Core Insights - Tesla continues to dominate the 2025 American-Made Index, holding the top four positions with the Model 3, Model Y, Model S, and Model X, marking its second consecutive year at the top since its debut in 2020 [1][3] - The Jeep Gladiator ranks fifth, making it the highest-ranked American-made pickup truck [1] - The index reflects a significant shift in consumer preferences, with 51% of shoppers influenced by tariffs to seek American-made vehicles, and 73% considering American-built vehicles to avoid additional costs [4][5] Automaker Performance - Honda's Alabama facility produces five of the top 20 vehicles, showcasing its consistency and scale in the market [2] - GM remains a dominant player with the most vehicles represented in the index, while Kia and Volkswagen also contribute with their respective models [2] - The index includes vehicles from 36 factories across the U.S., with a notable concentration in the South and Midwest, highlighting the geographic distribution of auto manufacturing [6][7] Economic Impact - The 2025 AMI emphasizes the economic significance of domestic production, with automaker investments creating jobs and generating tax revenue for local economies [8] - The average domestic parts content of the top 10 vehicles has decreased from 83.4% in 2006 to 70.3% today, indicating the increasing complexity and global integration of auto manufacturing [9] Methodology - The American-Made Index ranks vehicles based on assembly location, parts sourcing, U.S. factory employment, engine sourcing, and transmission sourcing, providing a comprehensive view of the automotive landscape [10]

CarGurus (CARG) FY Conference Summary Company Overview - CarGurus operates as an online automotive marketplace, competing primarily with Cars.com and Auto Trader, offering a freemium model that provides transparency and a wide selection of vehicles [2][4] - The company has built a two-sided marketplace, achieving the largest consumer audience in the online automotive space, which has led to significant growth [5][6] Core Business Model - CarGurus employs a subscription model where dealers pay monthly for various products, with a focus on expanding services throughout the consumer lifecycle and dealer workflow [7][9] - The company has shifted from merely selling leads to a more consultative partnership with dealers, providing insights and analytics to enhance dealer performance [11][12] Financial Performance - Recent quarters have shown acceleration in the core listings business, with the highest dealer count growth in a long time [15][17] - The average revenue per subscribing dealer (CAR SID) has been increasing due to new product introductions and upselling existing customers [18][19] - Dealers spend approximately $12 billion to $14 billion on digital advertising, with CarGurus capturing about 4% of that market [25][26] Market Dynamics - The used car market remains a significant focus, with over 90% of leads directed towards used vehicles, while new car sales are described as more commoditized [43][44] - Insights provided by CarGurus help dealers optimize pricing and inventory management, especially during periods of market uncertainty [45][46] Strategic Initiatives - The acquisition of CarOffer, a digital wholesale platform, aims to enhance the sourcing capabilities for dealers, although it has faced challenges in adapting to market volatility [28][33] - CarGurus is expanding its international presence, particularly in Canada and the UK, where it is growing rapidly and is recognized as a top ROI provider for dealers [52][54] Competitive Landscape - CarGurus has been gaining market share in a slow-growing category, attributed to its innovative product offerings and strong dealer relationships [48] - The company is investing in technology and product development, leveraging AI to enhance productivity and introduce new features [49] Future Outlook - The company is focused on long-term contracts with dealers, with 40% of new contracts being six to twelve months in duration, indicating a shift towards deeper partnerships [56] - CarGurus is also enhancing its new car experience to provide more options for consumers, thereby increasing dealer engagement [58][59]

