View Filing Data

Organization and Business Description

1. Organization and Business Description

CarGurus, Inc. (the “Company”), is a global, online automotive marketplace connecting buyers and sellers of new and used cars. Using proprietary technology, search algorithms, and innovative data analytics, the Company provides information and analysis that create a differentiated automotive search experience for consumers. The Company’s marketplace empowers users worldwide with unbiased third-party validation on pricing and dealer reputation, as well as other useful information that aids them in finding “Great Deals from Top-Rated Dealers.”

The Company is headquartered in Cambridge, Massachusetts and was incorporated in the State of Delaware on June 26, 2015. The Company operates principally in the United States. In addition to the United States, it operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. The Company also operates online marketplaces in Germany, Italy, and Spain; the Company intends to cease the operations of each of these marketplaces in the second quarter of 2020 (see Note 13). The Company has subsidiaries in the United States, Canada, Ireland, and the United Kingdom. In the United States and the United Kingdom, it also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2020

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying interim 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 United States of America (“GAAP”). Any reference in these notes to applicable guidance is meant to refer to the authoritative U.S. generally accepted accounting principles 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 are unaudited. These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto for the year ended December 31, 2019 included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission (“SEC”) on February 14, 2020 (the “2019 Annual Report”).

The Unaudited Condensed Consolidated Financial Statements have been prepared pursuant to the rules and regulations of the 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 position as of March 31, 2020 and December 31, 2019, results of operations, comprehensive income, changes in shareholders’ equity and cash flows for the three months ended March 31, 2020 and 2019. These interim period results are not necessarily indicative of the results to be expected for any other interim period or the full year.

The accompanying 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, 2020, there have been no material changes in the Company's significant accounting policies from those that were disclosed in the 2019 Annual Report.

Principles of Consolidation

The accompanying 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 financial statements to provide additional evidence for certain estimates or to identify matters that require additional disclosure. Subsequent events have been evaluated as required. The Company has evaluated all subsequent events and determined that there are no material recognized or unrecognized subsequent events requiring disclosure, other than those disclosed in Note 13 of these Unaudited Condensed Consolidated Financial Statements.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period.

Significant estimates relied upon in preparing these Unaudited Condensed Consolidated Financial Statements include revenue recognition, allowance for doubtful accounts and sales allowances, variable consideration, the recoverability of long-lived assets, the valuation and recoverability of goodwill and intangible assets, the expensing and capitalization of product, technology, and development costs for website development and internal‑use software, and the recoverability of the Company’s net deferred tax assets and related valuation allowance.

Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. 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.

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, investments, and trade accounts receivable.

The Company maintains its cash, cash equivalents, and investments principally with accredited financial institutions of high credit standing. Although the Company deposits its cash, cash equivalents, and investments with multiple financial institutions, its deposits may often exceed governmental insured limits.

Credit risk with respect to accounts receivable is dispersed due to the large number of customers. The Company routinely assesses the creditworthiness of its customers. The Company generally has not experienced any material losses related to receivables from individual customers, or groups of customers. The Company does not require collateral. Due to these factors, no additional credit risk beyond amounts provided for collection losses is believed by management to be probable in the Company’s accounts receivable. In light of the novel strain of coronavirus that surfaced in Wuhan, China in December 2019 and was subsequently declared a Public Health Emergency of International Concern by the World Health Organization (“COVID-19”), the Company assessed the implications on accounts receivable and increased its allowance for doubtful accounts to $1,247 as of March 31, 2020 as compared to $240 as of December 31, 2019 due to increased risk of collectability of its outstanding trade receivables.

For the three months ended March 31, 2020 and 2019, no individual customer accounted for more than 10% of total revenue.

As of March 31, 2020, one customer accounted for 12% of net accounts receivable. As of December 31, 2019, one customer accounted for 18% of net accounts receivable. No other individual customer accounted for more than 10% of net accounts receivable at March 31, 2020 or December 31, 2019.

Included in net accounts receivable at March 31, 2020 and December 31, 2019, are $5,980 and $8,880, respectively, of unbilled accounts receivable primarily related to advertising customers that are generally billed within a quarter subsequent to services being rendered. The decrease in unbilled accounts receivable of $2,900 is due to a decrease in advertising revenues, a decrease in revenue from partnerships with certain financing services companies and the impact of price concessions offered to customers in response to the COVID-19 pandemic.

Allowance for Credit Losses

The Company is exposed to credit losses primarily through its trade accounts receivable. The Company determines the required allowance for expected credit losses using information such as historical loss trends, current conditions, and reasonable and supportable forecasts of economic conditions such as the impacts of the COVID-19 pandemic in the first quarter of 2020. Amounts are charged against the allowance when it is determined that expected credit losses may occur. At March 31, 2020, the Company reported allowances for doubtful accounts of $1,247 reflecting an increase of $1,007 primarily due to the impact of the COVID-19 pandemic and increased risk of collectability.

Revenue Recognition

The following table summarizes revenue from contracts with customers by revenue source for the three months ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020		2019
Revenue by Revenue Stream
Marketplace subscription revenue	$	141,866	$	120,843
Advertising and other revenue		15,823		14,427
Total	$	157,689	$	135,270

The Company provides disaggregation of revenue based on the marketplace subscription versus advertising and other revenue classification in the table above and based on geographic region (see Note 12) as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The Company enters into contracts that include variable consideration, for which the Company estimates the value of the variable consideration in determining the transaction price and allocates it to the appropriate performance obligations. The Company reassesses any estimates of variable consideration at each reporting period.

