NYSE$CARS

Cars.com Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Delivered strong revenue growth including 13% year-over-year OEM and National growth and achieved 5% ARPD year-over-year growth.

Cars.com Inc. reported a revenue increase of 8% year-over-year, reaching $180.2 million in Q1 2024. The growth was driven by OEM and National revenue, which increased by 13% year-over-year.

  • Revenue increased by 8% year-over-year to $180.2 million.
  • OEM and National revenue grew 13% year-over-year.
  • ARPD increased by 5% year-over-year to $2,505.
  • Net cash provided by operating activities was $33.5 million.

Headline financials

Total Revenue

$180M

Previous: $167M+7.8%
EPS

$0.01

Previous: $0.17-94.1%
Average Monthly Unique Visitors

28.3M

Previous: 28.5M-0.7%
Traffic (Visits)

171.4M

Previous: 164.8M+4.0%
Monthly ARPD

$2.51K

Previous: $2.39K+5.0%
Dealer Customers

19.4K

Previous: 19.2K+1.0%
Adjusted EBITDA

$52.7M

No prior period
Capital Expenditures

-$708K

Previous: -$199K-255.8%
Free Cash Flow

$76K

Previous: $11.3M-99.3%
Net Income

$784K

Previous: $11.5M-93.2%
Operating Income

$12.7M

Previous: $12.5M+1.7%
Cash & Equivalents

$31.4M

Previous: $18.8M+66.5%
Total Assets

$1.14B

Previous: $1B+14.1%
Stock-Based Comp

$7.07M

Previous: $5.98M+18.3%

Revenue & EPS history

Cars.com · Revenue · Quarterly

$180M

Q1 2024+7.8%vs Q1 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Cars.com · $174M total across 3 segments · Q3 2023

  • Dealer
    $157M+8.1%
  • OEM and National
    $14.5M-2.4%
  • Other
    $2.67M-37.8%

Forward guidance

The Company believes consistent execution of its platform strategy will drive continued revenue growth and margin expansion. Second quarter revenue is expected to be between $181 million and $183 million, representing year-over-year growth of 7% to 9%. Adjusted EBITDA margin for the second quarter of 2024 is expected to be between 27.5% and 29.5%.

Tailwinds

  • Continued revenue growth.
  • Margin expansion.
  • Strength in Dealer revenue driven by increased adoption of the Cars Commerce suite of products
  • OEM and National advertising revenue is expected to grow sequentially
  • Increased new vehicle production

Headwinds

  • Additional investment to support marketplace brand and product development initiatives
  • Shift of certain investments from the first quarter of 2024 into the second quarter of 2024.
  • Higher flooring costs
  • Impact of continued higher interest rates on dealer customers.
  • Uncertain economic conditions

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 2024

Historical avgQ1 2024

-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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