Core Insights - The 2025 Kia Sportage Hybrid has been recognized as the Best Hybrid for the Money in the Compact SUV category by Cars.com, marking its second consecutive year of recognition [1][2] - Kia emphasizes its commitment to value and innovation in the hybrid segment, as reflected in the Sportage Hybrid's performance and design [1] - The evaluation for Cars.com's Best Hybrids for the Money list is based on the efficiency-cost rating, which considers the EPA's combined mpg rating relative to the vehicle's base price [1] Company Overview - Kia America is headquartered in Irvine, California, and is recognized for its automotive quality, being listed among TIME World's Most Sustainable Companies of 2024 [3] - The company serves as the Official Automotive Partner of the NBA and WNBA, offering a diverse range of gasoline, hybrid, plug-in hybrid, and electric vehicles through nearly 800 dealers in the U.S. [3] Future Developments - The 2026 Sportage has been revealed, building on the success of its predecessor with a fully redesigned package that focuses on design, innovation, technology, and convenience [2] - The 2026 model will offer three distinct powertrain variants: ICE, Turbo Hybrid (HEV), and Turbo Plug-in Hybrid (PHEV), along with an expanded trim range [2]

Summary of Cars.com (CARS) FY Conference Call - May 13, 2025 Industry Overview - The automotive industry is described as resilient, with a historical ability to recover from economic downturns, evidenced by sales figures during past recessions [3][4] - The shift towards digital solutions is emphasized, with consumers moving ahead of the industry in adopting online platforms for car shopping [6] Company Performance - Cars.com has seen improving core business trends, with solid dealer growth reported in February, March, and April [4][10] - The company powers over 8,000 retail websites and generates subscription or SaaS-based revenue from various ecosystem participants [5] - The marketplace caters to both new and used car shoppers, with a significant portion of traffic coming from undecided consumers [16][12] Revenue and Growth Insights - Revenue guidance has been suspended due to uncertainty, but EBITDA margin guidance remains intact, supported by strong dealer and consumer fundamentals [16][19] - OEMs are shifting budgets towards digital solutions, which could positively impact Cars.com’s revenue once supply chain issues are resolved [21][22] - The company expects year-over-year growth despite variability in quarterly performance [19] Competitive Landscape - Cars.com differentiates itself through brand strength and expertise, providing curated inventory and insights to consumers [29][30] - The company is focused on deepening its software solutions and tools for dealers, enhancing the value proposition beyond just a marketplace [31] New Initiatives - The introduction of Accu Trade allows dealers to appraise vehicles in real-time, facilitating better inventory management [15][54] - The Dealer Club initiative aims to create a reputation-based wholesale marketplace, attracting significant interest from dealers [53][54] Capital Allocation - The company is leaning into share buybacks, with a strong performance in Q1 indicating a potential annualized buyback of $90 to $100 million [66][67] - Current stock valuations are viewed as attractive for buybacks, suggesting a proactive approach to capital allocation [66] Key Takeaways - The automotive market is expected to remain healthy despite external challenges, with Cars.com positioned to capitalize on digital trends and dealer needs [64] - The company is optimistic about future growth, particularly with new initiatives like Dealer Club and Accu Trade, which are expected to enhance dealer engagement and revenue streams [59][60]

Revenue 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]

Group 1 - Cars.com Inc. will participate in the J.P. Morgan 53rd Annual Global Technology, Media and Communications Conference on May 13, 2025, at 3:30 p.m. CT / 4:30 p.m. ET [1] - The presentation will be available as a live webcast on the Cars.com Investor Relations website, with an archived replay accessible shortly after the presentation [1] Group 2 - Cars Commerce is an audience-driven technology company focused on empowering the automotive industry by simplifying car buying and selling through AI-driven technologies [2] - The company offers a platform organized around four leading brands: Cars.com, Dealer Inspire, AccuTrade, and DealerClub, providing various solutions for retail operations [2]

Core Viewpoint - Cars.com reported quarterly earnings of $0.37 per share, missing the Zacks Consensus Estimate of $0.39 per share, and showing a significant increase from $0.01 per share a year ago, indicating a mixed performance in earnings expectations [1][2] Financial Performance - The company posted revenues of $179.02 million for the quarter ended March 2025, which was slightly below the Zacks Consensus Estimate by 0.13%, and a decrease from $180.18 million in the same quarter last year [2] - Over the last four quarters, Cars.com has not surpassed consensus EPS estimates and has only topped revenue estimates once [2] Stock Performance - Cars.com shares have declined approximately 34.7% since the beginning of the year, contrasting with the S&P 500's decline of 4.3%, indicating underperformance in the market [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $0.45 for the coming quarter and $1.96 for the current fiscal year, alongside expected revenues of $183.34 million and $743.85 million respectively [7] - The Zacks Rank for Cars.com is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Internet - Commerce industry, to which Cars.com belongs, is currently in the top 30% of over 250 Zacks industries, indicating a favorable industry outlook that could positively impact stock performance [8]