ASC Topic 606, Revenue from Contracts with Customers (“Topic 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, 2020 was approximately $27.6 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 Topic 606 to not disclose the amount of transaction price allocated to unsatisfied performance obligations as of March 31, 2020. For performance obligations not satisfied as of March 31, 2020, 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, 2020. The remaining duration is less than one year.

Revenue recognized during the three months ended March 31, 2020 from amounts included in deferred revenue at the beginning of the period was approximately $9,984.

On March 18, 2020, in response to the COVID-19 pandemic, the Company announced a 50% fee reduction on all marketplace subscriptions for the April service period for paying dealers in the United States, Canada and the United Kingdom as well as a 100% fee reduction for paying dealers in Italy as the Company intends to cease the operations of its Italian marketplace in the second quarter of 2020. This discount resulted in a modification to contracts with initial contractual periods greater than one month. For any contract modified, the Company calculated the remaining transaction price and allocated the consideration over the remaining performance obligations. In the Company’s calculation of the remaining transaction price it also included estimated discounts for future service periods beyond April. These modifications had an immaterial impact on the Company’s revenues for the first quarter of 2020. For additional discussion of fee reductions provided to customers announced subsequent to March 31, 2020, refer to Note 13.

Recent Accounting Pronouncements Adopted

Goodwill and Intangibles

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 simplifies the accounting for goodwill impairment by eliminating Step 2 of the goodwill impairment test. Under previous guidance, Step 2 of the goodwill impairment test required entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value was recognized as goodwill impairment. Under ASU 2017-04, goodwill impairment is recognized based on Step 1 of the goodwill impairment test, which calculates the carrying value in excess of the reporting unit’s fair value. The standard was effective beginning in January 2020, with early adoption permitted. The Company adopted the guidance on January 1, 2020 and applied it on a prospective basis. The adoption did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

Credit Losses

In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 and its subsequent related updates establish a forward-looking “expected loss model” that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. ASU 2016-13 and its subsequent related updates were effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company adopted the guidance on January 1, 2020 and applied it on a prospective basis. The adoption did not have a material impact on the Unaudited Condensed Consolidated Financial Statements.

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.

Income Taxes

In December 2019, the FASB issued ASU 2019-12, Income Taxes – Simplifying the Accounting for Income Taxes. The guidance simplifies the accounting for income taxes by removing several exceptions in the current standard and adding guidance to reduce complexity in certain areas, such as requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently assessing the impact that adopting this guidance will have on its Unaudited Condensed Consolidated Financial Statements.

Acquisitions

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Acquisitions

3. Acquisitions

On January 16, 2020, the Company acquired Autolist, an automotive shopping platform based in San Francisco, California, pursuant to an Agreement and Plan of Merger by and among the Company, Alpine Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (“Merger Sub”), Auto List, Inc., a Delaware corporation (“Target”), and the securityholders’ representative therein, pursuant to which, among other things, the Company acquired Target through the merger of Merger Sub with and into Target (the “Merger”), with Target surviving as a wholly owned subsidiary of the Company. The Company paid an aggregate of $21.0 million, net of cash acquired, to consummate the Merger. The amount paid includes $2.2 million that is held in escrow to secure post-closing claims. The Merger is intended to both expand the Company’s consumer audience in the United States and enhance its value proposition for subscribing dealers.

As of March 31, 2020, the Company incurred total acquisition-related costs of $1.4 million related to the Merger. For the three months ended March 31, 2020 the Company incurred total acquisition-related costs of $0.9 million. Acquisition-related costs were excluded from the purchase price allocation as they were primarily comprised of one-time severance and bonus related expenses. For the three months ended March 31, 2020, $0.5 million, $0.2 million and $0.2 million of acquisition-related costs were recorded as operating expense and allocated to product, technology, and development, general and administrative, and sales and marketing, respectively, within the Unaudited Condensed Consolidated Income Statement.

The acquisition has been accounted for as a business combination under the acquisition method and, accordingly, the total purchase price is allocated to the acquired assets and assumed liabilities. The following table presents the preliminary purchase price allocation recorded in the Company’s Unaudited Condensed Consolidated Balance Sheet as of the acquisition date, which is subject to finalization for estimates of the fair value of assets acquired and liabilities assumed as of the acquisition date, including, but not limited to tangible assets, intangible assets and tax-related items, and the related tax and effects of any changes made:

	Estimated Fair Value at Date of Acquisition
Cash and cash equivalents	$	50
Restricted cash		220
Accounts receivable		2,034
Intangible assets ⁽¹⁾		7,600
Goodwill ⁽²⁾		12,409
Operating lease right-of-use		2,169
Other assets, net		162
Accounts payable and accrued expenses		(358	)
Operating lease liabilities - current		(446	)
Operating lease liabilities - non-current		(1,723	)
Deferred tax liability ⁽³⁾		(843	)
Total purchase price	$	21,274

(1)

Identifiable definite-lived intangible assets were comprised of brand, developed technology, and customer relationships of $5,600, $1,200 and $800, respectively, with estimated useful lives of 9 years, 3 years and 3 years, respectively, which will be amortized on a straight-line basis over their estimated useful lives. The fair value of the brand has been estimated using the multi-period excess earnings method which is a variation of the income approach. The fair value of the development technology and customer relationships has been estimated using a cost approach, which assesses the cost to redevelop the app and technology, and relationships, respectively.

