Welcome to our dedicated page for Cars.Com news (Ticker: CARS), a resource for investors and traders seeking the latest updates and insights on Cars.Com stock.
Overview
Cars.com Inc. (NYSE: CARS) is an audience-driven automotive technology company that redefines the car buying and selling experience through innovative digital marketing and online automotive marketplace solutions. As a pivotal player in automotive digital marketing, Cars.com leverages powerful data analytics and AI-driven technologies to connect millions of in-market car shoppers with local and national dealer partners in an environment that mirrors modern car shopping behavior.
Business Model and Revenue Generation
Cars.com operates a diversified revenue model built around subscription-based services and targeted advertising. Through a suite of specialized brands, its comprehensive platform offers digital retail technology solutions, dealer reputation management, and interactive vehicle marketplaces. These offerings are designed to empower dealerships with enhanced visibility and consumer engagement, while generating consistent revenue from subscription fees and supplementary advertising campaigns across both online and mobile channels.
Platform and Technological Innovations
The Cars.com platform is a multifaceted ecosystem that unites a number of cutting-edge brands under one digital umbrella. Key brands include the flagship Cars.com website, Dealer Inspire for digital design and technology services, and AccuTrade which provides state-of-the-art trade-in and appraisal technology. By seamlessly integrating these services with advanced AI, predictive analytics, and real-time data insights, the company not only simplifies the vehicle transaction process, but also drives a more efficient and profitable operation for its dealer customers.
Market Position and Competitive Edge
In a competitive digital automotive landscape, Cars.com distinguishes itself through its holistic approach to solving complex market challenges. Its comprehensive and data-driven platform addresses the evolving needs of auto retailers and manufacturers by enhancing operational efficiency and facilitating informed consumer decisions. Cars.com’s strategy is grounded in its long-standing expertise in automotive digital marketing, underscored by a keen focus on technology integration and measurable user engagement.
Operational Excellence and Customer Focus
Focused on delivering superior user experiences and tangible business outcomes, Cars.com supports a wide range of industry stakeholders—from individual dealerships to major OEMs. The platform’s robust technology infrastructure ensures that advertisers reach over 18 million car shoppers monthly, with a sustained emphasis on dynamic digital experiences and responsive mobile solutions. Its deep industry insights and strategic investments in product innovation reinforce its commitment to keeping pace with new trends and fostering operational excellence across all facets of automotive commerce.
Integration of Services and Data-Driven Insights
Cars.com’s ecosystem extends to impactful services such as dealership reputation management, targeted media solutions, and integrated digital marketing campaigns. By leveraging comprehensive analytics, the company helps stakeholders optimize inventory management and refine marketing strategies, thereby addressing common market challenges such as rising inventory levels and competitive differentiation. The integration of these capabilities within a single, interconnected platform allows Cars.com to serve as an essential partner for modern automotive retail operations.
Conclusion
With a relentless focus on innovation, transparency, and customer success, Cars.com has evolved into a trusted conduit between car buyers and dealers. Its strategic blend of digital marketing, advanced data analytics, and AI-powered technological solutions not only defines its market significance today but also underpins its role in enhancing the overall efficiency and profitability of the automotive industry.
Cars.com (NYSE: CARS) announced an agreement to acquire CreditIQ, a fintech platform offering online loan screening and approvals for car buyers. The deal is valued at $30 million at closing, with potential performance-based payments totaling up to $50 million over three years. This acquisition expands CARS' presence in the $35 billion Auto Advertising and Dealer Technology markets into the Auto Finance sector. The technology integration is expected in Q1 2022, enhancing dealer efficiency and providing seamless financing solutions to millions of car shoppers.
Cars.com (NYSE: CARS) announced it will report Q3 financial results on November 4, 2021, after the market closes. A conference call for discussion of these results will occur at 9:00 AM CT / 10:00 AM ET on the same day, hosted by CEO Alex Vetter and CFO Sonia Jain.
