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Dec 31, 2024
Cars.com Q4 2024 Earnings Report
Reported solid growth and consistent profitability improvement, driven by strong OEM and National revenue.
Key Takeaways
Cars.com reported a slight increase in Q4 revenue to $180.4 million, with a significant 15% year-over-year growth in OEM and National revenue. Adjusted EBITDA margin reached nearly 31%. The company also announced a $250 million share repurchase authorization.
OEM and National revenue increased by 15% year-over-year.
Adjusted EBITDA margin was nearly 31%.
Organic traffic accounted for 61% of the total traffic share, an increase from 58% in the prior year period.
AccuTrade Connected expanded to approximately 1,000 subscribers.
Revenue by Segment
Forward Guidance
First quarter revenue is expected to be between $178 million and $181 million. For the full year, the Company anticipates revenue of $745 million to $755 million. Adjusted EBITDA margin for the first quarter of 2025 is expected to be between 25.5% and 27%. For the full year, the Company expects to deliver Adjusted EBITDA margin between 29% to 31%.
Positive Outlook
- Ongoing growth initiatives related to improved adoption of AccuTrade.
- Broad-based repackaging across multiple product lines.
- New product launches, including DealerClub.
- Increased marketing and advertising activity by automakers.
- Leverageable revenue growth and sustained cost discipline.
Challenges Ahead
- Dealer revenue reflects the fourth quarter exit rate for the Company’s subscription products, which was negatively impacted by pressure on dealer spending at year end.
- Seasonally higher Marketing and sales investments for large-scale industry events in the first quarter.
- Investing to accelerate integration of DealerClub following the close of that acquisition in January 2025.
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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