Cars.com Inc. · NYSE:CARS
Cars.com — Q4 2021 Earnings Presentation
25 slides from Cars.com's earnings presentation, Feb 24, 2022
Slide 1: Fourth Quarter and Full-Year 2021 Earnings
Fourth Quarter and Full-Year 2021 Earnings February 24, 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: Impressive Full-Year 2021 Results Driven by Focused Execution
Impressive Full-Year 2021 Results Driven by Focused Execution Double-Digit Growth Continued Acquisitions of in Revenue and Dealer Growth and CreditIQ and Adjusted EBITDA Record Retention Accu-Trade Group
Slide 5: 2021 Auto Market Trends
2021 Auto Market Trends • Consumer demand continues to outpace supply • Ongoing inventory shortages led to softer new- car sales, record dealer profitability • Avg. retail prices on new and used cars up 26% and 33%, respectively, on Cars.com in Q4
Slide 6: Trusted Editorial Content Recognized for Authority
Trusted Editorial Content Recognized for Authority
Slide 7: Double-Digit Lead Growth Driven by High-Intent Audience
Double-Digit Lead Growth Driven by High-Intent Audience Average Monthly Unique Visitors (MM) Traffic (Visits) (MM) +19% Dealer Leads Q4 YOY
Slide 8: Dealer Growth Supported by Historically High Retention Rates
Dealer Growth Supported by Historically High Retention Rates Dealer Customers +807 Dealer Customers YOY
Slide 9: Solutions Strategy Drives Continued ARPD Growth
Solutions Strategy Drives Continued ARPD Growth Monthly Average Revenue Per Dealer COVID +16% Full-Year ARPD Growth +3% Q4 YOY ARPD Growth *ARPD excludes revenue from digital advertising services.
Slide 10: Increased Adoption of our Dealer Websites
Increased Adoption of our Dealer Websites Dealer Inspire Websites 5,300 Total DI Websites
Slide 11: Strengthening Our Platform and End-to-End Capabilities
Strengthening Our Platform and End-to-End Capabilities Consumers Dealers + Marketplace Dealer Websites CARS Platform 592MM Marketplace Visits + 952MM Dealer Website Visits¹ ¹CARS Internal Data, Full Year 2021 Visits
Slide 12: CARS 2022 ESG Program Focused on ACTION
CARS 2022 ESG Program Focused on ACTION ● Consumer education and content around electric vehicles will increase by 20% in 2022 ● Partnerships with National Association of Minority Dealers, Women in Automotive and Girls Who Code ● DEI efforts drive 45% gender diversity and 25% ethnic or racial divers
Slide 13: Revenue Growth Continues
Revenue Growth Continues Quarterly Revenue ($MM) Drivers of YOY Dealer Revenue MARKETPLACE DEALER +FUEL INSPIRE COVID DEALER CUSTOMERS ARPD REVENUE Other OEM/National Dealer *Q2’20 includes COVID credits for customers totaling $38MM
Slide 14: Adjusted Operating Expenses
Adjusted Operating Expenses Quarterly Expense ($MM) Drivers of YOY Change ● A significant component of the YOY increase is due to higher Product & Tech investments to support growth, as well as higher Cost of Revenue related to growth in FUEL and other digital solutions. Affiliate Revenue Share Gene
Slide 15: Adjusted EBITDA
Adjusted EBITDA Quarterly Adjusted EBITDA ($MM) & Margin (% Revenue) Drivers of Adjusted EBITDA ● Delivered another quarter of strong Adjusted EBITDA and Margin despite inventory shortages ● YOY Margin comparisons reflect increased investments as we lap reductions made in 2020 due to COVID
Slide 16: Q4 2021 Key Operating Metrics
Q4 2021 Key Operating Metrics Q4 2021 Q4 2020 Q4 2019 AVERAGE MONTHLY UNIQUE VISITORS 23.6 MM 22.2 MM 23.5 MM TRAFFIC (VISITS) 134.0 MM 138.1 MM 146.2 MM MONTHLY ARPD 1 $2,333 $2,264 $2,136 DEALER CUSTOMERS 19,179 18,372 18,834 ¹ARPD excludes revenue from digital advertising services.
Slide 17: Robust Cash Flow, Solid Balance Sheet
Robust Cash Flow, Solid Balance Sheet Full-Year Free Cash Flow ($MM) Total Debt ($MM) & Net Leverage Ratio $122 $119 $80 Total Debt Total Net Leverage Ratio
Slide 18: 2022 Outlook and Trends
2022 Outlook and Trends Q1 2022 Outlook ● Q1 Revenue: $156.5-$158.5 million ● Q1 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 margins are expected to imp
Slide 19: Q&A
Q&A
Slide 20: Appendix
Appendix Ia wn
Slide 21: Credit IQ Transaction Highlights
Credit IQ Transaction Highlights Overview Expanded Market Opportunity Growth Engine ● Cutting-edge automotive finance ● Expands TAM into a fast- ● Expands our digital solutions technology that facilitates the growing, multi-billion dollar offering and creates a new, completion of the finance process
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands)
Slide 25: 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 a