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Cars.com(CARS) - 2022 Q1 - Quarterly Report
2022-05-05 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol Name of each exchange on which registered Common Stock CARS New York Stock Exchange FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 b For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-37869 Cars.com Inc. (Exact Name of Registrant as Spec ...
Cars.com(CARS) - 2021 Q4 - Earnings Call Presentation
2022-03-01 14:12
| --- | --- | --- | --- | |---------------------------------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | Fourth Quarter and Full-Year 2021 Earnings | | | | | February 24, 2022 | | | | Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning th ...
Cars.com(CARS) - 2021 Q4 - Earnings Call Transcript
2022-02-24 20:01
Cars.com Inc. (NYSE:CARS) Q4 2021 Earnings Conference Call February 24, 2022 9:00 AM ET Company Participants Robbin Moore-Randolph - Director of IR Alex Vetter - CEO Sonia Jain - CFO Conference Call Participants Robert Zeller - Truist Dan Kurnos - Benchmark Company Gary Prestopino - Barrington Research Doug Arthur - Huber Research Operator Good morning, and welcome to the CARS' Fourth Quarter 2021 Earnings Conference Call. This call is being recorded, and a live webcast can be found at investor.cars.com. A ...
Cars.com(CARS) - 2021 Q4 - Annual Report
2022-02-24 16:00
[Part I](index=3&type=section&id=PART%20I) [Business](index=3&type=section&id=Item%201.%20Business) Cars.com Inc. operates a leading digital automotive marketplace, connecting car shoppers with sellers through digital solutions and generating primary revenue from dealer subscriptions - The company's vision is to become the largest digital automotive marketplace platform, focusing on frictionless omni-channel transactions[9](index=9&type=chunk) - As of December 31, 2021, the company served **19,179 dealer customers** across all 50 states and nearly all OEMs selling vehicles in the U.S.[15](index=15&type=chunk)[16](index=16&type=chunk) FY2021 Revenue Breakdown | Revenue Source | Percentage of Total Revenue | | :--- | :--- | | Car Dealerships | 88.2% | | OEMs and National Advertisers | 10.4% | | Other Customers | 1.4% | - The company has expanded its offerings through key acquisitions, including DealerRater (2016), Dealer Inspire (2018), and CreditIQ (2021), to enhance its digital solutions and media offerings[13](index=13&type=chunk)[21](index=21&type=chunk) - As of December 31, 2021, CARS had approximately **1,600 full-time employees**, with **45% identifying as female** and **25% as having a racial and ethnic background other than white**[70](index=70&type=chunk) [Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from the COVID-19 pandemic, intense competition, reliance on OEMs, and evolving data privacy regulations - The COVID-19 pandemic has materially and adversely affected, and could continue to affect, the company's business, financial condition, and results of operations[73](index=73&type=chunk)[76](index=76&type=chunk) - The company faces significant competition from internet search engines (Google, Facebook), online automotive sites (AutoTrader, CarGurus), and website solution providers (Dealer.com, Sincro)[97](index=97&type=chunk) - The business depends on strong brand recognition and traffic from internet search engines like Google, where changes in algorithms could harm traffic[87](index=87&type=chunk)[89](index=89&type=chunk)[90](index=90&type=chunk) - Evolving data privacy laws, such as the California Consumer Privacy Act (CCPA), create uncertainty and could increase compliance costs or restrict business practices[141](index=141&type=chunk) - The company's debt agreements contain restrictive covenants that may limit operational flexibility, including restrictions on incurring additional debt and making certain payments[165](index=165&type=chunk) [Unresolved Staff Comments](index=20&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports no unresolved staff comments from the SEC - None[167](index=167&type=chunk) [Properties](index=20&type=section&id=Item%202.%20Properties) The company leases its principal executive office in Chicago, Illinois, and another office in Naperville, Illinois - The company maintains leased administrative offices in Chicago, Illinois and Naperville, Illinois[167](index=167&type=chunk) [Legal Proceedings](index=20&type=section&id=Item%203.