Cars.com, Inc. ( (CARS) ) has released its Q4 earnings. Here is a breakdown of the information Cars.com, Inc. presented to its investors.
Cars.com, Inc., operating as Cars Commerce Inc., is a technology company focused on empowering the automotive industry with a range of products and solutions that enhance car buying and selling processes. The company operates in the automotive sector and is known for its audience-driven approach and AI-driven technologies.
In its latest earnings report, Cars.com announced a record full-year revenue of $719 million for 2024, marking a 4% increase from the previous year. The company also highlighted its strategic expansion with AccuTrade Connected reaching approximately 1,000 subscribers and the acquisition of DealerClub, enhancing its platform capabilities.
The financial performance of Cars.com in 2024 was marked by a strong adjusted EBITDA of $209.7 million, an 8% increase from the previous year. The company also reported a net income of $48.2 million, although this was a decrease from the previous year due to a significant tax asset benefit in 2023. The company announced a $250 million share repurchase authorization, reflecting its commitment to returning capital to shareholders.
Despite a slight decline in average monthly unique visitors, Cars.com maintained strong traffic metrics, with organic traffic accounting for 61% of its total traffic share. The company’s strategic initiatives, including the integration of DealerClub, are expected to drive further growth in 2025.
Looking ahead, Cars.com anticipates continued revenue growth in 2025, with projections between $745 million and $755 million. The company aims to leverage its expanded platform and new product offerings to sustain its growth trajectory and enhance shareholder value.