What happened Shares of CarGurus (NASDAQ: CARG), which operates a well-known online automotive marketplace, gained 13.6% in Friday trading after the company released better-than-expected first-quarter earnings and revenues. So what The report's highlights include a 9% increase in total revenue to $171.4 million, which topped analysts' estimates for revenue of $158.9 million. Adjusted net income checked in at $39.1 million, or $0.33 per share, which also beat analysts' estimates of $0.22 per share. Those revenue gains were driven by 10% growth in the U.S. market. International revenue -- which accounts for only a small fraction of its total -- declined by 14%. "I'm thrilled to share that CarGurus generated very strong results in the first quarter, both in our core business, and the CarOffer business," said CEO Jason Trevisan in a press release. "CarGurus has emerged from 2020 a stronger, more efficient company, with a strategy built for the future of car shopping, for both consumers and dealers." Image source: Getty Images. Now what It was a solid first quarter for CarGurus, and the only knock against the results was a 6% decline in total paying dealers. The decline in total dealers was more than offset by a 7% increase in quarterly average revenue per subscribing dealer from $5,115 to $5,466. Management's focus will continue to be on fostering consumer engagement through valuable and accurate vehicle information, and using that value to increase the number of quality leads to dealerships. As more dealerships come back to CarGurus after the pandemic-related decline during 2020's first quarter, the company is poised for a strong year, and remains an intriguing investment in the automotive market. 10 stocks we like better than CarGurus, Inc.When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and CarGurus, Inc. wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of February 24, 2021 Daniel Miller has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends CarGurus, Inc. The Motley Fool has a disclosure policy.Source