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Jun 30, 2024
Cars.com Q2 2024 Earnings Report
Cars.com's Q2 2024 performance reflected revenue growth and strategic advancements.
Key Takeaways
Cars.com Inc. reported a 6.4% year-over-year increase in revenue, reaching $178.9 million in Q2 2024. The company's net income was $11.4 million, or $0.17 per diluted share, while adjusted EBITDA reached $50.4 million, representing 28% of revenue. The dealer base grew to 19,390 customers, and the company is targeting the return of 50% of second-half 2024 free cash flow to shareholders through share repurchases.
Revenue increased by 6.4% year-over-year, totaling $178.9 million.
Net income was reported at $11.4 million, or $0.17 per diluted share.
Adjusted EBITDA grew to $50.4 million, representing 28% of revenue, a 10% increase year-over-year.
The dealer customer base expanded to 19,390 as of June 30, 2024.
Revenue by Segment
Forward Guidance
Third quarter revenue is expected to be between $178.0 million and $181.0 million, representing year-over-year growth of 2% to 4%. Adjusted EBITDA margin for the third quarter is expected to be between 26.5% and 28.5%. The Company is revising its fiscal year 2024 revenue growth outlook to a range of 4.5% to 5.5%. For fiscal year 2024, the Company is reaffirming Adjusted EBITDA margin outlook of 28.0% to 30.0%.
Positive Outlook
- Dealer revenue is expected to grow year-over-year, reflecting greater adoption of the Cars Commerce suite of products, including D2C.
- OEM and National revenue is expected to grow year-over-year, reflecting increased OEM demand for marketing and advertising solutions.
- Adjusted EBITDA margin for the third quarter is expected to be between 26.5% and 28.5%.
- Company is reaffirming Adjusted EBITDA margin outlook of 28.0% to 30.0% for fiscal year 2024.
- Disciplined cost management to continue delivering strong operating leverage for the remainder of the year.
Challenges Ahead
- Dealer revenue assumptions also include the disruptive impact to June and July sales and product launches from the industry-wide CDK cyber incident.
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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