Cars.com Reports Second Quarter 2024 Results
Cars.com Inc. (NYSE: CARS) reported strong Q2 2024 results with revenue growing 6.4% year-over-year to $178.9 million. The company saw record 28% year-over-year growth in OEM and National revenue. Net income was $11.4 million, or $0.17 per diluted share. Adjusted EBITDA increased 10% to $50.4 million, representing 28% of revenue. The dealer customer base grew to 19,390, with Average Revenue Per Dealer (ARPD) slightly up at $2,474. The company generated $69 million in year-to-date cash flows from operating activities and aims to return 50% of second-half 2024 free cash flow to shareholders through share repurchases. Cars.com reaffirmed its full-year Adjusted EBITDA outlook but updated its revenue growth forecast to 4.5-5.5%, down from the previous 6-8% range.
Cars.com Inc. (NYSE: CARS) ha riportato risultati forti per il Q2 2024, con un incremento del fatturato del 6.4% rispetto all'anno precedente, raggiungendo $178.9 milioni. L'azienda ha registrato una crescita record del 28% nelle entrate OEM e nazionali rispetto all'anno precedente. L'utile netto è stato di $11.4 milioni, ovvero $0.17 per azione diluita. L'EBITDA rettificato è aumentato del 10% a $50.4 milioni, rappresentando il 28% del fatturato. Il numero di clienti concessionari è cresciuto fino a 19.390, con un Ricavo Medio per Concessionario (ARPD) leggermente aumentato a $2.474. L'azienda ha generato $69 milioni in flussi di cassa da attività operative da inizio anno e punta a restituire il 50% del flusso di cassa libero del secondo semestre del 2024 agli azionisti attraverso riacquisti di azioni. Cars.com ha ribadito le sue previsioni sull'EBITDA rettificato per l'intero anno, ma ha aggiornato la previsione di crescita del fatturato al 4.5-5.5%, in calo rispetto alla precedente fascia del 6-8%.
Cars.com Inc. (NYSE: CARS) reportó sólidos resultados para el segundo trimestre de 2024, con un aumento de ingresos del 6.4% en comparación con el año anterior, alcanzando $178.9 millones. La compañía experimentó un crecimiento récord del 28% en ingresos OEM y nacionales en comparación con el año anterior. La utilidad neta fue de $11.4 millones, o $0.17 por acción diluida. El EBITDA ajustado aumentó un 10% a $50.4 millones, representando el 28% de los ingresos. La base de clientes concesionarios creció a 19,390, con un ingreso promedio por concesionario (ARPD) ligeramente aumentando a $2,474. La compañía generó $69 millones en flujos de efectivo de actividades operativas en lo que va del año y tiene como objetivo devolver el 50% del flujo de efectivo libre de la segunda mitad de 2024 a los accionistas a través de la recompra de acciones. Cars.com reafirmó su perspectiva de EBITDA ajustado para todo el año, pero actualizó su pronóstico de crecimiento de ingresos al 4.5-5.5%, disminuyendo desde el rango anterior del 6-8%.
Cars.com Inc. (NYSE: CARS)는 2024년 2분기에 전년 대비 6.4% 성장하여 $178.9백만에 이르는 강력한 실적을 보고했습니다. 이 회사는 OEM 및 국가 매출에서 전년 대비 28%의 기록적인 성장을 보였습니다. 순이익은 $11.4백만, 즉 희석주당 $0.17이었습니다. 조정 EBITDA는 10% 증가하여 $50.4백만에 달하며, 이는 매출의 28%에 해당합니다. 딜러 고객 수는 19,390으로 증가하였고, 딜러당 평균 수익(ARPD)은 $2,474로 소폭 상승했습니다. 회사는 연초부터 운영 활동에서 $69백만의 현금 흐름을 생성하였으며, 2024년 하반기 자유 현금 흐름의 50%를 주식 매입을 통해 주주에게 반환할 계획입니다. Cars.com은 연간 조정 EBITDA 전망을 재확인했지만, 매출 성장 예측을 이전의 6-8% 범위에서 4.5-5.5%로 업데이트했습니다.