%20Legal%20Proceedings) The company is occasionally involved in legal actions but does not believe any pending litigation will have a material adverse effect - The company does not have any pending litigation that is expected to have a material adverse effect on its results of operations, financial condition, or cash flows[168](index=168&type=chunk) [Mine Safety Disclosures](index=20&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - None[169](index=169&type=chunk) [Part II](index=21&type=section&id=PART%20II) [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=21&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock is traded on the NYSE under "CARS", and it does not intend to pay cash dividends in the foreseeable future - Common stock is listed on the NYSE under the symbol **"CARS"**[172](index=172&type=chunk) - The company has never declared or paid cash dividends and does not currently intend to, as future earnings will be retained for business financing and growth[174](index=174&type=chunk) [Selected Financial Data](index=21&type=section&id=Item%206.%20Selected%20Financial%20Data) This item is reserved and contains no information - This item is marked as [Reserved][177](index=177&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In 2021, Cars.com saw revenue grow 14% to $623.7 million, returned to profitability with $7.7 million net income, and strengthened its financial position [Overview of Results and Recent Trends](index=22&type=section&id=Overview%20of%20Results%20and%20Recent%20Trends) The company highlights key achievements in 2021, including consistent dealer customer growth, the CreditIQ acquisition, and significant debt reduction Financial Highlights (2019-2021) | (In thousands) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenue** | $623,683 | $547,503 | $606,682 | | **Net income (loss)** | $7,719 | $(817,120) | $(445,324) | - Dealer Customers increased by **807**, or **4%**, to **19,179** as of December 31, 2021, marking six consecutive quarters of growth[182](index=182&type=chunk)[183](index=183&type=chunk) - Acquired CreditIQ, an automotive fintech platform, for **$30.0 million in cash upfront**, with potential for up to **$50.0 million in additional performance-based payments**[184](index=184&type=chunk) - The company made **$120.0 million of debt repayments** during 2021, of which **$110.0 million were voluntary prepayments**[186](index=186&type=chunk) [Key Operating Metrics](index=23&type=section&id=Key%20Operating%20Metrics) In 2021, key operating metrics showed strong performance, with average monthly unique visitors growing 5% and annual average revenue per dealer increasing 16% Key Operating Metrics (Annual) | Metric | Year Ended Dec 31, 2021 | Year Ended Dec 31, 2020 | % Change | | :--- | :--- | :--- | :--- | | Traffic (Visits, in thousands) | 591,499 | 599,807 | (1%) | | Average Monthly Unique Visitors (thousands) | 25,064 | 23,822 | 5% | | Monthly Average Revenue Per Dealer (ARPD) | $2,309 | $1,995 | 16% | Dealer Customer and Quarterly ARPD Trends | Metric | Dec 31, 2021 | Dec 31, 2020 | % Change (YoY) | Sep 30, 2021 | % Change (QoQ) | | :--- | :--- | :--- | :--- | :--- | :--- | | Dealer Customers | 19,179 | 18,372 | 4% | 19,029 | 1% | | Quarterly ARPD | $2,333 | $2,264 | 3% | $2,332 | 0% | [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Total revenue increased 14% to $623.7 million in 2021, driven by a 19% increase in Dealer revenue, leading to a significant improvement in operating income Consolidated Results of Operations (2021 vs. 2020) | (In thousands) | 2021 | 2020 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | **$623,683** | **$547,503** | **$76,180** | **14%** | | Dealer revenue | $549,923 | $463,018 | $86,905 | 19% | | OEM and National revenue | $65,085 | $73,176 | $(8,091) | (11%) | | **Total operating expenses** | **$575,345** | **$1,434,830** | **$(859,485)** | **(60%)** | | Goodwill and intangible asset impairment | $— | $905,885 | $(905,885) | (100%) | | **Operating income (loss)** | **$48,338** | **$(887,327)** | **$935,665** | **N/A** | | **Net income (loss)** | **$7,719** | **$(817,120)** | **$824,839** | **N/A** | - The **19% increase in Dealer revenue** was driven by growth in FUEL and digital solutions, a **4% increase in Dealer Customers**, and the absence of approximately **$38.2 million in invoice credits** provided in 2020 due to the COVID-19 pandemic[205](index=205&type=chunk)[206](index=206&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity of $269.1 million at year-end 2021, supported by consistent operating cash flow and significant debt repayments - As of December 31, 2021, total liquidity was **$269.1 million**, including **$39.1 million in cash and cash equivalents** and **$230.0 million available** under the Revolving Loan[224](index=224&type=chunk) - Total outstanding debt principal was **$477.5 million** as of December 31, 2021, consisting of a **$77.5 million Term Loan** and **$400.0 million in senior unsecured notes**[225](index=225&type=chunk) Cash Flow Summary (2021 vs. 2020) | (In thousands) | 2021 | 2020 | Change | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities | $138,003 | $138,616 | $(613) | | Net cash used in investing activities | $(39,450) | $(16,712) | $(22,738) | | Net cash used in financing activities | $(127,203) | $(67,734) | $(59,469) | - In February 2022, the