus last year, in my commentary, I will highlight both year over year and sequential trends.

我現在談談我們的結果。由於我們的業務組合與去年相比發生了很大變化，因此在我的評論中，我將重點放在同比和連續趨勢。

We experienced exceptional momentum in our marketplace business, which continued to accelerate and achieve the fastest year-over-year revenue growth rate in nearly three years, while we continued to gain leverage in our cost base and expanded our non-GAAP margins across all our business segments and geographies. As the CarOffer transaction closed and we now have full control of the assets, we plan to focus on achieving operational efficiency and maintaining financial discipline as we look to return the business to profitability. While we expect this process to take several quarters, we are encouraged by the operational progress to date.

我們的市場業務經歷了非凡的發展勢頭，繼續加速並實現了近三年來最快的同比收入增長率，同時我們繼續提高成本基礎的槓桿作用，並擴大了我們所有業務的非公認會計準則利潤率。業務部門和地區。隨著 CarOffer 交易的完成，我們現在已經完全控制了資產，我們計劃專注於實現營運效率和維持財務紀律，以期使業務恢復盈利。雖然我們預計這一過程需要幾個季度的時間，但迄今為止的營運進展令我們感到鼓舞。

Total fourth quarter revenue was $223 million, down 22% year over year, driven by lower wholesale and product revenue, and up 2% sequentially as we continue to expand our monthly recurring revenue base. Marketplace revenue was $182 million for the fourth quarter, up approximately 10% year over year and 2% sequentially, driven by the largest quarterly expansion in MRR in 10 quarters, as well as stable advertising revenue.

由於批發和產品收入下降，第四季總收入為 2.23 億美元，年減 22%，隨著我們繼續擴大每月經常性收入基礎，季增 2%。第四季市場營收為 1.82 億美元，年成長約 10%，環比成長 2%，這得益於 10 個季度以來最大的 MRR 季度擴張以及穩定的廣告收入。

Consolidated [car FID] drew 12% year over year, driven primarily by the addition of new active dealers at current market rates and existing dealers migrating to higher subscription tiers. In the fourth quarter, our listings business added approximately $17 million year over year in revenue, nearly twice as much as the average quarterly expansion we achieved in nearly three years.

綜合[汽車 FID] 年成長 12%，主要是由於以當前市場價格增加新的活躍經銷商以及現有經銷商轉向更高的訂閱等級。第四季度，我們的上市業務收入年增約 1700 萬美元，幾乎是我們近三年來平均季度擴張的兩倍。

Wholesale revenue was $22 million for the fourth quarter, down 7% year over year and up 1% sequentially, driven by a modest increase in dealer-to-dealer transaction volume. In the fourth quarter, we continue to prioritize operational improvement, while overall market conditions remain muted as wholesale prices are on a path to normalization, but remain elevated.

第四季批發收入為 2,200 萬美元，年減 7%，較上季成長 1%，主要得益於經銷商間交易量的小幅成長。在第四季度，我們繼續優先考慮改善運營，而整體市場狀況仍然低迷，因為批發價格正在走向正常化，但仍處於較高水平。

Lastly, product revenue was $19 million for the fourth quarter, down 81% year over year and down 5% sequentially, reflecting our decision to continue limiting transaction volume and lower ASPs, as well as meaningfully reduced arbitration revenue.

最後，第四季產品營收為 1,900 萬美元，年減 81%，季減 5%，反映出我們決定繼續限制交易量和降低平均售價，並大幅減少仲裁收入。

Instant Max Cash Offer, our consumer-to-dealer product, generated $16 million in revenue in the fourth quarter, down 78% year over year and 12% sequentially, as a growing number of dealers continue to opt-in for our highly profitable, subscription-based product, Top Dealer Offers.

我們的消費者對經銷商產品 Instant Max Cash Offer 在第四季度創造了 1,600 萬美元的收入，年減 78%，環比下降 12%，因為越來越多的經銷商繼續選擇我們的高利潤、基於訂閱的產品，頂級經銷商優惠。

I will now discuss our expenses and profitability on a non-GAAP basis. Fourth-quarter consolidated non-GAAP gross margin was 78%, compared to 50% in the prior year quarter and 77% in the third quarter. The meaningful expansion in non-GAAP gross margin was due to the shift in revenue mix towards our high-margin marketplace business, which represented 82% of our revenue in the fourth quarter, up from 58% in the prior year and 81% in the third quarter.

我現在將討論我們在非公認會計準則基礎上的費用和獲利能力。第四季綜合非公認會計準則毛利率為 78%，去年同期為 50%，第三季為 77%。非 GAAP 毛利率的顯著增長是由於收入結構轉向我們的高利潤市場業務，該業務占我們第四季度收入的 82%，高於上一年的 58% 和 2019 年的 81%。第三季度。

Within the individual business segments, marketplace non-GAAP gross margin expanded 155 basis points year over year and approximately 55 basis points sequentially, driven by favorable product mix. Our digital wholesale non-GAAP gross margin was up 130 basis points sequentially, driven by the early operational improvements I referenced earlier, as well as one-time and prior period favorable items.

在各個業務部門中，在有利的產品組合的推動下，市場非 GAAP 毛利率年增 155 個基點，環比增長約 55 個基點。在我之前提到的早期營運改善以及一次性和前期有利項目的推動下，我們的數位批發非 GAAP 毛利率環比增長了 130 個基點。

Fourth-quarter non-GAAP operating expenses were relatively flat year over year and fell 5% sequentially to $119 million, predominantly driven by lower sales and marketing expense, which was down 3% year over year and 7% sequentially. The sequential decrease in sales and marketing expense reflects our typical fourth quarter cadence, as well as our decision to limit marketing investment for Instant Max Cash Offer in 2023.

第四季非 GAAP 營運費用較去年同期相對持平，季減 5%，至 1.19 億美元，主要是因為銷售和行銷費用下降，較去年同期下降 3%，較上季下降 7%。銷售和行銷費用的環比下降反映了我們典型的第四季度節奏，以及我們在 2023 年限制即時最大現金優惠行銷投資的決定。

Our fourth-quarter non-GAAP product technology and development expenses grew 3% year over year but were down 3% sequentially to $29 million, as we slowed our pace of hiring in the fourth quarter. As a result of sequentially lower non-GAAP operating expenses, we generated consolidated adjusted EBITDA of $61 million in the fourth quarter, up 120% year over year and 26% sequentially. Consolidated adjusted EBITDA margin was 27% and expanded approximately 1,800 basis points year over year and was up approximately 500 basis points sequentially.

我們第四季的非 GAAP 產品技術和開發費用年增 3%，但環比下降 3%，至 2,900 萬美元，因為我們放慢了第四季的招募步伐。由於非 GAAP 營運費用連續下降，我們第四季的綜合調整後 EBITDA 為 6,100 萬美元，年增 120%，季增 26%。合併調整後 EBITDA 利潤率為 27%，較去年同期成長約 1,800 個基點，較上季成長約 500 個基點。

Fourth-quarter margin year-over-year expansion was primarily driven by favorable segment mix, as well as improved wholesale margins and some one-off items. Marketplace adjusted EBITDA grew 27% year over year and 21% sequentially to approximately $62 million.

第四季利潤率同比擴張主要是由於有利的細分市場組合、批發利潤率的提高和一些一次性產品的推動。市場調整後 EBITDA 年成長 27%，季增 21%，達到約 6,200 萬美元。

Digital wholesale adjusted EBITDA loss was approximately $1 million in the fourth quarter, including approximately $2 million in prior period and one-off favorability. Excluding these items, digital wholesale adjusted EBITDA would have been approximately flat sequentially.

第四季數位批發調整後 EBITDA 損失約 100 萬美元，其中包括上期約 200 萬美元和一次性優惠。排除這些項目，數位批發調整後的 EBITDA 將大致持平。

Non-GAAP diluted earnings per share attributable to common shareholders was $0.35 for the fourth quarter, reflecting the increase in adjusted EBITDA, as well as the reduction in shares outstanding.

第四季度非公認會計準則稀釋後歸屬於普通股股東的每股收益為 0.35 美元，反映了調整後 EBITDA 的增加以及流通股的減少。

I will now discuss a few GAAP metrics that include one-time items related to the purchase of the remaining stake in CarOffer in the fourth quarter. We incurred total GAAP operating expenses of $190 million, up 77% year over year, which includes approximately $50 million of share-based compensation incurred in connection with redeeming the remaining units of CarOffer. Fourth-quarter GAAP operating loss was $22 million, down $52 million compared to operating income of $30 million in the prior year period. Fourth quarter GAAP consolidated net loss was $23 million, down $46 million year over year.

