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Sep 30, 2022
Cars.com Q3 2022 Earnings Report
Reported revenue and customer growth, achieving Q3 guidance and strong operating cash flow.
Key Takeaways
Cars.com Inc. reported Q3 2022 financial results with revenue of $164.6 million, a net loss of $2.9 million, and adjusted EBITDA of $49.9 million. The company saw growth in traffic, dealer customers, and adoption of Dealer Inspire and Accu-Trade solutions.
Revenue increased by 5% year-over-year to $164.6 million.
Net loss was $2.9 million, or $0.04 per diluted share.
Adjusted EBITDA increased by 9% year-over-year to $49.9 million, representing 30% of revenue.
Average Monthly Unique Visitors increased by 12% year-over-year to 27.3 million.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2022, the Company expects to deliver Revenue of approximately $165 million to $167 million, with Adjusted EBITDA margin between 28.5% and 30.0%.
Positive Outlook
- Expected continued growth in the Company’s digital solutions.
- Revenue of approximately $165 million to $167 million is expected.
- Represents year-over-year and sequential growth.
- Adjusted EBITDA margin for the fourth quarter is expected to be between 28.5% and 30.0%.
- Company expects to generate attractive margins and deliver strong cash flow.
Challenges Ahead
- Challenging macro environment is expected to continue.
- Guidance is balanced with the continued impact of the economic headwinds.
- Industry-wide inventory shortage is expected to continue.
- Rising inflation is expected to continue.
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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