Board authorized a new three-year, **$200 million share repurchase program**[242](index=242&type=chunk) [Critical Accounting Policies and Estimates](index=29&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Management identifies critical accounting policies requiring significant judgment, including revenue recognition, goodwill impairment, and business combination accounting - Revenue Recognition: The primary revenue source, marketplace subscription advertising, is recognized ratably over the contract term, with add-on products typically combined as a single performance obligation[245](index=245&type=chunk)[247](index=247&type=chunk) - Goodwill Impairment: Goodwill is tested annually at the single reporting unit level, involving subjective estimates for future cash flows, growth rates, and discount rates in a DCF analysis, supplemented by market-based valuations[253](index=253&type=chunk)[257](index=257&type=chunk) - Business Combinations: For acquisitions like CreditIQ, the company estimates the fair value of intangible assets and contingent consideration, with the latter valued using a Monte Carlo simulation or scenario-based method[262](index=262&type=chunk)[265](index=265&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=32&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate risk, managed by a swap, and immaterial foreign currency exchange risk - The company manages interest rate risk on its variable-rate Term Loan with an interest rate swap, locking in a fixed rate of **2.96%** on a notional amount of **$300 million**[269](index=269&type=chunk) - Hedge accounting for the interest rate swap was lost in 2020; subsequent changes in the swap's fair value are recorded in Other (expense) income, net[270](index=270&type=chunk) - Foreign currency exchange risk is not significant due to operations being primarily based in the United States[272](index=272&type=chunk) [Financial Statements and Supplementary Data](index=32&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the company's audited consolidated financial statements for the three years ended December 31, 2021, along with detailed notes [Report of Independent Registered Public Accounting Firm](index=33&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP issued an unqualified opinion on the consolidated financial statements, highlighting Revenue Recognition and the CreditIQ acquisition as critical audit matters - The auditor, Ernst & Young LLP, issued an **unqualified opinion** on the consolidated financial statements[275](index=275&type=chunk) - Critical Audit Matters identified were Revenue Recognition, due to judgment in identifying performance obligations, and the acquisition of CreditIQ, Inc., due to complex estimations for the fair value of contingent consideration and intangible assets[279](index=279&type=chunk)[280](index=280&type=chunk)[283](index=283&type=chunk) [Consolidated Financial Statements](index=35&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements detail the company's financial position and performance, including $1.01 billion in total assets and $7.7 million net income in 2021 Consolidated Balance Sheet Highlights (As of Dec 31) | (In thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Total current assets | $147,437 | $178,081 | | Goodwill | $26,227 | $— | | Intangible assets, net | $769,424 | $835,166 | | **Total assets** | **$1,007,205** | **$1,075,712** | | Total current liabilities | $94,290 | $90,368 | | Long-term debt, net | $457,383 | $576,143 | | **Total liabilities** | **$640,271** | **$735,536** | | **Total stockholders' equity** | **$366,934** | **$340,176** | Consolidated Statement of Income (Loss) Highlights | (In thousands) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Total revenue | $623,683 | $547,503 | $606,682 | | Operating income (loss) | $48,338 | $(887,327) | $(446,060) | | Net income (loss) | $7,719 | $(817,120) | $(445,324) | | Diluted EPS | $0.11 | $(12.15) | $(6.65) | [Notes to Consolidated Financial Statements](index=40&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical context, detailing the CreditIQ acquisition, goodwill impairment, debt structure, and subsequent events like the Accu-Trade acquisition - Note 3: The company acquired CreditIQ, Inc. on November 5, 2021, with total purchase consideration of **$44.1 million**, including **$29.97 million in cash** and **$23.8 million in contingent consideration**[357](index=357&type=chunk)[359](index=359&type=chunk) - Note 5: Goodwill was **$26.2 million** as of Dec 31, 2021, entirely from the CreditIQ acquisition, following a **$505.9 million goodwill impairment** and **$400.0 million indefinite-lived intangible asset impairment** recorded in 2020[367](index=367&type=chunk)[375](index=375&type=chunk) - Note 7: As of Dec 31, 2021, total debt outstanding was **$477.5 million**, comprising a **$77.5 million Term Loan** and **$400.0 