Cars.com Inc. · NYSE:CARS
Cars.com — Q3 2022 Earnings Presentation
26 slides from Cars.com's earnings presentation, Nov 3, 2022
Slide 1: Third Quarter 2022 Earnings
Third Quarter 2022 Earnings November 3, 2022
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: Solid Q3 2022 Results
Solid Q3 2022 Results Continued Dealer Growth and Revenue Growth and Innovation and Strong Customer Strong Cash Flow Product Adoption Retention
Slide 5: Inventory Showing Signs of Improvement
Industry Trends New & Used Car Inventory (MM) New & Used Car Prices ($000s) Inventory Showing Signs of Improvement ● New-car listings on our marketplace are up 11% YOY. ● Used-car listings on our marketplace are up 9% YOY. ● Used car prices remain high but have declined 1% QOQ as new car inventory l
Slide 6: Resiliency of the Auto Market
@ Industry Trends Resiliency of the Auto Market New & Used Auto Sales (MM) Sources: BEA (new car), NADA (used car)
Slide 7: High-Quality In-Market Demand at Scale
Traffic & Value Delivery High-Quality In-Market Demand at Scale Average Monthly Unique Visitors (MM) Total Visits (MM) 150MM 27MM UVs Visits +12%YOY +6%YOY
Slide 8: Healthy Dealer Customer Growth, Supported by Strong Retention
Dealer Customers Dealer Customers Healthy Dealer Customer Growth, Supported by Strong Retention +556 Q3 YOY Growth
Slide 9: ARPD Strong, Driven by Value Delivery and Growth in Solutions
ARPD Monthly Average Revenue Per Dealer ARPD Strong, Driven by Value Delivery and Growth in Solutions ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 10: Continued Growth in Website Customers
Solutions Strategy Dealer Inspire Website Customers Continued Growth in Website Customers 5,900 Total Website Customers
Slide 11: Expanded Lender Network Drives Dealer Adoption and Consumer Financing Options
Solutions Strategy Expanded Lender Network Drives Dealer Adoption and Consumer Financing Options Digital Financing on Cars.com & Dealer Websites
Slide 12: Demand for Accu-Trade Remains Robust
Solutions Strategy Accu-Trade Connected Customers 2022 Demand for Accu-Trade Remains Robust 400+ Accu-Trade Connected Customers
Slide 13: Accu-Trade Customer Testimonial
Accu-Trade Customer Testimonial “Before using Accu-Trade it would take up to an hour to appraise each vehicle and now it takes as little as 15 minutes. With more than 1,800 vehicles appraised this quarter, this is a meaningful savings, cutting our time spent by 75%. We recently adjusted our trade-in
Slide 14: Revenue Growth Continues
Revenue Revenue Growth Continues Quarterly Revenue ($MM) Other OEM/National Dealer
Slide 15: Disciplined Management of Operating Expenses
Operating Expenses Disciplined Management of Operating Expenses Quarterly Expense ($MM) Drivers of Changes in Expense ● QOQ decrease primarily the result of lower marketing investments due to strength in audience ● YOY increase primarily due to recent acquisitions and investment in growth Note: We d
Slide 16: Strong Adjusted EBITDA
Adjusted EBITDA Strong Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue)
Slide 17: Growth Across All Key Operating Metrics
Operating Metrics Growth Across All Key Operating Metrics Q3 2022 Q3 2021 AVERAGE MONTHLY UNIQUE VISITORS 27.3 MM 24.3 MM TRAFFIC (VISITS) 150.4 MM 142.4 MM MONTHLY ARPD 1 $2,334 $2,332 DEALER CUSTOMERS 19,585 19,029 ¹ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 18: Robust Cash Flow, Solid Balance Sheet
Cash Flow Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($MM) Total Debt ($MM) & Net Leverage Ratio Includes $9MM Tax Refund Related to Reflects borrowing CARES Act to fund Accu-Trade acquisition Total Debt Total Net Leverage Ratio
Slide 19: Q4 2022 Outlook
Outlook Q4 2022 Outlook ● Q4 Revenue: $165 to $167 million ○ Represents sequential and YOY growth even in this challenging macroeconomic environment ● Q4 Adjusted EBITDA margin: 28.5% to 30.0%
Slide 20: Q&A
S@~- 60 Q&A
Slide 21: Appendix
S@~- 60 Appendix
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: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 25: 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
Slide 26: Thank You!
THANK YOU! S>@- 060680 CARS