我現在將討論一些 GAAP 指標，其中包括與第四季度購買 CarOffer 剩餘股份相關的一次性項目。我們的 GAAP 營運費用總額為 1.9 億美元，年增 77%，其中包括因贖回 CarOffer 剩餘單位而產生的約 5,000 萬美元的股份補償。第四季 GAAP 營業虧損為 2,200 萬美元，較上年同期營業收入 3,000 萬美元減少 5,200 萬美元。第四季 GAAP 合併淨虧損為 2,300 萬美元，較去年同期減少 4,600 萬美元。

We ended the fourth quarter with $312 million in cash, cash equivalent in short-term investments, a decrease of $135 million from the end of the third quarter. The lower cash balance was primarily driven by the $75 million cash consideration paid for the CarOffer acquisition in December, as well as share repurchases in the fourth quarter.

截至第四季末，我們的現金、短期投資現金等價物為 3.12 億美元，比第三季末減少了 1.35 億美元。現金餘額減少主要是由於 12 月收購 CarOffer 支付的 7,500 萬美元現金代價以及第四季度的股票回購造成的。

During the fourth quarter, we repurchased $4.8 million shares for an aggregate purchase price of $100 million. Since the beginning of our buyback program in December 2022, we repurchased $223 million in shares, equivalent to approximately 10% of our outstanding capital as of December 2022. In November 2023, we announced that our Board authorized an additional $250 million share repurchase program, expiring in December 2024.

第四季度，我們回購了 480 萬美元的股票，總購買價為 1 億美元。自 2022 年 12 月開始回購計畫以來，我們回購了 2.23 億美元的股票，相當於截至 2022 年 12 月我們已發行資本的約 10%。2023 年 11 月，我們宣布董事會批准額外 2.5 億美元的股票回購計劃，該計劃將於 2024 年 12 月到期。

I will close my prepared remarks with our outlook for the first quarter. We expect our first-quarter consolidated revenue to be in the range of $201 million to $221 million. We expect the momentum in our marketplace business to continue in the first quarter with quarterly revenue expected to be in the range of $182 million to $187 million, up between 9% and 12% year over year.

我將以對第一季的展望來結束我準備好的發言。我們預計第一季合併收入將在 2.01 億美元至 2.21 億美元之間。我們預計第一季市場業務的動能將持續，季營收預計在 1.82 億美元至 1.87 億美元之間，年增 9% 至 12%。

Moving to EBITDA, we expect our first-quarter non-GAAP consolidated adjusted EBITDA to be in the range of $41 million to $49 million, with wholesale transaction volumes sequentially lower in the first quarter. On a non-GAAP basis, we expect operating expenses to increase sequentially in the first quarter, primarily driven by marketing spans as we launched our new brand campaign, Your Car, Your Way. In addition, we typically ramp back up our marketing spend by several million dollars in the first quarter, after a seasonal reduction in the fourth quarter.

至於 EBITDA，我們預計第一季非 GAAP 合併調整後 EBITDA 將在 4,100 萬美元至 4,900 萬美元之間，第一季批發交易量將季減。根據非公認會計原則，我們預計第一季的營運費用將環比增長，這主要是由於我們推出了新的品牌活動「Your Car, Your Way」而受到行銷跨度的推動。此外，在第四季季節性減少之後，我們通常會在第一季將行銷支出增加數百萬美元。

Going forward for the rest of 2024, we expect quarterly marketing costs and operating expenses to remain roughly in line with the first quarter, but to progressively decline as a percentage of revenue, as we continue to grow our business throughout the year. Finally, we expect the non-GAAP earnings per share to be in the range of $0.24 to $0.29.

展望 2024 年剩餘時間，我們預期季度行銷成本和營運費用將與第一季大致保持一致，但隨著我們全年業務的持續成長，佔營收的百分比將逐步下降。最後，我們預計非 GAAP 每股盈餘將在 0.24 美元至 0.29 美元之間。

With that, I would like to open the call for Q&A.

至此，我想開始問答環節。

(Operator Instructions) Marvin Fong, BTIG.

（操作員說明）Marvin Fong，BTIG。

Good evening, thanks for taking my question. I thought I'd just ask about CarOffer. I think you mentioned a couple of times that you're focused on continuing the operational efficiencies and maintaining financial discipline in that segment. I guess maybe if you could just add a little more detail to that, maybe some of the guideposts or thresholds that you're looking to achieve, kind of on the way to getting to where you want to be, that we as investors could observe in your disclosures. So maybe that would be a nice start right there.

晚上好，感謝您提出我的問題。我想我只想問一下 CarOffer。我想您曾多次提到您專注於繼續提高該領域的營運效率並維持財務紀律。我想也許如果你可以添加更多的細節，也許你希望實現的一些路標或門檻，在到達你想要的地方的路上，我們作為投資者可以觀察到在您的披露中。所以也許這會是一個很好的開始。

Thanks for the question, Marvin. So let me preface that we are incredibly excited about the long-term opportunity in digital wholesale. It's an underprivileged space with sustained secular demand tailwinds, very strong synergistic potential with our foundational listing business, and there is an opportunity for us to gain market share in this space over the long term.

謝謝你的提問，馬文。因此，讓我先說一下，我們對數位批發領域的長期機會感到非常興奮。這是一個弱勢領域，具有持續的長期需求順風，與我們的基礎上市業務具有非常強大的協同潛力，從長遠來看，我們有機會在該領域獲得市場份額。

We have a number of initiatives underway, and we are in the process of rebuilding our leadership. And therefore, we estimate the business to return to profitable growth in the next several quarters.

我們正在進行多項舉措，並且正在重建我們的領導層。因此，我們預計該業務將在未來幾季恢復獲利成長。

Now I will focus on my commentary on the first quarter. So we have continued our efforts to drive operational efficiencies and enhance our products before we shift our focus externally to intensify our go-to-market efforts. We have improved our inspection, title transfer, and transportation capabilities, which have driven lower arbitration rates and better transportation models. Throughout our initiatives, we have also reduced our fixed cost base in dollar terms for the last several quarters, and we are in the process of creating a shared service center with CarGurus as it relates to our support functions. So we believe we are executing well against our strategy, and we are confident that we will return to profitable growth in the next few quarters.

現在我重點談談我對第一季的評論。因此，我們繼續努力提高營運效率並增強我們的產品，然後將重點轉向外部以加強我們的市場推廣工作。我們提高了檢驗、所有權轉讓和運輸能力，從而降低了仲裁率並改善了運輸模式。在我們的措施中，過去幾季我們也減少了以美元計算的固定成本基礎，並且我們正在與 CarGurus 創建一個與我們的支援功能相關的共享服務中心。因此，我們相信我們的策略執行得很好，我們有信心在未來幾季恢復獲利成長。

Sam, do you want to add anything?

山姆，你想補充什麼嗎？

I think you nailed it. Thank you.

我想你已經成功了。謝謝。

That's terrific, Elisa. Thanks for that color. And maybe a follow-up on -- you didn't provide full year guidance, which is understandable, but you did provide some commentary about sales and marketing for the year. So just wanted to understand what gives you the confidence that you could kind of provide that outlook for sales and marketing spend? Should we take that, what you're saying about it being relatively flat for the rest of the year, kind of tying to what you were saying before, that we shouldn't expect any major advertising push behind IMCO for this year?

太棒了，艾莉莎。謝謝那個顏色。也許是後續行動——您沒有提供全年指導，這是可以理解的，但您確實提供了一些有關今年銷售和行銷的評論。所以只是想了解是什麼讓您有信心提供銷售和行銷支出的前景？您所說的今年剩餘時間相對平穩，這與您之前所說的「我們不應該期望今年 IMCO 背後有任何重大廣告推動」有關，我們是否應該接受這一點？

So marketing spend is fully in our control, and we have visibility. And so let me take a step back and comment on the main factors that we believe will affect the OpEx sequentially between Q4 and Q1.

因此，行銷支出完全在我們的控制之中，並且我們具有可見性。因此，讓我退後一步，評論一下我們認為將依次影響第四季和第一季營運支出的主要因素。

And so the first one is the seasonality of media spending. If you look, typically we take down our media spending in Q4, we're going to set it back up in Q1, and we expect to keep it constant throughout the year, as per my prepared remarks.

第一個是媒體支出的季節性。如果你看的話，通常我們會在第四季度減少媒體支出，我們將在第一季將其恢復，並且根據我準備好的講話，我們預計全年保持不變。

The second one is a planned investment in sales and marketing, which is partially driven by our new branding campaign, which I also mentioned in my prepared remarks. And the second portion of it is really digital wholesale. So we said that in Q4 we had one-off favorability of approximately $2 million. We don't expect that to be repeated in Q1. So these are the key drivers of OpEx going forward.

