Revenue Performance - Revenue for Q2 2024 was $178.9 million, representing a 6.4% year-over-year increase[2] - Total revenue for Q2 2024 was $178.894 million, a 6.5% increase from $168.176 million in Q2 2023[21] - OEM and National revenue grew 28% year-over-year, driven by increased demand for media and advertising solutions[3] - Q3 2024 revenue is expected to be between $178.0 million and $181.0 million, reflecting year-over-year growth of 2% to 4%[8] - The fiscal year 2024 revenue growth outlook has been revised to a range of 4.5% to 5.5%[9] Profitability Metrics - Adjusted EBITDA for Q2 2024 was $50.4 million, or 28% of revenue, up 10% year-over-year[5] - Operating income for Q2 2024 was $9.517 million, down 22.9% from $12.334 million in Q2 2023[21] - Net income for Q2 2024 was $11.381 million, a significant decrease from $94.126 million in Q2 2023[21] - Net income for the six months ended June 30, 2024, was $12,165, a decrease of 88.5% compared to $105,605 for the same period in 2023[23] - Adjusted EBITDA for the six months ended June 30, 2024, was $103,098, up 14.1% from $89,986 in the same period of 2023[24] Cash Flow and Liquidity - Net cash provided by operating activities for the first half of 2024 was $68.7 million, compared to $56.2 million in the prior year[6] - Total liquidity as of June 30, 2024, was $304.1 million, consisting of cash and cash equivalents of $29.1 million and revolver capacity of $275.0 million[6] - The company plans to return 50% of second half free cash flow to shareholders through share repurchases[7] - Free cash flow for the six months ended June 30, 2024, was $28,992, compared to $35,254 for the same period in 2023, reflecting a decrease of 17.3%[26] Customer Metrics - Dealer Customers increased to 19,390 as of June 30, 2024, up from 19,381 at the end of Q1 2024[3] - Average Revenue Per Dealer (ARPD) was $2,474, showing slight growth year-over-year[3] Operating Expenses - Total operating expenses rose to $169.377 million in Q2 2024, compared to $155.842 million in Q2 2023, reflecting an increase of 8.7%[21] - Total operating expenses for the six months ended June 30, 2024, were reported at $336,809, with adjusted operating expenses at $310,907, reflecting a reduction of approximately 7.7%[31] - Total operating expenses for the three months ended June 30, 2024, were $169,377, a decrease of 7.9% from $155,842 in the same period of 2023[29] Balance Sheet Highlights - Cash and cash equivalents decreased to $29.071 million as of June 30, 2024, down from $39.198 million at the end of 2023[22] - Total assets decreased to $1,120.542 million as of June 30, 2024, from $1,172.449 million at the end of 2023[22] - Total liabilities decreased to $623.651 million as of June 30, 2024, from $680.341 million at the end of 2023[22] - The accumulated deficit as of June 30, 2024, was $(997.569) million, an improvement from $(1,009.734) million at the end of 2023[22] Earnings Per Share - The company reported a diluted earnings per share of $0.17 for Q2 2024, down from $1.37 in Q2 2023[21] Stock-Based Compensation - Stock-based compensation for the six months ended June 30, 2024, was $16,763, compared to $14,672 for the same period in 2023, indicating an increase of 14.3%[25] - The adjustments for stock-based compensation in 2024 amounted to $(558), while in 2023, it was $(750), indicating a reduction in stock-based compensation expenses[31][32]

Core Insights - Cars.com Inc. reported a revenue growth of 6% year-over-year, reaching $178.9 million in Q2 2024, with OEM and National revenue achieving a record growth of 28% year-over-year [1][4][2] - The company generated $69 million in cash flows from operating activities year-to-date and plans to return 50% of its second half 2024 free cash flow to shareholders through share repurchases [1][9][11] - The adjusted EBITDA for Q2 2024 was $50.4 million, representing 28% of revenue, an increase of 10% year-over-year [2][8] Financial Performance - Revenue for Q2 2024 was $178.9 million, up $10.7 million or 6.4% year-over-year [2] - Net income for Q2 2024 was $11.4 million, or $0.17 per diluted share, a significant decrease from $94.1 million, or $1.37 per diluted share, in the prior year due to a prior year's tax asset valuation release [7][2] - Adjusted net income for Q2 2024 was $26 million, or $0.38 per diluted share, compared to $22.5 million, or $0.33 per diluted share, in the prior year [7][2] Operational Highlights - The dealer customer base grew to 19,390, up from 19,381 in the previous quarter, while average revenue per dealer (ARPD) increased slightly to $2,474 [3][5] - Average monthly unique visitors were 26.1 million, with total traffic reaching 158.1 million, reflecting a 1% increase year-over-year [3][8] - Subscription-based dealer revenue grew over 4% year-over-year, driven by increased adoption of digital products and the D2C Media acquisition [4][5] Cash Flow and Balance Sheet - Net cash provided by operating activities for the first six months of 2024 was $68.7 million, compared to $56.2 million in the prior year [9] - The company repaid $15 million of debt, reducing total debt outstanding to $475 million as of June 30, 2024, with total liquidity of $304.1 million [10][11] - Free cash flow for the first six months totaled $56.4 million, an increase from $45.6 million in 2023 [9] Future Outlook - The company expects Q3 2024 revenue to be between $178 million and $181 million, reflecting year-over-year growth of 2% to 4% [13] - The fiscal year 2024 revenue growth outlook has been revised to a range of 4.5% to 5.5%, down from the previous range of 6.0% to 8.0% [15] - The adjusted EBITDA margin outlook for fiscal year 2024 remains at 28.0% to 30.0% [16]

