Cars.Com - CARS STOCK NEWS

Cars.com (NYSE: CARS) has outlined five trends expected to shape the automotive industry in 2021 and beyond, influenced by the COVID-19 pandemic. Key highlights include a surge in first-time car buyers and increased reliance on digital platforms. Notably, 50% of respondents from a Cars.com survey are considering car ownership, with 57% purchasing vehicles online. Additionally, affordability remains a priority, and advancements in electric vehicles (EVs) could gain traction due to federal support. Despite this, hybrid and EV searches constituted less than 1% of total site searches in 2020.

Cars.com (NYSE: CARS) announced significant end-of-year car deals with discounts reaching up to 19% off select new vehicles, driven by increased consumer interest in car ownership amid the COVID-19 pandemic. A recent survey shows that 85% of shoppers plan to purchase a car in the next six months, with 51% intending to buy within one month. To assist buyers, Cars.com emphasizes affordability, noting that 72% of shoppers seek vehicles under $20,000. Popular models include the 2020 Ford F-150 with discounts up to $12,000.

Cars.com (CARS) reports that 46% of Americans plan to travel for the December holidays, with 66% preferring personal vehicles over other modes due to COVID-19 safety concerns. The survey shows a decrease in New Year's travel plans, dropping to 33% from 41%. Major cities like New York and Los Angeles are seeing increased travel, contrasting with Thanksgiving when 44% avoided large cities. December's travel plans are more affected by the pandemic, with 66% of respondents indicating changes compared to 54% during Thanksgiving.

Cars.com, a top digital automotive marketplace, reports a surge in car buying interest as Black Friday approaches, with 83% of shoppers intending to purchase a vehicle in the next six months. Notably, 35% plan to buy during the Black Friday to Cyber Monday window. The study highlights a shift towards new car purchases, with searches for new vehicles rising to 22% in October, up from 19% in August. The pandemic has also prompted 18% of buyers to enter the market, with many utilizing digital services for vehicle purchases.

Dealer Inspire, a Cars.com company, announced a partnership with FordDirect, marking its 30th OEM program. This collaboration allows US-based Ford dealerships to utilize DI's comprehensive digital marketing solutions. CEO Joe Chura emphasized the need for dealers to have innovative advertising technologies to optimize operations and capture market share. DI offers a suite of services, including a proprietary AdTech platform, creative managed services, and an advanced reporting platform called PRIZM™. This initiative aims to drive traffic and qualified leads to dealerships through data-driven efforts.

The latest Cars.com survey shows that 47% of Americans plan to travel for Thanksgiving, down from 68% in 2019. Of non-travelers, 59% cite COVID-19 impact. Most travelers (72%) will drive, with 66% staying within 100 miles. Major cities suffer, with 44% avoiding them due to COVID. Traffic is expected to peak the weekend before Thanksgiving. Cars.com emphasizes the need for safe travel in light of ongoing pandemic conditions.

Cars.com Inc. (CARS) reported Q3 2020 financial results with revenue of $144.4 million, a decline of 5% year-over-year. However, the net loss significantly improved to $12.3 million, or $0.18 per diluted share, compared to a prior-year loss of $426.2 million, which included a goodwill impairment charge. Adjusted net income rose to $34.6 million, up 63% from last year. Average monthly unique visitors increased by 10% to 25.3 million. Free cash flow reached $84.3 million, up 29% year-over-year, indicating strong operational cash generation and robust dealer retention amidst heightened demand for digital solutions.

Cars.com Inc. (NYSE: CARS) announced the successful closing of a $400 million offering of 6.375% senior unsecured notes due in 2028. The proceeds will be used to repay $235 million and $163 million of borrowings under its revolving facility and term loan, respectively. Additionally, CARS amended its credit facility, extending the maturity to May 31, 2025, and creating a $230 million undrawn revolving facility and a $200 million term loan. The notes are offered to qualified institutional buyers only and are not registered under U.S. securities laws.

Cars.com Inc (NYSE: CARS) will report its third-quarter financial results for the period ending September 30, 2020, on November 9, 2020. A conference call will be held at 9:00 a.m. CT to discuss these results. The call will be hosted by CEO Alex Vetter and CFO Sonia Jain, with a live webcast available at investor.cars.com. Cars.com provides a leading digital marketplace for automotive shoppers and sellers, enhancing connections with innovative solutions and data-driven tools.