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Sep 30, 2023
Cars.com Q3 2023 Earnings Report
Cars.com Inc. reported third quarter results with revenue increase and strategic moves to advance platform strategy
Key Takeaways
Cars.com Inc. reported a 6% year-over-year increase in revenue to $174.3 million for the third quarter of 2023. Net income was $4.5 million, or $0.07 per diluted share. The company launched Cars Commerce, uniting its B2B brands, and acquired D2C Media Inc. to expand its Canadian presence.
Revenue increased by 6% year-over-year to $174.3 million.
Net income was $4.5 million, or $0.07 per diluted share, compared to a net loss in the prior year.
Monthly Average Revenue Per Dealer (ARPD) increased by 9% year-over-year to $2,548.
The company acquired D2C Media Inc., expanding its platform into Canada.
Revenue by Segment
Forward Guidance
The Company is well-positioned to deliver profitable growth through continued dealer and OEM adoption of the Cars Commerce Platform. Fourth quarter revenue is expected to be between $177 million and $179 million, reflecting continued year-over-year revenue growth of 5.2% to 6.4%. Adjusted EBITDA margin for the fourth quarter is expected to be between 29.5% and 30.5%, reflecting fourth quarter revenue guidance and sequential changes in investment mix.
Positive Outlook
- Continued dealer and OEM adoption of the Cars Commerce Platform.
- Expected fourth quarter revenue between $177 million and $179 million.
- Continued year-over-year revenue growth of 5.2% to 6.4%.
- Anticipated continued growth in Dealer Revenue driven by adoption of dealer solutions and media products.
- Modest sequential improvement expected in OEM and National Revenue.
Challenges Ahead
- Year-over-year revenue growth rates reflect the launch of Accu-Trade Connected and favorable renegotiation of key website agreements in the prior year period.
- Challenging environment for auto adjacent advertisers, including insurance companies.
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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