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Jun 30, 2023
Cars.com Q2 2023 Earnings Report
Cars.com reported second quarter results, delivering on guidance with ARPD and traffic growth and generating significant cash flow from operations.
Key Takeaways
Cars.com Inc. reported a 3% year-over-year increase in revenue, reaching $168.2 million. Net income surged to $94.1 million, or $1.37 per diluted share, driven by the release of a valuation allowance. Adjusted EBITDA was $45.6 million, representing 27% of revenue. The company is raising the midpoint of its full-year revenue guidance to 5% year-over-year growth and reaffirming margin expectations of approaching 30% by the fourth quarter.
Revenue increased by 3% year-over-year to $168.2 million.
Net income was $94.1 million, or $1.37 per diluted share, primarily due to the release of a significant portion of the Company's valuation allowance.
Adjusted EBITDA reached $45.6 million, which is 27% of revenue.
Traffic increased by 5% year-over-year to 156.0 million visits.
Revenue by Segment
Forward Guidance
The Company is well-positioned to deliver profitable growth through continued dealer and OEM adoption of its suite of value-added solutions. Third quarter revenue is expected to be between $172.0 million and $174.0 million, reflecting year-over-year revenue growth of 4.5% to 5.7%.
Positive Outlook
- Continued roll-out of the Company’s Marketplace Repackaging initiative.
- Expansion of dealer solutions and media products.
- Modest sequential improvement in OEM and National Revenue.
Challenges Ahead
- Increased Marketing investment to support our Cars.com brand relaunch.
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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