Growth in customer subscription revenue helped boost third-party vehicle listings site CarGurus in 2019.
The Cambridge, Mass., marketplace company on Thursday reported revenue of $158.2 million in the fourth quarter, up 25 percent from the same period a year earlier. Marketplace subscriptions brought in $140.6 million, a jump of 24 percent, the company said.
Net income for the fourth quarter grew by 6 percent, to $13.2 million, over the year-earlier period.
But the numbers didn't impress Wall Street. CarGurus shares dove 26.5 percent to close at $25.05 on Friday.
For the full year, CarGurus reported revenue of $588.9 million, up nearly 30 percent from 2018. Subscription revenue of $526 million also was up by 30 percent.
But profit slid by 35 percent for the full year, to $42.1 million. CarGurus said that was due to a tax benefit of $39.7 million recorded in 2018 that lifted its earnings last year. That tax benefit was largely attributed to the impact of the company's share price on equity compensation plans after its initial public offering.