Cars.com is a digital marketplace for the automotive industry, providing car shoppers with data and resources to make informed purchasing decisions.
Cars.com (NYSE: CARS) is hosting a free virtual event, Cars.com's Guide for the EV Curious, on Oct. 28 at noon CDT. The event aims to educate consumers about electric vehicle (EV) ownership as interest in EVs surges. With over 100 new EV options expected by 2025, 32% of shoppers are considering their first EV. Although EV searches on Cars.com have nearly doubled, actual sales growth remains slower. Only 37% of local dealerships currently sell EVs, but 63% plan to. The event will address consumer concerns about EV ownership, including range and charging.
Cars.com (NYSE: CARS) has released its 2021 Car Seat Fit Report Card, evaluating 51 vehicles for their suitability for car seats used by infants and children. The evaluation, conducted by certified child-passenger safety technicians, resulted in four vehicles, including the 2021 Nissan Sentra and the 2021 Genesis GV80, earning straight A's. A Cars.com survey revealed 56% of parents have installed car seats incorrectly, highlighting the need for vehicle evaluations that ease the purchasing process.
Clicbrics, India's leading digital residential real estate platform, has appointed Scott Forbes, Chairman of Ascential plc and Cars.com, to its Board of Directors. Forbes brings extensive experience in digital commerce and real estate markets, having previously led strategic transformations at several firms, including Rightmove. His appointment aims to enhance Clicbrics' offerings in India's booming real estate sector, leveraging innovative technologies to streamline home-buying processes. The company, founded in 2017, focuses on transparency and efficiency in property transactions.
Cars.com Inc. (NYSE: CARS) announced its participation in two virtual investor conferences in September 2021. CEO Alex Vetter will present at D.A. Davidson's 20th Annual Software and Internet Conference on September 9 at 9:30 am CT, and at the Citi Virtual Global Technology Conference on September 14 at 7:50 am CT. Live audio webcasts will be available on the Investor Relations section of their website, with replays accessible post-presentation.
On August 25, 2021, Cars.com released findings from a national survey indicating a 17% increase in Americans planning to travel for Labor Day compared to the previous year, despite concerns over the Delta variant of COVID-19. Sixty percent of respondents intend to travel, with many choosing to drive instead of flying due to rising apprehensions, leading to over 20% of travelers canceling flights. The survey also revealed that 62% of travelers are worried about the Delta variant, with significant impacts on travel plans and destinations.
Cars.com (NYSE: CARS) reports that 67% of parents plan to send their children to in-person school this fall, a significant increase from 39% in 2020. COVID-19 concerns have led 54% of parents to drive their kids to school, while only 38% will use school buses. The survey also reveals that 90% of parents are worried about the delta variant, impacting transportation choices. Key features for safe rides include vehicles with captain's seats and hands-free sliding doors. The survey conducted in July 2021 gathered 1,050 responses.
Cars.com Inc (NYSE: CARS) announced that CEO Alex Vetter will present at the virtual J.P. Morgan Auto Conference on August 11, 2021, at approximately 9:30 a.m. ET. A live audio webcast will be accessible on the Company's website, with a replay available afterward. Cars.com is a leading digital marketplace for the automotive industry, connecting car shoppers with sellers since 1998. Its brands include Dealer Inspire, FUEL, and DealerRater, providing innovative solutions to automotive retailers.
Cars.com Inc. (NYSE: CARS) reported Q2 2021 revenue of $155.5 million, a 52% increase year-over-year. Excluding prior-year invoice credits, revenue rose 11%. The company achieved a GAAP net income of $6.0 million or $0.08 per diluted share. Adjusted EBITDA was $48.5 million, representing 31% of revenue. Operating cash flow surged to $79.6 million, up 38%, while free cash flow reached $66.5 million, up 36%. The outlook for Q3 2021 anticipates revenue between $155 million to $157 million.
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