第二個是對銷售和行銷的計劃投資，這部分是由我們新的品牌活動推動的，我在準備好的演講中也提到了這一點。第二部分是真正的數位批發。所以我們說，在第四季度，我們的一次性優惠約為 200 萬美元。我們預計第一季不會重演這種情況。因此，這些都是未來營運支出的關鍵驅動力。

Now it's important to also point out again, as I mentioned in my prepared remarks, that while we expect OpEx and marketing spend to remain pretty much constant throughout the year, or at least until the third quarter, we expect OpEx to decline progressively as percentage of revenue, as we continue to expand our franchise, and we expect the market-based momentum to continue throughout the year.

現在還需要再次指出，正如我在準備好的演講中提到的那樣，雖然我們預計營運支出和行銷支出全年或至少在第三季之前保持基本穩定，但我們預計營運支出百分比將逐步下降隨著我們繼續擴大我們的特許經營權，我們預計以市場為基礎的勢頭將在全年持續。

So just to reiterate, Marvin, so as a result, you know, sales and marketing is a percent of gross profit, or as a percent of revenue, we expect to decline over the year.

馬文，重申一下，因此，你知道，銷售和行銷佔毛利的百分比，或者佔收入的百分比，我們預計這一年會下降。

Understood. Okay. That's a terrific color, everyone. Thanks so much.

明白了。好的。大家都覺得這個顏色太棒了非常感謝。

Rajat Gupta, JPMorgan.

拉賈古普塔，摩根大通。

Great. Thanks for taking the questions. I just wanted to follow up on Marvin's question earlier on the first quarter guidance. So if I look at the low end of the guidance on revenue, it's down roughly $20 million sequentially. But the marketplace revenue guidance is kind of flattish to up sequentially. Even if we exclude the $2 million one-time CarOffer adjustment in the fourth quarter, it would imply something like OpEx going up between $15 million to $20 million for the market-based business.

偉大的。感謝您提出問題。我只是想跟進馬文早些時候關於第一季指導的問題。因此，如果我看一下收入指引的低端，就會發現它比上一季下降了大約 2000 萬美元。但市場收入指引略有上升。即使我們排除第四季度 200 萬美元的一次性 CarOffer 調整，這也意味著基於市場的業務的營運支出將增加 1500 萬至 2000 萬美元。

Firstly, do you think that's accurate or in the ballpark? And if it is, what's driving such a material pickup? I mean, is all of that driven by just the marketing spend that you refer to? Or is there anything else with respect to CarOffer seasonality, or you mentioned transaction volume going down. Is that what's driving EBITDA even further lower in the first quarter? And I have a quick follow-up. Thanks.

首先，您認為這是準確的還是大致的？如果是的話，是什麼推動了材料的上漲？我的意思是，所有這些都是由您提到的行銷支出所驅動的嗎？或者還有關於 CarOffer 季節性的其他情況嗎？或者您提到交易量下降了。這是導致第一季 EBITDA 進一步下降的原因嗎？我有一個快速的跟進。謝謝。

Sure. Thanks, Rajat. It's Jason. So, yeah. The drivers that Elisa just talked about from largely a marketing perspective, there's a seasonality element. There's a brand element. There are the non-recurring benefits to Q4 that we don't expect in Q1. There's a small element of lease expense that was not full quarter. And so, a lot of that -- and there's ad revenue seasonality as well. And so, those would be offset by the midpoint of the guide and marketplace has growth. And so, we would expect growth there at the mid-to-high end.

當然。謝謝，拉賈特。是傑森。嗯是的。Elisa 剛才主要從行銷角度談到的驅動因素，其中存在季節性因素。有品牌元素。第四季有一些我們預計第一季不會出現的非經常性收益。有一小部分租賃費用不是整個季度的。所以，其中很多——還有廣告收入的季節性。因此，這些將被指南的中點所抵消，市場也會成長。因此，我們預計中高端市場將出現成長。

Got it. And then, just on the international businesses, both Canada and UK, now profitable, is there like a ramp in some sales and marketing efforts in those markets as well to improve the profit contribution going forward? I'm just curious how we should think about the profitability there from this year relative to the fourth-quarter exit rate. Thanks.

知道了。然後，就國際業務而言，加拿大和英國現在都實現了盈利，這些市場上的一些銷售和行銷工作是否也有所增加，以提高未來的利潤貢獻？我只是好奇我們應該如何考慮今年相對於第四季退出率的獲利能力。謝謝。

Yeah. The international businesses are both doing quite well and also doing well from a lead volume and quality perspective, both organically as well as paid. We've also introduced some new products. And so, the momentum there is strong. And we are building on that momentum with some reinvestment in -- or elevated investment in marketing. Although, we're also conscious to make sure that -- much like you may remember in our US business several years ago, if we grow lead volume too quickly, it's tough to monetize it in a short enough period of time. And so, we are being reasonably prudent in how much we're investing there, given all the strength in the organic lead growth. So, it's a really good story having crossed into profitability, but also being able to reap those margins without having to fuel them or feed them with increased marketing spend.

是的。國際業務都做得很好，從潛在客戶數量和品質的角度來看，無論是有機的還是付費的，也都做得很好。我們也推出了一些新產品。因此，那裡的勢頭很強勁。我們正在利用這一勢頭，對行銷進行一些再投資或增加投資。儘管如此，我們也有意識地確保——就像您可能還記得幾年前我們在美國的業務一樣，如果我們的鉛量增長得太快，就很難在足夠短的時間內將其貨幣化。因此，考慮到有機領先成長的所有優勢，我們對在那裡的投資相當謹慎。因此，這是一個非常好的故事，既實現了盈利，又能夠獲得這些利潤，而無需增加行銷支出或增加行銷支出。

Understood. Great. Thanks for the call, everyone. Good luck.

明白了。偉大的。謝謝大家的來電。祝你好運。

Brad [Eckerson], RBC Capital Markets.

Brad [Eckerson]，加拿大皇家銀行資本市場。

Hey. Good evening. This is Logan on for Brad. Thanks for taking the question. Given that the off-cycle -- or off-lease cycle is a little bit light because of just OEM production over the past couple years. I'm just curious, how does that sort of play out with your dealers' inventories between franchise and independent? And just curious on how you guys are positioned between those two subsets of used car dealers. And then, just as a follow-up of the marketing comments through the year, how does affordability changes and used car pricings potentially decline sort of impact your expectations for marketing spend and margins throughout the year? Thanks.

嘿。晚安.這是布拉德的洛根。感謝您提出問題。由於過去幾年僅進行 OEM 生產，因此停工週期或停租賃週期有點輕。我只是很好奇，這對經銷商的特許經營和獨立庫存有何影響？我只是好奇你們在這兩個二手車經銷商之間的地位如何。然後，就像全年行銷評論的後續一樣，負擔能力的變化和二手車價格的潛在下降將如何影響您對全年行銷支出和利潤的預期？謝謝。

Sure. Thanks, Logan. It's Jason. So, from an inventory perspective, the biggest changes that we're seeing are growth in new car inventory, as you would expect. We have seen a slight increase, continued increase, in used car inventory, but it's not nearly as pronounced as new car, which was hit far lower depths and is now growing back much faster. Still not even close to pre-pandemic levels for new car, and also, I don't believe, not yet back to pre-pandemic levels for used car, although much closer.

當然。謝謝，洛根。是傑森。因此，從庫存角度來看，我們看到的最大變化是新車庫存的成長，正如您所期望的那樣。我們看到二手車庫存略有增加，而且還在持續增加，但它的增幅遠不如新車明顯，新車的跌幅要低得多，現在恢復得更快。新車的水平仍然沒有接近大流行前的水平，而且，我不相信二手車的水平還沒有回到大流行前的水平，儘管更接近了。

And so rising inventory tends to be a good thing for our marketplace business. Dealers, as does higher turn times on lots, dealers feel understandably compelled to want to market more to move the cars quicker, especially if floor plan financing rates are high, which they are. And so, specifically, as it relates to off-cycle lease returns, it means that dealers are also looking for not only ways to sell those cars retail, but also wholesale. And so, that should be a tailwind to CarOffer.

因此，庫存增加對於我們的市場業務來說往往是一件好事。經銷商，正如地塊週轉時間延長一樣，經銷商感到被迫進行更多營銷以更快地運輸汽車，這是可以理解的，尤其是在平面圖融資利率很高的情況下（事實確實如此）。因此，具體來說，由於它與非週期租賃回報相關，這意味著經銷商不僅在尋找零售銷售這些汽車的方式，而且還尋求批發銷售這些汽車的方式。因此，這應該對 CarOffer 有利。

In terms of affordability, yeah, that was the headline challenge, one of the headline challenges in 2023, dealers typically have one of two ways to help combat that. One is to lower the price of the car. The other is to market more aggressively. We tend to think that marketing more with platforms like ours is a better ROI for them than lowering price, but we also know that they do have to lower price, and so we give them insights and tools to help with that as well.