(2)

The goodwill represents the excess value of the purchase price over net assets acquired. The goodwill in this transaction is primarily attributable to expected consumer traffic growth and shopper connections for dealers across both the CarGurus and Autolist websites, creating additional value for the Company’s premium subscription customers. All goodwill is assigned to the United States reporting segment. The acquisition of Autolist is treated as a stock acquisition for tax purposes and goodwill is not deductible for tax purposes.

(3)

The estimated deferred tax liability corresponds to the acquired intangible assets which have no tax basis. As a result of the estimated deferred tax liability, an adjustment was recorded to goodwill to account for the tax effect of the estimated deferred tax liability.

Actual and pro forma results for this acquisition have not been presented as the financial impact to the Company’s Unaudited Condensed Consolidated Financial Statements is not material.

Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments

4. Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments

The following tables present, for each of the fair value levels, the Company’s assets that are measured at fair value on a recurring basis at March 31, 2020 and at December 31, 2019:

	At March 31, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)		Significant Other Observable Inputs (Level 2 Inputs)		Significant Unobservable Inputs (Level 3 Inputs)		Total
Cash equivalents:
Money market funds	$	40,143	$	—	$	—	$	40,143
Investments:
Certificates of deposit		—		81,281		—		81,281
Total	$	40,143	$	81,281	$	—	$	121,424

	At December 31, 2019
	Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)		Significant Other Observable Inputs (Level 2 Inputs)		Significant Unobservable Inputs (Level 3 Inputs)		Total
Cash equivalents:
Money market funds	$	29,196	$	—	$	—	$	29,196
Investments:
Certificates of deposit		—		111,692		—		111,692
Total	$	29,196	$	111,692	$	—	$	140,888

Certificates of deposit at March 31, 2020 and December 31, 2019 had maturity dates of one year or less.

The Company measures eligible assets and liabilities at fair value with changes in value recognized in earnings. There were no liabilities that were measured at fair value as of March 31, 2020 and December 31, 2019. Fair value treatment may be elected either upon initial recognition of an eligible asset or liability or, for an existing asset or liability, if an event triggers a new basis of accounting. The Company did not elect to remeasure any of its existing financial assets and did not elect the fair value option for any financial assets transacted during the three months ended March 31, 2020 or the year ended December 31, 2019.

The Company considers all highly liquid investments with an original maturity of 90 days or less at the date of purchase to be cash equivalents. Investments not classified as cash equivalents with maturities one year or less from the balance sheet date are classified as short-term investments, while investments with maturities in excess of one year from the balance sheet date are classified as long-term investments. Management determines the appropriate classification of investments at the time of purchase and re-evaluates such determination at each balance sheet date.

Cash and cash equivalents primarily consist of cash on deposit with banks, and amounts held in interest-bearing money market accounts. Cash equivalents are carried at cost, which approximates their fair market value.

The following is a summary of investments as of March 31, 2020 and December 31, 2019:

	At March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments:
Certificates of deposit due in one year or less		81,281		—		—		81,281
Total investments	$	81,281	$	—	$	—	$	81,281

	At December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments:
Certificates of deposit due in one year or less		111,692		—		—		111,692
Total investments	$	111,692	$	—	$	—	$	111,692

Property and Equipment, Net

3 Months Ended

Mar. 31, 2020

Property Plant And Equipment [Abstract]

Property and Equipment, Net

5. Property and Equipment, Net

Property and equipment consists of the following:

	At March 31, 2020			At December 31, 2019
Computer equipment	$	8,070		$	7,923
Capitalized software		181			181
Capitalized website development costs		11,998			11,083
Furniture and fixtures		7,053			6,809
Leasehold improvements		20,467			19,507
Construction in progress		634			524
Finance lease right-of-use assets		69			78
		48,472			46,105
Less accumulated depreciation and amortization		(20,568	)		(18,155	)
Property and equipment, net	$	27,904		$	27,950

Depreciation and amortization expense, excluding amortization of intangible assets, was $2,558 and $1,472 for the three months ended March 31, 2020 and 2019, respectively.

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

6. Goodwill and Other Intangible Assets

Goodwill

The changes in the carrying value of goodwill were as follows:

Balance at December 31, 2019	$	15,207
Autolist acquisition		12,409
Foreign currency translation adjustment		(318	)
Balance at March 31, 2020	$	27,298

Other Intangible Assets

Intangible assets as of March 31, 2020 and December 31, 2019 consist of the following:

	At March 31, 2020
	Weighted Average Remaining Useful Life (years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Brand		9.2	$	9,057	$	522	$	8,535
Customer relationships		2.3		1,830		475		1,355
Developed technology		2.8		1,200		84		1,116
Total			$	12,087	$	1,081	$	11,006

	At December 31, 2019
	Weighted Average Remaining Useful Life (years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Brand		10.0	$	3,524	$	313	$	3,211
Customer relationships		2.0		1,045		336		709
Total			$	4,569	$	649	$	3,920

The Company recorded amortization expense related to intangible assets of $432 and $155 for the three months ended March 31, 2020 and 2019, respectively.

The estimated useful life of the PistonHeads brand and customer relationships is 11 years and 3 years, respectively. The estimated useful life of the Autolist brand, customer relationships and developed technology is 9 years, 3 years and 3 years, respectively. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. As a result of the COVID-19 pandemic, the Company assessed its long-lived assets for impairment and concluded that there was no impairment as of March 31, 2020.

