Cars.com Inc. · NYSE:CARS
Cars.com — Q3 2021 Earnings Presentation
24 slides from Cars.com's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 Earnings
Q3 2021 Earnings November 4, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning the impact of the C
Slide 3: Definitions: Non-GAAP Financial Measures
Definitions: Non-GAAP Financial Measures This presentation discusses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These fin
Slide 4: CARS Acquires Auto Finance Technology Platform CreditIQ
CARS Acquires Auto Finance Technology Platform CreditIQ Welcomes CreditIQ™ to its Platform
Slide 5: Instant Auto Financing
Instant Auto Financing Across the Platform & Across Audiences Shoppers Lenders Dealers Marketplace Dealer Websites Solutions CARS Platform 142MM Marketplace Visits + 247MM Dealer Website Visits
Slide 6: Platform Strategy Continues to Deliver Results
Platform Strategy Continues to Deliver Results ARPD Growth Driven New Dealer Growth Another Strong by Adoption & Continued Quarter of Revenue & of Digital Solutions Strong Retention Adjusted EBITDA
Slide 7: Engagement Remains Strong Despite Inventory Shortages
Engagement Remains Strong Despite Inventory Shortages Traffic (MM) Average Monthly Unique Visitors (MM)
Slide 8: Why Our Marketplace Is Different
Aggregator Platform Why Our Marketplace Is Different vs
Slide 9: Continued Dealer Growth Due to Increasing Platform ROI
Continued Dealer Growth Due to Increasing Platform ROI Dealer Customers +899 Dealer Customers YOY
Slide 10: ARPD Continues to Increase Driven by Solutions Strategy
ARPD Continues to Increase Driven by Solutions Strategy FUEL Revenue Grows Double Digits QoQ Quarterly Average Revenue Per Dealer +7% COVID ARPD Growth YOY **ARPD Organic traffic revenue excludes includes from directdigital to site, SEO and app. advertising services / *Q2’20 includes COVID credits f
Slide 11: Dealer Website Growth
Dealer Website Growth Dealer Inspire Websites ~ 5,200 Total DI Websites Launched our First Ford Websites
Slide 12: Revenue Growth Continues
Revenue Growth Continues Quarterly Revenue Trend ($MM) Drivers of YOY Dealer Revenue MARKETPLACE DEALER INSPIRE +FUEL COVID DEALER CUSTOMERS ARPD REVENUE Other OEM/National Dealer *Q2’20 includes COVID credits for customers totaling $38MM
Slide 13: Adjusted Operating Expenses
Adjusted Operating Expenses Quarterly Expense Trend ($MM) Drivers of Operating Expenses $113 $107 $111 ● The YOY increase is due $105 $105 $6.4 to investments to support $95 $12.7 $11.8 $10.9 $10.3 $11.6 accelerated growth in $79 $10.9 a more normalized $4.6 operating environment $49.9 $50.6 $54.4 $
Slide 14: Adjusted EBITDA
Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin Trend (% Revenue) Discussion of Adj. EBITDA Trends ● Adj EBITDA and Adj EBITDA margins remain strong despite inventory challenges impacting our OEM business ● YoY comparisons reflect lower investments in 2020 due to uncertainty related to the
Slide 15: Q3 2021 Key Operating Metrics
Q3 2021 Key Operating Metrics Q3 2021 Q3 2020 Q3 2019 AVERAGE MONTHLY UNIQUE VISITORS 24.3MM 25.3MM 23.1MM TRAFFIC 142.4MM 158.8MM 144.4MM MONTHLY ARPD 1 $2,332 $2,183 $2,174 DEALER CUSTOMERS 19,029 18,130 18,635 ¹ARPD excludes revenue from digital advertising services.
Slide 16: Robust Cash Flow, Solid Balance Sheet
Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($MM) Total Debt ($MM) & Net Leverage Ratio Total Debt Total Net Leverage Ratio
Slide 17: Continued Growth in 2021
Continued Growth in 2021 Q4 2021 Outlook ● Revenue between $157.5MM - $159.5MM ● Adjusted EBITDA margins between 28.5% and 30.5% Our Q4 outlook incorporates a continuation of the ongoing industry-wide inventory shortage
Slide 18: Q&A
Q&A
Slide 19: Appendix
Appendix
Slide 20: Transaction Highlights
Transaction Highlights Overview Expanded Market Opportunity Growth Engine ● Expands TAM into a ● Cutting-edge automotive finance ● Expands our digital solutions fast-growing, multi technology that facilitates the offering and creates a new, billion-dollar Auto Finance completion of the finance proce
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 24: Definitions: Key Metrics
Definitions: Key Metrics Traffic. Traffic is fundamental to our business. Traffic to the CARS network of websites and mobile apps provides value to our advertisers in terms of audience, awareness, consideration and conversion. In addition to tracking traffic volume and sources, we monitor activity o