Cars.com Inc. (NYSE: CARS) a annoncé des résultats solides pour le deuxième trimestre de 2024, avec une croissance du chiffre d'affaires de 6,4% par rapport à l'année précédente, atteignant 178,9 millions de dollars. L'entreprise a connu une croissance record de 28% des revenus OEM et nationaux par rapport à l'année précédente. Le bénéfice net s'élevait à 11,4 millions de dollars, soit 0,17 dollar par action diluée. L'EBITDA ajusté a augmenté de 10% pour atteindre 50,4 millions de dollars, représentant 28% du chiffre d'affaires. La base de clients concessionnaires a augmenté à 19 390, avec un Revenu Moyen par Concessionnaire (ARPD) légèrement en hausse à 2 474 dollars. L'entreprise a généré 69 millions de dollars de flux de trésorerie d'activités opérationnelles depuis le début de l'année et vise à retourner 50% du flux de trésorerie libre du deuxième semestre 2024 aux actionnaires par le biais de rachats d'actions. Cars.com a réaffirmé ses perspectives d'EBITDA ajusté pour l'année complète mais a mis à jour ses prévisions de croissance du chiffre d'affaires entre 4,5 et 5,5%, en baisse par rapport à l'ancienne fourchette de 6 à 8%.
Cars.com Inc. (NYSE: CARS) berichtete über starke Ergebnisse im 2. Quartal 2024 mit einem Umsatzwachstum von 6,4% im Vergleich zum Vorjahr, das $178,9 Millionen erreichte. Das Unternehmen verzeichnete ein Rekordwachstum von 28% im OEM- und Nationalumsatz im Vergleich zum Vorjahr. Der Nettoertrag betrug $11,4 Millionen oder $0,17 pro verwässerter Aktie. Das bereinigte EBITDA stieg um 10% auf $50,4 Millionen, was 28% des Umsatzes entspricht. Die Anzahl der Händlerkunden wuchs auf 19.390, während der durchschnittliche Umsatz pro Händler (ARPD) leicht auf $2.474 anstieg. Das Unternehmen generierte $69 Millionen an Cashflows aus operativen Tätigkeiten im bisherigen Jahresverlauf und plant, 50% des freien Cashflows im zweiten Halbjahr 2024 an die Aktionäre durch Aktienrückkäufe zurückzugeben. Cars.com bestätigte seine Jahresprognose für das bereinigte EBITDA, aktualisierte jedoch seine Prognose für das Umsatzwachstum auf 4,5-5,5%, nach unten von der vorherigen Bandbreite von 6-8%.
- Revenue grew 6.4% year-over-year to $178.9 million
- OEM and National revenue achieved record 28% year-over-year growth
- Adjusted EBITDA increased 10% to $50.4 million, representing 28% of revenue
- Dealer customer base grew to 19,390
- Generated $69 million in year-to-date cash flows from operating activities
- Targeting 50% of second-half 2024 free cash flow for share repurchases
- Reaffirmed full-year Adjusted EBITDA margin outlook of 28-30%
- Revised full-year 2024 revenue growth outlook to 4.5-5.5%, down from previous 6-8% range
- Slower anticipated pace of subscription adoption for AccuTrade Connected product
- Negative impact from delayed subscription revenues and product launches due to industry-wide CDK cyber incident
- Average Monthly Unique Visitors decreased to 26.1 million from 26.9 million a year ago
Insights
Cars.com's Q2 2024 results show positive momentum with 6.4% year-over-year revenue growth to
The company's profitability metrics are solid, with Adjusted EBITDA up 10% to
Cars.com's focus on shareholder returns is noteworthy, with plans to return
The slight growth in dealer customers to 19,390 and the marginal increase in Monthly Average Revenue Per Dealer (ARPD) to
However, the revision of the full-year revenue growth outlook from 6-8% to 4.5-5.5% suggests some headwinds in the near term. This is primarily due to slower adoption of the AccuTrade Connected product and the impact of the CDK incident on subscription revenues and product launches.
The strong growth in OEM and National revenue (
Cars.com's strategic focus on technology-driven solutions is evident in its product portfolio. The AccuTrade product, now certified by multiple OEMs, demonstrates the company's commitment to innovative digital solutions for the automotive industry. However, the slower-than-expected adoption of AccuTrade Connected subscriptions highlights the challenges in rolling out new tech products in a traditional industry.
