NYSE$CARS

Cars.com Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Reported solid growth and consistent profitability improvement, driven by strong OEM and National revenue.

Cars.com reported a slight increase in Q4 revenue to $180.4 million, with a significant 15% year-over-year growth in OEM and National revenue. Adjusted EBITDA margin reached nearly 31%. The company also announced a $250 million share repurchase authorization.

  • OEM and National revenue increased by 15% year-over-year.
  • Adjusted EBITDA margin was nearly 31%.
  • Organic traffic accounted for 61% of the total traffic share, an increase from 58% in the prior year period.
  • AccuTrade Connected expanded to approximately 1,000 subscribers.

Headline financials

Total Revenue

$180M

Previous: $180M+0.5%
EPS (adj)

$0.49

Previous: $0.12+308.3%
Average Monthly Unique Visitors

23.1M

Previous: 24.3M-4.9%
Traffic (Visits)

143.8M

No prior period
Monthly ARPD

$2.48K

Previous: $2.52K-1.9%
Dealer Customers

19.2K

Previous: 19.5K-1.5%
Adjusted EBITDA

$55.5M

No prior period
Capital Expenditures

-$5.57M

Previous: -$5.31M-4.9%
Net Income

$17.3M

Previous: $8.35M+107.3%
Operating Income

$19.8M

Previous: $14.9M+32.4%
Gross Profit

$95M

Previous: $149M-36.1%

Revenue & EPS history

Cars.com · Revenue · Quarterly

$180M

Q4 2024+0.5%vs Q4 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

First quarter revenue is expected to be between $178 million and $181 million. For the full year, the Company anticipates revenue of $745 million to $755 million. Adjusted EBITDA margin for the first quarter of 2025 is expected to be between 25.5% and 27%. For the full year, the Company expects to deliver Adjusted EBITDA margin between 29% to 31%.

Tailwinds

  • Ongoing growth initiatives related to improved adoption of AccuTrade.
  • Broad-based repackaging across multiple product lines.
  • New product launches, including DealerClub.
  • Increased marketing and advertising activity by automakers.
  • Leverageable revenue growth and sustained cost discipline.

Headwinds

  • Dealer revenue reflects the fourth quarter exit rate for the Company’s subscription products, which was negatively impacted by pressure on dealer spending at year end.
  • Seasonally higher Marketing and sales investments for large-scale industry events in the first quarter.
  • Investing to accelerate integration of DealerClub following the close of that acquisition in January 2025.
  • Pressure on dealer spending at year end
  • Modest revenue growth

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 2024

Historical avgQ4 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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