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Dec 31, 2022
Cars.com Q4 2022 Earnings Report
Cars.com reported Q4 2022 earnings, exceeding revenue guidance and realizing revenue growth and ARPD from Dealer Solutions.
Key Takeaways
Cars.com Inc. reported a revenue of $168.2 million for Q4 2022, a 6% increase year-over-year. Net income was $10.3 million, or $0.15 per diluted share, compared to a net loss in the prior year. The company generated $129 million of operating cash flow.
Revenue increased by 6% year-over-year to $168.2 million.
Net income was $10.3 million, or $0.15 per diluted share, compared to a net loss of $2.9 million, or ($0.04) per diluted share, in the prior year.
Adjusted EBITDA increased to $49.5 million, representing 29% of revenue.
Average Monthly Unique Visitors increased by 5% year-over-year to 24.6 million.
Revenue by Segment
Forward Guidance
First quarter revenue is expected to be between $166 million and $168 million, a year-over-year revenue growth of 5% to 6%. Adjusted EBITDA margin for the first quarter of 2023 is expected to be between 25% and 27%. Margins are expected to improve over the course of the year, and the Company expects to exit the year with fourth quarter Adjusted EBITDA margins approaching 30%.
Positive Outlook
- Diversified platform strategy provides a solid foundation for growth.
- First quarter revenue is expected to be between $166 million and $168 million, a year-over-year revenue growth of 5% to 6%.
- Strong and consistent Adjusted EBITDA margin profile reflects its disciplined approach to capital allocation and incremental investment.
- Company's ROI driven approach to investing has allowed it to maintain strong margins even as it scales new products, like Accu-Trade and CreditIQ
- Margins are expected to improve over the course of the year, and the Company expects to exit the year with fourth quarter Adjusted EBITDA margins approaching 30%
Challenges Ahead
- First quarter revenue outlook assumes a continued pull-back by digital dealers and lower OEM and National Advertising spend relative to fourth quarter of last year.
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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