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Mar 31, 2023
Cars.com Q1 2023 Earnings Report
Achieved first quarter guidance and reaffirmed full-year 2023 guidance with continued growth in revenue and ARPD.
Key Takeaways
Cars.com Inc. reported a strong first quarter with year-over-year growth in revenue, Adjusted EBITDA, and traffic. Revenue reached $167.1 million, a 6% increase year-over-year, and net income was $11.5 million, or $0.17 per diluted share. The company generated $28.1 million in operating cash flow, repaid its revolving loan, and returned $7.2 million in capital to stockholders through share repurchases.
Revenue increased by 6% year-over-year to $167.1 million.
Net income rose to $11.5 million, or $0.17 per diluted share, compared to $4.3 million, or $0.06 per diluted share, in the prior year.
Adjusted EBITDA increased to $44.3 million, representing 26.5% of revenue.
Average Monthly Unique Visitors increased by 7% year-over-year to 28.5 million.
Revenue by Segment
Forward Guidance
Second quarter revenue is expected to be between $168.0 million and $170.0 million. Adjusted EBITDA margin for the second quarter is expected to be between 26% and 28%. The company reaffirms its full-year revenue guidance, of 3% to 6% year-over-year growth.
Positive Outlook
- Continued growth in Dealer Revenue.
- Expected Adjusted EBITDA margin between 26% and 28% for the second quarter.
- Reaffirmation of full-year revenue guidance of 3% to 6% year-over-year growth.
- Margins are expected to improve over the course of the year.
- Company expects to exit the year with fourth quarter Adjusted EBITDA margins approaching 30%.
Challenges Ahead
- Cautious outlook on OEM and National Revenue.
- Guidance reflects lower OEM and National advertising revenue relative to the first quarter.
- Increased second quarter investments in Brand Marketing.
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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