Cars.com Reports Second Quarter 2024 Results

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]