Cars.com Reports Third Quarter 2024 Results
Cars.com (NYSE: CARS) reported Q3 2024 results with revenue of $179.7 million, up 3.1% year-over-year. Net income reached $18.7 million ($0.28 per diluted share), compared to $4.5 million in Q3 2023. The company achieved notable growth in OEM and National revenue (+17% YoY) and maintained strong Adjusted EBITDA margin of 28.5%. Year-to-date net cash from operations increased 34% to $123 million. The company repurchased 1.2 million shares, representing 45% of quarterly free cash flow. Notable metrics include 19,255 dealer customers and monthly ARPD of $2,478.
Cars.com (NYSE: CARS) ha riportato i risultati del terzo trimestre 2024, con un fatturato di 179,7 milioni di dollari, in aumento del 3,1% rispetto all’anno precedente. L'utile netto è stato di 18,7 milioni di dollari (0,28 dollari per azione diluita), rispetto a 4,5 milioni di dollari nel terzo trimestre 2023. L'azienda ha registrato una crescita significativa nel fatturato OEM e Nazionale (+17% rispetto all’anno precedente) e ha mantenuto un forte margine EBITDA rettificato del 28,5%. Da inizio anno, il flusso di cassa netto dalle operazioni è aumentato del 34% fino a raggiungere i 123 milioni di dollari. L'azienda ha riacquistato 1,2 milioni di azioni, pari al 45% del flusso di cassa libero trimestrale. Tra i dati salienti, ci sono 19.255 clienti concessionari e un ARPD mensile di 2.478 dollari.
Cars.com (NYSE: CARS) reportó los resultados del tercer trimestre de 2024, con ingresos de 179,7 millones de dólares, un aumento del 3,1% interanual. La utilidad neta alcanzó 18,7 millones de dólares (0,28 dólares por acción diluida), en comparación con 4,5 millones de dólares en el tercer trimestre de 2023. La compañía logró un crecimiento notable en los ingresos de OEM y Nacional (+17% interanual) y mantuvo un fuerte margen EBITDA ajustado del 28,5%. El efectivo neto de las operaciones hasta la fecha aumentó un 34% a 123 millones de dólares. La compañía recompró 1,2 millones de acciones, representando el 45% del flujo de caja libre trimestral. Entre las métricas notables se incluyen 19,255 clientes concesionarios y un ARPD mensual de 2,478 dólares.
Cars.com (NYSE: CARS)는 2024년 3분기 실적을 발표하였으며, 수익은 1억 7,970만 달러로 전년 대비 3.1% 증가했습니다. 순이익은 1,870만 달러 (희석 주당 0.28달러)로, 2023년 3분기의 450만 달러와 비교됩니다. 회사는 OEM 및 국가 매출에서 두드러진 성장을 달성하였으며 (+17% 전년 대비), 28.5%의 강력한 조정 EBITDA 마진을 유지하였습니다. 연초 이후 운영에서 발생한 순현금은 34% 증가하여 1억 2,300만 달러에 달했습니다. 회사는 120만 주를 재매입하였으며, 이는 분기 자유 현금 흐름의 45%에 해당합니다. 주요 지표로는 19,255개의 딜러 고객과 월 ARPD가 2,478 달러입니다.
Cars.com (NYSE: CARS) a publié ses résultats pour le troisième trimestre 2024, avec un chiffre d'affaires de 179,7 millions de dollars, en hausse de 3,1 % par rapport à l'année précédente. Le bénéfice net a atteint 18,7 millions de dollars (0,28 dollar par action diluée), contre 4,5 millions de dollars au troisième trimestre 2023. L'entreprise a connu une croissance notable des revenus OEM et nationaux (+17 % en glissement annuel) et a maintenu une solide marge EBITDA ajustée de 28,5 %. Le flux de trésorerie net provenant des opérations a augmenté de 34 % pour atteindre 123 millions de dollars. L'entreprise a racheté 1,2 million d'actions, représentant 45 % du flux de trésorerie libre trimestriel. Parmi les indicateurs notables figurent 19 255 clients concessionnaires et un ARPD mensuel de 2 478 dollars.