million in 6.375% senior unsecured notes due 2028**[392](index=392&type=chunk)[393](index=393&type=chunk)[400](index=400&type=chunk) - Note 16: In February 2022, the company signed an agreement to acquire Accu-Trade for **$65 million in cash** and authorized a new three-year, **$200 million share repurchase program**[439](index=439&type=chunk)[440](index=440&type=chunk) [Changes in and Disagreements With Accountants on Accounting and Financial Disclosure](index=57&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20With%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure) The company reports no changes in or disagreements with its accountants on accounting and financial disclosure - None[442](index=442&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December 31, 2021, with an unqualified auditor opinion - Management concluded that disclosure controls and procedures were **effective** as of December 31, 2021[443](index=443&type=chunk) - Management concluded that internal control over financial reporting was **effective** as of December 31, 2021, based on the COSO framework (2013)[446](index=446&type=chunk) - The independent registered public accounting firm, Ernst & Young LLP, issued an **unqualified opinion** on the effectiveness of the company's internal control over financial reporting[451](index=451&type=chunk) [Other Information](index=59&type=section&id=Item%209B.%20Other%20Information) The company reports no other information - None[458](index=458&type=chunk) [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=59&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections.) This item is not applicable to the company - Not applicable[460](index=460&type=chunk) [Part III](index=60&type=section&id=PART%20III) [Directors, Executive Officers and Corporate Governance](index=60&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information required by this item is incorporated by reference from the company's definitive proxy statement for the 2022 Annual Meeting of Stockholders - Information is incorporated by reference from the 2022 Proxy Statement[462](index=462&type=chunk) [Executive Compensation](index=60&type=section&id=Item%2011.%20Executive%20Compensation) Information required by this item is incorporated by reference from the company's definitive proxy statement for the 2022 Annual Meeting of Stockholders - Information is incorporated by reference from the 2022 Proxy Statement[462](index=462&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=60&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information required by this item is incorporated by reference from the company's definitive proxy statement for the 2022 Annual Meeting of Stockholders - Information is incorporated by reference from the 2022 Proxy Statement[463](index=463&type=chunk) [Certain Relationships and Related Transactions, and Director Independence](index=60&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information required by this item is incorporated by reference from the company's definitive proxy statement for the 2022 Annual Meeting of Stockholders - Information is incorporated by reference from the 2022 Proxy Statement[464](index=464&type=chunk) [Principal Accounting Fees and Services](index=60&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information regarding aggregate fees billed by the principal accountant, Ernst & Young LLP, is incorporated by reference from the 2022 Proxy Statement - Information is incorporated by reference from the 2022 Proxy Statement[465](index=465&type=chunk) [Part IV](index=61&type=section&id=PART%20IV) [Exhibits, Financial Statement Schedules](index=61&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists the financial statements and schedules filed with the report, along with an index of all exhibits - Lists the financial statements included in Item 8 and Financial Statement Schedule II-Valuation and Qualifying Accounts[467](index=467&type=chunk)[468](index=468&type=chunk) - An exhibit index is provided, listing key corporate and financial documents filed with the report[468](index=468&type=chunk)[470](index=470&type=chunk) [Form 10-K Summary](index=65&type=section&id=Item%2016.%20Form%2010-K%20Summary) The company provides no summary for its Form 10-K - None[475](index=475&type=chunk)
Cars.com(CARS) - 2021 Q3 - Earnings Call Transcript
2021-11-06 01:39
Cars.com Inc. (NYSE:CARS) Q3 2021 Earnings Conference Call November 4, 2021 10:00 AM ET Company Participants Robbin Moore-Randolph - Director of Investor Relations Alex Vetter - Chief Executive Officer Sonia Jain - Chief Financial Officer Conference Call Participants Nick Jones - Citi Dan Kurnos - Benchmark Company Naved Khan - Truist Securities Gary Prestopino - Barrington Research Marvin Fong - BTIG Matt Wegner - Craig-Hallum Operator Good morning, and welcome to the CARS' Third Quarter 2021 Earnings Conf ...