Estimated amortization expense of intangible assets for future periods as of March 31, 2020 is as follows:

Year Ending December 31,	Amortization Expense
Remainder of 2020	$	1,433
2021		1,911
2022		1,671
2023		951
2024		932
2025		932
Thereafter		3,176
Total	$	11,006

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities

3 Months Ended

Mar. 31, 2020

Accrued Liabilities Current [Abstract]

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities

7. Accrued Expenses, Accrued Income Taxes and Other Current Liabilities

Accrued expenses, accrued income taxes and other current liabilities consist of the following:

	At March 31, 2020		At December 31, 2019
Accrued bonus	$	875	$	8,637
Customer credit balances		6,055		1,062
Other accrued expenses, accrued income taxes and other current liabilities		7,043		8,563
Total	$	13,973	$	18,262

The decrease of $7,762 in accrued bonus balances is primarily due to the payout of the fiscal year 2019 bonus in the first quarter of 2020 as well as a lower overall estimated bonus payout for fiscal year 2020. The increase of $4,993 in customer credit balances is primarily due to credits owed to customers who paid their full April balances before the Company issued concessions in response to the COVID-19 pandemic (Note 2). These payments in advance of service would otherwise have been classified in deferred revenue as of March 31, 2020.

Commitments and Contingencies

3 Months Ended

Mar. 31, 2020

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

8. Commitments and Contingencies

Contractual Obligations and Commitments

All of the Company’s property, equipment, and internal-use software have been purchased with cash with the exception of $967 of unpaid property and equipment and immaterial amounts related to obligations under one finance lease as of March 31, 2020. The Company has no material long-term purchase obligations outstanding with any vendor or third party.

Leases

The Company's operating lease obligations consist of various leases for office space in: Boston, Massachusetts; Cambridge, Massachusetts; Detroit, Michigan; Los Angeles, California; San Francisco, California; Austin Texas; New York City, New York; Dublin, Ireland; and London, United Kingdom. The Detroit, Los Angeles, Austin, New York City and London leases are immaterial to the Company. The Los Angeles and New York City leases will be terminated in the second quarter of 2020. The Company also has an operating lease obligation for data center space in Needham, Massachusetts.

As of March 31, 2020, there were no material changes in the Company’s leases from those disclosed in the 2019 Annual Report, other than as discussed below.

On January 10, 2019, Auto List, Inc., which the Company acquired on January 16, 2020, entered into an operating lease in San Francisco, California at 332 Pine St. for the lease of 6,345 square feet of office space with a non-cancellable lease term through 2024. The lease provides for annual rent increases through the term of the lease.

The Company’s leases in Boston, Massachusetts, Cambridge, Massachusetts and San Francisco, California have associated letters of credit, which are recorded as restricted cash within the Unaudited Condensed Consolidated Balance Sheet. At March 31, 2020 and December 31, 2019, restricted cash was $11,020 and $10,803, respectively, and primarily related to cash held at a financial institution in an interest‑bearing cash account as collateral for the letters of credit related to the contractual provisions for the Company’s building leases. At March 31, 2020 and December 31, 2019, portions of restricted cash were classified as a short-term asset and long‑term asset, as disclosed on the Unaudited Condensed Consolidated Balance Sheet. Additionally, the Company’s lease agreement for 121 First St. in Cambridge, Massachusetts has an associated security deposit, which is recorded in other assets, net within the Unaudited Condensed Consolidated Balance Sheet.

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 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.

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, indemnification, and other common provisions. The Company does not, in the ordinary course, agree to guaranty or indemnification obligations for the Company under its contracts with customers. Based on historical experience and information known at March 31, 2020 and December 31, 2019, the Company has not incurred any costs for guarantees or indemnities.

Stock-based Compensation

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

9. Stock-based Compensation

Total stock-based compensation expense was $11,681 and $7,686 for the three months ended March 31, 2020 and 2019. The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s Unaudited Condensed Consolidated Income Statements:

	Three Months Ended March 31,
	2020		2019
Options	$	14	$	51
RSUs		11,667		7,635
Total stock-based compensation expense	$	11,681	$	7,686

	Three Months Ended March 31,
	2020		2019
Cost of revenue	$	99	$	81
Sales and marketing expense		2,692		2,312
Product, technology, and development expense		5,405		3,183
General and administrative expense		3,485		2,110
Total stock-based compensation expense	$	11,681	$	7,686

Excluded from stock-based compensation expense is $248 and $309 of capitalized website development and internal-use software costs for the three months ended March 31, 2020 and 2019.

During the three months ended March 31, 2020 and 2019, the Company withheld 106,934, and 102,034 shares of Class A common stock, respectively, to satisfy employee tax withholding requirements due to net share settlements. The shares withheld return to the authorized, but unissued pool under the Company’s Omnibus Equity Compensation Plan and can be reissued by the Company. Total payments for the employees’ tax obligations to the taxing authorities due to net share settlements were $3,397 and $3,954 for the three months ended March 31, 2020 and 2019, respectively, and are reflected as a financing activity within the Unaudited Condensed Consolidated Statements of Cash Flows.

Earnings Per Share

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Earnings Per Share

10. Earnings Per Share

Net income per share for the three months ended March 31, 2020 and 2019 is computed by dividing net income 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 end reporting period plus the weighted-average of any additional shares issued and outstanding during the reporting period.

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 amended and restated certificate of incorporation, including on either the death or voluntary termination of the Company’s Chief Executive Officer. 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, 2020, holders of Class B common stock converted 335,741 shares of Class B common stock to Class A common stock. During the three months ended March 31, 2019, no holders of Class B common stock converted shares of Class B common stock to Class A common stock.