就負擔能力而言，是的，這是2023年的主要挑戰之一，經銷商通常有兩種方法之一來幫助應對這項挑戰。一是降低汽車價格。另一個是更積極地行銷。我們傾向於認為，對他們來說，透過像我們這樣的平台進行更多行銷比降低價格可以獲得更好的投資回報率，但我們也知道他們確實必須降低價格，因此我們也為他們提供了見解和工具來幫助他們實現這一目標。

So, we do think that affordability will help in '24 better than it did in '23. There is -- continues to be, though, an interesting dynamic between new and used, where with a lot of the OEM incentives on new, used car pricing still does need to come down quite a bit to make sense relative to new car.

因此，我們確實認為負擔能力在 24 年的幫助會比 23 年更好。不過，新車和二手車之間仍然存在著有趣的動態，儘管 OEM 對新車有許多激勵措施，但二手車的定價仍然需要大幅下降才能相對於新車有意義。

So, we think it's generally going to be better. We think demand as a result, consumer demand, will be up, but again, regardless of whether prices are rising or falling or inventory is rising or falling, we're trying to give our dealers more and more insights and actionable tools to help them manage their businesses better.

所以，我們認為整體來說會更好。我們認為需求，即消費者需求，將會上升，但同樣，無論價格是上漲還是下跌，庫存是上升還是下降，我們都在努力為我們的經銷商提供越來越多的見解和可行的工具來幫助他們更好地管理他們的業務。

Go you. Super helpful. Thanks, guys.

你去吧。超有幫助。多謝你們。

Tom White, D.A. Davidson.

湯姆懷特，D.A.戴維森。

Hello. Great. Thanks for taking my questions. Just a couple on the Sell My Car top dealer offer product. Jason or whomever, I'm just curious if you guys have any stats about maybe how dealers are converting on the foot traffic element of that offering in terms of turning sellers into buyer customers on their next car, and just curious whether you think the value that they get there is priced into the offering, the way you guys are pricing that product today. And then could you just give a little bit more color on the intake tool you mentioned for this, just kind of what's the impetus for adding that? What will it look like exactly? Thanks.

你好。偉大的。感謝您回答我的問題。只有幾個“賣我的車”頂級經銷商提供的產品。傑森或其他人，我只是好奇你們是否有任何統計數據，了解經銷商如何轉化該產品的人流量元素，將賣家轉變為下一輛車的買家客戶，並且只是好奇您是否認為其價值他們到達那裡的價格已包含在產品中，就像你們今天為該產品定價的方式一樣。然後您能否為您為此提到的引入工具提供更多的顏色，只是添加該工具的動力是什麼？它到底是什麼樣子的？謝謝。

Tom, I'm happy to take it. Sam Zales. Thanks for asking. We're seeing really tremendous results from our customer base on conversion rates, and they're comparing them. Reminder that I may have mentioned this the last couple quarters. We built the product based on customers asking us to do so. They saw products in the market in KBB and Accu-Trade said we like something different, something better. We're offering something completely unique to consumers, which is the choice of a white glove service with IMCO, as you know, in the combination with this top dealer offers, which means over the two-thirds or so of consumers are saying, I am going to sell a car, but I might be buying a car as well. I'm coming into the dealership, and that dealership has an advantage to have a buy-sell. In fact, (inaudible) with wholesale inventory, as low as it is and high-priced as it is, this is gold to dealers having the opportunity to buy a consumer's vehicle.

湯姆，我很高興接受它。山姆·札爾斯。謝謝你的詢問。我們看到我們的客戶群在轉換率方面取得了巨大的成果，並且他們正在對它們進行比較。提醒一下，我可能在過去幾季提到過這一點。我們根據客戶的要求建立了該產品。他們在 KBB 和 Accu-Trade 市場上看到了產品，說我們喜歡不同的、更好的東西。我們正在為消費者提供完全獨特的東西，即選擇 IMCO 的白手套服務，如您所知，與頂級經銷商的優惠相結合，這意味著超過三分之二左右的消費者會說，我我要賣一輛車，但我也可能會買一輛車。我要進入經銷店，經銷店有進行買賣的優勢。事實上，（聽不清楚）批發庫存，儘管價格低，價格高，對於有機會購買消費者車輛的經銷商來說卻是黃金。

So we're seeing tremendous conversion rate. We are in still a limited market launch. We're in 18 markets, as you know, 40% of the country, so we're able to work with every one of our customers that's involved so far. The feedback I've heard from customers is conversion rates beating those other products in the marketplace.

所以我們看到了巨大的轉換率。我們仍處於有限的市場推出階段。如您所知，我們遍布 18 個市場，佔全國的 40%，因此我們能夠與迄今為止參與的每位客戶合作。我從客戶那裡聽到的回饋是轉換率超過了市場上的其他產品。

You asked about the intake tool. We're using that for a number of reasons. One is to create more consistency for the consumer experience. We want every dealer to use the same type of inspection capabilities to be able to say this is the fair market value for that vehicle. It leaves the consumer feeling great about their experience, but importantly, creates the consistency between each of our dealers to have the same experience as others so that it creates a universal objective and strong experience on both sides of the marketplace.

您問的是攝入工具。我們使用它有多種原因。一是為消費者體驗創造更多一致性。我們希望每個經銷商都使用相同類型的檢查功能，以便能夠確定這是車輛的公平市場價值。它讓消費者對他們的體驗感覺良好，但重要的是，它在我們每個經銷商之間建立了一致性，讓他們擁有與其他經銷商相同的體驗，從而在市場雙方創造了普遍的目標和強大的體驗。

What that's led to is great results. We're looking forward to continuing that as we go forward. We're in early access still, but we're very, very encouraged by the launch of this program that we started in fourth quarter of last year and has already expanded, and we looked to further expand as the year goes on.

這帶來了很好的結果。我們期待著繼續前進。我們仍處於搶先體驗階段，但我們對去年第四季啟動的該計劃感到非常非常鼓舞，該計劃已經擴大，並且我們希望隨著時間的推移進一步擴大。

Okay. Thanks. It's a subscription offering, so does it show up in your marketplace segment, or is it in our offer?

好的。謝謝。它是訂閱產品，所以它會出現在您的市場部分中，還是出現在我們的報價中？

It does. It does, Tom. It's a marketplace subscription product. It's an add-on. It's now going to a dealer set and saying, we're already talking about a listings product that lets you sell vehicles. Here's another subscription product with high gross margin that allows you to join and get more out of buying cars from consumers, which you said is gold in the marketplace because it's the hardest to find today without those off-lease returns.

確實如此。確實如此，湯姆。這是一個市場訂閱產品。這是一個附加元件。現在它會發送給經銷商並說，我們已經在討論可以讓您銷售車輛的清單產品。這是另一種毛利率較高的訂閱產品，它允許您加入並從消費者那裡購買汽車中獲得更多收益，您說這是市場上的黃金，因為如果沒有那些租約到期回報，它是當今最難找到的。

Great. Appreciate the question, and thank you.

偉大的。感謝您的提問，謝謝。

Naved Khan, B. Riley Securities.

納維德汗 (Naved Khan)，B. 萊利證券 (Riley Securities)。

Hi. This is Brian on for Naved. Thanks for taking my question. Just two for me, if I may. First, you had mentioned further price changes through ABRs in 2024. Can you discuss the scope and percentage of dealerships that may see significant changes? Then secondly, in terms of CarGurus' ad revenue, it seems like spending is improving across the industry. How are you guys thinking about the opportunity there? Thanks.

你好。這是 Naved 的布萊恩。感謝您提出我的問題。如果可以的話，只給我兩個。首先，您提到 2024 年透過 ABR 進行進一步的價格變動。您能否討論一下可能發生重大變化的經銷商範圍和比例？其次，就 CarGurus 的廣告收入而言，整個產業的支出似乎正在改善。你們如何看待那裡的機會？謝謝。

Hi, Brian. Sam Zales. On price changes, I want to remind you that our QARSD success, our highest ever year-over-year QARSD growth, came because we have three or four major levers we use. One is just pricing dealers at market rates when they come in. Second is upselling dealers to a higher or premium package. The third is core unit pricing growth with our ABRs, and then also the product attachment rates, which are very, very strong.

嗨，布萊恩。山姆·札爾斯。關於價格變化，我想提醒大家，我們 QARSD 的成功，我們有史以來最高的 QARSD 同比增長，是因為我們使用了三到四個主要槓桿。一是在經銷商進來時以市場價格定價。其次是向經銷商追加銷售更高或高品質的套餐。第三是我們的 ABR 的核心單位定價成長，以及非常非常強勁的產品附加率。

On the pricing side, we're seeing the continued success of dealers recognizing our ROI that is working tremendously for them and going in with an annual business review and offering a couple of different things. It's not just a straight price increase. It's saying, here's a package that may be better serving you to grow your ROI as a customer and in your retail business, and that might require just a higher spend to get more value.