The company's investment in Product and technology, including increased spending on compensation and third-party licenses, indicates a continued focus on platform development. This could potentially lead to more robust offerings and increased differentiation in the future.
The impact of the CDK cyber incident on Cars.com's operations underscores the importance of cybersecurity in the digital automotive ecosystem. As the industry becomes more reliant on digital platforms, addressing these vulnerabilities will be important for maintaining customer trust and operational stability.
Revenue Grew
Dealer Base Grew to 19,390 Customers While Sustaining Robust Average Revenue Per Dealer
Generated
Targets Returning
Reaffirms Full Year Adjusted EBITDA Outlook and Updates Revenue Outlook
Q2 2024 Financial Highlights
- Revenue of
$178.9 million $10.7 million 6.4% year-over-year - Net income of
$11.4 million $0.17 $94.1 million $1.37 - Adjusted net income of
$26.0 million $0.38 $22.5 million $0.33 - Adjusted EBITDA of
$50.4 million 28% of revenue, up$4.8 million 10% year-over-year
Q2 2024 Key Metrics and Operational Highlights
- Average Monthly Unique Visitors ("UVs") of 26.1 million, compared to 26.9 million a year ago
- Traffic ("Visits") of 158.1 million, up
1% year-over-year - Monthly Average Revenue Per Dealer ("ARPD") of
$2,474 - Dealer Customers totaled 19,390 as of June 30, 2024, compared to 19,381 as of March 31, 2024
- AccuTrade certified by multiple OEMs as a Trade & Appraisal solution for OEM and dealer websites
"We drove disciplined growth and strong profitability during the second quarter on top of returning to sequential expansion in our dealer customer base," said Alex Vetter, Chief Executive Officer of Cars Commerce. "Our strength is underscored by positive AccuTrade utilization, healthy adoption of website solutions, and accelerating OEM and National revenue. Looking ahead, as we navigate through industry disruption in the third quarter, we continue to be focused on deepening our platform differentiation in support of growth and margin expansion in the second half of the year."
Q2 2024 Results
Revenue for the second quarter totaled
Second quarter ARPD grew slightly year-over-year to
Total operating expenses for the second quarter were
Net income for the second quarter was
Adjusted EBITDA for the second quarter totaled
The Company's consumer scale and engagement remained strong in the second quarter. Total Traffic reached 158.1 million and Average Monthly Unique Visitors were 26.1 million for the quarter.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the six-month period ended June 30, 2024 was
The Company repaid
The Company continues to execute on its capital allocation strategy and year-to-date has repurchased 0.8 million shares of common stock for
"We demonstrated robust operating leverage and free cash flow generation in the second quarter. Despite revisions to our revenue outlook, our business is strong and our platform advantage is clear. We intend to return
Third Quarter and 2024 Outlook
Third quarter revenue is expected to be between
Adjusted EBITDA margin for the third quarter is expected to be between
The Company is revising its fiscal year 2024 revenue growth outlook to a range of
For fiscal year 2024, the Company is reaffirming Adjusted EBITDA margin outlook of
Q2 2024 Earnings Call
As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.
About Cars Commerce
Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.
Non-GAAP Financial Measures
This earnings release 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
While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.
Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.
The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.
Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.
The Company defines Adjusted Net Income as GAAP net income (loss) excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.
The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.
The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.
Key Metric Definitions
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.com property on an individual device/browser combination or installs one of its mobile apps on an individual device. If a visitor accesses more than one of its web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measured UVs and Traffic via Adobe Analytics through the year ended December 31, 2023. As of January 1, 2024, the Company now measures UVs and Traffic via RudderStack, which better aligns to the Company's product and technology platform and provides improved visibility into its UVs and Traffic. Prior period UVs and Traffic information has not been recast, as it is impracticable to do so. These metrics do not include traffic to Dealer Inspire or D2C Media websites.
Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services, during the period divided by the monthly average number of Dealer Customers during the same period. Beginning December 31, 2023, this key operating metric includes D2C Media.
Dealer Customers. Dealer Customers represent dealerships using our products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Beginning December 31, 2023, this key operating metric includes D2C Media.
