NYSE$CARS
Cars.com Inc · Q4 2022 earnings
Q4 2022 earnings · · Investor relations
Briefing
Cars.com reported Q4 2022 earnings, exceeding revenue guidance and realizing revenue growth and ARPD from Dealer Solutions.
Cars.com Inc. reported a revenue of $168.2 million for Q4 2022, a 6% increase year-over-year. Net income was $10.3 million, or $0.15 per diluted share, compared to a net loss in the prior year. The company generated $129 million of operating cash flow.
- Revenue increased by 6% year-over-year to $168.2 million.
- Net income was $10.3 million, or $0.15 per diluted share, compared to a net loss of $2.9 million, or ($0.04) per diluted share, in the prior year.
- Adjusted EBITDA increased to $49.5 million, representing 29% of revenue.
- Average Monthly Unique Visitors increased by 5% year-over-year to 24.6 million.
Headline financials
Revenue & EPS history
Cars.com · Revenue · Quarterly
$168M
Revenue by segment
Cars.com · $168M total across 3 segments · Q4 2022
- Dealer$149M+6.1%88.8%
- OEM and National$14.3M-7.0%8.5%
- Other$4.45M+110.5%2.6%
Forward guidance
First quarter revenue is expected to be between $166 million and $168 million, a year-over-year revenue growth of 5% to 6%. Adjusted EBITDA margin for the first quarter of 2023 is expected to be between 25% and 27%. Margins are expected to improve over the course of the year, and the Company expects to exit the year with fourth quarter Adjusted EBITDA margins approaching 30%.
Tailwinds
- Diversified platform strategy provides a solid foundation for growth.
- First quarter revenue is expected to be between $166 million and $168 million, a year-over-year revenue growth of 5% to 6%.
- Strong and consistent Adjusted EBITDA margin profile reflects its disciplined approach to capital allocation and incremental investment.
- Company's ROI driven approach to investing has allowed it to maintain strong margins even as it scales new products, like Accu-Trade and CreditIQ
- Margins are expected to improve over the course of the year, and the Company expects to exit the year with fourth quarter Adjusted EBITDA margins approaching 30%
Headwinds
- First quarter revenue outlook assumes a continued pull-back by digital dealers and lower OEM and National Advertising spend relative to fourth quarter of last year.
- There continue to be mixed signals across the automotive industry driven by supply chain challenges.
- Full year revenue growth guidance, of 3% to 6%, assumes that lower inventory levels will persist throughout the year.
- Overall listings remain down 41% compared to 4.3 million as of the first quarter 2020.
- Company has seasonally higher investments in Marketing and sales in the first quarter due to the timing of in-person industry events.
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 Q4 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
| Quarter | Report date | Reaction (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 | — | — | — |
Discussion
Share your read of this quarter. Sign-in carries your eToro identity.
Join the conversation
Sign in with eToro to post your read of this quarter and vote on others'.
Sign in with eToro