在定價方面，我們看到經銷商不斷取得成功，他們認識到我們的投資回報率對他們來說非常有效，並進行了年度業務審查並提供了一些不同的東西。這不僅僅是直接漲價。也就是說，這裡的一攬子計劃可能會更好地為您提供服務，以提高您作為客戶和零售業務的投資回報率，並且可能只需要更高的支出即可獲得更多價值。

But in many cases, we're taking the below-market priced dealers, understanding that they're below market and saying, this is where the rest of the market is paying for that program you're on. If you want to stay in there, here's the price point to get into it, here's a lower-level product if you want that, and you can choose to leave the program if that pricing isn't working. So we're offering multiple options that work tremendously to grow as one of the levers to grow our QARSD.

但在許多情況下，我們會選擇低於市場價格的經銷商，了解他們的價格低於市場價格，並說，這就是市場的其他部分為您所參加的計劃付費的地方。如果你想留在那裡，這裡是進入它的價格點，如果你想要的話，這是一個較低級別的產品，如果該定價不起作用，你可以選擇退出該計劃。因此，我們提供了多種選項，這些選項可以作為 QARSD 發展的槓桿之一，發揮巨大的作用。

As you've heard before, when dealers say, I don't want to take that program, more than 50% of them come back onto the program within two quarters. So we hit about 20% of our customers last year with the ABR process. We'll continue to be aggressive on that as our results continue to work as well as they are.

正如您之前所聽說的，當經銷商說「我不想參加該計劃」時，超過 50% 的經銷商會在兩個季度內重新加入該計劃。因此，去年我們使用 ABR 流程吸引了約 20% 的客戶。我們將繼續積極進取，因為我們的成果將繼續發揮作用。

I'm not going to give a specific number, but we see the same kind of trajectory as we started the new year. And we're going to take any underpriced customers that are below market rates, and because we have the confidence in that ROI, to offer them the packages that meet the ROI thresholds that they'll still be positive about, but then give a fair share of that leverage to CarGurus. So we're excited to continue that process, and hopefully that will continue to see the successes you're seeing in our QARSD and our marketplace business growing as quickly as it has.

我不會給出具體數字，但我們看到了與新年伊始相同的軌跡。我們將接受任何低於市場價格的低價客戶，因為我們對投資回報率有信心，為他們提供滿足投資回報率閾值的套餐，他們仍然會對這些閾值持積極態度，但隨後給予公平的對待CarGurus的槓桿份額。因此，我們很高興能夠繼續這一流程，並希望您能繼續看到我們 QARSD 所取得的成功以及我們的市場業務的快速成長。

From an ad revenue perspective, we are cautiously optimistic that this is a year of strong performance in our business. Incentives are out there with OEM spending more. Our year-end upfront advertising interest is strong, and so we believe that will be a business that returns to solid performance for us in 2024.

從廣告收入的角度來看，我們謹慎樂觀地認為今年是我們業務表現強勁的一年。隨著 OEM 支出的增加，激勵措施也隨之而來。我們對年終預付廣告的興趣很濃厚，因此我們相信這項業務將在 2024 年恢復穩健的業績。

Got it. Thank you.

知道了。謝謝。

Jed Kelly, Oppenheimer.

傑德凱利，奧本海默。

Hey, great, great. Thanks for taking my question. Just following up on the last one, sort of around the -- you said 20% of ABR. Just as we think about the trajectory of QARSD in the back half, and as comps get tougher, are you expecting the same amount of pricing pressure?

嘿嘿，太好了，太好了。感謝您提出我的問題。只是跟進最後一項，大約是——你說的 ABR 的 20%。正如我們思考 QARSD 在下半年的發展軌跡一樣，隨著競爭變得更加艱難，您是否預計會面臨同樣程度的定價壓力？

And then my second question is, as sort of the potential cut of interest rates keeps getting pushed out, how should we view the pace of interest rates impacting consumer demand and your conversations with dealers? Thank you.

然後我的第二個問題是，隨著潛在的降息不斷被推遲，我們應該如何看待利率的變化對消費者需求以及您與經銷商對話的影響？謝謝。

Jed, I'll take the first on ABR, Sam Zales, thanks. I'm going to keep leaning for QARSD on the multiple levers that we use there. And I think this is a really important message. ABR has worked really successfully last year. We're going to continue to do that for underpriced customers. And that is all fueled by our continued growth in our audience, by the way. Terrific to see our audience growing, which means we're providing more connections and more closed sales for our customers.

Jed，我會選擇 ABR 上的第一個，Sam Zales，謝謝。我將繼續在我們使用的多個槓桿上傾向於 QARSD。我認為這是一個非常重要的訊息。ABR 去年的工作非常成功。我們將繼續為價格低廉的客戶提供這種服務。順便說一句，這一切都是由我們觀眾數量的持續增長所推動的。很高興看到我們的受眾不斷成長，這意味著我們正在為客戶提供更多的聯繫和更多的封閉式銷售。

But it's pricing new dealers, and we're continuing to succeed on that front. It's upselling the premium tiers. Remember now we've launched the digital deal product, which is working so effectively for our customers to close a down-funnel consumer into our premium packages. So as we upsell our dealers into the premium packages, they're subscribing to digital deal to get access to those very low-funnel shoppers who are closing at two to five times our general lease.

但它正在為新經銷商定價，我們將繼續在這方面取得成功。它正在追加銷售高級產品。請記住，現在我們已經推出了數位優惠產品，該產品對我們的客戶非常有效，可以將下游消費者吸引到我們的優質套餐中。因此，當我們向經銷商追加銷售優質套餐時，他們會訂閱數位交易，以吸引那些非常低通路的購物者，他們的成交價格是我們一般租賃的兩到五倍。

And then we'll continue to work on pricing. We're continuing to product attach. Top dealer offer gives us another product in the arsenal to go to those dealers and add more subscription revenue. So I think it'll be the combination of those and not just pricing pressure to get us there.

然後我們將繼續進行定價工作。我們正在繼續產品附加。頂級經銷商報價為我們提供了武器庫中的另一種產品，可以提供給這些經銷商並增加更多訂閱收入。所以我認為這將是這些因素的結合，而不僅僅是價格壓力讓我們實現這一目標。

But I'll give you examples of a customer coming into our revenue kickoff just a couple weeks ago and saying, I'm closing 46% of your lease. That tells us we know there is more opportunity to continue managing the value between what we're providing to our dealer customers to what we're reaping on our side of the business. And so we think there's -- even though we're going against comps that'll be bigger, we do feel very strongly about this trajectory you're seeing. And Elisa's remarks mentioned the growth of our marketplace business makes us feel very confident going forward.

但我會給你舉個例子，幾週前，一位客戶在我們的收入開始時說，我將關閉你 46% 的租約。這告訴我們，我們知道有更多機會繼續管理我們為經銷商客戶提供的價值與我們在業務方面收穫的價值之間的價值。因此，我們認為，儘管我們反對規模更大的競爭，但我們確實對你們所看到的這條軌跡有強烈的感受。Elisa 的演講中提到我們市場業務的成長讓我們對未來充滿信心。

And then I can add, Jed, just on your third part there on interest rates and impact with consumers. So as I mentioned a few minutes ago, two factors that do help our marketplace business that are a tailwind are rising inventory and rising turn times. That tends to spur most dealers to want to market more. And I would also say that it's not necessarily adding marketing budget dollars for a dealer, but it's reallocating how they spend their dollars.

然後我可以補充一下，傑德，關於利率和對消費者的影響的第三部分。正如我幾分鐘前提到的，有兩個因素確實有助於我們的市場業務，即庫存增加和周轉時間增加。這往往會刺激大多數經銷商想要推銷更多產品。我還想說，這並不一定會增加經銷商的行銷預算，而是重新分配他們的支出方式。

And remember that they're spending a reasonably small fraction in marketplaces today and yet it remains one of the highest ROIs for them. And within marketplaces we are often cited as the strongest ROI for dealers. So it's a pretty safe place for them to spend.

請記住，他們今天在市場上的支出相當小，但它仍然是他們投資回報率最高的市場之一。在市場中，我們常被認為是經銷商投資報酬率最高的公司。所以這對他們來說是一個非常安全的消費場所。

If interest rates were to come down and consumer demand were to increase, that tends to spur them to market more. It tends to have a mixed impact on our marketplace, and so there's not a high correlation between interest rates and our ability to sign new dealers.

如果利率下降而消費者需求增加，往往會刺激他們加強行銷。它往往會對我們的市場產生複雜的影響，因此利率與我們簽約新經銷商的能力之間沒有很高的相關性。

And if you look at SAR, for instance, if the SAR expectations change by 5% or 10%, we don't see a discernible impact on our bookings either. And so it's fairly immune from that.