Diluted net income per share gives effect to all potentially dilutive securities. Potential dilutive securities for the three months ended March 31, 2020 and 2019 consist of shares of common stock issuable upon the exercise of stock options and shares of common stock issuable upon the vesting of restricted stock units (“RSUs”). The dilutive effect of these common stock equivalents is reflected in diluted earnings per share by application of the treasury stock method.

For the three months ended March 31, 2020 and 2019, diluted net income per share was calculated by dividing net income by the weighted-average number of shares of common stock outstanding during the period plus the dilutive impact of stock options and shares of common stock issuable upon the vesting of RSUs.

The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share:

	Three Months Ended March 31,
	2020		2019
Numerator:
Net income	$	12,696	$	12,584
Denominator:
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders — basic		112,355,093		110,800,037
Dilutive effect of share equivalents resulting from stock options		796,884		1,450,076
Dilutive effect of share equivalents resulting from unvested restricted stock units		338,015		1,156,207
Weighted-average number of shares of common stock used in computing net income per share — diluted		113,489,992		113,406,320
Net income per share attributable to common stockholders:
Basic	$	0.11	$	0.11
Diluted	$	0.11	$	0.11

The following potentially dilutive common stock equivalents have been excluded from the calculation of diluted weighted-average shares outstanding for the three months ended March 31, 2020 and 2019, as their effect would have been anti-dilutive for the periods presented:

Three Months Ended

March 31,

2020

2019

Restricted stock units outstanding

2,825,609

858,417

Income Taxes

3 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

During the three months ended March 31, 2020, the Company recorded an income tax provision of $51 representing an effective tax rate of 0.4%. The effective tax rate for the three months ended March 31, 2020 was lower than the statutory tax rate of 21% principally due to a discrete benefit recognized as a result of the enactment of the CARES Act (as defined below), excess stock deductions from the taxable compensation of share-based awards and federal and state research and development tax credits, partially offset by state and local income taxes.

During the three months ended March 31, 2019, the Company recorded an income tax benefit of $3,503, representing an effective tax rate of (38.6)%. The effective tax rate for the three months ended March 31, 2019 was lower than the statutory tax rate of 21% principally due to the excess stock deductions from the taxable compensation of stock-based awards and federal and state research and development tax credits, partially offset by state and local income taxes.

The Company and its subsidiaries are subject to various U.S. federal, state, and foreign income taxes. The Company is currently not subject to examination under the statute of limitations by the Internal Revenue Service and state jurisdictions for the tax years of 2015 and prior. The Company is currently open to examination in its foreign jurisdictions for tax years 2017 and after. In 2019, the Internal Revenue Service commenced a federal employment tax audit with respect to the 2016, 2017 and 2018 calendar years, which is still open.

On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Among other things, the CARES Act includes a net operating loss (“NOL”) carryback provision allowing for NOLs from the 2018, 2019, or 2020 tax years to be used to offset taxable income for the 2013 to 2017 tax years. The Company has performed an initial analysis and intends to avail itself of this option, which will reduce its current gross NOL balance by approximately $18,723 and increase its deferred federal research and development credit by approximately $2,645. The Company does not expect this election to negatively impact its analysis on the valuation allowance for its NOLs or deferred federal research and development credit.

The CARES Act also updates the Tax Cuts and Jobs Act of 2017, allowing for the depreciation of leasehold improvements over 15 years, rather than 39 years, and eligibility for bonus depreciation, rather than non-eligibility for bonus depreciation. Although the Company continues to analyze the impact of these allowances, including any possible benefit to the 2018 tax year, the Company has

made an estimate for the impact as it relates to the 2019 tax year and will file its 2019 return in accordance with the updated guidance in the CARES Act.

The CARES Act includes other provisions that may be utilized if the Company meets the eligibility requirements. Although the Company continues to review and evaluate the potential impact and benefit of the CARES Act on its entire business, the Company has primarily focused its review on three provisions that affect both income taxes and non-income taxes. First, the CARES Act temporarily removes the 80% limitation on NOLs to offset taxable income for tax years prior to 2021. Second, the CARES Act allows for the deferral of the employer portion of the Social Security Tax for up to two years, with half due by December 31, 2021 and the remainder due by December 31, 2022. Finally, the Company is evaluating whether it qualifies for the Employee Retention Credit program.

Segment and Geographic Information

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Segment and Geographic Information

12. Segment and Geographic Information

The Company has two reportable segments, United States and International. Segment information is presented in the same manner as the Company’s chief operating decision maker (the “CODM”) reviews the Company’s operating results in assessing performance and allocating resources. The CODM reviews revenue and operating income (loss) for each reportable segment as a proxy for the operating performance of the Company’s United States and International operations. The Company’s Chief Executive Officer is the CODM on behalf of both reportable segments.

The United States segment derives revenues from marketplace subscriptions, advertising services, and other revenues from customers within the United States. The International segment derives revenues from marketplace subscriptions, advertising services, and other revenues from customers outside of the United States. A majority of the Company’s operational overhead expenses, including technology and personnel costs, and other general and administrative costs associated with running the Company’s business, are incurred in the United States and not allocated to the International segment. Assets and costs discretely incurred by reportable segments, including depreciation and amortization, are included in the calculation of reportable segment income (loss) from operations. Segment operating income (loss) does not reflect the transfer pricing adjustments related to the Company’s foreign subsidiaries, which are recorded for statutory reporting purposes. Asset information is assessed and reviewed on a global basis.

