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Mar 31, 2022
Cars.com Q1 2022 Earnings Report
Reported revenue growth, increase in dealer customers, and rise in ARPD, with the Accu-Trade Group acquisition completed.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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
Challenges Ahead
- Impact of the macro-economic environment including industry-wide inventory shortages
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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