如果您查看 SAR，例如，如果 SAR 預期變化 5% 或 10%，我們也看不到對我們的預訂產生明顯影響。所以它相當不受此影響。

One thing that we are doing, though, to help insulate even further is we're trying to add a lot more value to our dealer customers and marketplace with insights and data and other tools that are independent from just simply the leads, the quantity and quality of leads that we deliver to them and the connections that we deliver to them, which we're very confident in the volume and growth of that.

不過，為了進一步隔離，我們正在做的一件事是，我們正在嘗試透過見解、數據和其他獨立於潛在客戶、數量和市場的工具，為我們的經銷商客戶和市場增加更多價值。我們向他們提供的潛在客戶的品質以及我們向他們提供的聯繫，我們對其數量和增長非常有信心。

The one final area I would say is finance in advance or consumer finance revenue stream of ours, which is small on a relative basis, but it's high margin, and it's not insignificant. As interest rates have risen, those approval rates have gone down, and so that business has suffered a little bit from it. And so if interest rates were to come down, then we would see higher growth than we're currently forecasting.

我要說的最後一個領域是我們的預付款或消費金融收入流，相對而言規模較小，但利潤率很高，而且並不微不足道。隨著利率上升，支持率下降，因此企業受到了一些影響。因此，如果利率下降，那麼我們將看到比我們目前預測更高的成長。

Thank you.

謝謝。

Chris Pierce, Needham & Company.

克里斯皮爾斯，李約瑟公司。

Hey. Good evening. Can you guys talk about the dealers you're adding back on to the marketplace? Are they 100% new to the platform, or had they went away? I just want to get a sense of what's happening under the surface on the dealer side, given kind of the detail you've shared around QARSD in the future. Thanks.

嘿。晚安.你們能談談你們重新加入市場的經銷商嗎？他們是該平台 100% 的新手，還是已經離開了？鑑於您未來在 QARSD 上分享的細節，我只是想了解經銷商方面到底發生了什麼。謝謝。

Thanks, Chris. This is Sam here, and it's a mix. I mentioned the ABR outcomes, which is a percentage of dealers who say I'm not going to take that price point. That's a small percentage. But more than 50% are coming back on within two quarters. So we are getting dealers who look and will say, as Jason was just mentioning, oh, the market's changed a little bit.

謝謝，克里斯。這是山姆，是一個混合體。我提到了 ABR 結果，即表示我不會接受該價格點的經銷商的百分比。那隻是一個很小的百分比。但超過 50% 的人會在兩個季度內恢復。因此，我們的經銷商看起來會說，正如傑森剛才提到的，哦，市場發生了一些變化。

The consumer demand is down, particularly for the small, independent dealer who's living off of a, in some cases, credit card payments for the marketing that they do. They're very price sensitive, so they'll come in, get off the program during the ABR process, stay off for four months, and then say, my gosh, my business is shrinking. Let me get back on again.

消費者需求下降，特別是對於小型獨立經銷商而言，他們在某些情況下靠信用卡付款進行行銷。他們對價格非常敏感，所以他們會進來，在 ABR 過程中退出該計劃，停留四個月，然後說，天哪，我的業務正在萎縮。讓我重新開始吧。

So we see the most turnover in that small independent segment, which doesn't make the biggest difference to our MRR overall, but you'd want to keep those customers because they're important to the consumer mix that they're getting all different types of vehicles to purchase from. But we're still winning new business, and it's hard to believe, and when you look at our TAM out there, there are still a significant number of franchise dealers and independent dealers who are on the sidelines for one reason or another.

因此，我們看到這個小型獨立細分市場的營業額最高，這對我們的整體 MRR 沒有最大的影響，但你會希望保留這些客戶，因為他們對消費者組合很重要，因為他們變得不同購買的車輛類型。但我們仍在贏得新業務，這令人難以置信，當您查看我們的 TAM 時，您會發現仍然有大量特許經銷商和獨立經銷商因某種原因處於觀望狀態。

Jason mentioned they may be spending more money on local advertising, radio, TV, other forms of media that are not even trackable, and to get them converted over, there's still a lot of them saying, I have not been on a third-party marketplace. Let me go to the one with the biggest audience driving the biggest ROI. That's our opportunity to continue growing and fulfilling that new dealer ad segment you're asking about.

傑森提到，他們可能會在本地廣告、廣播、電視和其他形式的媒體上花費更多的錢，這些媒體甚至無法追踪，為了讓他們轉化，仍然有很多人說，我沒有上過第三方網站市場。讓我來談談受眾最多、投資報酬率最高的一個。這是我們繼續發展並滿足您所詢問的新經銷商廣告細分市場的機會。

Okay, cool. And then, on the turn time data that you referenced, is this data that you already have because you have the dealer's inventory, or a dealer has to send you new information? And I'm sort of asking because, like you led into what that can help with CarOffer adoption, helping dealers know what cars to restock their lot with, is this something that exists right now, or the plumbing has to be put in place, or dealers have to send you more data to kind of really, hone this product?

好吧，酷。然後，根據您引用的周轉時間數據，這些數據是您已經擁有的，因為您擁有經銷商的庫存，還是經銷商必須向您發送新資訊？我想問的是，就像您提出的那樣，可以幫助採用 CarOffer，幫助經銷商知道要補充哪些汽車，這是現在存在的東西，還是必須將管道安裝到位，或者經銷商必須向您發送更多數據來真正磨練該產品？

It's a great question, Chris. We have the data, so the inventory feeds we get from our dealers are ones in which we then look at how quick those inventories are turning. We see when vehicles are on our site and go off of our site, so we're able to look at that information at the turn times.

這是一個很好的問題，克里斯。我們有數據，因此我們從經銷商那裡獲得庫存信息，然後我們可以在其中查看這些庫存週轉的速度。我們可以看到車輛何時進入我們的網站以及何時離開我們的網站，因此我們能夠在輪流時間查看這些資訊。

And what dealers have asked us is two things. Jason pointed out, we don't have to just provide leads and connections to provide value to our dealers. They want the consultative feedback to help them run their retail operations more effectively.

經銷商問我們的是兩件事。傑森指出，我們不必僅僅提供線索和聯繫來為我們的經銷商提供價值。他們希望諮詢回饋能幫助他們更有效地經營零售業務。

So what they're saying is, combine consumer demand data, which is, and they all say it's the same way. You have the largest audience, you can tell us where consumer demand is by geographic area down to a local market, tell us what vehicles consumers are searching for and looking for, what turns I have on those vehicles today, how are my competitors turning their inventory, and then tell me what vehicles I should be sourcing.

所以他們說的是，結合消費者需求數據，就是說，他們都說是一樣的方式。您擁有最多的受眾，您可以告訴我們消費者的需求按地理區域細分到當地市場，告訴我們消費者正在尋找和正在尋找哪些車輛，我今天對這些車輛的看法如何，我的競爭對手如何轉向他們的庫存，然後告訴我應該要購買哪些車輛。

So the great opportunity here is to combine the retail and wholesale capabilities that no other marketplace can provide with our combination of CarGurus and CarOffer. You go to CarOffer and you say, you have a matrix set up to buy these vehicles, did you realize consumer demand is up in these other types of vehicles, you should be building your matrix around that vehicle acquisition strategy and helping them become more successful in a consultative way.

因此，這裡的絕佳機會是將其他市場無法提供的零售和批發能力與我們的 CarGurus 和 CarOffer 結合。你去 CarOffer 說，你已經建立了一個矩陣來購買這些車輛，你是否意識到消費者對這些其他類型車輛的需求上升了，你應該圍繞該車輛採購策略構建你的矩陣並幫助他們變得更加成功以協商的方式。

And on the dealer side of the consumer -- on the retail side of the business is, which vehicles should I be planning for, and as Jason mentioned in his remarks, next best deal rating. What price point allows me to get to the highest opportunity of winning consumer eyeballs on the CarGurus platform, but not giving away too much gross profit. So the entire process is looking at the synergies between CarOffer and CarGurus to maximize dealer profits, and that's what they're asking for.

在消費者的經銷商方面，在業務的零售方面，我應該規劃哪些車輛，正如傑森在他的演講中提到的，下一個最佳交易評級。什麼價位可以讓我在 CarGurus 平台上獲得贏得消費者眼球的最高機會，但又不會放棄太多的毛利。因此，整個過程就是著眼於 CarOffer 和 CarGurus 之間的協同效應，以實現經銷商利潤最大化，而這正是他們所要求的。

The feedback at our kickoff meeting, our sales kickoff meeting this year from dealers was, the price of entry is I need your leads and connections. I have to have those because they're the best in the market, but can you also provide me with this data that helps me run my business more efficiently as a marketer and a sourcer of vehicles, and we think we have the only platform in the market to do so.

