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Jun 30, 2022
Cars.com Q2 2022 Earnings Report
Achieved high-end of guidance with continued growth in ARPD, dealer customers, and revenue.
Key Takeaways
Cars.com Inc. reported a 5% year-over-year increase in revenue, reaching $162.9 million in Q2 2022. The company's net income was $5.5 million, or $0.08 per diluted share. ARPD and Dealer Customers also saw growth.
Revenue increased by 5% year-over-year to $162.9 million.
Net income was $5.5 million, with earnings per diluted share of $0.08.
Adjusted EBITDA was $45.3 million, representing 28% of revenue.
Dealer Customers increased to 19,517 as of June 30, 2022, up 4% year-over-year.
Revenue by Segment
Forward Guidance
The Company expects to deliver Revenue of approximately $163.5 million to $165.5 million for Q3 2022. Adjusted EBITDA margin for the third quarter is expected to be between 29% and 31%.
Positive Outlook
- Revenue of approximately $163.5 million to $165.5 million expected for Q3 2022, representing year-over-year and sequential growth.
- Adjusted EBITDA margin for the third quarter is expected to be between 29% and 31%, reflecting sequential margin expansion.
- Diligent expense management with a continued focus on investing in the integration and launch of recently acquired dealer solutions.
- Continued focus on marketing and our people.
- Revenue growth to accelerate and projects growth of 6% to 8% year-over-year in the second half of 2022, assuming inventory shortages do not begin to recover until 2023.
Challenges Ahead
- Guidance reflects strong first half 2022 performance balanced against the continuation of the impact of the macro-economic environment.
- Impact of industry-wide inventory shortages.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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