Slide 1: Fourth Quarter and Full Year 2024 Earnings
Fourth Quarter and Full Year 2024 Earnings February 27, 2025
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. These statements often use words such as “believe,” “expect,” “project,” “ant
Slide 3: Definitions: Non-GAAP Financial Measures
Definitions: Non-GAAP Financial Measures This presentation discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States
Slide 4: Delivered 2024 revenue growth and margin expansion
Delivered 2024 revenue growth and margin expansion Adj. EBITDA ($MM) Revenue ($MM) Free Cash Flow ($MM) & Margin (% Revenue) 29.2% $719 28.3% $128 $210 $689 $195 $116 FY’23 FY’24 FY’23 FY’24 FY’23 FY’24 +4% YoY Growth Adj. EBITDA Margin up ~90 bps ~11% FCF Yield (as of December 31, 2024) YoY 4
Slide 5: Advanced key growth drivers during the fourth quarter
Advanced key growth drivers during the fourth quarter Transform OEM Create Platform Unlock the Relationships Advantages Cross-Sell $17MM+ OEM and 30.8% Adjusted ~1,000 AccuTrade National revenue up EBITDA Margin subscribers 15% YoY Exceeded profitability Record AccuTrade Best quarterly revenue expect
Slide 6: Driving adoption and cross-selling of the platform
Driving adoption and cross-selling of the platform Trade, Appraisal Marketplace Digital Experience & Wholesale Media 6
Slide 7: AccuTrade achieves record subscribers in Q4
AccuTrade achieves record subscribers in Q4 AccuTrade Connected Customers ~1,000 ● AccuTrade powered over 2.6 million appraisals in 2024, up 35% year-over-year ● ~23% year-over-year increase during Q4 in average number of vehicles acquired per dealer that are appraised through AccuTrade 7
Slide 8: New OEM endorsements will accelerate AccuTrade growth
New OEM endorsements will accelerate AccuTrade growth ~30% of new Q4 franchise subscriptions were affiliated with OEMs who have AccuTrade endorsements 8
Slide 9: Scaled marketplace and engaged audience
Scaled marketplace and engaged audience Q4 Total Traffic (MM) ● Exited 2024 with the most average monthly unique 143.8 visitors and most average time on site1 ● Q4 repeat visitation +6% YoY, and repeat visitation has increased YoY in each quarter of 2024 ● Drove 61% organic traffic in Q4 70% 73% 83% h
Slide 10: Dealer websites drive platform benefits
Dealer websites drive platform benefits Website Customers 7,600 more engagement1 on Dealer +40% Inspire websites for customers who also subscribe to Cars.com marketplace up to turn time improvement for 10% customers who subscribe to both Cars.com and Dealer Inspire1 Website customer data includes D2
Slide 11: OEM and National revenue +15% YoY
OEM and National revenue +15% YoY OEM & National Q4 Revenue ($MM) ● Highest quarterly OEM and National revenue since Q1 2021 ● Higher vehicle inventory levels leading to $17.7 sustained OEM demand for our marketing and advertising solutions ● Around half of OEM customers increased marketing and adve
Slide 12: Our platform powers dealership operations
Our platform powers dealership operations CONSUMERS DEALER CUSTOMERS VEHICLES Appraise & Buy & Sell Finance Audience Merchandize Syndicate Acquire Retail or Research Ownership Engage Transact Inventory Wholesale 12
Slide 13: Announced DealerClub acquisition at NADA 2025
Announced DealerClub acquisition at NADA 2025 Hey Alex, Check out this G Class that recently sold on DealerClub. ● DealerClub is a reputation-based, dealer-to-dealer digital wholesale auction RECENTLY SOLD ● Over 900 dealers enrolled since launch 2014 Mercedes-Benz G Class Sales Price: $35,200 Bids:
Slide 14: Manage the vehicle lifecycle on a unified platform
Manage the vehicle lifecycle on a unified platform Wholesale Appraise & Acquire Inventory Wholesale or retail instantly on Cars Commerce platform Retail Appraise in minutes with real-time market data for better gross margins and more retail Manage inventory and track opportunities vehicle profitabili
Slide 15: Leverage Cars Commerce data insights to maximize profitability
Leverage Cars Commerce data insights to maximize profitability 3 days 72 days 15
Slide 16: Maintaining strong market position
Maintaining strong market position Dealer Customers Q4 Average Revenue Per Dealer $2,475 19,206 Note: The decline of the digital dealer industry negatively impacted our Dealer Customer count by over 650 cancellations (which started in Q2’22). There are effectively no digital dealers in our Dealer Cus
Slide 17: Full year revenue growth of +4% year-over-year
Full year revenue growth of +4% year-over-year Quarterly Revenue ($MM) ● Q4 revenue of $180.4MM set new quarterly record ● OEM & National revenue +15% YoY, driven by additional investment to raise consumer awareness amid rising inventory levels ● Dealer revenue down slightly YoY, reflecting lower cus
Slide 18: Disciplined investment in growth
Disciplined investment in growth Quarterly Adjusted Operating Expense excl. D&A ($MM) ● Q4 Adjusted operating expenses were down (1%) YoY ● Q4 operating expenses benefited from improved marketing and sales spending efficiency ● FY24 Adjusted operating expenses totaled $617MM, up 4% YoY, primarily from
Slide 19: Continued growth in Adjusted EBITDA
Continued growth in Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) ● FY24 Adjusted EBITDA margin of 29.2% was up ~90 bps YoY ● FY24 Adjusted EBITDA grew ~$15MM, +8% YoY 19
Slide 20: Full Year 2024 Financial Results
Full Year 2024 Financial Results ($MM) 2024 2023 REVENUE $719.2 $689.2 DEALER REVENUE $640.7 $621.7 OEM AND NATIONAL REVENUE $65.9 $55.9 OPERATING EXPENSES $665.7 $635.1 ADJUSTED OPERATING EXPENSES $616.6 $594.1 NET INCOME $48.2 $118.4 ADJUSTED NET INCOME $114.9 $108.8 ADJUSTED EBITDA $209.7 $194.9
Slide 21: Quarterly Key Operating Metrics
Quarterly Key Operating Metrics Q4 2024 Q4 2023 AVERAGE MONTHLY UNIQUE 23.1 MM 24.3 MM VISITORS 1 TRAFFIC (VISITS) 1 143.8 MM 142.7 MM MONTHLY ARPD 2 $2,475 $2,523 DEALER CUSTOMERS 19,206 19,504 1 UVs and Traffic were measured via Adobe Analytics prior to December 31, 2023, and measured via RudderStac
Slide 22: Robust cash flow and consistent capital return
Robust cash flow and consistent capital return Free Cash Flow Trend ($MM) Share Repurchase ($MM) ~61% FCF conversion in FY’24 Returned ~49% of 2H’24 FCF via share buybacks 22
Slide 23: Outlook
Outlook Q1 2025 OUTLOOK ● Q1 Revenue: $178 to $181 million ● Adjusted EBITDA margins: 25.5% to 27% FULL YEAR 2025 OUTLOOK ● Full Year Revenue: $745 to $755 million ● Adjusted EBITDA margins: 29% to 31% ● Capital Expenditures: $25 to $27 million ● Share repurchases: $60 to $70 million 23
Slide 24: Q&A
Q&A 24
Slide 25: Appendix
Appendix 25
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 26
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 27
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 28
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 29