在我們的啟動會議上，我們今年的銷售啟動會議上經銷商的回饋是，進入的價格是我需要您的線索和聯繫。我必須擁有這些，因為它們是市場上最好的，但是您能否也向我提供這些數據，幫助我作為營銷人員和車輛採購商更有效地運營我的業務，我們認為我們擁有唯一的平台市場這樣做。

All right, appreciate it. Thank you.

好吧，欣賞一下。謝謝。

Ron Josey, Citi.

羅恩喬西，花旗銀行。

Great, thanks for taking the question, guys. I had two. Maybe Jason and Sam, with the multi-product attach increasing 36% year over year, talk to us more about the specific products just driving that growth, and any insights on overall attach rate of the dealers would be helpful.

太好了，謝謝你們提出這個問題，夥計們。我有兩個。隨著多產品附加價值年增 36%，Jason 和 Sam 可能會與我們更多地討論推動成長的特定產品，以及對經銷商整體附加率的任何見解都會有所幫助。

And then a quick clarification on just Sell My Car top dealer offer, I know we're live in 18 metro areas and covering 40% of the US population. Talk to us about what needs to happen to go live in more metro areas. What are we, what's the unlock here to maybe go nationwide? Thank you.

然後快速澄清一下「賣我的車」頂級經銷商報價，我知道我們分佈在 18 個都會區，覆蓋了美國 40% 的人口。與我們討論如何在更多的都會區開展業務。我們是什麼？這裡有什麼解鎖可能走向全國？謝謝。

Hey Ron, it's Jason. So yeah, the multi-product attach rate, I mean examples of other products would be Digital Deal is a key one, Highlight is another product that has been particularly attractive to dealers lately, Geographic Expansion is another as well, and it's, a lot of it is actually dovetails with what Sam was just saying, which is that as we have more of these, or as we have multiple products but then give more insights to help them know how to use some of these products for more specific purposes, whether it's to help source smarter, source cars smarter or market certain types of cars differently, it all comes down to their volume and their margin.

嘿榮恩，我是傑森。所以，是的，多產品附加率，我的意思是其他產品的例子，數位交易是一個關鍵產品，亮點是最近對經銷商特別有吸引力的另一種產品，地理擴張也是另一個產品，而且許多它實際上與Sam 剛才所說的相吻合，即我們擁有更多這些產品，或者我們擁有多種產品，但隨後提供更多見解來幫助他們了解如何將其中一些產品用於更具體的目的，無論是它是為了幫助更聰明地採購、更聰明地採購汽車或以不同的方式行銷某些類型的汽車，這一切都取決於它們的數量和利潤。

And so the portfolio of products we're building, coupled with the insights we're giving them, are helping them to optimize that. We're also, I think, being much smarter about how we think about the package levels, and so that's not exactly multi-product attach, but that's a cousin of it, because we are providing some of these insights for higher-level packages for dealers who are just much deeper into our platform and getting much more out of it.

因此，我們正在建立的產品組合，加上我們為他們提供的見解，正在幫助他們優化這一點。我認為，我們對於如何考慮軟體包級別也更加聰明，因此這並不完全是多產品附加，但這是它的表親，因為我們正在為更高級別的軟體包提供一些見解對於那些更深入地了解我們的平台並從中獲得更多收益的經銷商。

And Ron and Sam, I think you'll have heard this as a repetitive theme over the years we've talked, the top dealer offer expansion to the rest of the country, which we're excited about but will always be deliberate about, is based first on consumer experience. We've said that about everything we've built here. You knew what our MPS scores were, and many of our products, IMCO being one of them, we're measuring that, we're watching that to ensure optimal consumer experience in this process.

羅恩和薩姆，我想你們會聽到這是我們多年來談論的一個重複的主題，頂級經銷商向全國其他地區提供擴張，我們對此感到興奮，但將始終深思熟慮，首先是基於消費者體驗。我們已經說過我們在這裡建造的一切。您知道我們的 MPS 分數是多少，我們的許多產品（IMCO 就是其中之一）我們正在衡量這一點，我們正在觀察這一點，以確保在此過程中獲得最佳的消費者體驗。

Remember, a consumer's choosing to bypass a white glove experience and saying, I'm going to get more money at that local dealership, but I want the experience to be high quality, high integrity, and consistent, hence the use of this new intake tool that we're out there in the market with right now, which creates a seamless and consistent experience between all the dealers who use it, allows the consumer to say, I understand why the price point might be different than what you first offered me if something is found at the local dealership and using the same consistent tool set. So One is consumer experience and making it as high as possible, number two is the dealer experience.

請記住，消費者選擇繞過白手套體驗並說，我將在當地經銷商那裡獲得更多的錢，但我希望體驗是高品質、高完整性和一致的，因此使用了這種新的攝取量我們目前在市場上使用的工具，它在所有使用它的經銷商之間創造了無縫且一致的體驗，讓消費者可以說，我理解為什麼價格點可能與您最初向我提供的價格不同如果在當地經銷商發現某些東西並使用相同的一致工具集。因此，第一是消費者體驗並使其盡可能高，第二是經銷商體驗。

The earlier question was what kind of close rates are we getting? Now, what we're seeing is tremendously high close rates from those dealers who have a consistent intake process for consumer acquisition of vehicles. There are a set of dealers who have joined the program who don't have as consistent a regional approach, so one dealer retail location might have a different intake process than another one, so your close rates will be different by each. We want to make sure those are as consistent as possible, we're consulting and helping those dealers to be as successful as possible, and the consistent results will say, okay, that ROI is high on your subscription program for top dealer offer.

之前的問題是我們得到什麼樣的成交率？現在，我們看到的是那些對消費者購買車輛有一致的接收流程的經銷商的成交率非常高。有一組加入該計劃的經銷商沒有一致的區域方法，因此一個經銷商零售地點可能有與另一個經銷商不同的接收流程，因此每個經銷商的成交率都會不同。我們希望確保這些盡可能一致，我們正在諮詢並幫助這些經銷商盡可能取得成功，一致的結果將表明，好吧，您的頂級經銷商報價訂閱計劃的投資回報率很高。

The last part I would say to you is our economics, so we've gone out with pricing in the market that we think is reasonable, but if the close rates continue as successfully as they are, we might change the pricing, so the subscription might be too low right now before we head to the rest of the market. I'm not saying it is right now, but as we do that going forward, it's going to be really important for us to think about the economics of balanced ROI between the dealer's access and what we get on our side at CarGurus, so we're thinking about that pricing point and making sure when we do roll out nationally, it's maximized for the win-win for both sides of that effort.

我要對你說的最後一部分是我們的經濟學，所以我們已經在市場上製定了我們認為合理的定價，但如果收盤價繼續像現在這樣成功，我們可能會改變定價，所以訂閱在我們進入市場的其他部分之前，現在的價格可能太低了。我並不是說現在就是這樣，但當我們繼續這樣做時，考慮經銷商的訪問權和我們在 CarGurus 獲得的利益之間平衡投資回報率的經濟性對我們來說非常重要，所以我們正在考慮這個定價點，並確保當我們在全國範圍內推出時，能夠最大限度地實現雙方的雙贏。

John Colantuoni, Jefferies.

約翰·科蘭托尼，杰弗里斯。

Thanks so much for the question. I wanted to ask about digital deal. When thinking about the addressable market for digital deal, are there any technical barriers or product investments that you're still working to address before expanding the offering across more dealerships? And when thinking about the opportunity set for digital deal, are there certain types of dealerships that are less likely to adopt the product, or could you see every dealership partner adopting it over time? Thanks.

非常感謝您的提問。我想詢問有關數字交易的問題。在考慮數位交易的潛在市場時，在將產品擴展到更多經銷商之前，您是否仍在努力解決任何技術障礙或產品投資？在考慮數位交易的機會時，是否有某些類型的經銷商不太可能採用該產品，或者隨著時間的推移，您是否會看到每個經銷商合作夥伴都採用該產品？謝謝。

Thanks, John. We're always working to continue to make Digital Deal a better consumer experience, a better dealer experience, but no, there's no structural technical barrier to faster adoption there. There is some, I would say, modest onboarding required at the dealer, and for really sort of optimal results at the dealer, they do need to embrace things like hard pull financing, and they really need to, I would say, change the sort of flow of leads and how their sales team handles the leads.

