Financial Performance - Second quarter revenue remained steady at $178.7 million year-over-year[45] - Adjusted EBITDA margin reached 28.5%, hitting the high end of the projected 27% to 29% range[14, 53] - The company repurchased 3.7 million shares during the first half of 2025[13] Operational Highlights - Total traffic visits reached 162 million in the second quarter[14, 18] - The company saw a 50% quarter-over-quarter increase in completed transactions on DealerClub[39] - AccuTrade appraisals increased by 14% quarter-over-quarter and 45% year-over-year, totaling approximately 925,000 appraisals in Q2[36] Strategic Initiatives - OEM and National revenue increased by 5% year-over-year[14, 15, 45] - The company added 162 dealer customers quarter-over-quarter, bringing the total to 19,412[14, 30] - AI-powered search capabilities led to a 2x higher lead submission rate compared to standard search, with nearly 20% of internet leads originating from the new search capability[22] Outlook - The company projects low-single digit year-over-year revenue growth for the second half of 2025[58] - The company anticipates an Adjusted EBITDA margin of 29% to 31% for the full year 2025[62] - The company increased its share repurchase target to $70 to $90 million for the full year[62]

Grew to 19,412 Dealer Customers, Driven by Strong Sequential Increase in Marketplace Subscriptions Achieved Record First Half 27.8MM Monthly Average Unique Visitors and 332MM Visits Repurchased 2.1 Million Shares, Representing 3% of Shares Outstanding Raising FY 2025 Share Repurchase Target to $70 to $90 Million CHICAGO, Aug. 7, 2025 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc." or the "Company"), an audience-driven technology company empowering the automotive industry, today releas ...

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]

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]

Core Insights - Cars.com Inc. reported Q1 2025 revenue of $179 million, a slight decrease of 1% year-over-year, driven by a 6% growth in OEM and National revenue, while subscription-based Dealer revenue fell by 2% due to macroeconomic pressures [3][6] - The company achieved a record of 29 million average monthly unique visitors, reflecting strong engagement and adoption of its solutions [1][11] - Cars.com increased its dealer customer base to 19,250, indicating a positive trend in dealer engagement [1][11] Financial Performance - Total revenue for Q1 2025 was $179.0 million, down from $180.2 million in Q1 2024 [3][31] - Net loss for the quarter was $2.0 million, or $0.03 per diluted share, compared to a net income of $0.8 million, or $0.01 per diluted share in the prior year [8][32] - Adjusted net income decreased by 16% to $24.0 million, or $0.37 per diluted share, from $28.7 million, or $0.43 per diluted share a year ago [3][36] Operational Highlights - Average monthly unique visitors increased by 26% quarter-over-quarter and 3% year-over-year, reaching 29 million [5][11] - The company reported a 16% quarter-over-quarter growth in AccuTrade appraisals, indicating improved customer engagement [11] - DealerClub saw a 60% increase in active users and nearly doubled the volume of completed auctions from February to March 2025 [11] Cost Management - Total operating expenses for Q1 2025 were $172.6 million, up from $167.4 million in the prior year, influenced by the acquisition of DealerClub and higher severance costs [7][31] - Adjusted operating expenses remained flat at $155.3 million, reflecting disciplined cost management [7][38] Cash Flow and Balance Sheet - Net cash provided by operating activities was $29.5 million, down from $33.5 million in the prior year [9][33] - Free cash flow for the quarter totaled $23.7 million, compared to $27.5 million in Q1 2024 [9][37] - As of March 31, 2025, total debt outstanding was $460 million, with total liquidity of $321.4 million [10][10] Strategic Outlook - The company aims to reaccelerate dealer revenue growth in Q2 2025 through growth initiatives, including marketplace and website repackaging [2][14] - Full-year 2025 revenue guidance has been suspended due to macroeconomic uncertainties, but the company reaffirms its Adjusted EBITDA margin guidance of 29% to 31% [14][15]

Financial Results Announcement - Cars.com Inc. expects to report its financial results for the first quarter ended March 31, 2025, on May 8, 2025 [1] - A conference call will be held at 8:00 a.m. CT/9:00 a.m. ET on the same day to discuss the results [1][2] Company Overview - Cars Commerce is an audience-driven technology company that empowers the automotive industry [3] - The company offers products and solutions that simplify car buying and selling, utilizing AI-driven technologies across various stages of the retail process [3] - The Cars Commerce platform includes four leading brands: Cars.com®, Dealer Inspire, AccuTrade, and Cars Commerce Media Network [3]