Forward-Looking Statements
This press release 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," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission ("SEC") on February 22, 2024 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.
You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.
Cars Commerce Investor Relations Contact:
Katherine Chen
ir@carscommerce.inc
408.768.6847
Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.inc
312.601.5692
Cars.com Inc. | ||||||||
Consolidated Statements of Income | ||||||||
(In thousands, except per share data) | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Revenue: | ||||||||
Dealer | $ 159,843 | $ 153,309 | $ 321,658 | $ 303,152 | ||||
OEM and National | 15,828 | 12,402 | 31,135 | 25,945 | ||||
Other | 3,223 | 2,465 | 6,277 | 6,147 | ||||
Total revenue | 178,894 | 168,176 | 359,070 | 335,244 | ||||
Operating expenses: | ||||||||
Cost of revenue and operations | 31,030 | 30,415 | 60,992 | 60,210 | ||||
Product and technology | 27,583 | 24,956 | 55,668 | 49,057 | ||||
Marketing and sales | 60,213 | 58,153 | 119,376 | 116,450 | ||||
General and administrative | 22,980 | 17,649 | 45,837 | 35,953 | ||||
Depreciation and amortization | 27,571 | 24,669 | 54,936 | 48,711 | ||||
Total operating expenses | 169,377 | 155,842 | 336,809 | 310,381 | ||||
Operating income | 9,517 | 12,334 | 22,261 | 24,863 | ||||
Nonoperating expenses: | ||||||||
Interest expense, net | (8,109) | (8,150) | (16,430) | (16,394) | ||||
Other income (expense), net | 14,990 | (3,133) | 11,387 | 5,106 | ||||
Total nonoperating income (expense), net | 6,881 | (11,283) | (5,043) | (11,288) | ||||
Income before income taxes | 16,398 | 1,051 | 17,218 | 13,575 | ||||
Income tax expense (benefit) | 5,017 | (93,075) | 5,053 | (92,030) | ||||
Net income | $ 11,381 | $ 94,126 | $ 12,165 | $ 105,605 | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 66,534 | 66,762 | 66,426 | 66,646 | ||||
Diluted | 67,821 | 68,493 | 67,514 | 68,118 | ||||
Earnings per share: | ||||||||
Basic | $ 0.17 | $ 1.41 | $ 0.18 | $ 1.58 | ||||
Diluted | 0.17 | 1.37 | 0.18 | 1.55 | ||||
Cars.com Inc. | ||||
Consolidated Balance Sheets | ||||
(In thousands, except per share data) | ||||
June 30, 2024 | December 31, 2023 | |||
(unaudited) | ||||
Assets: | ||||
Current assets: | ||||
Cash and cash equivalents | $ 29,071 | $ 39,198 | ||
Accounts receivable, net | 128,532 | 125,373 | ||
Prepaid expenses | 10,135 | 12,553 | ||
Other current assets | 10,321 | 1,314 | ||
Total current assets | 178,059 | 178,438 | ||
Property and equipment, net | 42,978 | 43,853 | ||
Goodwill | 145,360 | 147,058 | ||
Intangible assets, net | 625,700 | 669,167 | ||
Deferred tax assets, net | 105,228 | 112,953 | ||
Investments and other assets, net | 23,217 | 20,980 | ||
Total assets | $ 1,120,542 | $ 1,172,449 | ||
Liabilities and stockholders' equity: | ||||
Current liabilities: | ||||
Accounts payable | $ 29,570 | $ 22,259 | ||
Accrued compensation | 22,703 | 31,669 | ||
Current portion of long-term debt, net | — | 23,129 | ||
Other accrued liabilities | 64,312 | 68,691 | ||
Total current liabilities | 116,585 | 145,748 | ||
Noncurrent liabilities: | ||||
Long-term debt, net | 469,670 | 460,119 | ||
Deferred tax liabilities, net | 8,222 | 8,757 | ||
Other noncurrent liabilities | 29,174 | 65,717 | ||
Total noncurrent liabilities | 507,066 | 534,593 | ||
Total liabilities | 623,651 | 680,341 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Preferred Stock at par, | — | — | ||
Common Stock at par, | 662 | 659 | ||
Additional paid-in capital | 1,493,923 | 1,500,232 | ||
Accumulated deficit | (997,569) | (1,009,734) | ||
Accumulated other comprehensive (loss) income | (125) | 951 | ||
Total stockholders' equity | 496,891 | 492,108 | ||