Cars.com(CARS) - 2021 Q3 - Earnings Call Presentation
2021-11-04 20:34
Financial Performance - Q3 2021 Adjusted EBITDA was $45772 thousand[29] - Q4 2021 revenue is expected to be between $1575 million and $1595 million[27] - Q4 2021 Adjusted EBITDA margins are projected between 285% and 305%[27] - YTD Free Cash Flow as of September 30, 2021 was $98347 thousand[31] Key Metrics - Marketplace visits reached 1424 million[10] - Average Monthly Unique Visitors were 243 million in Q3 2021[22] - Dealer customers increased to 19029 in Q3 2021, a growth of 899 year-over-year[14,22] - Monthly ARPD was $2332 in Q3 2021[22] Strategic Initiatives - CARS acquired CreditIQ, an auto finance technology platform, for $30 million at closing plus a potential $50 million earn-out[9,28] - Dealer Inspire websites grew, reaching over 5200 total websites[17]
Cars.com(CARS) - 2021 Q3 - Quarterly Report
2021-11-03 16:00
Financial Performance - Total revenue for the three months ended September 30, 2021, was $156,553 thousand, an increase of 8.0% from $144,392 thousand in the same period of 2020[14]. - Net income for the three months ended September 30, 2021, was $2,431 thousand, compared to a net loss of $12,261 thousand in the same period of 2020[17]. - Operating income for the three months ended September 30, 2021, was $12,074 thousand, down from $19,063 thousand in the same period of 2020[14]. - Total revenue for the third quarter of 2021 was $156.6 million, a 8.0% increase from $144.4 million in the same quarter of 2020[34]. - The company reported a comprehensive income of $3,633 thousand for the three months ended September 30, 2021, compared to a comprehensive loss of $9,170 thousand in the same period of 2020[17]. - Net income for the nine months ended September 30, 2021, was $13.675 million, a significant improvement compared to a net loss of $824.339 million for the same period in 2020[24]. - For the nine months ended September 30, 2021, revenue reached $465.4 million, compared to $394.5 million in the same period of 2020, marking an 18.0% increase[91]. - The net income for the nine months ended September 30, 2021, was $13.7 million, contrasting with a net loss of $824.3 million in the same period of 2020, primarily due to a goodwill impairment[91]. Assets and Liabilities - Total current assets decreased to $161,710 thousand as of September 30, 2021, from $178,081 thousand as of December 31, 2020, representing a decline of 9.2%[11]. - Total liabilities decreased to $631,567 thousand as of September 30, 2021, from $735,536 thousand as of December 31, 2020, a reduction of 14.1%[11]. - Long-term debt decreased to $470,520 thousand as of September 30, 2021, from $576,143 thousand as of December 31, 2020, a decrease of 18.3%[11]. - The balance of accumulated deficit as of September 30, 2021, was $(1,170.512) million, reflecting ongoing challenges in profitability[24]. - Cash and cash equivalents at the end of the period were $51.507 million, compared to $43.769 million at the end of the same period in 2020[24]. - The outstanding aggregate principal amount of debt was $490.0 million as of September 30, 2021, with an effective interest rate of 5.7%[147]. Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2021, was $116.226 million, compared to $96.866 million for the same period in 2020[24]. - The company reported a net cash decrease of $16.212 million for the nine months ended September 30, 2021, compared to an increase of $30.220 million in the same period of 2020[24]. - The company made $107.500 million in payments of long-term debt during the nine months ended September 30, 2021, compared to $215.312 million in the same period of 2020[24]. - Cash used in investing activities increased to $(17.9) million in 2021 from $(12.6) million in 2020, a change of $(5.3) million[153]. - Cash used in financing activities was $(114.6) million in 2021, primarily due to $107.5 million of debt repayments, compared to $(54.0) million