Cars.com (NYSE: CARS) hat die Ergebnisse des dritten Quartals 2024 veröffentlicht, mit einem Umsatz von 179,7 Millionen Dollar, was einem Anstieg von 3,1% im Vergleich zum Vorjahr entspricht. Der Nettogewinn belief sich auf 18,7 Millionen Dollar (0,28 Dollar pro verwässerter Aktie), verglichen mit 4,5 Millionen Dollar im dritten Quartal 2023. Das Unternehmen erzielte ein bemerkenswertes Wachstum im OEM- und nationalen Umsatz (+17% im Jahresvergleich) und hielt eine starke angepasste EBITDA-Marge von 28,5% aufrecht. Der seit Jahresbeginn erzielte Nettocashflow aus den operativen Tätigkeiten stieg um 34% auf 123 Millionen Dollar. Das Unternehmen hat 1,2 Millionen Aktien zurückgekauft, was 45% des vierteljährlichen freien Cashflows entspricht. Zu den bemerkenswerten Kennzahlen zählen 19.255 Händlerkunden und ein monatliches ARPD von 2.478 Dollar.
- Revenue increased 3.1% YoY to $179.7 million
- Net income grew significantly to $18.7 million from $4.5 million YoY
- OEM and National revenue increased 17% YoY
- Year-to-date operating cash flow up 34% to $122.5 million
- Strong Adjusted EBITDA margin of 28.5%
- Total net leverage improved to 2.0x
- Monthly Average Revenue Per Dealer (ARPD) decreased 3% YoY to $2,478
- Dealer Customers declined to 19,255 from 19,390 in previous quarter
- Average Monthly Unique Visitors decreased to 24.5 million from 26.0 million YoY
Insights
Cars.com delivered solid Q3 results with
The balance sheet shows continued improvement with total debt reduced to
The platform strategy is showing promising results in the competitive automotive tech space. Notable achievements include becoming the #1 dealer website provider in Canada and growing AccuTrade Connected to 950 subscribers. Traffic metrics remain strong with 154.2M visits, though monthly unique visitors declined slightly to 24.5M. The
The company's ability to maintain over
Revenue Grew
Platform Growth Driven by AccuTrade, D2C Media, and VIN Performance Media Products
Generated
Repurchased 1.2 Million Shares, Representing
Q3 2024 Financial Highlights
- Revenue of
$179.7 million $5.3 million 3.1% year-over-year - Net income of
$18.7 million $0.28 $4.5 million $0.07 - Adjusted net income of
$27.7 million $0.41 $27.3 million $0.40 - Adjusted EBITDA of
$51.1 million 28.5% of revenue, up$1.6 million 3.3% year-over-year
Q3 2024 Key Metrics and Operational Highlights
- Average Monthly Unique Visitors ("UVs") of 24.5 million, compared to 26.0 million a year ago
- Traffic ("Visits") of 154.2 million, up
2% year-over-year - Monthly Average Revenue Per Dealer ("ARPD") of
$2,478 3% from the year-ago period - Dealer Customers totaled 19,255 as of September 30, 2024, compared to 19,390 as of June 30, 2024
- AccuTrade Connected grew to 950 subscribers, and the AccuTrade website application installed base also grew, both driven by recent OEM endorsements
- Cars Commerce became the #1 dealer website provider in
Canada , supporting approximately 1,100 customers in the third quarter of 2024
"We demonstrated steady and consistent execution against our platform strategy as we drove profitable growth across the Cars Commerce product suite during the third quarter. Increased subscription growth, particularly in AccuTrade, reflected growing dealer affinity for our unique data insights and differentiated technology. Now, we are focused on finishing the year strong with further revenue and margin growth, and continued product innovation that enables automotive commerce in this strong demand environment, " said Alex Vetter, Chief Executive Officer of Cars Commerce.