Market Overview - The used vehicle market has seen a price increase of 34% over the last five years, rising from $21,480 to $28,815, with a current inventory shortage of 1.5 million vehicles [1] - In the first half of 2024, used vehicle prices decreased by 5% compared to the first half of 2023, saving consumers over $1,600 [1] - New-car prices have decreased by 2% year-over-year, maintaining an average of $49,467 [2] Electric Vehicle (EV) Market - Demand for new electric vehicles has surged by 930% since 2019, with supply increasing by 825% and prices rising by 56% [5] - In the first half of 2024, new EV prices decreased by 4% compared to the first half of 2023, saving consumers an average of $2,400 per vehicle, while inventory improved by 53% [5] - The average price for used EVs has increased by almost 50% from $25,096 to $36,908 over the last five years, with a nearly 40% increase in demand for used EVs in the first half of 2024 compared to the same period in 2023 [12] Trade-In Values - Trade-in values have increased by 48% since 2019, reflecting higher vehicle values in a constrained supply market [17] - Despite an 8% decrease in trade-in values in the first half of 2024 year-over-year, values remain elevated, providing leverage for consumers [17] Inventory Trends - The inventory for used vehicles is down 4% in the first half of 2024 compared to the same period in 2023, with nearly 300,000 fewer vehicles available [1] - The broader new-car market has seen a 24% decrease in inventory over the last five years, resulting in 1.7 million fewer vehicles available [13] - New inventory is up 13% in the first half of 2024 compared to the first half of 2023, indicating a recovery in market supply [13]

Core Insights - The earnings report for Cars.com is anticipated to show a significant decline in earnings per share (EPS) of $0.47, representing a year-over-year decrease of 65.7% [7] - The consensus revenue estimate for Cars.com is $181.51 million, reflecting a 7.9% increase from the previous year [2] - The Zacks Earnings ESP for Cars.com is 0%, indicating no recent analyst revisions that differ from the consensus estimate, making it challenging to predict an earnings beat [11][12] Earnings Expectations - Cars.com has a history of beating consensus EPS estimates only once in the last four quarters [14] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [8] - A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a strong Zacks Rank [10] Industry Comparisons - Groupon, another player in the internet-commerce industry, is expected to report an EPS of $0.01 for the quarter ended June 2024, indicating a year-over-year increase of 90% [17] - Groupon's revenue estimate is $121.7 million, which is a 5.7% decline from the previous year [17] - Groupon's Earnings ESP is significantly positive at 3100.00%, suggesting a high likelihood of beating the consensus EPS estimate [26]

Core Viewpoint - Cars.com Inc. is set to report its financial results for Q2 2024 on August 8, 2024, with a conference call scheduled to discuss these results [1][2]. Group 1: Company Overview - Cars.com Inc. operates as an audience-driven technology company that empowers the automotive industry [3]. - The company offers a range of products and solutions that simplify the car buying and selling process, utilizing AI-driven technologies across various stages including pretail, retail, and post-sale activities [3]. - The Cars Commerce platform features four main brands: Cars.com, Dealer Inspire, AccuTrade, and Cars Commerce Media Network, each providing distinct services and technologies [3].

Below are three undervalued stocks under $50 that have the ability to grow very fast. Let's dive in to see what sets them apart from their more expensive peers. Healthcare facility operator Select Medical Holdings (NYSE:SEM) is the first discounted stock to consider. The operator of long-term acute care and in-patient rehabilitation hospitals, occupational health, and physical therapy clinics is one of the biggest in the space. It operates 107 hospitals in 28 states, 33 rehab facilities in 13 states, over 1 ...

Therefore, the Zacks rating upgrade for Cars.com basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings es ...

10%.3 But 60% of Americans say that products need to be built in the U.S. by a company headquartered here to substantially contribute to the American economy.4 However, the success of Alabama's auto industry demonstrates that foreign investments are also playing a crucial role in supporting and growing local economies. Ford has 12 vehicles on the Index, assembled in Illinois, Kentucky, Michigan and Missouri. The Lincoln Corsair at No. 29 and Ford Mustang at No. 31 are Ford's highest-ranking vehicles. Contra ...

U.S.-Based Auto Production Facilities Are Up 144% Since 2020 Assembly Locations for the Top 10 Vehicles on Cars.com's 2024 American-Made Index Honda's Odyssey and Ridgeline — boasting the most American-made minivan and pickup truck — came in at No. 5 and No. 6., while the Toyota Camry and Jeep Gladiator each jumped 19 spots to land at No. 7 and No. 8. The Lexus TX makes a memorable entrance to the index, landing at No. 10. The complete list is available at Cars.com/AMI. Over 50% of Vehicles on Index Assembl ...

Key May Market Highlights On Average, Used Cars Cost About $20,000 Less Than New Vehicles — Largest Price Gap Since 2018 "The rise in new-car sales, especially during seasonal promotions like Memorial Day, boosts the used-car market. More new-car inventory means more new-car sales, which means more trade-ins, increasing used-car inventory and bringing prices down — and that's just what we're seeing this month," said Rebecca Lindland, senior director of industry data and insights at Cars Commerce. "On averag ...