in 2020[155]. Stockholders' Equity - Total stockholders' equity increased to $366,560 thousand as of September 30, 2021, from $340,176 thousand as of December 31, 2020, an increase of 7.8%[11]. - The company reported a stockholders' equity of $366.560 million as of September 30, 2021, indicating a slight increase from previous periods[24]. Digital Solutions and Strategy - The company has a diverse portfolio of brands including Cars.com, Dealer Inspire, and Auto.com, focusing on digital solutions for the automotive marketplace[27]. - The company’s digital solutions strategy aims to enhance dealer inventory visibility and connect sellers with potential buyers, leveraging rich data from its marketplace[27]. - The company’s digital solutions strategy leverages rich data and audience engagement to drive growth and efficiency in the automotive industry[90]. Customer Metrics - Dealer Customers increased by 1% to 19,029 as of September 30, 2021, compared to 18,845 as of June 30, 2021, and up 5% from 18,130 as of September 30, 2020[100][109]. - Dealer revenue, which represents 89.0% of total revenue, increased by $15.4 million or 12% year-over-year, driven by a 7% increase in Average Revenue Per Dealer (ARPD) and a 5% increase in Dealer Customers[115]. - Average Revenue Per Dealer (ARPD) increased by 1% from June 30, 2021, and by 7% from September 30, 2020, primarily due to growth in FUEL revenue and digital solutions[107]. Expenses - Operating expenses for the three months ended September 30, 2021, totaled $144,479 thousand, an increase of 15.3% from $125,329 thousand in the same period of 2020[14]. - Marketing and sales expense represented 33.6% of total revenue for the nine months ended September 30, 2021, reflecting continued investment in marketing[135]. - General and administrative expense increased to 10.1% of total revenue for the nine months ended September 30, 2021, due to increased compensation costs[136]. - Product and technology expense increased to 12.1% of total revenue for the nine months ended September 30, 2021, due to continued investment in the business[134]. Tax and Refunds - The effective income tax rate for the nine months ended September 30, 2021, was 8.4%, down from 12.0% in the same period of 2020[60]. - The company received a $9.1 million tax refund during the nine months ended September 30, 2021, related to the carryback of federal and state income tax net operating loss due to the CARES Act[59]. Acquisitions - In November 2021, the company signed an agreement to acquire CreditIQ, Inc. for $30 million, with potential additional payments of up to $50 million based on future performance[62].
Cars.com(CARS) - 2021 Q2 - Earnings Call Presentation
2021-08-09 22:18
Q2 2021 Earnings August 5, 2021 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning the impact of the COVID-19 pandemic on our industry, our dealer customers and our results of operations, our business strategies, strategic alternatives, plans and objectives, market potential, outlo ...
Cars.com(CARS) - 2021 Q2 - Earnings Call Transcript
2021-08-08 12:09
Cars.com Inc. (NYSE:CARS) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Robbin Moore-Randolph - Director of Investor Relations Alex Vetter - Chief Executive Officer Sonia Jain - Chief Financial Officer Conference Call Participants Tom White - D.A. Davidson Matt Wegner - Craig-Hallum Capital Nick Jones - Citi Marvin Fong - BTIG Doug Arthur - Huber Research Operator Good morning and welcome to the Cars Second Quarter 2021 Earnings Conference Call. This call is being recorded ...
Cars.com(CARS) - 2021 Q2 - Quarterly Report
2021-08-04 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 Title of each class Trading Symbol Name of each exchange on which registered Common Stock CARS New York Stock Exchange Large accelerated filer ☐ Accelerated filer ☒ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 b For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15( ...