Cars.com Inc. · NYSE:CARS
Cars.com — Q1 2022 Earnings Presentation
24 slides from Cars.com's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings
First Quarter 2022 Earnings May 5, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. Forward-looking statements include information concerning the impact of the C
Slide 3: Definitions: Non-GAAP Financial Measures
Definitions: Non-GAAP Financial Measures This presentation discusses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Operating Expenses and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These fin
Slide 4: Momentum Continues into 2022
Momentum Continues into 2022 Robust Dealer Growth Continued Revenue & Record Retention Product Adoption Growth
Slide 5: Q1 Industry Trends
Trends Q1 Industry Trends ● Consumer demand continues to outpace supply ● Muted new-car production due to ongoing chip shortage and supply chain disruptions ● Robust used car sales market ● Retail prices for new and used vehicles increased 27% and 37% YOY in the first quarter, respectively
Slide 6: Dealer Customers +677 YOY, Highest in More Than 3 Years
Dealer Customers Dealer Customers Dealer Customers +677 YOY, Highest in More Than 3 Years Total Addressable Market Significant Headroom in Large Addressable Market ~
Slide 7: YOY ARPD Growth Despite Inventory Shortages
ARPD Monthly Average Revenue Per Dealer YOY ARPD Growth Despite Inventory Shortages +1% Q1 YOY Growth ARPD excludes revenue from digital advertising services.
Slide 8: Continued Growth in Website Customers
Websites Dealer Inspire Websites Continued Growth in Website Customers 5,500 Total Dealer Websites
Slide 9: High-Quality Audience and Increased Value Delivery Continues
Traffic & Value Delivery Average Monthly Unique Visitors (MM) High-Quality Audience and Increased Value Delivery Continues, Despite Inventory Shortages +12% Dealer Leads YOY (through 3/31)
Slide 10: Our EV Leadership Continues
Editorial Strength Our EV Leadership Continues Original Editorial Content Drives Efficient Organic Traffic ● ~200% increase YOY in searches for EVs on marketplace¹ ● ~400% increase MOM in SEO traffic to EV landing page² ● No. 1 in Google search for “electric cars” in March³ ● Held second EV Curious Livest
Slide 11: Delivering Value to Our Customers
Delivering Value to Our Customers “Cars.com customers are more knowledgeable and it’s very rare that we don’t sell them a car. Using CARS for our total solution - including Cars.com, Dealer Inspire, DealerRater and FUEL - brings everything together, making it easier to run our dealership.” CARS Cust
Slide 12: Strong Performance at NADA Convention
Solutions Growth Strong Performance at NADA Convention Our technology drove strong interest at industry’s largest dealer convention: ● Nearly 200 sales in 3 days ● High interest in Accu-Trade Vehicle Acquisition Solutions ● Continued focus on CreditIQ Instant Financing Approvals
Slide 13: Revenue Growth Continues
Revenue Revenue Growth Continues Quarterly Revenue ($MM) * COVID Other OEM/National Dealer *Q2’20 includes COVID credits for customers totaling $38MM
Slide 14: Adjusted Operating Expenses
Operating Expenses Adjusted Operating Expenses Quarterly Expense ($MM) Drivers of YOY Change ● YOY increase in marketing, including the return to in-person NADA. ● YOY increase in Product and Technology expense driven by higher compensation and consulting costs, including the addition and integratio
Slide 15: Q1 Adjusted EBITDA in Line With Expectations
Adjusted EBITDA Q1 Adjusted EBITDA in Line With Expectations Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) Adjusted EBITDA Drivers ● Q1 reflects planned investments in our People, Infrastructure and Marketing including industry trade events ● Expect Adjusted EBITDA margin to approach 30% by fo
Slide 16: Q1 2022 Key Operating Metrics
Operating Metrics Q1 2022 Key Operating Metrics Q1 2022 Q1 2021 AVERAGE MONTHLY UNIQUE VISITORS 26.6 MM 26.0 MM TRAFFIC (VISITS) 148.5 MM 156.6 MM MONTHLY ARPD 1 $2,291 $2,268 DEALER CUSTOMERS 19,500 18,823 ¹ARPD excludes revenue from digital advertising services.
Slide 17: Robust Cash Flow, Solid Balance Sheet
Cash Flow Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($MM) Total Debt ($MM) & Net Leverage Ratio Includes $9MM Tax Refund Related to CARES Act Reflects borrowing to fund Accu-Trade acquisition Total Debt Total Net Leverage Ratio
Slide 18: Q2 Outlook and Full-Year Trends
Outlook & Trends Q2 Outlook ● Q2 Revenue: $161 - $163 million ● Q2 Adjusted EBITDA margin: 26% - 28% Full-Year Trends ● We expect revenue growth to accelerate through the year; Full-Year Revenue growth of 6%-8%, with double-digit growth in Q4 ● Adjusted EBITDA margin expected to approach 30% by Q4 a
Slide 19: Q&A
S@~- 60 Q&A
Slide 20: Appendix
S@~- 60 Appendix
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 23: Definitions: Key Metrics
Definitions: Key Metrics Traffic (“Visits”). Traffic is fundamental to our business. Traffic to the CARS network of websites and mobile apps provides value to our advertisers in terms of audience, awareness, consideration and conversion. In addition to tracking traffic volume and sources, we monitor
Slide 24: Thank You!
CARS ©®«@©6 THANK YOU!