Cars.com, Inc. ( (CARS) ) has released its Q3 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 that empowers the automotive industry with audience-driven solutions, providing products and AI-driven technologies for car buying and selling, and is renowned for its online automotive marketplace and digital marketing services.
Cars.com, Inc. reported its third-quarter financial results for 2024, highlighting a 3% year-over-year revenue growth, reaching $179.7 million. The company attributes this growth to its strong performance in the OEM and National revenue segments, which saw a 17% year-over-year increase.
Key metrics from the earnings report include a significant rise in net income to $18.7 million, up from $4.5 million in the previous year, and an adjusted EBITDA of $51.1 million, marking a 3.3% increase year-over-year. Despite a decrease in average monthly unique visitors, traffic saw a 2% increase. The company’s platform growth was propelled by subscriptions and new endorsements. Additionally, Cars.com maintained a strong cash flow, with $123 million in net cash provided by operating activities year-to-date, an increase of 34% compared to last year.
The company also continued its share repurchase program, buying back 1.2 million shares, which represented 45% of the quarterly free cash flow. Despite some challenges in dealer customer numbers and monthly average revenue per dealer, Cars.com remains focused on driving profitable growth and increasing shareholder value through strategic investments and innovations.
Looking ahead, Cars.com reaffirms its fiscal year 2024 outlook, anticipating revenue growth between 4.5% and 5.5%, and maintaining an adjusted EBITDA margin outlook of 28% to 30%. The company remains committed to its platform strategy and aims to deliver sustained growth through the end of the year.
