Cars.com Inc. · NYSE:CARS
Cars.com — Q4 2022 Earnings Presentation
28 slides from Cars.com's earnings presentation, Feb 23, 2023
Slide 1: Fourth Quarter and Full Year 2022 Earnings
Fourth Quarter and Full Year 2022 Earnings February 23, 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: Solid Full Year 2022 Results
Solid Full Year 2022 Results Continued Accelerated QoQ Strong Adjusted Dealer Growth and Revenue Growth, EBITDA, Product Adoption +5% YOY (full year) 29% Margin
Slide 5: 25 Years of Solid Execution
Platform Strategy Execution 25 Years of Solid Execution 1998 2016 2018 2020 2021 2022 PLATFORM GROWTH* Fastest No. 1 12MM+ 6000+ 2200+ 500+ Growing Audience Reviews Websites Product Opt-ins Customers Expanded TAM to $50BN *Platform Growth as of Dec. 31, 2022; TAM Growth from 2020 Borrell Automotive
Slide 6: No. 1 in ComScore UV Ranking Throughout 2022
Traffic & Value Delivery No. 1 in ComScore UV Ranking Throughout 2022 Sustainable Traffic Leadership ComScore Monthly Unique Visitors Cars.com includes Total Network Visitors, note that it does not include visitors to Dealer Inspire websites. Comscore estimate volume and trend may deviate from inter
Slide 7: Massive, High Intent, In-Market Audience
Traffic & Value Delivery Massive, High Intent, In-Market Audience Annual Average Monthly Unique Visitors and Full Year Visits (MM) 85% of Cars.com shoppers plan to purchase within six months 2022 Audience 26MM UVs (monthly) 50% 587MM Visits (full year) of Cars.com shoppers purchase within 30 days So
Slide 8: Continued Growth in Website Customers
Solutions Strategy Dealer Inspire Website Customers Continued Growth in Website Customers +700 Website Customers YOY ~6,050 Total Website Customers
Slide 9: Demand for Accu-Trade Remains Robust
Solutions Strategy Accu-Trade Connected Customers 2022 Demand for Accu-Trade Remains Robust ● 500+ Accu-Trade Connected Customers ● 600,000+ appraised vehicles by dealers ● 80,000+ Instant Offers generated for consumers
Slide 10: Dealer Adoption of CreditIQ Continues
Solutions Strategy CreditIQ Dealer Opt-Ins 2022 Dealer Adoption of CreditIQ Continues 2200+ Dealer Opt-Ins for Instant Financing since nationwide launch in September 2022
Slide 11: New DealerRater Experience Report Provides Personalized Insights
Solutions Strategy New DealerRater ‘Experience Report’ Provides Personalized Insights for Dealers Based on Reviews “The Experience Report gives a quick but critical snapshot of key dimensions of our consumer experience and allows us to identify areas of improvement and take action to make our busine
Slide 12: Full Year Dealer Customer Growth
Dealer Customers Dealer Customers Full Year Dealer Customer Growth +327 YOY Growth
Slide 13: ARPD Growth, Driven by Strong Value Delivery
ARPD Monthly Average Revenue Per Dealer ARPD Growth, Driven by Strong Value Delivery and Growth in Solutions ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 14: New-Vehicle Inventory Slowly Recovering
Industry Trends Quarterly Average Daily Listings (MM) New-Vehicle Inventory Slowly Recovering ● 60+ anticipated new-car releases in 2023 ● Although well below historical levels, new-vehicle daily inventory listings on Cars.com up 74% YOY, and the average price was up 6% ● Used-car market remains hea
Slide 15: Revenue Growth Continues
Revenue Revenue Growth Continues Quarterly Revenue ($MM) Other OEM/National Dealer
Slide 16: Disciplined Management of Operating Expenses
Operating Expenses Disciplined Management of Operating Expenses Quarterly Adjusted Operating Expense ($MM) Drivers of Changes in Expense ● YOY increase in Marketing and Sales driven by sales & support staff to support new product launches, higher travel and bad debt expense ● YOY increase in Product
Slide 17: Strong Adjusted EBITDA
Adjusted EBITDA Strong Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue)
Slide 18: Growth Across All Key Operating Metrics
Operating Metrics Growth Across All Key Operating Metrics Q4 2022 Q4 2021 AVERAGE MONTHLY UNIQUE VISITORS 24.6 MM 23.6 MM TRAFFIC (VISITS) 140.4 MM 134.0 MM MONTHLY ARPD 1 $2,361 $2,333 DEALER CUSTOMERS 19,506 19,179 ¹ARPD excludes revenue from Dealer Inspire digital advertising services.
Slide 19: Full Year Revenue Up 5% YOY
Full Year 2022 Performance Full Year Revenue Up 5% YOY ($MM) 2022 2021 REVENUE $653.9 $623.7 DEALER REVENUE $579.2 $549.9 OPERATING EXPENSES $587.8 $575.3 ADJUSTED OPERATING EXPENSES $555.9 $536.3 Note: We define Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based
Slide 20: Robust Cash Flow, Solid Balance Sheet
Cash Flow Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($MM) Total Debt ($MM) & Net Leverage Ratio Includes $9MM Tax Reflects borrowing Refund Related to to fund Accu-Trade CARES Act acquisition Total Debt Total Net Leverage Ratio
Slide 21: 2023 Outlook
Outlook 2023 Outlook Q1 2023 Outlook ● Q1 Revenue: $166 to $168 million ○ Represents 5% to 6% YOY growth ● Q1 Adjusted EBITDA margin: 25% to 27% 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 and we exp
Slide 22: Q&A
=@~- 66 Q&A
Slide 23: Appendix
=@~- 66 Appendix
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 25: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 26: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 27: 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 28: Thank You!
THANK YOU! S>@~-60@ CARS