Information regarding the Company’s operations by segment and geographical area is presented as follows:

	Three Months Ended March 31,
	2020		2019
Segment revenue:
United States		148,006	$	128,403
International		9,683		6,867
Total revenue	$	157,689	$	135,270

	Three Months Ended March 31,
	2020			2019
Segment income (loss) from operations:
United States	$	20,262		$	17,381
International		(8,243	)		(9,946	)
Total income from operations	$	12,019		$	7,435

As of March 31, 2020, total assets held outside of the United States were $29,357, primarily attributable to $14,889 of goodwill and $3,676 of intangible assets. As of December 31, 2019, total assets held outside of the United States were $32,528, primarily attributable to $15,207 of goodwill and $3,920 of intangible assets. The Company will be ceasing the operations of the International segment online marketplaces in Germany, Italy, and Spain in the second quarter of 2020.

Subsequent Event

3 Months Ended

Mar. 31, 2020

Subsequent Events [Abstract]

Subsequent Event

13. Subsequent Event

On April 13, 2020, the Board of Directors (the “Board”) of the Company approved an expense reduction plan to address the impact of the COVID-19 pandemic on the Company’s business (the “Expense Reduction Plan”), pursuant to which the Company initiated a reduction in its workforce of approximately 13%, will cease operation of its Germany, Italy and Spain marketplaces, and is halting expansion efforts in any new international markets. The Company expects to incur total estimated pre-tax restructuring and related charges of approximately $4.3 million during the second quarter of 2020 to implement the Expense Reduction Plan,

approximately 75% of which is related to employee severance and related benefits costs, with the remainder attributable to the write-off of long-lived assets from international marketplaces. The Company expects that approximately $2.6 million of these charges will result in future cash expenditures. The discontinuation of operations in certain markets does not impact the Company’s segment reporting.

On April 16, 2020, in response to the COVID-19 pandemic, the Company announced a 50% fee reduction on all May marketplace subscriptions for paying dealers in the United States, Canada and the United Kingdom and suspension of all charges for paying dealers in Italy as the Company intends to cease the operations of its Italian marketplace in the second quarter of 2020. On April 29, 2020, in further response to the COVID-19 pandemic, the Company announced a 20% and 50% fee reduction on all June marketplace subscriptions for paying dealers in the United States and United Kingdom, respectively. On May 5, 2020, the Company also announced a 20% fee reduction on all June marketplace subscriptions for paying dealers in Canada. These modifications had an immaterial impact on the Company’s revenues for the first quarter of 2020. The Company expects these fee reductions, together with the fee reductions for the April service period, to negatively impact revenue for the second quarter of 2020 by approximately $50.0 million.

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2020

Principles of Consolidation

Basis of Presentation

Subsequent Event Considerations

Use of Estimates

Concentration of Credit Risk

For the three months ended March 31, 2020 and 2019, no individual customer accounted for more than 10% of total revenue.

Allowance for Credit Losses

Revenue Recognition

The following table summarizes revenue from contracts with customers by revenue source for the three months ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020		2019
Revenue by Revenue Stream
Marketplace subscription revenue	$	141,866	$	120,843
Advertising and other revenue		15,823		14,427
Total	$	157,689	$	135,270

Revenue recognized during the three months ended March 31, 2020 from amounts included in deferred revenue at the beginning of the period was approximately $9,984.

Recent Accounting Pronouncements Adopted

Goodwill and Intangibles

Credit Losses

Goodwill and Intangibles

The Company tests goodwill for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value may not be recoverable. As a result of the COVID-19 pandemic, the Company assessed its goodwill for impairment concluding that there was no impairment as of March 31, 2020.The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. As a result of the COVID-19 pandemic, the Company assessed its long-lived assets for impairment and concluded that there was no impairment as of March 31, 2020.

Credit Losses

Recent Accounting Pronouncements not Yet Adopted

Recent Accounting Pronouncements Not Yet Adopted

Income Taxes

Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments

Earnings Per Share

Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2020

Summary of Revenue from Contracts with Customers by Revenue

The following table summarizes revenue from contracts with customers by revenue source for the three months ended March 31, 2020 and 2019.

	Three Months Ended March 31,
	2020		2019
Revenue by Revenue Stream
Marketplace subscription revenue	$	141,866	$	120,843
Advertising and other revenue		15,823		14,427
Total	$	157,689	$	135,270

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2020

Business Combinations [Abstract]

Summary of Preliminary Purchase Price Allocation

The following table presents the preliminary purchase price allocation recorded in the Company’s Unaudited Condensed Consolidated Balance Sheet as of the acquisition date, which is subject to finalization for estimates of the fair value of assets acquired and liabilities assumed as of the acquisition date, including, but not limited to tangible assets, intangible assets and tax-related items, and the related tax and effects of any changes made:

	Estimated Fair Value at Date of Acquisition
Cash and cash equivalents	$	50
Restricted cash		220
Accounts receivable		2,034
Intangible assets ⁽¹⁾		7,600
Goodwill ⁽²⁾		12,409
Operating lease right-of-use		2,169
Other assets, net		162
Accounts payable and accrued expenses		(358	)
Operating lease liabilities - current		(446	)
Operating lease liabilities - non-current		(1,723	)
Deferred tax liability ⁽³⁾		(843	)
Total purchase price	$	21,274

(1)

(2)

(3)

Fair Value of Financial Instruments Including Cash, Cash Equivalents and Investments (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value Levels, Assets Measured at Fair Value on Recurring Basis

The following tables present, for each of the fair value levels, the Company’s assets that are measured at fair value on a recurring basis at March 31, 2020 and at December 31, 2019:

