Cars.Com - CARS STOCK NEWS

Cars.com (NYSE: CARS) has launched a revamped online platform and mobile app, enhancing user experience for its 26 million monthly unique users. The site boasts load times up to 87% faster and real-time updates with over 50,000 cars added daily. The transformation emphasizes personalized searches and improved matchmaking features, addressing the current car inventory shortage. With innovations like one-click video chat to dealers and curated content, the upgraded platform aims to streamline the car shopping process and leverage its extensive user reviews for better insights.

CARS released its 2021 American-Made Index, ranking vehicles based on their contribution to the U.S. economy. The Tesla Model 3 secured the top spot, marking the first time an all-electric vehicle has achieved this. The index highlights a growing consumer preference for American-made vehicles, driven by heightened demand in the wake of the pandemic and a microchip shortage affecting inventory. The study found that 72% of shoppers consider a vehicle's economic impact when purchasing, up from 70% in 2020.

Cars.com reports that nearly 10% of recent car buyers traveled out of state to purchase their vehicles due to shortages in both new and used car inventories. The data reveals that 52% of those buyers traveled 25 miles or less, while 20% traveled 50 miles and 13% went over 250 miles. Furthermore, 65% of shoppers are considering purchasing from out of state. A significant 53% of buyers plan to trade in their current vehicles, indicating a demand from local dealerships for more inventory.

Research from Cars.com reveals that car shoppers are eager to capitalize on Memorial Day deals amidst inventory shortages. With used-car prices up by 14% since January, consumers are encouraged to sell their vehicles to local dealers for higher trade-in values. Despite a 5% increase in new-car prices, 51% of shoppers are ready to spend more this weekend. The survey shows 40% of shoppers struggling to find their desired vehicles, with 61% planning to buy new cars. Overall, despite challenges, Memorial Day remains an attractive time for buying and selling cars.

Americans are eager for summer travel, with a Cars.com survey indicating that 60% plan to travel this Memorial Day weekend, a 66% increase from last year. Despite rising gas prices, 89% of travelers will opt to drive, reflecting continued trust in personal vehicles over other transportation forms. Over 40% of travelers are fully vaccinated. The survey also highlighted a significant impact of limited rental car availability on the decision to travel by personal vehicle. Most travelers plan to visit family and friends, indicating a strong desire for in-person connections as health guidelines evolve.

Cars.com (NYSE: CARS) will have its President and CEO, Alex Vetter, present at the J.P. Morgan Global Technology, Media and Communications Conference on May 24 at 4:15 p.m. ET. The presentation will be available via a live audio webcast on the company's investor website, with a replay following shortly after. Founded in 1998, Cars.com is a digital marketplace that connects car shoppers with sellers and offers various solutions for the automotive sector. It includes brands like Dealer Inspire and DealerRater.

Cars.com reported Q1 2021 financial results with revenue of $153.3 million, reflecting a 4% year-over-year increase. GAAP net income reached $5.3 million or $0.08 per diluted share, a marked recovery from a previous net loss. Adjusted EBITDA grew to $48.1 million, accounting for 31% of revenue, with significant cash flow improvements as net cash from operations rose 74% year-over-year. The company added 451 dealer customers and reported 18,823 total dealer customers by March 31. Outlook for Q2 anticipates revenue between $152 million to $154 million.

Cars.com announced a significant milestone with over 10 million reviews from car buyers on its platform, enhanced by DealerRater technology. In March 2021, the site recorded nearly 140,000 new reviews, the highest monthly total. The pandemic has increased consumer reliance on reviews, with 38% of buyers reading more due to health concerns. Positive sentiment is evident, as 90% of reviews during peak pandemic times were favorable, indicating trust in local dealerships' efforts during these challenging times.