Financial Data and Key Metrics Changes - Revenue for the first quarter was $179 million, which was within the guidance range, but slightly down year over year [6][18] - Adjusted EBITDA was $51 million, resulting in an adjusted EBITDA margin of 28.3%, exceeding expectations [24][25] - Free cash flow was $24 million, with a share repurchase of $22 million during the quarter [27][28] - Net loss for the quarter was $2 million, compared to a net income of $1 million in the previous year [24] Business Line Data and Key Metrics Changes - Dealer revenue decreased by 2% year over year, attributed to a softer start for Marketplace and media products [18][19] - The number of dealers increased to 19,250, marking the best quarter of sequential organic customer growth since mid-2022 [9][25] - Accu Trade appraisal volume rose to over 813,000, a 16% increase quarter over quarter [12] - The solutions portfolio added over 100 new website customers, with over 70% coming from Dealer Inspire [20] Market Data and Key Metrics Changes - OEM revenue grew by 6% year over year, reflecting the value placed on the platform by automakers [9][15] - Average monthly unique visitors reached a record 29 million in Q1, with overall traffic up 1% year over year [10] - Traffic to news and editorial content increased by over 50% year over year, driven by resources like the American Made Index [11] Company Strategy and Development Direction - The company is focused on deepening product penetration and leveraging AI and data intelligence to meet industry demand [7] - The platform strategy combines a consumer marketplace with dealer software tools, aiming for diversified growth [6][7] - The company plans to enhance value delivery through product innovation and commercial leadership, particularly in the used car market [12][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainty affecting the automotive outlook but emphasized the core value proposition of the platform [8] - The company is suspending full-year revenue guidance due to external visibility issues but expects Q2 revenue to be up year over year and quarter over quarter [29][30] - Management remains confident in the ability to drive full-year revenue growth through product adoption and innovation [30][31] Other Important Information - The company has demonstrated sustained cost discipline, with operating expenses up 3% year over year primarily due to severance costs [22][23] - Total liquidity was $321 million as of March 31, 2025, providing capacity for growth investments [28] Q&A Session Summary Question: Impact of tariffs on dealer and OEM spending - Management noted that tariffs have created uncertainty, affecting OEMs' commitments and dealer spending patterns, with some moving to month-to-month arrangements [34][37] Question: Growth in Accu Trade customer count - Management expressed confidence in Accu Trade's growth potential, noting increased dealer interest in sourcing inventory due to new car supply concerns [38][40] Question: Proactive measures taken for margin improvement - Management highlighted cost discipline and lower-than-expected integration costs for Dealer Club as factors contributing to improved EBITDA margins [46][48] Question: Visibility on media spending - Management indicated that while OEMs and dealers see value in media products, the timing of their spending has become more uncertain [55][76] Question: Revenue split between new and used vehicles - Management stated that approximately 15% to 20% of revenue is tied to new car traffic, with the majority being used vehicle-related [89]