Q3 2024 Results
Revenue for the third quarter totaled
Third quarter ARPD was
Total operating expenses for the third quarter were
Net income for the third quarter was
Adjusted EBITDA for the third quarter totaled
The Company drove robust consumer scale and engagement during the third quarter. Total Traffic reached 154.2 million visits, with organic traffic remaining strong at over
Cash Flow and Balance Sheet
Net cash provided by operating activities for the nine-month period ended September 30, 2024 was
The Company repaid
The Company continues to execute on its capital allocation strategy and year-to-date has repurchased 2.0 million shares of common stock for
"We're pleased to deliver another quarter of revenue growth, as well as strong Adjusted EBITDA margin of
Fourth Quarter and 2024 Outlook
The Company is reaffirming its fiscal year 2024 outlook of
Adjusted EBITDA margin outlook for fiscal 2024 remains
Q3 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 we believe 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 September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Revenue: | |||||||
Dealer | $ 159,513 | $ 157,116 | $ 481,171 | $ 460,268 | |||
OEM and National | 17,014 | 14,549 | 48,149 | 40,494 | |||
Other | 3,124 | 2,668 | 9,401 | 8,815 | |||
Total revenue | 179,651 | 174,333 | 538,721 | 509,577 | |||
Operating expenses: | |||||||
Cost of revenue and operations | 31,610 | 31,077 | 92,602 | 91,287 | |||
Product and technology | 29,223 | 25,297 | 84,891 | 74,354 | |||
Marketing and sales | 58,288 | 60,186 | 177,664 | 176,636 | |||
General and administrative | 21,511 | 17,785 | 67,348 | 53,738 | |||
Depreciation and amortization | 27,563 | 25,670 | 82,499 | 74,381 | |||
Total operating expenses | 168,195 | 160,015 | 505,004 | 470,396 | |||
Operating income | 11,456 | 14,318 | 33,717 | 39,181 | |||
Nonoperating expenses: | |||||||
Interest expense, net | (8,028) | (7,777) | (24,458) | (24,171) | |||
Other income (expense), net | 21,111 | (3,902) | 32,498 | 1,204 | |||
Total nonoperating income (expense), net | 13,083 | (11,679) | 8,040 | (22,967) | |||
Income before income taxes | 24,539 | 2,639 | 41,757 | 16,214 | |||
Income tax expense (benefit) | 5,820 | (1,852) | 10,873 | (93,882) | |||
Net income | $ 18,719 | $ 4,491 | $ 30,884 | $ 110,096 | |||
Weighted-average common shares outstanding: | |||||||
Basic | 66,107 | 66,773 | 66,319 | 66,820 | |||
Diluted | 67,666 | 68,508 | 67,590 | 68,199 | |||
Earnings per share: | |||||||
Basic | $ 0.28 | $ 0.07 | $ 0.47 | $ 1.65 | |||
Diluted | 0.28 | 0.07 | 0.46 | 1.61 | |||
Cars.com Inc. | |||
Consolidated Balance Sheets | |||
(In thousands, except per share data) | |||
September 30, 2024 | December 31, 2023 | ||
(unaudited) | |||
Assets: | |||
Current assets: | |||
Cash and cash equivalents | $ 49,573 | $ 39,198 | |
Accounts receivable, net | 125,214 | 125,373 | |
Prepaid expenses | 15,536 | 12,553 | |
Other current assets | 9,574 | 1,314 | |
Total current assets | 199,897 | 178,438 | |
Property and equipment, net | 42,827 | 43,853 | |
Goodwill | 145,843 | 147,058 | |
Intangible assets, net | 605,130 | 669,167 | |
Deferred tax assets, net | 100,530 | 112,953 | |
Investments and other assets, net | 24,281 | 20,980 | |
Total assets | $ 1,118,508 | $ 1,172,449 | |
Liabilities and stockholders' equity: | |||
Current liabilities: | |||
Accounts payable | $ 32,228 | $ 22,259 | |
Accrued compensation | 29,561 | 31,669 | |
Current portion of long-term debt, net | — | 23,129 | |
Other accrued liabilities | 49,600 | 68,691 | |
Total current liabilities | 111,389 | 145,748 | |
Noncurrent liabilities: | |||
Long-term debt, net | 464,979 | 460,119 | |
Deferred tax liabilities, net | 8,293 | 8,757 | |
Other noncurrent liabilities | 31,422 | 65,717 | |
Total noncurrent liabilities | 504,694 | 534,593 | |
Total liabilities | 616,083 | 680,341 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Preferred Stock at par, | — | — | |
