Cars.com Inc. · NYSE:CARS
Cars.com — Q1 2020 Earnings Presentation
21 slides from Cars.com's earnings presentation, May 6, 2020
Slide 1: First Quarter 2020 Earnings
CARS First Quarter 2020 Earnings May 6, 2020
Slide 2: Forward-Looking Statements
CARS 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
Slide 3: Non-GAAP Financial Measures
CARS Non-GAAP Financial Measures This presentation discusses Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Net Income per Diluted Share and Free Cash Flow. These are not financial measures as defined by GAAP. These financial measures are presented as supplemental measures of
Slide 4: Gratitude in a COVID-19 World
Gratitude in a COVID-19 World
Slide 5: Robust Start to 2020
Robust Start to 2020 Before COVID-19 Impact Dealer Growth oF Accelerated Strong Q1 2020 Solutions Growth Revenue and Adj. EBITDA
Slide 6: Strong Year-Over-Year Traffic Growth Before COVID-19
Strong Year-Over-Year Traffic Growth Before COVID-19 CARS Traffic -® Prior Year Paid 0) Organic Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20
Slide 7: 19,300 18,891 18,938 18,834 18,635
19,300 18,891 18,938 18,834 18,635
Slide 8: National Advertising Revenue Enhanced Through Editorial Strength
National Advertising Revenue Enhanced Through Editorial Strength = Man = weet LUXURY CAR OF THE a 4 4 CARS.COM VIRTUAL TEST DRIVE
Slide 9: Supporting Our Dealer Partners Now and for the Long Term
Supporting Our Dealer Partners Now and for the Long Term Financial Relief for Our Partners Immediate Financial Dealer Virtual Relief For Customers Advocacy Retail Solutions
Slide 10: Prudent Approach to Managing the Challenging COVID-19 Environment
Prudent Approach to Managing the Challenging COVID-19 Environment Substantial Maintaining Sustainable Reduction of Expenses Balance Sheet Strength Organic Traffic 10
Slide 11: GM Confirms Dealer Website Launches Proceeding as Scheduled
GM Confirms Dealer Website Launches Proceeding as Scheduled e 800+ sites scheduled to launch by 12/31/2020 e Revenue recognition expected to begin in H2 resulting in margin uplift Q3 2019 Q4 2019 H1 2020 H2 2020 ® @ @ @ Won OEM Selling window and Website Subscription endorsement contracts signed dev
Slide 12: Let's Talk About CARS | Why We're Open
LET’S TALK ABOUT CARS | Digital Communication WHY WE’RE OPEN | Essential Business Concept
Slide 13: Preparing for the Post-COVID World
Preparing for the Post-COVID World Evolving Consumer Trends Future Actions Car buying shifting New generation beginning entirely online to look at car buying Focus on customer service Maintain highly disciplined and digital solutions expense controls and focus on free cash flow and balance sheet fle
Slide 14: Dealer Testimonial
Dealer Testimonial CARS is more than a vendor. It’s a marketing platform that we use to generate gross profit dollars. Brian Benstock General Manager and Vice President Paragon Honda and Paragon Acura Queens, New York 14
Slide 15: Q1 2020 Financial Highlights
(Sin millions, except per share data) 2020 2019 Revenue $148.1 $154.2 Total Operating Expenses’ $1,053.2 $158.3 Q1 2020 Total OpEx, Excluding Impairment Charges Financial — H ig h | i g hts Loss per Diluted Share Adjusted Net Income $147.3 $158.3 ($787.4) ($9.0) ($11.76) ($0.13) $21.8 $20.7 Adjusted
Slide 16: Q1 2020 Key Operating Metrics
Q1 2020 Key Operating Metrics Dealer Customers 16
Slide 17: Balance Sheet, Cash Flow & Capitalization
March 31, 2020 Balance Sheet, Cash Flow & Capitalization 17
Slide 18: Questions
Questions
Slide 19: Appendix
Appendix
Slide 20: Non-GAAP Reconciliations
Cars.com Inc. Non-GAAP Reconciliations (In thousands, except per share data) (Unaudited) N on G AAP Interest expense, net 7,566 c aaa Te i . ‘Goodwill and intangible asset impairment 905,885 econciliations eer at re Reconciliation of Net loss to Adjusted net income Net loss s (787,434) § ,031) Amort
Slide 21: Definitions
Definitions 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 activity on ou