CarGurus, Inc. is accelerating its product development across both dealer and consumer offerings, moving beyond its traditional dealer marketing roots.
CEO Jason Trevisan announced the company is entering three new workflow areas: inventory management, lead-to-sale conversion, and market and competitive intelligence.
Inventory Management as Key Focus
Trevisan highlighted that the company is furthest along and most excited about the inventory management category.
This category covers a dealer's ability to determine which vehicles to stock, where to source them, and how much to pay.
It also dictates how dealers price and merchandise their vehicles in the current market.
CarGurus introduced PriceVantage at the end of last year as an early monetized offering within this category.
The company currently has several hundred paying customers for PriceVantage software.
Management expects PriceVantage and a newer marketing product for new cars to grow significantly from their launch in the fourth quarter.
The two products are projected to generate more than $10 million in combined revenue this year.
Integration of Artificial Intelligence
Artificial intelligence is becoming central to CarGurus' operations, transforming the consumer shopping process into a conversational experience.
AI helps shoppers determine the specific make, model, and trim that fits their individual needs.
The technology also supports sort order and personalization across the entire online shopping journey.
CarGurus is gaining visibility in Large Language Model search results, though traffic from AI sources remains relatively small.
International expansion in Canada and the United Kingdom remains a key opportunity for long-term growth.
Management sees large untapped spend in dealer workflow categories and plans to keep investing despite near-term margin pressure.