Common Stock at par, | 650 | 659 | |
Additional paid-in capital | 1,480,400 | 1,500,232 | |
Accumulated deficit | (978,850) | (1,009,734) | |
Accumulated other comprehensive income | 225 | 951 | |
Total stockholders' equity | 502,425 | 492,108 | |
Total liabilities and stockholders' equity | $ 1,118,508 | $ 1,172,449 | |
Cars.com Inc. | |||
Consolidated Statements of Cash Flows | |||
(In thousands) | |||
(Unaudited) | |||
Nine Months Ended September 30, | |||
2024 | 2023 | ||
Cash flows from operating activities: | |||
Net income | $ 30,884 | $ 110,096 | |
Adjustments to reconcile Net income to Net cash provided by operating activities: | |||
Depreciation | 19,306 | 16,367 | |
Amortization of intangible assets | 63,193 | 58,014 | |
Changes in fair value of contingent consideration | (33,473) | (1,280) | |
Stock-based compensation | 23,689 | 20,930 | |
Deferred income taxes | 12,469 | (98,821) | |
Provision for doubtful accounts | 2,634 | 2,117 | |
Amortization of debt issuance costs | 1,769 | 2,303 | |
Unrealized loss on foreign currency denominated transactions | 965 | — | |
Amortization of deferred revenue related to AccuTrade acquisition | — | (883) | |
Other, net | 766 | 640 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | (2,574) | (12,472) | |
Prepaid expenses and other assets | (12,705) | (13,073) | |
Accounts payable | 9,947 | 473 | |
Accrued compensation | (2,067) | 1,741 | |
Other liabilities | 7,714 | 5,428 | |
Net cash provided by operating activities | 122,517 | 91,580 | |
Cash flows from investing activities: | |||
Payments for acquisitions, net of cash acquired | (218) | — | |
Capitalization of internally developed technology | (16,770) | (14,838) | |
Purchase of property and equipment | (2,046) | (737) | |
Net cash used in investing activities | (19,034) | (15,575) | |
Cash flows from financing activities: | |||
Payments of Revolving Loan borrowings and long-term debt | (20,000) | (26,250) | |
Payments for stock-based compensation plans, net | (8,065) | (9,069) | |
Repurchases of common stock | (35,686) | (23,316) | |
Payments of contingent consideration | (27,435) | — | |
Payments of debt issuance costs and other fees | (1,869) | — | |
Net cash used in financing activities | (93,055) | (58,635) | |
Effect of exchange rate changes on Cash and cash equivalents | (53) | — | |
Net increase in Cash and cash equivalents | 10,375 | 17,370 | |
Cash and cash equivalents at beginning of period | 39,198 | 31,715 | |
Cash and cash equivalents at end of period | $ 49,573 | $ 49,085 | |
Supplemental cash flow information: | |||
Cash paid for income taxes | $ 5,506 | $ 17,107 | |
Cash paid for interest | 18,453 | 16,806 | |
Cars.com Inc. | |||||||
Non-GAAP Reconciliations | |||||||
(In thousands, except per share data) | |||||||
(Unaudited) | |||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Reconciliation of Net income to Adjusted EBITDA | |||||||
Net income | $ 18,719 | $ 4,491 | $ 30,884 | $ 110,096 | |||
Interest expense, net | 8,028 | 7,777 | 24,458 | 24,171 | |||
Income tax expense (benefit) | 5,820 | (1,852) | 10,873 | (93,882) | |||
Depreciation and amortization | 27,563 | 25,670 | 82,499 | 74,381 | |||
Stock-based compensation, including related payroll tax expense | 8,444 | 7,611 | 25,207 | 22,283 | |||
Transaction-related and other one-time items | (16,971) | 5,797 | (20,655) | 2,431 | |||
Non-operating foreign exchange (gain) loss | (472) | — | 963 | — | |||
Adjusted EBITDA | $ 51,131 | $ 49,494 | $ 154,229 | $ 139,480 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Reconciliation of Net income to Adjusted Net income | |||||||
Net income | $ 18,719 | $ 4,491 | $ 30,884 | $ 110,096 | |||
Stock-based compensation, including related payroll tax expense | 8,444 | 7,611 | 25,207 | 22,283 | |||
Amortization of intangible assets | 20,979 | 19,697 | 63,193 | 58,014 | |||