Core Insights - The automotive industry experienced a strong start in 2025, with new-vehicle sales increasing by 4.8% year over year in the first quarter, and March sales marked the sixth-highest in nearly 50 years, driven by pre-tariff buying, seasonal tax refunds, and automaker incentives [3][5]. Market Dynamics - Affordability concerns are rising as vehicles priced under $30,000 now represent only 14% of new-vehicle inventory, a significant drop from 38% during the 2019-21 period, indicating a reduced availability of budget-friendly models [3][4]. - The majority of sub-$30K vehicles (nearly 90%) are assembled outside the U.S., making them vulnerable to price hikes or production cuts due to shifting trade policies [4]. Inventory and Pricing - Inventory levels have improved, with new-car supply up 9% year over year, and vehicles are spending an average of 78 days on dealer lots, aligning with pre-pandemic norms [6]. - The average new-car price has remained around $49,000 for the past 18 months, which is still 30% higher than in Q1 2019, and the introduction of tariffs is expected to push prices higher [6]. Financing Conditions - Despite a 100 basis point cut in interest rates by the Federal Reserve between September and December 2024, auto-loan APRs increased by 19 basis points year over year in Q1, as lenders tightened credit terms amid market uncertainty, adding to affordability challenges for buyers [7][8].

Financial Performance - Full year 2024 revenue grew by 4% year-over-year, reaching $719.2 million compared to $689.2 million in 2023[12, 67] - Adjusted EBITDA margin increased by approximately 90 basis points year-over-year, from 28.3% in FY23 to 29.2% in FY24[12, 66] - Free cash flow for FY24 was $128 million, representing an approximate 11% free cash flow yield[12] - Adjusted EBITDA grew by approximately $15 million, an increase of 8% year-over-year, totaling $209.7 million in FY24 compared to $194.9 million in FY23[66, 67] Key Growth Drivers - OEM and National revenue increased by 15% year-over-year in Q4, achieving over $17 million, marking the best quarterly revenue since Q1 2021[15, 35, 36] - AccuTrade achieved a record customer base, exiting 2024 with approximately 1,000 subscribers[15, 21] - Approximately 30% of new Q4 franchise subscriptions were affiliated with OEMs that have AccuTrade endorsements[24] Platform Engagement - Total traffic in Q4 reached 143.8 million visits[27] - Dealer Inspire websites experienced approximately 40% more engagement for customers who also subscribe to the Carscom marketplace[34]

Financial Data and Key Metrics Changes - The company reported record full-year revenue of $719 million, representing a 4% year-over-year increase, with nearly a full point of margin improvement [6][68] - Free cash flow reached $128 million, the highest level since 2018, reflecting strong operating discipline [6][106] - Fourth-quarter revenue was $180.4 million, a new quarterly record, driven by a 15% year-over-year growth in OEM and national revenue [29][93] - Adjusted EBITDA for the fourth quarter was $55 million, slightly up year-over-year, with an adjusted EBITDA margin of 30.8% consistent with the prior year [35][36] Business Line Data and Key Metrics Changes - AccuTrade saw significant growth, with annual appraisal volume increasing by 35% year-over-year and the number of vehicles acquired post-appraisal per dealer up 23% year-over-year in Q4 [12][75] - The Cars.com marketplace reached over 23 million shoppers, driving over 143 million visits, with repeat visitation up 6% year-over-year [15][78] - Dealer counts decreased to 19,206, down 49 dealers quarter-over-quarter, attributed to seasonal spending patterns [36][100] Market Data and Key Metrics Changes - OEM and national revenue grew by 15% year-over-year, exceeding expectations and contributing to an 18% full-year growth [20][83] - Upfront marketing dollars committed by OEMs for 2025 are up double digits year-over-year, indicating increased marketing investments [21][84] Company Strategy and Development Direction - The company aims to accelerate growth in 2025 by increasing sales velocity, improving packaging, and continuing product innovation [10][72] - The acquisition of Dealer Club is expected to enhance platform capabilities and tap into a $10 billion wholesale market [22][85] - Focus on cross-selling opportunities and enhancing dealer engagement through integrated solutions [11][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating dynamic economic conditions and achieving growth through diverse drivers [9][90] - The first half of 2025 is expected to see modest growth of 1.5% to 2% year-over-year, with more significant initiatives planned for the back half of the year [46][112] - Adjusted EBITDA margin for 2025 is projected to be between 29% to 31%, reflecting a 7% year-over-year growth [47][112] Other Important Information - The company repurchased approximately 800,000 shares for $13.5 million in Q4 and announced a new share repurchase authorization of $250 million over three years [42][107] - Total liquidity increased to $341 million, providing ample resources for growth strategies [44][109] Q&A Session Summary Question: Full-year revenue guidance and marketplace growth expectations - Management expects roughly two-thirds of incremental growth in 2025 to come from dealer revenue, including marketplace and upsells [53][118] Question: Impact of Dealer Club on revenue outlook - No significant revenue from Dealer Club is factored into the 2025 outlook as the focus is on integration and dealer engagement [58][122] Question: Explanation of dealer revenue performance in Q4 - Seasonal softness in Q4 led to a pullback in media solutions, impacting dealer revenues, but momentum is expected to return in Q1 [61][68]