Openlane Inc (KAR) Reports 6% YoY Revenue Increase in Q3 2023
Openlane Inc (NYSE:KAR) reported a 6% year-over-year increase in total revenue, reaching $416 million in Q3 2023.
The company's income from continuing operations stood at $13 million.
Openlane's adjusted EBITDA was $68 million, with the Marketplace segment contributing approximately 40%.
The company's board of directors authorized an increase in the size of the share repurchase program by an additional $20 million.
Openlane Inc (NYSE:KAR) released its third quarter financial results for the period ending September 30, 2023, on November 1, 2023. The company reported improved results for the third consecutive quarter, including increased volumes, revenue, and gross profit. Despite industry challenges, Openlane's marketplace segment grew both commercial and dealer transactions, contributing significantly to the company's adjusted EBITDA performance.
Financial Performance
Openlane Inc (NYSE:KAR) reported a total revenue of $416 million, marking a 6% increase year-over-year. The company's income from continuing operations was $13 million, and its adjusted EBITDA stood at $68 million. The Marketplace segment contributed approximately 40% to the adjusted EBITDA. The company also reported an 8% increase in Marketplace volumes and $216 million of cash flow from operating activities year-to-date.
2023 Guidance
The company's previously stated annual guidance for Adjusted EBITDA and operating adjusted net income from continuing operations per diluted share remains unchanged. However, other guidance measures have been updated. The company anticipates an income (loss) from continuing operations between ($172) - ($158) million and an Adjusted EBITDA between $250 - $270 million.
Share Repurchase Authorization
The board of directors authorized an increase in the size of the companys share repurchase program by an additional $20 million and extended the share repurchase program through December 31, 2024. With this increase, approximately $125 million remains available for repurchases under the share repurchase program.
Financial Statements Summary
Openlane's balance sheet as of September 30, 2023, showed cash and cash equivalents of $110.3 million and total current assets of $2,940.8 million. The total assets were $4,729.3 million. The total current liabilities were $2,508.7 million, and the total stockholders' equity was $1,305.6 million.
The company's income statement for the nine months ended September 30, 2023, showed a net loss of $168.4 million. The total operating revenues were $1,253.8 million, and the total operating expenses were $1,316.4 million.
The cash flow statement for the same period showed a net cash provided by operating activities of $216.2 million and a net decrease in cash, cash equivalents, and restricted cash of $125.6 million.
Company's Outlook
Openlane Inc (NYSE:KAR) continues to simplify its company and the customer experience through its platform and brand consolidation to Openlane. The company remains optimistic about the powerful combination of its asset-light, digital business model and the full Openlane team.
Explore the complete 8-K earnings release (here) from Openlane Inc for further details.
This article first appeared on GuruFocus.
