Cars.com Inc. · NYSE:CARS
Cars.com — Q1 2025 Earnings Presentation
24 slides from Cars.com's earnings presentation, May 8, 2025
Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings May 8, 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: Solid Q1 performance
Solid Q1 performance Adj. EBITDA ($MM) Revenue ($MM) Share Repurchases ($MM) & Margin (% Revenue) 29.2% $180 $179 28.3% $22 $53 $51 $9 Q1’24 Q1’25 Q1’24 Q1’25 Q1’24 Q1’25 Stable YoY Revenue Adj. EBITDA Margin Exceeded Repurchased 1.6MM Guidance Range of 25.5% to 27% Shares in Q1 4
Slide 5: Q1 strength across all growth drivers
Q1 strength across all growth drivers Grow Grow Dealer Unlock the Transform OEM Create Platform Consumers Customers Cross-Sell Relationships Advantages 29MM Average 19,250 Dealer AccuTrade and OEM and National 28.3% Adjusted Monthly Unique Customers, up Website Subscribers revenue up 6% YoY EBITDA M
Slide 6: Achieved record monthly average unique visitors
Achieved record monthly average unique visitors Q1 Monthly Average Unique Visitors (MM) Q1 Total Traffic (MM) 29.0 170.1 *These metrics do not include traffic to Dealer Inspire or D2C Media websites. UVs and Traffic were measured via Adobe Analytics prior to December 31, 2023, and measured via RudderSta
Slide 7: Providing in-depth, trusted resources to navigate tariffs
Providing in-depth, trusted resources to navigate tariffs 7
Slide 8: Data-driven insights for Cars.com leads
Data-driven insights for Cars.com leads ● Providing actionable data insights such as consumer shopping behaviors and estimated budgets ● Feature to launch in Q2 ● Bundled into marketplace packages, to enhance value delivery 8
Slide 9: AccuTrade appraisals grew 16% QoQ
AccuTrade Connected Appraisals AccuTrade appraisals grew 16% QoQ ● Subscriber base grew to over ~1,000 AccuTrade Connected customers in Q1 e? ● AccuTrade powered over 813,000 appraisals in Q1, up 16% QoQ and 31% YoY ● Appraisals per dealer were up 14% QoQ in Q1, reaching new record 9
Slide 10: DealerClub growing active users and transaction volume
Acquire + Manage Inventory DealerClub growing active users and ACQUIRED 3 days transaction volume 2022 Toyota RAV4 XLE 4WD VIN: WBY23HD028,459SFU47048 53,462 miles Arrival Date: 5/6/25 ● DealerClub is a reputation-based, dealer-to-dealer digital wholesale auction ● ~60% MoM increase in active buyers
Slide 11: Dealer websites delivered strong performance
Dealer websites delivered strong performance Website Customers 7,750 ● Websites added 100+ subscribers in Q1 ● Completed repackaging for three legacy agreements during Q1 Website customer data includes D2C Media, effective Q4’23 11
Slide 12: OEM and National revenue +6% YoY
OEM and National revenue +6% YoY OEM & National Q1 Revenue ($MM) $16.3 ● Approximately one-third of OEM customers increased marketing and advertising investments in Cars Commerce products and solutions during Q1 12
Slide 13: Revenue performance held steady
Revenue performance held steady Quarterly Revenue ($MM) ● Q1 revenue of $179.0MM was down slightly year-over-year ● OEM & National revenue +6% YoY, driven by investment to compete for consumer demand and shopping consideration ● Dealer revenue down 2% YoY, reflecting Q4 exit rate for Marketplace, and
Slide 14: Disciplined investment in growth
Disciplined investment in growth Quarterly Adjusted Operating Expense excl. D&A ($MM) ● Q1 Adjusted operating expenses were flat YoY ● Q1 Operating expenses were up 3% YoY, primarily due to the inclusion of higher severance-related costs and post-acquisition DealerClub integration and operational cos
Slide 15: Achieved Adjusted EBITDA above guidance
Achieved Adjusted EBITDA above guidance Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) ● Q1 Adjusted EBITDA margin of 28.3% outperformed guidance of 25.5% to 27% 15
Slide 16: Maintaining strong market position
Maintaining strong market position Dealer Customers Q1 Average Revenue Per Dealer +40 dealers QoQ $2,473 19,250 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 i
Slide 17: Quarterly Key Operating Metrics
Quarterly Key Operating Metrics Q1 2025 Q1 2024 AVERAGE MONTHLY UNIQUE 29.0 MM 28.3 MM VISITORS 1 TRAFFIC (VISITS) 1 170.1 MM 171.4 MM MONTHLY ARPD 2 $2,473 $2,505 DEALER CUSTOMERS 19,250 19,381 1 UVs and Traffic are measured via RudderStack. These metrics do not include traffic to Dealer Inspire, D2C M
Slide 18: Robust cash flow and consistent capital return
Robust cash flow and consistent capital return Free Cash Flow Trend ($MM) Share Repurchase ($MM) 18
Slide 19: Outlook
Outlook Q2 2025 OUTLOOK ● Adjusted EBITDA margin: 27% to 29% FULL YEAR 2025 OUTLOOK ● Adjusted EBITDA margin: 29% to 31% ● Share repurchases: $60 to $70 million 19
Slide 20: Q&A
Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 22
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 23
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands) 24