In This Article:
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Revenue: $179 million for Q1 2025, within guidance range.
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Adjusted EBITDA: $51 million, with a margin of 28.3%.
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Net Loss: $2 million or negative $0.03 per diluted share.
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Adjusted Net Income: $24 million or $0.37 per diluted share.
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Operating Expenses: $173 million, up 3% year over year.
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Dealer Count: 19,250, up more than 40 dealers quarter over quarter.
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Free Cash Flow: $24 million for Q1 2025.
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Share Repurchase: $22 million worth of shares repurchased in Q1.
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OEM and National Revenue: Up 6% year over year.
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Accutrade Appraisals: 813,000 appraisals in Q1, up 16% quarter over quarter.
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ARPD: $2,473, roughly flat quarter over quarter.
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Total Liquidity: $321 million as of March 31, 2025.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cars.com Inc (NYSE:CARS) reported a solid first quarter with revenue of $179 million, within their guidance range.
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The company exceeded expectations with their adjusted EBITDA margin, showcasing strong cost discipline.
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Cars.com Inc (NYSE:CARS) repurchased $22 million of shares, demonstrating a commitment to returning capital to shareholders.
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The company saw a significant increase in dealer count, reaching 19,250 dealers, marking the best quarter of sequential organic customer growth since mid-2022.
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Accutrade appraisal volume increased by 16% quarter over quarter, indicating strong adoption and usage among dealers.
Negative Points
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First quarter revenue was down slightly year over year, reflecting challenges in the marketplace and media products.
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There is uncertainty in OEM and dealer ad spending due to tariff impacts, leading to a suspension of full-year revenue guidance.
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The company experienced a net loss of $2 million for the first quarter, primarily due to severance-related costs.
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OEMs are managing their media commitments more closely, creating uncertainty in media revenue.
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The company noted a pullback in discretionary media spending from dealers, impacting ancillary media solutions.
Q & A Highlights
Q: Understanding the impact of tariffs on dealer and OEM ad spending and used car volumes. How significant is the uncertainty in these areas? A: Alex Vetter, CEO: The tariff news has increased consumer demand, with more traffic to our marketplace as consumers look to secure deals before tariffs impact prices. Dealers are leaning into technologies like Accutrade and Dealer Club to source used cars due to concerns about new car supplies. However, OEMs are more unpredictable, with some moving to month-to-month commitments, creating uncertainty in our full-year outlook.