Financial Data and Key Metrics Changes - Revenue for the first quarter of 2025 was $179 million, which was within the guidance range, but down slightly year over year [6][17] - Adjusted EBITDA was $51 million, resulting in an adjusted EBITDA margin of 28.3%, exceeding expectations due to cost discipline and lower integration costs [24][25] - Free cash flow was $24 million, down slightly year over year, reflecting adjusted EBITDA performance [27] - Net loss for the first quarter was $2 million, compared to a net income of $1 million in the previous year [23] Business Line Data and Key Metrics Changes - Dealer revenue decreased by 2% year over year, attributed to a softer start for Marketplace and media products [17] - The number of dealers increased to 19,250, marking the best quarter of sequential organic customer growth since mid-2022 [8][25] - Accu Trade appraisal volume rose to over 813,000, a 16% increase quarter over quarter [12] - The solutions portfolio added over 100 new website customers, with over 70% of those wins coming from Dealer Inspire [19] Market Data and Key Metrics Changes - OEM business grew by 6% year over year, reflecting the value automakers place on the high-quality audience [8][15] - Average monthly unique visitors reached a record 29 million in Q1, with overall traffic of 170 million visits, up 1% year over year [10] - Traffic to news and editorial content increased by more than 50% year over year, driven by resources like the American Made Index [11] Company Strategy and Development Direction - The company is focused on a platform strategy that combines a consumer marketplace with dealer software tools, aiming to deepen product penetration [7] - There is a strong emphasis on product innovation leveraging AI and data intelligence to simplify car buying and selling [7] - The company plans to enhance value delivery through new features and product packages, particularly in the Marketplace [12][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged near-term uncertainty affecting the automotive outlook but emphasized the core value proposition of the platform remains strong [7][16] - The company is suspending full-year revenue guidance due to external visibility issues but expects Q2 revenue to be up year over year and quarter over quarter [29][30] - Management expressed confidence in the ability to deliver consistent growth and long-term value creation despite market volatility [16][30] Other Important Information - The company repurchased approximately 1.6 million shares for $22 million in Q1, significantly ahead of its capital return commitment for the year [28] - Total liquidity was $321 million as of March 31, 2025, providing ample capacity for future investments [28] Q&A Session Summary Question: Impact of tariffs on dealer and OEM spending - Management noted that tariffs have created uncertainty, leading to a pullback in OEM commitments, with some moving to month-to-month spending [34][37] Question: Growth in Accu Trade customer count - Management expressed confidence in Accu Trade's growth potential, noting elevated interest from dealers in sourcing inventory differently [38][40] Question: Proactive measures taken in response to tariff news - Management highlighted cost discipline and lower integration costs as factors contributing to better-than-expected EBITDA margins [45][48] Question: Visibility on ad spending from OEMs and dealers - Management indicated mixed signals from both segments, with some dealers pulling back on media commitments while still investing in Marketplace [52][56] Question: Improvement in Marketplace business - Management attributed sequential improvement in Marketplace to increased consumer demand and dealer recognition of the growing market [60][62] Question: Timing of OEM commitments and ad spend - Management clarified that OEMs are currently managing their spending on a month-to-month basis due to uncertainty, impacting visibility [76][78]

Financial Performance - The company's Q1 2025 Adjusted EBITDA reached $50.721 million, with a margin of 28.3%, exceeding the guidance range of 25.5% to 27%[12, 46, 63] - Q1 2025 revenue was $179 million, slightly down year-over-year from $180 million in Q1 2024[12, 38] - The company repurchased 1.6 million shares in Q1 2025, spending $22 million, compared to $9 million in Q1 2024[12] - Adjusted net income for Q1 2025 was $23.956 million, compared to $28.663 million in Q1 2024[64] - Free cash flow for Q1 2025 was $23.660 million, compared to $27.455 million in Q1 2024[65] Key Metrics and Growth Drivers - Average monthly unique visitors reached 29 million in Q1 2025, a new quarterly record[14, 17, 52] - Total traffic (visits) was 170.1 million in Q1 2025[17, 52] - The company had 19,250 dealer customers, up approximately 40 QoQ[14, 48] - OEM and National revenue increased by 6% year-over-year[14, 32, 38] - AccuTrade appraisals grew 16% QoQ, powering over 813,000 appraisals in Q1[25] Outlook - The company projects an Adjusted EBITDA margin of 27% to 29% for Q2 2025[56] - The company anticipates an Adjusted EBITDA margin of 29% to 31% for the full year 2025[60] - The company plans to repurchase $60 to $70 million in shares for the full year 2025[60]