Transaction-related items | (17,941) | 5,019 | (24,466) | (555) | |||
Non-operating foreign exchange (gain) loss | (472) | — | 963 | — | |||
Other one-time items | 970 | 778 | 3,811 | 2,986 | |||
Valuation allowance | — | (1,976) | — | (96,113) | |||
Income tax impact of adjustments | (2,995) | (8,276) | (17,177) | (20,682) | |||
Adjusted net income | $ 27,704 | $ 27,344 | $ 82,415 | $ 76,029 | |||
Adjusted net income per share, diluted | $ 0.41 | $ 0.40 | $ 1.22 | $ 1.11 | |||
Weighted-average common shares outstanding, diluted | 67,666 | 68,508 | 67,590 | 68,199 | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2024 | 2023 | 2024 | 2023 | ||||
Reconciliation of Net cash provided by operating activities to Free cash flow | |||||||
Net cash provided by operating activities | $ 53,795 | $ 35,398 | $ 122,517 | $ 91,580 | |||
Capitalization of internally developed technology | (5,594) | (4,777) | (16,770) | (14,838) | |||
Purchase of property and equipment | (947) | (229) | (2,046) | (737) | |||
Free cash flow | $ 47,254 | $ 30,392 | $ 103,701 | $ 76,005 | |||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2024: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 31,610 | $ — | $ (215) | $ 31,395 | |||
Product and technology | 29,223 | — | (2,956) | 26,267 | |||
Marketing and sales | 58,288 | (44) | (1,469) | 56,775 | |||
General and administrative | 21,511 | (3,624) | (3,804) | 14,083 | |||
Depreciation and amortization | 27,563 | — | — | 27,563 | |||
Total operating expenses | $ 168,195 | $ (3,668) | $ (8,444) | $ 156,083 | |||
Total nonoperating income (expense), net | $ 13,083 | $ (21,111) | $ — | $ (8,028) | |||
(1) Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and other exit costs, and | |||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended September 30, 2023: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 31,077 | $ — | $ (425) | $ 30,652 | |||
Product and technology | 25,297 | — | (2,413) | 22,884 | |||
Marketing and sales | 60,186 | — | (1,548) | 58,638 | |||
General and administrative | 17,785 | (1,895) | (3,225) | 12,665 | |||
Depreciation and amortization | 25,670 | — | — | 25,670 | |||
Total operating expenses | $ 160,015 | $ (1,895) | $ (7,611) | $ 150,509 | |||
Total nonoperating expense, net | $ (11,679) | $ 3,902 | $ — | $ (7,777) | |||
(1) Includes transaction related items, severance, transformation and other exit costs, and | |||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2024: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 92,602 | $ — | $ (773) | $ 91,829 | |||
Product and technology | 84,891 | — | (8,746) | 76,145 | |||
Marketing and sales | 177,664 | (132) | (4,362) | 173,170 | |||
General and administrative | 67,348 | (12,675) | (11,326) | 43,347 | |||
Depreciation and amortization | 82,499 | — | — | 82,499 | |||
Total operating expenses | $ 505,004 | $ (12,807) | $ (25,207) | $ 466,990 | |||
Total nonoperating income (expense), net | $ 8,040 | $ (32,499) | $ — | $ (24,459) | |||
(1) Includes transaction related items, unrealized gain/loss on foreign currency denominated transactions, severance, transformation and | |||||||
Reconciliation of Operating expenses to Adjusted operating expenses for the Nine Months Ended September 30, 2023: | |||||||
As Reported | Adjustments (1) | Stock-Based | As Adjusted | ||||
Cost of revenue and operations | $ 91,287 | $ — | $ (1,175) | $ 90,112 | |||
Product and technology | 74,354 | — | (6,842) | 67,512 | |||
Marketing and sales | 176,636 | — | (4,512) | 172,124 | |||
General and administrative | 53,738 | (4,794) | (9,754) | 39,190 | |||
Depreciation and amortization | 74,381 | — | — | 74,381 | |||
Total operating expenses | $ 470,396 | $ (4,794) | $ (22,283) | $ 443,319 | |||
Total nonoperating expense, net | $ (22,967) | $ (1,280) | $ — | $ (24,247) | |||
(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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