Cars.com Inc. · NYSE:CARS
Cars.com — Q2 2021 Earnings Presentation
23 slides from Cars.com's earnings presentation, Aug 5, 2021
Slide 1: Q2 2021 Earnings
Q2 2021 Earnings August 5, 2021
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, and Free Cash Flow. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These financial measures are presente
Slide 4: Continued Momentum
Continued Momentum Revenue and Strong Revenue Robust Adjusted EBITDA Growth Driven by Cash Flow Exceeded Guidance Increased ARPD
Slide 5: Q2 Traffic +10% YOY
Q2 Traffic +10% YOY Traffic (MM) PAID 28% ORGANIC 72%* 2018 2019 2020 2021 *Organic traffic includes direct to site, SEO and app.
Slide 6: Independent Study Exposes Paid Search Inefficiencies for Dealers
Independent Study Exposes Paid Search Inefficiencies for Dealers, Massive Opportunity for CARS Cars.com Cars.com Paid search is shoppers are shoppers are 5-10X more expensive 3X more engaged 2X more likely to than dealers realize¹ shoppers² convert into a sale² BRIAN PASCH Marketing Consultant and D
Slide 7: Original Content Drives Organic Traffic and Differentiates our Brand
Original Content Drives Organic Traffic and Differentiates our Brand ~500 press placements for AMI in 2021
Slide 8: Dealer Customer Growth for Four Consecutive Quarters
Dealer Customer Growth for Four Consecutive Quarters Dealer Customers +812 Dealer Customers YOY
Slide 9: ARPD Continues to Scale
ARPD Continues to Scale FUEL Revenue Up Double-Digits, Contributing to Record-High ARPD Monthly Average Revenue per Dealer +59% ARPD Growth YOY *ARPD excludes revenue from digital advertising services.
Slide 10: Continued Website Growth
Continued Website Growth Dealer Inspire Websites ~5,000 Total DI Websites
Slide 11: CARS Powerful Cloud-Based Platform to Drive Future Innovation is Here
CARS Powerful Cloud-Based Platform to Drive Future Innovation is Here Up to ~80% faster load times* *Internal Cars.com Data, Aug. 4, 2021, Page visibly loads up to 80% faster, with a sitewide average of up to 35%
Slide 12: Healthy Auto Market
Healthy Auto Market • First half 2021 retail sales were the highest in a decade; continued health projected for H2 • Strong demand continues to outpace supply resulting in record dealer profitability • Continued consumer and dealer shift to digital platforms and solutions
Slide 13: Strong and Sustained Revenue Growth
Strong and Sustained Revenue Growth Quarterly Revenue Trend ($MM) Drivers of YOY Dealer Revenue COVID MARKETPLACE DEALER INSPIRE DEALER COVID CUSTOMERS ARPD REVENUE Other OEM/National Dealer
Slide 14: Operating Expenses
Operating Expenses Quarterly Expense Trend ($MM) Drivers of Operating Expenses $116 $111 $111 $114 ● Operating expenses $6 $16 up slightly QoQ due to $14 $100 $15 $13 strong growth in $88 $13 solutions, partially $5 offset by efficiencies $17 $51 $53 $51 in marketing & sales. $55 $46 $32 ● YoY incre
Slide 15: Strong and Stable Adjusted EBITDA
Strong and Stable Adjusted EBITDA Quarterly Adj. EBITDA and Margin Trend $MM Adjusted EBITDA Margin
Slide 16: Q2 2021 Key Operating Metrics
Q2 2021 Q2 2020 YOY Change Q2 2021 AVERAGE MONTHLY UNIQUE VISITORS 26.4MM 22.8MM 16% Key Operating TRAFFIC 158.4MM 144.0MM 10% Metrics MONTHLY ARPD 1 $2,299 $1,442 59% DEALER CUSTOMERS 18,845 18,033 5% ¹ARPD excludes revenue from digital advertising services.
Slide 17: Robust Cash Flow, Solid Balance Sheet
Robust Cash Flow, Solid Balance Sheet YTD Free Cash Flow Trend ($MM) Total Debt ($MM) and Net Leverage Ratio $67 $49 $41 Total Debt Total Net Leverage Ratio
Slide 18: Continued Growth in 2021
Continued Growth in 2021 Q3 2021 Outlook • Revenue between $155MM-$157MM • Adj. EBITDA Margins between 27.5%-29.5% Our Q3 Outlook incorporates continuation of the ongoing industry-wide inventory shortage
Slide 19: Cars.com's 23rd Anniversary: Driving Sustainable Value in Local Communities
Cars.com’s 23rd Anniversary: Driving Sustainable Value in Local Communities
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix CARS
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 23: Definitions: Key Metrics
Definitions: Key Metrics Traffic. 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 activity o