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Dec 31, 2023
Cars.com Q4 2023 Earnings Report
Cars.com's Q4 2023 earnings exceeded guidance with 7% year-over-year revenue growth and 7% ARPD growth, driven by strong OEM performance.
Key Takeaways
Cars.com Inc. reported a 7% year-over-year increase in revenue for Q4 2023, reaching $179.6 million. Net income was $8.3 million, or $0.12 per diluted share. The company's ARPD grew by 7% year-over-year to $2,523, and Adjusted EBITDA reached $55.4 million, representing 31% of revenue.
Revenue increased by 7% year-over-year to $179.6 million.
Net income was reported at $8.3 million, or $0.12 per diluted share.
Adjusted EBITDA was $55.4 million, representing 31% of revenue.
ARPD increased by 7% year-over-year to $2,523.
Revenue by Segment
Forward Guidance
The Company expects to deliver another year of strong growth. First quarter revenue is expected to be between $179 million and $181 million, representing year-over-year growth of 7% to 8%. Adjusted EBITDA margin for the first quarter of 2024 is expected to be between 27% and 29%. The Company expects margins to improve over the course of the year and deliver a full year Adjusted EBITDA margin between 28% to 30%.
Positive Outlook
- Market conditions are improving, with increased OEM production, new model launches, and rising dealer inventory.
- First quarter revenue is expected to be between $179 million and $181 million, representing year-over-year growth of 7% to 8%.
- First quarter revenue outlook reflects continued strong growth in Dealer revenue driven by continued adoption of the Cars Commerce suite of products, the D2C acquisition, and the full period impact of the 2023 Marketplace Repackaging Initiative.
- OEM and National Advertising spend is also expected to be up year-over-year
- The Company anticipates continued growth across its platform with both dealer and OEM customers which is reflected in its revenue growth guidance of 6% to 8%.
Challenges Ahead
- Historically, OEM and National Advertising spend has experienced some seasonality from the fourth quarter to the first quarter.
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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