Cars.com Inc. · NYSE:CARS
Cars.com — Q4 2020 Earnings Presentation
27 slides from Cars.com's earnings presentation, Feb 25, 2021
Slide 1: Fourth Quarter & Full Year 2020 Earnings
Fourth Quarter & Full Year 2020 Earnings February 25, 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 Net Income, Adjusted Net Income per Diluted Share and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the Un
Slide 4: CARS Delivered Transformative Growth In 2020
CARS Delivered Transformative Growth In 2020 Dealer Growth Record Visits Q4 Revenue and Digital Solutions Adoption in 3 out of 4 Quarters and Leads Adj EBITDA Growth Driving ARPD Growth
Slide 5: Digital Acceleration in Auto
Digital Acceleration in Auto ● Stay-at-home economy is not going away ● Increased dealer adoption of digital solutions ● Digital showroom is just as important as the physical showroom ● Car ownership on the rise
Slide 6: Consumer Needs Accelerating Dealer Adoption of Digital Retailing
Consumer Needs Accelerating Dealer Adoption of Digital Retailing Local home delivery of vehicles 69% Online financing/purchasing 64% CARS capabilities Online estimates for trade-ins 54% enable dealers to connect digitally Online chat capabilities 40% Virtual tours of vehicles 38% Virtual test drives
Slide 7: Unique Original Content Only On Cars.com
Unique Original Content Only On Cars.com
Slide 8: Best Of Awards Touted by Winners
Best Of Awards Touted by Winners Feb. 11, 2021 Feb. 18, 2021 “We’re thrilled for Atlas to be Hyundai’s Venue has been awarded the Best Value of 2021 award by Cars.com. named Family Car of the Year The award addresses the needs of by Cars.com for the second consumers facing a tough economic year runn
Slide 9: Record Traffic in 2020, +8% YOY for Full Year
Record Traffic in 2020, +8% YOY for Full Year Cars.com Total Traffic 600MM 400MM 14% CAGR 200MM 2017 2018 2019 2020
Slide 10: 73% of CARS Traffic is Organic, +10% YOY in 2020
73% of CARS Traffic is Organic, +10% YOY in 2020 Q4 2020 CARS TRAFFIC BREAKDOWN PAID DIRECT 27% 27% ● Direct (27%) ● SEO (24%) (24%) APP SEO ● Cars.com App (22%) 22% 24% ● Paid (27%)
Slide 11: Dealer Customer Growth in 4 of the Last 5 Quarters
Dealer Customer Growth in 4 of the Last 5 Quarters Dealer Customers 19,000 18,938 18,834 18,635 COVID-19 18,372 +242 18,000 18,130 18,033 Dealer 17,000 Customers Q4 vs. Q3 16,000 15,000 14,000 9/30/19 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20
Slide 12: Website Customers Reach 4,400
Website Customers Reach 4,400 Dealer Inspire Website Customers 4,500 4,000 +1,200 Website Customers 3,500 YoY 3,000 2,500 2,000 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20
Slide 13: Growing Solutions at a Faster Rate
Growing Solutions at a Faster Rate Conversations™ Units Live (Online Chat) Online Shopper™ Units Live (Digital Retailing) 27% Penetration* 20% Penetration* 1,250 1,000 25% 1,000 Penetration* 750 14% Penetration* 750 500 500 250 250 0 0 12/31/19 3/31/20 6/30/20 9/30/20 12/31/20 12/31/19 3/31/20 6/30/
Slide 14: FUEL: Fast Growing Solution; ARPD & Revenue Opportunity
FUEL: Fast Growing Solution; ARPD & Revenue Opportunity Regional Hyundai FUEL Campaign Currently in Market FUEL Revenue “ If I was told I had to cancel every marketing tool I have and only keep one, FUEL would be it. “ Stavros Padazopoulos General Manager | Regional Hyundai, Broken Arrow, Oklahoma Q
Slide 15: Swift Recovery from COVID-19 of US Auto Market Driven by Consumer Demand
Swift Recovery from COVID- 19 of US Auto Market Driven by Consumer Demand • December SAAR 16.3M, 4th best for absolute sales • 2020 used-car sales totaled 37.2M, down 6.6% YOY • Average new-car price reached $40K in Q4 2020 • Average franchise dealer gross profit up triple digits on new cars, double
Slide 16: DEI: A core strength and at the heart of the Company
DEI: A core strength and at the heart of the Company ● CARS + NAMAD Partnership ● KPIs Tied to Diversity, Equity, and Inclusion ● Expanding Policies & Disclosures
Slide 17: CARS Outlook Momentum Expected Through 2021
CARS Outlook Momentum Expected Through 2021 Deep Customer Compelling Product Massive In-Market Audience Strong Financial Relationships Portfolio Fueling Driven by Strong Brand Position ARPD Growth
Slide 18: Q4 Financial Highlights
Q4 2020 Q4 2019 REVENUE $153.0 $152.2 TOTAL OPERATING EXPENSES $137.1 $147.5 Q4 Financial NET INCOME ( LOSS) $7.2 ($4.1) Highlights INCOME (LOSS) PER DILUTED SHARE $0.10 ($0.06) ADJUSTED NET INCOME $6.0 $42.2 ($ in millions, except per share data) ADJUSTED NET INCOME PER DILUTED SHARE $0.09 $0.63 AD
Slide 19: Q4 Key Operating Metrics
Q4 2020 Q4 2019 Q4 Key AVERAGE MONTHLY UNIQUE VISITORS 22.2MM 23.5MM Operating TRAFFIC (VISITS) 138.1MM 146.2MM Metrics MOBILE TRAFFIC 1 74% 74% MONTHLY ARPD 2 $2,264 $2,136 DEALER CUSTOMERS 18,372 18,834 1. Mobile traffic includes mobile browser, mobile app and tablet. 2. ARPD includes revenue from
Slide 20: Full Year Financial Highlights
2020 2019 REVENUE $547.5 $606.7 TOTAL OPERATING EXPENSES $1,434.8 $1,052.7 Full Year NET LOSS ($817.1) ($445.3) Financial LOSS PER DILUTED SHARE ($12.15) ($6.65) Highlights ADJUSTED NET INCOME $70.3 $104.2 ($ in millions, except per share data) ADJUSTED NET INCOME PER DILUTED SHARE $1.02 $1.55 ADJUS
Slide 21: December 31 Balance Sheet, Cash Flow & Capitalization
2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES $138.6MM $101.5MM FREE CASH FLOW $121.9MM $80.2MM December 31 Balance CASH $67.7MM $13.5MM Sheet, DEBT $597.5MM $648.1MM Cash Flow & Capitalization TOTAL LIQUIDITY1 $297.7MM $203.5MM NET LEVERAGE 3.4x 3.8x SHARES OUTSTANDING2 67.4MM ENTERPRISE VALUE3 1.
Slide 22: 2021: An Expected Growth Year for CARS
2021: An Expected Growth Year for CARS Q1 ● Dealer Customer Growth ● Revenue Growth ● EBITDA Margins of 27% to 30% 2021 ● Capex: $25 million ● Interest Expense: $40 million
Slide 23: CARS Outlook Momentum Expected Through 2021
CARS Outlook Momentum Expected Through 2021 Deep Customer Compelling Product Massive In-Market Audience Strong Financial Relationships Portfolio Fueling Driven by Strong Brand Position ARPD Growth
Slide 24: Q&A
Q&A
Slide 25: Appendix
Appendix
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share data)
Slide 27: Definitions: Key Metrics
Definitions: Key Metrics Traffic (Visits). 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 a