Cars.com sees Q4 revenue $177M-$179M, consensus $177.46M

The Company is well-positioned to deliver profitable growth through continued dealer and OEM adoption of the Cars Commerce Platform. Fourth quarter revenue is expected to be between $177 million and $179 million, reflecting continued year-over-year revenue growth of 5.2% to 6.4%. The Company’s guidance reflects anticipated continued growth in its Dealer Revenue driven by adoption of dealer solutions and media products, as well as modest sequential improvement expected in OEM and National Revenue. Additionally, guidance includes revenue associated with the acquisition of D2C Media Inc., which the Company expects will contribute approximately 1.5% of its total revenue dollars in the fourth quarter. Year-over-year revenue growth rates reflect the launch of Accu-Trade Connected and favorable renegotiation of key website agreements in the prior year period. For the full year, the Company’s fourth quarter guidance coupled with performance to date, places the Company within its previously shared revenue guidance range. Full year performance reflects the benefit of this year’s 2023 Marketplace Repackaging Initiative, growth in its portfolio of dealer products, and modest improvement in OEM Revenue offset by a challenging environment for auto adjacent advertisers, including insurance companies. Adjusted EBITDA margin for the fourth quarter is expected to be between 29.5% and 30.5%, reflecting fourth quarter revenue guidance and sequential changes in investment mix.