The online vehicle marketplace saw adjusted net income fall 27% to $20.7 million, or $0.31 per share. That crushed analyst expectations of $0.04 per share. The dip was primarily due to a decline in dealer count.
Shares revved up 4.5% to $21.75 after the opening bell.
Awareness of the company reached 73%, the highest in its 20-year history, and average monthly unique visitors climbed 16% year-over-year to 22.4 million.
Revenue came in at $154.2 million, a 4% year-over-year decline, versus Street projections of $152.3 million.
"These first quarter results are in line with our expectations,” CEO Alex Vetter said. “Our traffic strategy and continued product innovation are driving record traffic, higher conversion, and better-quality leads, all of which drive higher profitability for our dealer customers.”
The company is still exploring strategic alternatives but didn’t offer a timetable.
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