Cars.com(US:CARS)2025-05-08 20:05Revenue Performance - Total revenue for the three months ended March 31, 2025, was $179.024 million, a decrease of 1% from $180.176 million in the same period of 2024[63] - Dealer revenue, which constitutes 89% of total revenue, decreased by $2.671 million or 2% year-over-year, primarily due to macroeconomic trends affecting dealer customer profitability[73] - Other revenue increased by 18% year-over-year to $3.601 million, representing 2% of total revenue for both periods[75] Customer Metrics - Average Monthly Unique Visitors increased by 3% year-over-year to 29,048, driven by strategic marketing shifts and increased consumer demand[64][66] - Dealer Customers decreased by 1% year-over-year to 19,250, primarily due to increased churn[64][68] - Monthly Average Revenue Per Dealer decreased by 1% year-over-year to $2,473, reflecting the impact of increased churn[64][69] Operating Income and Expenses - Operating income for the three months ended March 31, 2025, was $6.460 million, a decline of 49% from $12.744 million in the same period of 2024[73] - General and administrative expenses increased by 13% year-over-year to $25.883 million, primarily due to higher severance-related costs[79] - Interest expense decreased by 8% year-over-year to $7.668 million, attributed to reduced total indebtedness and lower interest rates[81] Cash Flow and Liquidity - Cash and cash equivalents as of March 31, 2025, were $31.4 million, with total liquidity of $321.4 million including an undrawn Revolving Loan[86] - For the three months ended March 31, 2025, cash provided by operating activities was $29.5 million, a decrease of $4.0 million compared to $33.5 million in the same period of 2024[93] - The net change in cash and cash equivalents for the three months ended March 31, 2025, was a decrease of $19.2 million compared to a decrease of $7.8 million in the same period of 2024[93] Share Repurchase and Debt - The company repurchased 1.6 million shares for $21.5 million at an average price of $13.85 per share during the three months ended March 31, 2025[89] - The company has a three-year share repurchase program authorized for up to $250.0 million, which may be funded primarily with cash from operations[89] - As of March 31, 2025, the company's total indebtedness was $460.0 million, with an average interest rate of 6.4%[87] Acquisition and Future Considerations - Cash used in investing activities increased to $20.7 million, primarily due to the DealerClub Acquisition[94] - The company may pay up to $88.0 million in performance-based consideration related to the DealerClub Acquisition, contingent on future revenue targets through December 31, 2028[92] - The company paid CAD$15.0 million (approximately USD$10.8 million) in April 2025 related to earnouts from the D2C Media acquisition[92] Financial Ratios - The Senior Secured Net Leverage Ratio and Consolidated Interest Coverage Ratio were 0.1x and 6.6x, respectively, as of March 31, 2025[88] - The company has $290.0 million available to borrow under its Revolving Loan as of March 31, 2025[88]