Total liabilities and stockholders' equity | $ 1,120,542 | $ 1,172,449 | ||
Cars.com Inc. | ||||
Consolidated Statements of Cash Flows | ||||
(In thousands) | ||||
(Unaudited) | ||||
Six Months Ended June 30, | ||||
2024 | 2023 | |||
Cash flows from operating activities: | ||||
Net income | $ 12,165 | $ 105,605 | ||
Adjustments to reconcile Net income to Net cash provided by operating activities: | ||||
Depreciation | 12,722 | 10,394 | ||
Amortization of intangible assets | 42,214 | 38,317 | ||
Changes in fair value of contingent consideration | (12,834) | (5,182) | ||
Stock-based compensation | 15,541 | 13,520 | ||
Deferred income taxes | 7,798 | (92,587) | ||
Provision for doubtful accounts | 1,753 | 1,319 | ||
Amortization of debt issuance costs | 1,289 | 1,549 | ||
Unrealized loss on foreign currency denominated transactions | 1,480 | — | ||
Amortization of deferred revenue related to AccuTrade acquisition | — | (883) | ||
Other, net | 578 | 330 | ||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (5,090) | (4,626) | ||
Prepaid expenses and other assets | (6,869) | (8,065) | ||
Accounts payable | 7,282 | 1,658 | ||
Accrued compensation | (8,834) | (2,973) | ||
Other liabilities | (473) | (2,194) | ||
Net cash provided by operating activities | 68,722 | 56,182 | ||
Cash flows from investing activities: | ||||
Payments for acquisitions, net of cash acquired | (218) | - | ||
Capitalization of internally developed technology | (11,176) | (10,061) | ||
Purchase of property and equipment | (1,099) | (508) | ||
Net cash used in investing activities | (12,493) | (10,569) | ||
Cash flows from financing activities: | ||||
Payments of Revolving Loan borrowings and long-term debt | (15,000) | (22,500) | ||
Payments for stock-based compensation plans, net | (7,557) | (9,069) | ||
Repurchases of common stock | (14,362) | (17,154) | ||
Payments of contingent consideration | (27,435) | — | ||
Payments of debt issuance costs and other fees | (1,869) | — | ||
Net cash used in financing activities | (66,223) | (48,723) | ||
Effect of exchange rate changes on Cash and cash equivalents | (133) | — | ||
Net decrease in Cash and cash equivalents | (10,127) | (3,110) | ||
Cash and cash equivalents at beginning of period | 39,198 | 31,715 | ||
Cash and cash equivalents at end of period | $ 29,071 | $ 28,605 | ||
Supplemental cash flow information: | ||||
Cash paid for income taxes | $ 4,639 | $ 12,282 | ||
Cash paid for interest | 16,893 | 15,541 | ||
Cars.com Inc. | ||||||||
Non-GAAP Reconciliations | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Reconciliation of Net income to Adjusted EBITDA | ||||||||
Net income | $ 11,381 | $ 94,126 | $ 12,165 | $ 105,605 | ||||
Interest expense, net | 8,109 | 8,150 | 16,430 | 16,394 | ||||
Income tax expense | 5,017 | (93,075) | 5,053 | (92,030) | ||||
Depreciation and amortization | 27,571 | 24,669 | 54,936 | 48,711 | ||||
Stock-based compensation, including related payroll tax expense | 8,813 | 7,720 | 16,763 | 14,672 | ||||
Transaction-related and other one-time items | (10,853) | 4,059 | (3,684) | (3,366) | ||||
Non-operating foreign exchange expense | 387 | — | 1,435 | — | ||||
Adjusted EBITDA | $ 50,425 | $ 45,649 | $ 103,098 | $ 89,986 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Reconciliation of Net income to Adjusted Net income | ||||||||
Net income | $ 11,381 | $ 94,126 | $ 12,165 | $ 105,605 | ||||
Stock-based compensation, including related payroll tax expense | 8,813 | 7,720 | 16,763 | 14,672 | ||||
Amortization of intangible assets | 21,209 | 19,159 | 42,214 | 38,317 | ||||
Transaction-related items | (12,668) | 3,203 | (6,525) | (5,574) | ||||
Non-operating foreign exchange expense | 387 | — | 1,435 | — | ||||
