Cars.com Inc. · NYSE:CARS
Cars.com — Q2 2020 Earnings Presentation
23 slides from Cars.com's earnings presentation, Jul 30, 2020
Slide 1: Second Quarter 2020 Earnings
Second Quarter 2020 Earnings July 30, 2020
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: Non-GAAP Financial Measures
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 United States (“
Slide 4: Sonia Jain, Chief Financial Officer
Sonia Jain Chief Financial Officer 4
Slide 5: Our Competitive Strengths in a "Stay-at-Home" Market
Our Competitive Strengths in a “Stay-at-Home” Market Strong brand recognition and Product agility supporting Dealer leading organic traffic generation mobile/at-home shopping advocacy 5
Slide 6: Rebound in New-Car Sales and Pricing
New Vehicle Sales Rebound in Seasonally Adjusted Annualized Rate (SAAR) 13M +49% New-Car Sales since April and Pricing New-vehicle sales fell from a SAAR of 16.9M in Jan. to 8.7M in April. June SAAR was 13M, +49% since April. New vehicle average transaction prices are up 3.1% in June 2020 compared t
Slide 7: Rebound in Used-Car Sales & Pricing
Rebound in Used Vehicle Sales +102% Used-Car since March Sales & Pricing March used vehicle sales dropped by 49% to 1.7 million units compared to the January / February average of 3.3 million. By June, sales rebounded by 102% to 3.4 million units US used-vehicle prices fell in the first two weeks of
Slide 8: Double-Digit Year-Over-Year Traffic Growth
Double-Digit Year-Over-Year Traffic Growth 54.1M Visits +25% YoY Source: Cars.com Internal Data 8
Slide 9: Dealer Customer Momentum Before COVID-19
Dealer Customer Momentum Before COVID-19 CARS Dealer Customers -5% QoQ 9
Slide 10: Our Strategy Is Different & Clear
Media Platform Our Strategy Is Different & Clear Unite Media, Solutions & Data to drive growth and efficiency for the auto industry. Data Digital Products Solutions 10 10
Slide 11: Strategy in Action: FUEL In-Market Video
Strategy in Action: FUEL In-Market Video Cars.com data powering Media campaigns on YouTube, Platform streaming and social media platforms Cars.com Dealer Inspire proprietary Data Digital technology platform first-party data Products Solutions drives the solution 11
Slide 12: Customer Testimonials: FUELing Dealers' Businesses
Customer Testimonials: FUELing Dealers’ Businesses “ In April, the dealership sold 342 cars, all online. Sales jumped to 724 in May, when the “ Last year we were getting 4k-5k direct visits and in May we had 22,208 direct visits...With FUEL dealership opened by appointment. not only do we fish where
Slide 13: CARS' Innovative Solutions Support At-Home Shopping
Online Shopper & Home Delivery & Conversations Virtual Appointments 50%+ conversion ~2M vehicles badged by rate for Online ~8,000 dealers Shopper, 30%+ conversion for CARS’ Innovative Conversations Solutions Support Media Platform At-Home Shopping Dealers are increasingly reliant on our digital reta
Slide 14: Dealer Inspire Taking Market Share Through OEM Program Growth
Dealer Inspire Taking Market Share Through OEM Program Growth 8 8 8 TAM Live Sites Production Queue 6 5 2 22% 15% 11% 7% 4% 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020 Website Market Share¹ New OEM Programs ¹CARS Internal Data, Q2 2020 14
Slide 15: Prudent Balance Sheet and Expense Management
Prudent Balance Sheet and Expense Management Sustainable Maintaining balance Substantial organic traffic sheet strength reduction of expenses 15
Slide 16: Equity, Diversity, Inclusion & Belonging
Equity, Diversity, Inclusion & Belonging + Company Industry Community 16
Slide 17: Q2 2020 Financial Highlights
($ in millions, except per share data) 2020 2019 Revenue $102.0 $148.2 Q2 2020 Total Operating Expenses $119.2 $147.2 Net (Loss)/Income ($24.6) ($6.0) Financial (Loss)/Earnings per Diluted Share ($0.37) ($0.09) Highlights Adjusted Net Income $8.0 $20.0 Adjusted Net Income per Diluted Share $0.12 $0.
Slide 18: Q2 2020 Key Operating Metrics
Average Monthly Unique Visitors + 6% YOY Q2 2020 Traffic (Visits) + 10% YOY Key Operating Mobile Traffic 1 75% Metrics Monthly ARPD 2 $1,442 Dealer Customers 18,033 1 Mobile traffic includes mobile browser, mobile app and tablet. 2 ARPD includes revenue from dealer websites and related digital solutions f
Slide 19: June 30, 2020 Balance Sheet, Cash Flow & Capitalization
Cash Flows from Operating Activities $28.7 million Free Cash Flow $25.8 million June 30, 2020 Cash $56.9 million Balance Sheet, Debt $638.9 million Cash Flow & Total Liquidity 1 $232.2 million Capitalization Net Leverage 4.1x Shares Outstanding 2 67.2 million Enterprise Value 3 $1.0 billion 1. Inclu
Slide 20: Questions
2) Questions r) in
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share data) 22 22
Slide 23: Definitions
Definitions 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 activity on our propert