Cars.com Inc. · NYSE:CARS
Cars.com — Q1 2021 Earnings Presentation
22 slides from Cars.com's earnings presentation, May 6, 2021
Slide 1: Q1 2021 Earnings
CARS Q1 2021 Earnings May 6, 2021
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, and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These financial measures are presente
Slide 4: Momentum Continues in 2021
Momentum Continues in 2021 Strong Dealer ARPD Driving Growth in Record-breaking Growth Revenue Growth Adjusted EBITDA with SEO Traffic and the Margin Expansion Most Efficient Audience Delivery
Slide 5: Record-Breaking SEO Traffic Driving Value Delivery to Dealers
Record-Breaking SEO Traffic Driving Value Delivery to Dealers Q1 SEO Traffic 2018-2021 MILLIONS
Slide 6: CARS Reaches 10 Million Reviews, Powered by DealerRater
CARS Reaches 10 Million Reviews, Powered by DealerRater Total Review Volume
Slide 7: Continued Focus on Value Delivery
Continued Focus on Value Delivery Cars.com shoppers visiting dealer websites are... 2X more likely to buy a car than shoppers who only visit a dealer website1 ¹ Internal Dealer Inspire Data, looking at cross-shoppers on Cars.com and DI websites, Feb. 1, 2021
Slide 8: Launched New Brand Campaign “It’s Matchical”
Launched New Brand Campaign “It’s Matchical”
Slide 9: Value Delivery Driving Sustainable Growth in Dealer Customers
Value Delivery Driving Sustainable Growth in Dealer Customers Dealer Customers
Slide 10: Continued Growth in Website Customers
Continued Growth in Website Customers Dealer Inspire Website Customers Achieved 4,700 Website Customers
Slide 11: Pipeline Expands with the Addition of Ford Partnership
Pipeline Expands with the Addition of Ford Partnership • 3,000 U.S. dealers • 1 of 5 approved vendors
Slide 12: FUEL Helps Dealer Reach No. 1 in Local Market
FUEL Helps Dealer Reach No. 1 in Local Market “ FUEL has propelled us into the No. 1 position in our market for the first time. I am able to brand a message that buyers - not just passive listeners or viewers - but buyers hear. It's those Cars.com in-market customers I am able to target and message
Slide 13: Auto Market Trends
Auto Market Trends • Low inventory levels, higher dealer margins • Supply chain disruptions, including chip shortages • Rising demand from first-time and urban buyers • Abbreviated purchase timelines • Federal stimulus boosts auto sales • March SAAR was 17.75 million - best month since October 2017;
Slide 14: CARS Welcomes Jenell Ross to its Board of Directors
CARS Welcomes Jenell Ross to its Board of Directors Dealer Owner-Operator Bob Ross Auto Group
Slide 15: Q1 2021 Financial Highlights
Q1 2021 Q1 2020 REVENUE $153.3 $148.1 Q1 2021 TOTAL OPERATING EXPENSES $136.7 $1,053.2 * Financial Highlights NET INCOME (LOSS) $5.3 ($787.4) ($ in millions, except per share data) INCOME (LOSS) PER DILUTED SHARE $0.08 ($11.76) ADJUSTED EBITDA $48.1 $35.2 ADJUSTED EBITDA AS A % OF REVENUE 31% 24% *I
Slide 16: Q1 2021 Key Operating Metrics
Q1 2021 Q1 2020 AVERAGE MONTHLY UNIQUE VISITORS 26.0MM 24.9MM Q1 2021 Key TRAFFIC 156.6MM 158.9MM Operating MOBILE TRAFFIC 1 75% 76% Metrics MONTHLY ARPD 2 $2,268 $2,092 DEALER CUSTOMERS 18,823 18,938 1. Mobile traffic includes mobile browser, mobile app and tablet. 2. ARPD excludes revenue from dig
Slide 17: March 31 Balance Sheet, Cash Flow & Capitalization
2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES $50.4MM $28.9MM FREE CASH FLOW $44.1MM $23.1MM March 31 Balance CASH $53.7MM $187.3MM Sheet, DEBT $545.0MM $799.7MM Cash Flow & Capitalization TOTAL LIQUIDITY1 $283.7MM $217.3MM (Year to Date or as of March 31) NET LEVERAGE 2.9x 3.7x SHARES OUTSTANDING2
Slide 18: Continued Growth Expected in 2021
Continued Growth Expected in 2021 Q2 2021 Outlook • Revenue of approximately $152MM to $154MM • Adjusted EBITDA margins between 28% and 30%
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 22: Definitions: Key Metrics
Definitions: Key Metrics Traffic. 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 o