	At March 31, 2020
	Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)		Significant Other Observable Inputs (Level 2 Inputs)		Significant Unobservable Inputs (Level 3 Inputs)		Total
Cash equivalents:
Money market funds	$	40,143	$	—	$	—	$	40,143
Investments:
Certificates of deposit		—		81,281		—		81,281
Total	$	40,143	$	81,281	$	—	$	121,424

	At December 31, 2019
	Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)		Significant Other Observable Inputs (Level 2 Inputs)		Significant Unobservable Inputs (Level 3 Inputs)		Total
Cash equivalents:
Money market funds	$	29,196	$	—	$	—	$	29,196
Investments:
Certificates of deposit		—		111,692		—		111,692
Total	$	29,196	$	111,692	$	—	$	140,888

Schedule of Investments

The following is a summary of investments as of March 31, 2020 and December 31, 2019:

	At March 31, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments:
Certificates of deposit due in one year or less		81,281		—		—		81,281
Total investments	$	81,281	$	—	$	—	$	81,281

	At December 31, 2019
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
Investments:
Certificates of deposit due in one year or less		111,692		—		—		111,692
Total investments	$	111,692	$	—	$	—	$	111,692

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2020

Property Plant And Equipment [Abstract]

Schedule of Property and Equipment

Property and equipment consists of the following:

	At March 31, 2020			At December 31, 2019
Computer equipment	$	8,070		$	7,923
Capitalized software		181			181
Capitalized website development costs		11,998			11,083
Furniture and fixtures		7,053			6,809
Leasehold improvements		20,467			19,507
Construction in progress		634			524
Finance lease right-of-use assets		69			78
		48,472			46,105
Less accumulated depreciation and amortization		(20,568	)		(18,155	)
Property and equipment, net	$	27,904		$	27,950

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Value of Goodwill

The changes in the carrying value of goodwill were as follows:

Balance at December 31, 2019	$	15,207
Autolist acquisition		12,409
Foreign currency translation adjustment		(318	)
Balance at March 31, 2020	$	27,298

Summary of Other Intangible Assets

Intangible assets as of March 31, 2020 and December 31, 2019 consist of the following:

	At March 31, 2020
	Weighted Average Remaining Useful Life (years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Brand		9.2	$	9,057	$	522	$	8,535
Customer relationships		2.3		1,830		475		1,355
Developed technology		2.8		1,200		84		1,116
Total			$	12,087	$	1,081	$	11,006

	At December 31, 2019
	Weighted Average Remaining Useful Life (years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Brand		10.0	$	3,524	$	313	$	3,211
Customer relationships		2.0		1,045		336		709
Total			$	4,569	$	649	$	3,920

Summary of Estimated Amortization Expense of Intangible Assets

Estimated amortization expense of intangible assets for future periods as of March 31, 2020 is as follows:

Year Ending December 31,	Amortization Expense
Remainder of 2020	$	1,433
2021		1,911
2022		1,671
2023		951
2024		932
2025		932
Thereafter		3,176
Total	$	11,006

Accrued Expenses, Accrued Income Taxes and Other Current Liabilities (Tables)

3 Months Ended

Mar. 31, 2020

Accrued Liabilities Current [Abstract]

Schedule of Accrued Expenses, Accrued Income Taxes and Other Current Liabilities

Accrued expenses, accrued income taxes and other current liabilities consist of the following:

	At March 31, 2020		At December 31, 2019
Accrued bonus	$	875	$	8,637
Customer credit balances		6,055		1,062
Other accrued expenses, accrued income taxes and other current liabilities		7,043		8,563
Total	$	13,973	$	18,262

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock-based Compensation Expense by Award Type

	Three Months Ended March 31,
	2020		2019
Options	$	14	$	51
RSUs		11,667		7,635
Total stock-based compensation expense	$	11,681	$	7,686

Summary of Allocation of Stock-based Compensation Expense

	Three Months Ended March 31,
	2020		2019
Cost of revenue	$	99	$	81
Sales and marketing expense		2,692		2,312
Product, technology, and development expense		5,405		3,183
General and administrative expense		3,485		2,110
Total stock-based compensation expense	$	11,681	$	7,686

Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted Net Income Per Share

The following table presents a reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share:

	Three Months Ended March 31,
	2020		2019
Numerator:
Net income	$	12,696	$	12,584
Denominator:
Weighted-average number of shares of common stock used in computing net income per share attributable to common stockholders — basic		112,355,093		110,800,037
Dilutive effect of share equivalents resulting from stock options		796,884		1,450,076
Dilutive effect of share equivalents resulting from unvested restricted stock units		338,015		1,156,207
Weighted-average number of shares of common stock used in computing net income per share — diluted		113,489,992		113,406,320
Net income per share attributable to common stockholders:
Basic	$	0.11	$	0.11
Diluted	$	0.11	$	0.11

Schedule of Potentially Dilutive Common Stock Equivalents Excluded from Calculation of Diluted Weighted-average Shares Outstanding

Three Months Ended

March 31,

2020

2019

Restricted stock units outstanding

2,825,609

858,417

Segment and Geographic Information (Tables)

3 Months Ended

Mar. 31, 2020

Segment Reporting [Abstract]

Summary of Operations by Segment and Geographical Area

Information regarding the Company’s operations by segment and geographical area is presented as follows:

	Three Months Ended March 31,
	2020		2019
Segment revenue:
United States		148,006	$	128,403
International		9,683		6,867
Total revenue	$	157,689	$	135,270

	Three Months Ended March 31,
	2020			2019
Segment income (loss) from operations:
United States	$	20,262		$	17,381
International		(8,243	)		(9,946	)
Total income from operations	$	12,019		$	7,435

