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]