#United States #financial results #Carmel #Marketplace #OPENLANE

OPENLANE, Inc. Reports 2024 Financial Results

OPENLANE, Inc. (NYSE: KAR) recently released its financial results for the fourth quarter and the entire year of 2024, marking a significant achievement for the company. The reports indicate a continued upward trajectory inspired by their thriving marketplace operations.

Fourth Quarter Performance

In the fourth quarter of 2024, OPENLANE achieved several notable milestones:

• - Marketplace Growth: The marketplace experienced a 9% increase in total volume year-over-year, with dealer volumes soaring by 15%. This consistent growth has now been visible for seven consecutive quarters.
• - Revenue: Consolidated revenue reached $455 million, a 12% increase compared to the previous year. Notably, marketplace growth drove this revenue surge with an impressive 18% year-over-year increase.
• - Profit Margins: The company reported an income from continuing operations of $52 million, with the marketplace contributing $26 million. Adjusted EBITDA saw a robust increase of 18%, totaling $73 million.

Peter Kelly, CEO of OPENLANE, attributed this performance to the company's commitment to innovative offerings and customer-centric values that enhance speed, ease, and outcomes in sales transactions. He emphasized their focus on creating a formidable marketplace paired with cutting-edge technology, ensuring a top-notch experience for customers, which positions OPENLANE for further growth.

Full Year Highlights

When looking at the 2024 financial year as a whole, the results are equally encouraging:

• - Total Consolidated Revenue: OPENLANE generated a total consolidated revenue of $1.789 billion, witnessing a 5% growth year-over-year, spurred by an 8% increase in marketplace activity.
• - Net Income: The net income from continuing operations climbed to $110 million, further graphics highlighting the underlying strength of the company's business model.
• - Cash Flow: Additionally, cash flow from operating activities surged to $293 million, reflecting both the stability and liquidity of OPENLANE’s operations.

Brad Lakhia, CFO of OPENLANE, remarked on the company's effective digital model, which reduced costs and enhanced revenue growth. With $293 million in adjusted EBITDA and a gross merchandise value of around $27 billion, the results exemplify OPENLANE's scalability and innovative culture.

Vision for 2025

Looking ahead, OPENLANE has provided guidance for its financial outlook in 2025:

• - Projected Income from Continuing Operations: Expected to be in the range of $100 million to $114 million.
• - Adjusted EBITDA: Anticipated to fall between $290 million and $310 million.
• - Income from Continuing Operations Per Share: Projected diluted share earnings are estimated between $0.38 and $0.48.

OPENLANE’s commitment to a streamlined digital marketplace with innovative financing solutions continues to solidify its place in the wholesale vehicle industry. As a leading operator in this space, the company aims to embrace opportunities for further growth and innovation.

Conclusion

In summary, the financial results for 2024 demonstrate OPENLANE’s remarkable performance and highlight its robust marketplace growth strategies. As they prepare for 2025, the focus remains on maintaining operational excellence and delivering unparalleled service to their clients. This positions OPENLANE, Inc. as a key player in the evolving digital landscape of vehicle sales and provides a solid foundation for future endeavors.