* Delivered Strong Revenue Growth Including 13% Year-Over-Year OEM and National Growth
* Achieved 5% ARPD Year-Over-Year Growth
* Generated $33MM of Year-To-Date Cash Flows From Operating Activities
* Amended and Extended Credit Agreement into a $350MM All-Revolver Structure
Q1 2024 Financial Highlights
Revenue of
Net income of
Adjusted net income of
Adjusted EBITDA of
Amended existing Credit Facility, extending maturity to 2029
Q1 2024 Key Metrics and Operational Highlights
Average Monthly Unique Visitors ('UVs') of 28.3 million, compared to 28.5 million a year ago
Traffic ('Visits') of 171.4 million, up 4% year-over-year
Monthly Average Revenue Per Dealer ('ARPD') of
Dealer Customers totaled 19,381 as of
'We delivered another strong quarter driven by our progress against the growth drivers underpinning our platform strategy. We believe Dealers and OEMs will increasingly need our industry-leading solutions to connect with in-market shoppers and drive greater efficiency while managing rising inventory levels. As our product adoption continues to grow, we are well-positioned to deliver our full-year guidance,' said
Q1 2024 Results
Revenue for the first quarter totaled
First quarter ARPD grew 5% year-over-year, or
Total operating expenses for the first quarter were
Net income for the quarter was
Adjusted EBITDA for the quarter totaled
Consumer interest in vehicle purchases remains strong; total Traffic reached 171.4 million and Average Monthly Unique Visitors for the quarter year were 28.3 million.
Cash Flow and Balance Sheet
Net cash provided by operating activities in the first quarter 2024 was
The Company repaid
In
The Company continued to execute on its balanced capital allocation strategy and for the quarter, repurchased 0.5 million shares of its common stock for
'The strength of our subscription-based platform and our asset light business generated another quarter of robust revenue growth and Adjusted EBITDA,' said
2024 Outlook
The Company believes consistent execution of its platform strategy will drive continued revenue growth and margin expansion. Second quarter revenue is expected to be between
For the year, the Company reaffirms its full year revenue growth guidance of 6% to 8%. The Company expects margins to improve over the course of the year and to deliver a full year Adjusted EBITDA margin between 28% to 30%.
Q1 2024 Earnings Call
As previously announced, management will hold a conference call and webcast today at
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
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
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 with the three months ended
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
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
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:
ir@carscommerce.inc
408.768.6847
Cars Commerce Media Contact:
mthomas@carscommerce.inc
312.601.5692
Consolidated Statements of Income: See full release at:
https://investor.cars.com/2024-05-09-Cars-com-Reports-First-Quarter-2024-Results
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