Cars.com (CARS) FY Conference May 13, 2025 04:30 PM ET Speaker0 All right. Great. Thanks everyone for joining. Thanks everyone on the webcast for joining as well. My name is Rajat Gupta, member of the Automotive Equity Research team at JPMorgan. Very pleased to have with us the team from Cars.com, Alex Wetter and Sonya, CFO, as well as Catherine from IR in the audience. So maybe Alex, if you want to spend like a couple of quick minutes just to quickly go through last quarter results, just give us like a Sta ...

Cars.com (CARS) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Katherine Chen - Vice President, Investor RelationsAlex Vetter - CEOSonia Jain - CFONaved Khan - Managing Director - Equity ResearchRajat Gupta - Executive Director, AutosMarvin Fong - DirectorJoseph Spak - Managing Director Conference Call Participants Tom white - Managing Director, Senior Equity Analyst Operator Good morning, ladies and gentlemen, and welcome to the Cars.com First Quarter 20 20 5 Earnings Conference Call. ...

Cars.com (CARS) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Good morning, ladies and gentlemen, and welcome to the Cars.com First Quarter 20 20 5 Earnings Conference Call. At this time, all lines are in listen only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call, you require immediate assistance, please press 0 for the operator. This call is being recorded on Thursday, May eight of twenty twenty five. I would now like to turn the c ...

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]