Cars.com Inc. · NYSE:CARS
Cars.com — Q3 2020 Earnings Presentation
21 slides from Cars.com's earnings presentation, Nov 9, 2020
Slide 1: Third Quarter 2020 Earnings
Third Quarter 2020 Earnings November 9, 2020
Slide 2: Non-GAAP Financial Measures
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 financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“
Slide 3: 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 4: Q3 2020 Highlights
Q3 2020 Highlights Dealer count growth Pandemic accelerating Disciplined focus on Refinanced debt and all-time high adoption of digital profitability and Adj. structure increases retention. solutions. EBITDA growth. flexibility and supports strategic investments. 4 4
Slide 5: Momentum in Customer Growth
Momentum in Customer Growth CARS Dealer Customers COVID-19 +97 QoQ 5
Slide 6: Digital Solution Adoption Accelerating
+137% +33% Digital Solution Q3 2019 Q3 2020 Q2 2020 Q3 2020 Adoption Accelerating +80% +50% Q3 2019 Q3 2020 Q3 2019 Q3 2020 6 6
Slide 7: Double-Digit Year-Over-Year Traffic Growth
Double-Digit Year-Over-Year Traffic Growth CARS Traffic (Visits) COVID-19 +10% YOY +20% YOY +10% YOY +27% YOY +39% YOY Source: Cars.com Internal Data 7
Slide 8: 3Q Rebound in New-Car Sales
New Vehicle Sales 16.3M Seasonally Adjusted Annualized Rate (SAAR) +26% 3Q Rebound since June in New-Car Sales New-vehicle sales continue to rebound. September SAAR shows near pre-COVID market recovery. Source: U.S. Bureau of Economic Analysis 8 8
Slide 9: Continued Strong Demand for Used-Cars
Used Vehicle Sales +4.5% YOY, Continued +100% Since March Strong Demand for Used-Cars Total used-car sales up 4.5% in Q3 YOY and up 100% since March. Source: Sales: NADA, Pricing: Manheim 9 9
Slide 10: Competitive Differentiators Driving Success
Competitive Differentiators Driving Success Strong Unique High ROI Revenue & Margin Organic Traffic & + Solutions = Growth No. 1 in Brand Awareness¹ 1. 2020 Cars.com Brand Tracker by Kantar (Millward Brown) 10
Slide 11: Solutions Driving Customers' Businesses
Solutions Driving Customers’ Businesses “ We not only sold more cars, we dominated in market share. The first month, we saw a 4.52% market share gain and the next month we saw a 6.89% market share gain year over year. These are meaningful numbers. Colton Ray Chief Merchandising Officer Walser Automotiv
Slide 12: Slide 12
Slide 13: Diversity, Equity & Inclusion
Diversity, Equity & Inclusion + Company Industry Community 13 13
Slide 14: Q3 2020 Financial Highlights
($ in millions, except per share data) 2020 2019 Revenue $144.4 $152.1 Q3 2020 Total Operating Expenses $125.3 $599.81 Net Loss $12.3 $426.21 Financial Loss per Diluted Share $0.18 $6.38 Highlights Adjusted Net Income $34.6 $21.3 Adjusted Net Income per Diluted Share $0.50 $0.32 Adjusted EBITDA $49.
Slide 15: Q3 2020 Key Operating Metrics
Average Monthly Unique Visitors + 10% YOY Q3 2020 Traffic (Visits) + 10% YOY Key Operating Mobile Traffic 1 74% Metrics Monthly ARPD 2 $2,183 Dealer Customers 18,130 1 Mobile traffic includes mobile browser, mobile app and tablet. 2 ARPD includes revenue from dealer websites and related digital solutions
Slide 16: Sept. 30, 2020 Balance Sheet, Cash Flow & Capitalization
Cash Flows from Operating Activities $96.9 million Free Cash Flow $84.3 million Sept. 30, 2020 Cash $43.8 million Balance Sheet, Debt $597.8 million Cash Flow & Total Liquidity 1 $258.8 million Capitalization Net Leverage 3.8x Shares Outstanding 2 67.2 million Enterprise Value 3 $1.1 billion 1. Incl
Slide 17: New Debt Structure Supports Strategic Objectives
New Debt Structure Supports Strategic Objectives Continued Commitment to Deleveraging Increased Flexibility to Invest in the Business and Support Tuck-In Acquisitions $400 million senior unsecured $200 million $230 million undrawn notes with coupon of pre-payable term revolver, 2025 maturity 6.375%,
Slide 18: Questions
2) Questions r) in
Slide 19: Appendix
Appendix 19
Slide 20: Non-GAAP Reconciliations
Non-GAAP Reconciliations (unaudited and in thousands, except per share data) 20 20
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 our propert