NYSE$CARS

Cars.com Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported revenue growth, increase in dealer customers, and rise in ARPD, with the Accu-Trade Group acquisition completed.

Cars.com Inc. reported a 3% year-over-year increase in revenue to $158.2 million for Q1 2022. Net income was $4.3 million, or $0.06 per diluted share. The company closed the acquisition of Accu-Trade Group and saw growth in dealer customers and ARPD.

  • Revenue increased by 3% year-over-year to $158.2 million.
  • Net income was $4.3 million, or $0.06 per diluted share.
  • Dealer Customers reached 19,500, up 4% year-over-year.
  • Average Revenue Per Dealer (ARPD) increased by 1% year-over-year to $2,291.

Headline financials

Total Revenue

$158M

Previous: $153M+3.2%
EPS (adj)

$0.06

Previous: $0.08-25.0%
Average Monthly Unique Visitors

26.6M

Previous: 26.6M+0.0%
Traffic (Visits)

148.5M

Previous: 148.5M+0.0%
Monthly ARPD

$2.29K

Previous: $2.27K+1.0%
Dealer Customers

19.5K

Previous: 19.2K+1.7%
Adjusted EBITDA

$42M

No prior period
Capital Expenditures

-$4.01M

Previous: -$6.22M+35.6%
Free Cash Flow

$332K

Previous: -$941K+135.3%
Net Income

$4.34M

Previous: $5.28M-17.8%
Operating Income

$10.9M

Previous: $16.5M-33.9%
Gross Profit

$130M

Previous: $125M+4.0%
Cash & Equivalents

$30.5M

Previous: $53.7M-43.3%
Total Assets

$1.07B

Previous: $1.04B+3.2%
Stock-Based Comp

$5.22M

Previous: $4.98M+4.9%

Revenue & EPS history

Cars.com · Revenue · Quarterly

$158M

Q1 2022+3.2%vs Q1 2021
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Cars.com · $158M total across 3 segments · Q1 2022

  • Dealer
    $140M+5.6%
  • OEM and National
    $15.2M-16.0%
  • Other
    $2.62M+15.4%

Forward guidance

For the second quarter of 2022, the Company expects Revenue of approximately $161 million to $163 million. Adjusted EBITDA margin for the second quarter is expected to be between 26% and 28% and includes the margin impact of our expected revenue mix as well as higher year-over-year expenses as we invest in the integration and launch of our recently acquired dealer solutions, in marketing and in our people. Adjusted EBITDA margin is expected to approach 30% by the fourth quarter as revenue growth accelerates and OEM and National revenue begins to recover in connection with inventory levels.

Tailwinds

  • Strong first quarter 2022 performance
  • Continuation of strong first quarter 2022 performance
  • Year-over-year revenue growth to accelerate throughout the year as the Company rolls-out recently acquired solutions and inventory replenishes
  • Reaffirms full-year revenue guidance of 6% to 8% year-over-year growth
  • Double-digit revenue growth in the fourth quarter, assuming inventory shortages begin to recover in the fourth quarter

Headwinds

  • Impact of the macro-economic environment including industry-wide inventory shortages
  • Higher year-over-year expenses as we invest in the integration and launch of our recently acquired dealer solutions
  • Higher year-over-year expenses in marketing
  • Higher year-over-year expenses in our people
  • Economic environment does not have a worsening impact on consumer car buying behavior

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.3%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+0.5%

Avg return

30 days after

55%

22 / 40 earnings

Positive

+23.2%

Q1 2020

Best reaction

-42.4%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+10.1%-5.8%-18.3%
Q4 2025-15.4%-23.3%-25.9%
Q3 2025+6.9%+9.3%+16.3%
Q1 2025-11.2%+0.3%-8.3%
Q4 2024-21.4%-19.9%-26.1%
Q3 2024+10.1%+15.1%+11.7%
Q2 2024-5.8%-0.8%-2.9%
Q1 2024+3.1%+5.5%+19.3%
Q4 2023-2.9%+2.5%-6.1%
Q3 2023+20.4%+24.8%+22.7%
Q2 2023-7.9%-6.9%-16.5%
Q1 2023-9.0%-6.4%-3.5%
Q4 2022+13.1%+10.4%+4.9%
Q3 2022+15.3%+16.3%+15.0%
Q2 2022+5.6%+10.2%+3.9%
Q1 2022-15.0%-22.2%-11.5%
Q4 2021+12.7%+13.1%+5.0%
Q3 2021+2.9%+2.5%+22.2%
Q2 2021+11.0%+14.8%+7.1%
Q1 2021+6.7%+2.1%+10.7%
Q4 2020-18.4%-1.0%-11.1%
Q3 2020-4.6%-5.5%+26.5%
Q2 2020+17.9%+27.1%+33.1%
Q1 2020+23.2%+28.3%+69.7%
Q4 2019-22.3%-25.2%-65.0%
Q3 2019+7.5%+6.2%+4.9%
Q2 2019-42.4%-49.9%-50.3%
Q1 2019+5.2%+9.3%-1.1%
Q4 2018-2.8%-6.5%-7.7%
Q3 2018-2.3%-2.5%-7.7%
Q2 2018-0.4%-2.8%-6.7%
Q1 2018-5.5%-7.0%-0.5%
Q4 2015+2.3%+5.3%+0.9%
Q3 2016-2.3%-1.1%+16.4%
Q3 2017-2.3%-1.1%+16.4%
Q2 2016+2.0%+2.2%+11.0%
Q2 2017+2.0%+2.2%+11.0%
Q4 2016+0.2%-5.6%-12.2%
Q1 2016+0.2%+4.4%-14.4%
Q1 2017+0.2%+4.4%-14.4%
Q3 2015
Q2 2015
Q1 2015
Q4 2014

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