1. Startups

Carsome Achieves First Quarterly Profit, Optimistic to Achieve Annual Profitability in 2024

Contributed by a significant increase in Gross Profit Per Unit (GPU) of 48%

Carsome announced its first positive EBITDA results for the first quarter of 2024. Thanks to a significant increase in Gross Profit Per Unit (GPU) of 48% on an annual basis, the company is getting closer to its first annual profitability target.
"We are on track to achieve full profitability this year, while continuing to expand our leadership in this region and industry. Our market potential is huge and we are just starting this journey," said Carsome Co-Founder & CEO Eric Cheng.
Other than that, Carsome also managed to sell more than 150.000 cars in 2023, increasing total car sales since its founding to more than 500.000 units. This increase in revenue comes not only from car sales, but also from supporting services such as Carsome Capital, which reports a revenue increase of more than 80% by 2023. Carsome, which operates in Malaysia, Indonesia, Thailand and Singapore, also recorded improved operational efficiencies significantly by reducing Customer Acquisition Costs (CAC) by 37% through leveraging brand equity and comprehensive ecosystem service integration. "By achieving this profitability, we have not only confirmed our business model but also confirmed our long-term success potential," added Cheng. Carsome now has the ambition to continue to innovate within the automotive sector, creating opportunities that meet the changing needs of customers in Southeast Asia. Previously in 2022, the company also had the opportunity make efficiency by laying off 10% of its total staff.
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Disclosure: This article was produced with AI technology and supervision of the content writer

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