Other one-time items | 1,815 | 856 | 2,841 | 2,208 | ||||
Valuation allowance | — | (94,851) | — | (94,137) | ||||
Income tax impact of adjustments | (4,889) | (7,735) | (14,182) | (12,406) | ||||
Adjusted net income | $ 26,048 | $ 22,478 | $ 54,711 | $ 48,685 | ||||
Adjusted net income per share, diluted | $ 0.38 | $ 0.33 | $ 0.81 | $ 0.71 | ||||
Weighted-average common shares outstanding, diluted | 67,821 | 68,493 | 67,514 | 68,118 | ||||
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
2024 | 2023 | 2024 | 2023 | |||||
Reconciliation of Net cash provided by operating activities to Free cash flow | ||||||||
Net cash provided by operating activities | $ 35,254 | $ 28,041 | $ 68,722 | $ 56,182 | ||||
Capitalization of internally developed technology | (5,871) | (4,889) | (11,176) | (10,061) | ||||
Purchase of property and equipment | (391) | (309) | (1,099) | (508) | ||||
Free cash flow | $ 28,992 | $ 22,843 | $ 56,447 | $ 45,613 | ||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended June 30, 2024: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 31,030 | $ — | $ (229) | $ 30,801 | ||||
Product and technology | 27,583 | — | (3,009) | 24,574 | ||||
Marketing and sales | 60,213 | (44) | (1,672) | 58,497 | ||||
General and administrative | 22,980 | (4,480) | (3,903) | 14,597 | ||||
Depreciation and amortization | 27,571 | — | — | 27,571 | ||||
Total operating expenses | $ 169,377 | $ (4,524) | $ (8,813) | $ 156,040 | ||||
Total nonoperating expense, net | $ 6,881 | $ (14,990) | $ — | $ (8,109) | ||||
(1) Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | ||||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended June 30, 2023: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 30,415 | $ — | $ (443) | $ 29,972 | ||||
Product and technology | 24,956 | — | (2,372) | 22,584 | ||||
Marketing and sales | 58,153 | — | (1,531) | 56,622 | ||||
General and administrative | 17,649 | (982) | (3,374) | 13,293 | ||||
Depreciation and amortization | 24,669 | — | — | 24,669 | ||||
Total operating expenses | $ 155,842 | $ (982) | $ (7,720) | $ 147,140 | ||||
Total nonoperating expense, net | $ (11,283) | $ 3,077 | $ — | $ (8,206) | ||||
(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other. | ||||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Six Months Ended June 30, 2024: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 60,992 | $ — | $ (558) | $ 60,434 | ||||
Product and technology | 55,668 | — | (5,790) | 49,878 | ||||
Marketing and sales | 119,376 | (88) | (2,893) | 116,395 | ||||
General and administrative | 45,837 | (9,051) | (7,522) | 29,264 | ||||
Depreciation and amortization | 54,936 | — | — | 54,936 | ||||
Total operating expenses | $ 336,809 | $ (9,139) | $ (16,763) | $ 310,907 | ||||
Total nonoperating expense, net | $ (5,043) | $ (11,388) | $ — | $ (16,431) | ||||
(1) Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other. | ||||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Six Months Ended June 30, 2023: | ||||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | |||||
Cost of revenue and operations | $ 60,210 | $ — | $ (750) | $ 59,460 | ||||
Product and technology | 49,057 | — | (4,429) | 44,628 | ||||
Marketing and sales | 116,450 | — | (2,964) | 113,486 | ||||
General and administrative | 35,953 | (2,899) | (6,529) | 26,525 | ||||
Depreciation and amortization | 48,711 | — | — | 48,711 | ||||
Total operating expenses | $ 310,381 | $ (2,899) | $ (14,672) | $ 292,810 | ||||
Total nonoperating expense, net | $ (11,288) | $ (5,182) | $ — | $ (16,470) | ||||
(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other. | ||||||||
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SOURCE Cars Commerce
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