CarGurus’ stock price is up around 10 percent Wednesday after the company delivered positive financial results in its first quarterly report since going public.
The Cambridge, MA-based software company’s stock (NASDAQ: [[ticker:CARG]]) was trading just under $33 per share as of this writing Wednesday morning, up from Tuesday’s closing price of $29.82. CarGurus released its third quarter results after the market closed Tuesday. It’s currently valued at $3.4 billion.
The company runs an online marketplace for buying and selling new and used cars. So far, it’s the only Boston-area tech company to go public in 2017.
Here are three takeaways from CarGurus’ latest financial results:
1. Healthy top and bottom lines: CarGurus said it generated nearly $83 million in revenue in the third quarter, up 56 percent from the year-ago period. And it remained profitable—something many tech companies can’t say. CarGurus reported net income of about $2.4 million, up slightly from $2.1 million in the third quarter last year.
2. IPO update: CarGurus’ initial public offering last month raised more than $150 million, but most of the proceeds went to existing stockholders selling shares. The company itself netted about $43 million in the IPO, according to its quarterly financial statement.
3. International growth: The lion’s share of CarGurus’ revenue comes from U.S. customers, but the company’s international operations are gaining more traction. Third-quarter international revenue was $2.6 million, up from $700,000 in the year-ago period. CarGurus also reported an increase in international users, and it signed up more international auto dealers as clients.
