Cars.com Inc. · NYSE:CARS
Cars.com — Q1 2023 Earnings Presentation
24 slides from Cars.com's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings
First Quarter 2023 Earnings May 4, 2023
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: Delivered Growth Across Key Metrics in Q1
Delivered Growth Across Key Metrics in Q1 Accelerated Solid Adjusted Continued Revenue Growth, EBITDA, Website Growth and +6% YOY 26.5% Margin Product Adoption
Slide 5: Grew ARPD by +4% YOY, Driven by Continued Product Adoption
ARPD Monthly Average Revenue Per Dealer Grew ARPD by +4% YOY, Driven by Continued Product Adoption +$95 YOY ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 6: Highly Organic and Engaged In-Market Audience
Traffic & Value Delivery Highly Organic and Engaged In-Market Audience Q1 Average Monthly Unique Visitors and Q1 Visits (MM) Q1 Traffic 28MM UVs, +7% YOY 165MM Visits, +11% YOY Organic Traffic, +7% YOY
Slide 7: Dealer Customers Remain Solid Despite Expected Pull-backs
Dealer Customers Dealer Customers Dealer Customers Remain Solid Despite Expected Pull-backs from Digital Dealers ● Dealer Customers would be up YOY, excluding the loss of digital dealers
Slide 8: Continued Growth in Website Customers
Solutions Growth Dealer Inspire Website Customers Continued Growth in Website Customers +630 Website Customers YOY ~6,100 Total Website Customers
Slide 9: Accu-Trade VIN-Specific Technology Enables Shoppers and Sellers to Transact With Ease
Solutions Growth Accu-Trade VIN-Specific Technology Enables Shoppers and Sellers to Transact With Ease
Slide 10: Accu-Trade Continues to See Strong Engagement
Solutions Growth Accu-Trade Connected Customers Accu-Trade Continues to See Strong Engagement from Dealers and Consumers ● 600+ Accu-Trade Connected Customers ● Appraisals increased 70% QOQ
Slide 11: Revenue Growth +6% YOY
Revenue Revenue Growth +6% YOY Quarterly Revenue ($MM) Drivers of Revenue Growth ● Despite a pullback by digital dealers, Dealer Revenue +7% YOY driven by websites, media upsells, and Accu-Trade ● While overall OEM & National Revenue -11% YOY due to insurance customers, we saw greenshoots with OEM c
Slide 12: Disciplined Management of Operating Expenses
Operating Expenses Disciplined Management of Operating Expenses Quarterly Adjusted Operating Expense ($MM) Drivers of Changes in Expense ● YOY increase in Marketing and Sales driven by sales & support staff to support new product launches, offset by lower Marketing expenses than planned ● YOY increa
Slide 13: Solid Adjusted EBITDA
Adjusted EBITDA Solid Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) Drivers of Adjusted EBITDA ● Adjusted EBITDA and Adjusted EBITDA margin tend to be historically low in Q1, given the return of key in-person industry events ● Revenue mix also impacts quarterly Adjusted EBITDA
Slide 14: Strength Across Key Operating Metrics
Operating Metrics Strength Across Key Operating Metrics Q1 2023 Q1 2022 AVERAGE MONTHLY UNIQUE VISITORS 28.5 MM 26.6 MM TRAFFIC (VISITS) 164.8 MM 148.5 MM MONTHLY ARPD 1 $2,386 $2,291 DEALER CUSTOMERS 19,186 19,500 ¹ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 15: Robust Cash Flow, Solid Balance Sheet
Cash Flow Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($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 16: Outlook
Outlook Outlook Q2 2023 Outlook ● Q2 Revenue: $168.0 to $170.0 million ○ Represents 3% to 4% YOY growth ● Q2 Adjusted EBITDA margin: 26% to 28% Reaffirm Full Year 2023 Outlook ● Full Year Revenue: YOY growth of 3% to 6% ● Adjusted EBITDA margins are expected to improve over the course of the year an
Slide 17: Q&A
S@-60 Q&A
Slide 18: Upcoming IR Marketing Schedule
Events Upcoming IR Marketing Schedule ● D.A. Davidson Investor Meetings, NYC, May 10 ● Barrington Virtual Conference, May 18 ● J.P. Morgan Annual Global Technology, Media and Communications Conference, Boston, May 23 Details about conferences on investor.cars.com.
Slide 19: Appendix
20-60 Appendix
Slide 20: New-Car Market Continues Recovery
Industry Trends Quarterly Average Daily Listings (MM) New-Car Market Continues Recovery ● Although still below historical levels, new-vehicle daily inventory listings on Cars.com are up 17% QOQ and 91% YOY ● Used-car market remains healthy
Slide 21: Non-GAAP Reconciliations (unaudited and in thousands)
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 22: Non-GAAP Reconciliations (unaudited and in thousands)
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 23: Definitions: Key Metrics
Definitions: Key Metrics Average Monthly Unique Visitors (“UVs”) and Traffic (“Visits”). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified when a user first visits an individual CARS property on an ind
Slide 24: Thank You!
THANK YOU! S>@-60@ CARS