謝謝，約翰。我們一直在努力繼續讓數位交易成為更好的消費者體驗、更好的經銷商體驗，但不存在阻礙更快採用的結構性技術障礙。我想說，經銷商需要一些適度的入職培訓，為了真正在經銷商處獲得最佳結果，他們確實需要接受諸如硬拉融資之類的東西，而且我想說，他們確實需要改變這種方式潛在客戶的流動以及他們的銷售團隊如何處理潛在客戶。

So for instance, it's not a good consumer experience if the consumer does this work on our site and then walks into the dealership, and the salesperson is not familiar with Digital Deal and is not leveraging all the information that that consumer has given. And so neither -- none of what I've mentioned is a big hill to climb at all. It's not even a big lift for the dealer, but it does require a little bit of change.

例如，如果消費者在我們的網站上完成這項工作然後走進經銷商，而銷售人員不熟悉數位交易並且沒有利用消費者提供的所有信息，那麼這不是一個良好的消費者體驗。所以我所提到的都不是一座需要攀登的大山。對於經銷商來說，這甚至不是一個很大的提升，但確實需要一點改變。

Aside from that, there's not really consistent reasons why a dealer wouldn't adopt. It does cost money, so some may be price-sensitive to it. That's where consumers say they want the process to be. They say they want to do more and more, and in a lot of cases, most of the transaction online, and so consumer sentiment is there, and we think that's where the market is headed.

除此之外，經銷商不採用的原因並不一致。它確實需要花錢，所以有些人可能對其價格敏感。這就是消費者所說的他們所希望的流程。他們說他們想做越來越多的事情，在很多情況下，大部分交易都是在線上進行的，因此消費者情緒就在那裡，我們認為這就是市場的發展方向。

On the consumer side, we do have more work to do to make it a more obvious and seamless flow on our site, and so we are going to put more resources there so that it's easier to find, it's easier to do, and it's just more part of the central flow.

在消費者方面，我們確實還有更多的工作要做，以使其在我們的網站上成為更加明顯和無縫的流程，因此我們將在那裡投入更多的資源，以便更容易找到，更容易做，而且只是更多的部分是中心流。

Great. Thanks so much.

偉大的。非常感謝。

Doug Arthur, Huber Research Partners.

道格‧阿瑟 (Doug Arthur)，Huber 研究合作夥伴。

Yeah. Thanks. A lot of questions, but I'll just keep it at one. Just on a GAAP basis, is the true-up with the CarOffer close? Is that done now, or are we going to see some lingering true-ups in the GAAP numbers, say, in Q1?

是的。謝謝。有很多問題，但我只問一個。僅按照 GAAP 計算，CarOffer 是否接近真實情況？現在已經完成了嗎，還是我們會在第一季看到 GAAP 數據中一些揮之不去的真實數據？

We don't expect to see any true-ups going forward. The transaction is closed, and so we recorded approximately $50 million in share-based compensation in the fourth quarter related to the transaction, but that should be it. We don't expect anything going forward.

我們預計未來不會有任何實際情況。交易已完成，因此我們在第四季度記錄了與交易相關的約 5000 萬美元的股權薪酬，但應該就是這樣了。我們預計不會有任何進展。

Okay, great. Thank you very much.

好的，太好了。非常感謝。

Kunal Madhukar, UBS.

庫納爾馬杜卡，瑞銀。

Hi. Thanks a lot. This is Jason for Kunal from UBS. Thanks for squeezing me in.

你好。多謝。我是瑞銀 (UBS) 的傑森‧庫納爾 (Jason for Kunal)。謝謝你把我擠進去。

I have a couple of questions. First, could you please double-click into the recent trends you've seen within the dealer-to-dealer and also unpack a little bit more the value proposition and differentiation of CarOffer compared to the competitor's offerings? For instance, I was curious to hear more about what's driving your pricing of the CarOffer and the experience of your customer base, and I have a follow-up.

我有一些問題。首先，您能否雙擊查看您在經銷商對經銷商中看到的最新趨勢，並與競爭對手的產品相比，進一步了解 CarOffer 的價值主張和差異化？例如，我很想了解更多有關 CarOffer 定價的驅動因素以及客戶群體驗的信息，我有後續跟進。

Sure, Jason. It's Sam Zales. The value proposition is very simple, and that is we've completely pioneered the industry in that, as you know, the wholesale market relies on an auction model for most of its business transactions today. That's moving more digitally, and there are some players out there who are offering digital auctions.

當然，傑森。我是山姆·札爾斯。價值主張非常簡單，那就是我們完全開創了這個行業，正如您所知，批發市場當今的大部分業務交易都依賴拍賣模式。這正在變得更加數位化，並且有些參與者正在提供數位拍賣。

What CarOffer provides is a digital instant trade platform, which is very different, almost a stock exchange of vehicles a dealer would like to purchase and the price points of vehicles that a dealer would like to sell and their price points, creating a light capital model that brings a digital transaction and capability. It doesn't require a wholesale buyer or seller to sit at a timed auction and watch the vehicles go by.

CarOffer提供的是一個數位化的即時交易平台，這個平台很不一樣，幾乎是經銷商想買的車和經銷商想賣的車的價位及其價位的交易所，打造輕資本模式這帶來了數字交易和能力。它不需要批發買家或賣家參加定時拍賣並觀看車輛經過。

So it's a completely different and new and innovative solution in the marketplace. We've said that it works perfectly for larger-scale acquirers of vehicles. It works for the larger players in the commercial space as well. In a down market, it's a new adoptive tool because it requires, in a price point market that's going down, a dealer community to utilize and watch the vehicles and make sure they're inspected to the levels we're inspecting them and to reduce the arbitration potential of those programs.

因此，它是市場上完全不同的全新創新解決方案。我們已經說過，它非常適合大型車輛收購者。它也適用於商業領域的大型企業。在低迷的市場中，它是一種新的採用工具，因為在價格下降的市場中，它需要經銷商社區來利用和觀察車輛，並確保它們的檢查達到我們正在檢查的水平，並減少這些程序的仲裁潛力。

We talked about our operational improvements at CarOffer. We've done phenomenally on that front. And what we're seeing, though, is a business that Elisa mentioned up front. We're going to keep that business with a new leader intact.

我們在 CarOffer 上討論了我們的營運改進。我們在這方面做得非常出色。然而，我們所看到的是 Elisa 前面提到的一項業務。我們將保持與新領導的業務完好無損。

The reason we're so excited about owning the CarOffer business eight months before we were going to is that we are now running the business from the headquarters of CarGurus and with Zach Hallowell, a veteran digital wholesale leader in place running that business. We're looking at product enhancements. We're looking at continued operational improvements that we've already succeeded at but are going to push further on.

我們之所以對提前八個月擁有 CarOffer 業務感到如此興奮，是因為我們現在在 CarGurus 總部運營該業務，並由資深數位批發領導者 Zach Hallowell 負責運營該業務。我們正在研究產品增強功能。我們正在尋求持續的營運改進，我們已經取得了成功，但將進一步推進。

And then a go-to-market focus, which is we're turning our team from sellers into consultants, providing the inventory management tools, the consultation, the AI-based predictive tools to help dealers engage in this platform more than they have over the last few quarters. And that's going to take us a couple of quarters to turn around. We're excited about it because you've got a unique tool set with a value proposition no one else has. We just have to operate that business with new leadership to take it forward.

然後是進入市場的重點，即我們將我們的團隊從賣家轉變為顧問，提供庫存管理工具、諮詢、基於人工智慧的預測工具，以幫助經銷商更多地參與這個平台。最後幾季。我們需要幾個季度的時間才能扭轉局面。我們對此感到興奮，因為您擁有一套獨特的工具集，其價值主張是其他人所沒有的。我們只需要用新的領導層來經營這項業務即可推動其向前發展。

Thank you. There are no further questions at this time. I'd like to turn the floor back over to Jason Trevisan for closing comments.

謝謝。目前沒有其他問題。我想把發言權交還給傑森·特雷維森（Jason Trevisan），讓他發表結束評論。

Thank you very much and thanks to everyone who joined us this evening and for the thoughtful questions. I just want to wrap up by sharing how proud we are of our exceptional performance in Q4 and throughout 2023 and probably most importantly how well we think we're positioned for 2024.

非常感謝你們，感謝今晚加入我們的所有人以及提出的深思熟慮的問題。最後，我想分享我們對第四季和 2023 年全年的出色表現感到多麼自豪，最重要的是，我們認為我們在 2024 年的定位有多好。

I want to thank all of our employees globally who have contributed so much to helping us become the number one digital destination for consumers and dealers to confidently and conveniently buy and sell any vehicle.

我要感謝我們在全球的所有員工，他們為幫助我們成為消費者和經銷商自信、方便地買賣任何車輛的第一數位目的地做出了巨大貢獻。

So thank you very much, everyone. Have a good evening.

非常感謝大家。祝你晚上愉快。

This concludes today's teleconference. You may disconnect your lines at this time.

今天的電話會議到此結束。此時您可以斷開線路。

Goodbye. Thank you for your participation.

再見。感謝您的參與。