Organization and Business Description - Additional Information (Details)	3 Months Ended
	Mar. 31, 2020
Organization Consolidation And Presentation Of Financial Statements [Abstract]
State of incorporation	DE
Date of incorporation	Jun. 26, 2015

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands		3 Months Ended		12 Months Ended
	Mar. 18, 2020	Mar. 31, 2020 USD ($) Customer	Mar. 31, 2019 USD ($) Customer	Dec. 31, 2019 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.
Allowance for doubtful accounts		$ 1,247		$ 240
Increase (Decrease) in Unbilled Receivables		(5,401)	$ 1,519
Increase of allowance for doubtful accounts		1,007
Performance obligation unsatisfied		27,600
Revenue recognized		9,984
United States
Summary Of Significant Accounting Policies [Line Items]
Percentage fee reduction on marketplace subscription services	50.00%
Canada
Summary Of Significant Accounting Policies [Line Items]
Percentage fee reduction on marketplace subscription services	50.00%
United Kingdom
Summary Of Significant Accounting Policies [Line Items]
Percentage fee reduction on marketplace subscription services	50.00%
Italy
Summary Of Significant Accounting Policies [Line Items]
Percentage fee reduction on marketplace subscription services	100.00%
Advertising Customers
Summary Of Significant Accounting Policies [Line Items]
Increase (Decrease) in Unbilled Receivables		$ (2,900)
Sales Revenue, Net \| Concentration of Credit Risk
Summary Of Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		10.00%	10.00%
Number of major customers \| Customer		0	0
Net Accounts Receivable \| Advertising Customers
Summary Of Significant Accounting Policies [Line Items]
Unbilled accounts receivable		$ 5,980		$ 8,880
Net Accounts Receivable \| Concentration of Credit Risk
Summary Of Significant Accounting Policies [Line Items]
Number of major customers \| Customer		0		0
Net Accounts Receivable \| Concentration of Credit Risk \| Customer One
Summary Of Significant Accounting Policies [Line Items]
Concentration of credit risk, percentage		12.00%		18.00%

Summary of Significant Accounting Policies - Summary of Revenue from Contracts with Customers by Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenue by Revenue Stream [Abstract]
Revenue	$ 157,689	$ 135,270
Marketplace Subscription Revenue
Revenue by Revenue Stream [Abstract]
Revenue	141,866	120,843
Advertising and Other Revenue
Revenue by Revenue Stream [Abstract]
Revenue	$ 15,823	$ 14,427

Acquisitions - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
	Jan. 16, 2020	Mar. 31, 2020
Business Acquisition [Line Items]
Acquisition-related costs incurred		$ 0.9
Product, Technology, and Development Expense
Business Acquisition [Line Items]
Acquisition-related costs incurred		0.5
General and Administrative Expense
Business Acquisition [Line Items]
Acquisition-related costs incurred		0.2
Sales and Marketing Expense
Business Acquisition [Line Items]
Acquisition-related costs incurred		0.2
Auto List, Inc \| San Francisco, California
Business Acquisition [Line Items]
Business acquisition date	Jan. 16, 2020
Payments to acquire business	$ 21.0
Amount held in escrow	$ 2.2
Acquisition-related costs incurred		$ 1.4

Acquisitions - Summary of Preliminary Purchase Price Allocation (Details) - USD ($)
$ in Thousands

Mar. 31, 2020

Jan. 16, 2020

Dec. 31, 2019

Goodwill

$ 27,298

$ 15,207

Auto List, Inc

Cash and cash equivalents

$ 50

Restricted cash

220

Accounts receivable

2,034

Operating lease right-of-use

^[1]

7,600

Goodwill

^[2]

12,409

2,169

Other assets, net

162

Accounts payable and accrued expenses

(358)

Operating lease liabilities - current

(446)

Operating lease liabilities - non-current

(1,723)

Deferred tax liability

^[3]

(843)

Total purchase price

$ 21,274

[1]	Identifiable definite-lived intangible assets were comprised of brand, developed technology, and customer relationships of $5,600, $1,200 and $800, respectively, with estimated useful lives of 9 years, 3 years and 3 years, respectively, which will be amortized on a straight-line basis over their estimated useful lives. The fair value of the brand has been estimated using the multi-period excess earnings method which is a variation of the income approach. The fair value of the development technology and customer relationships has been estimated using a cost approach, which assesses the cost to redevelop the app and technology, and relationships, respectively.
[2]	The goodwill represents the excess value of the purchase price over net assets acquired. The goodwill in this transaction is primarily attributable to expected consumer traffic growth and shopper connections for dealers across both the CarGurus and Autolist websites, creating additional value for the Company’s premium subscription customers. All goodwill is assigned to the United States reporting segment. The acquisition of Autolist is treated as a stock acquisition for tax purposes and goodwill is not deductible for tax purposes.
[3]	The estimated deferred tax liability corresponds to the acquired intangible assets which have no tax basis. As a result of the estimated deferred tax liability, an adjustment was recorded to goodwill to account for the tax effect of the estimated deferred tax liability.

Acquisitions - Summary of Preliminary Purchase Price Allocation (Parenthetical) (Details) - Auto List, Inc - USD ($)
$ in Thousands

3 Months Ended

Jan. 16, 2020

Mar. 31, 2020

^[1]

$ 7,600

Brand

$ 5,600

Estimated useful lives

9 years

Developed Technology

$ 1,200

Estimated useful lives

3 years

Customer Relationships