Latest news with #AlexVetter
Yahoo
09-05-2025
- Automotive
- Yahoo
Cars.com Inc (CARS) Q1 2025 Earnings Call Highlights: Strong Dealer Growth and Strategic Share ...
Revenue: $179 million for Q1 2025, within guidance range. Adjusted EBITDA: $51 million, with a margin of 28.3%. Net Loss: $2 million or negative $0.03 per diluted share. Adjusted Net Income: $24 million or $0.37 per diluted share. Operating Expenses: $173 million, up 3% year over year. Dealer Count: 19,250, up more than 40 dealers quarter over quarter. Free Cash Flow: $24 million for Q1 2025. Share Repurchase: $22 million worth of shares repurchased in Q1. OEM and National Revenue: Up 6% year over year. Accutrade Appraisals: 813,000 appraisals in Q1, up 16% quarter over quarter. ARPD: $2,473, roughly flat quarter over quarter. Total Liquidity: $321 million as of March 31, 2025. Warning! GuruFocus has detected 2 Warning Sign with CARS. Release Date: May 08, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inc (NYSE:CARS) reported a solid first quarter with revenue of $179 million, within their guidance range. The company exceeded expectations with their adjusted EBITDA margin, showcasing strong cost discipline. Inc (NYSE:CARS) repurchased $22 million of shares, demonstrating a commitment to returning capital to shareholders. The company saw a significant increase in dealer count, reaching 19,250 dealers, marking the best quarter of sequential organic customer growth since mid-2022. Accutrade appraisal volume increased by 16% quarter over quarter, indicating strong adoption and usage among dealers. First quarter revenue was down slightly year over year, reflecting challenges in the marketplace and media products. There is uncertainty in OEM and dealer ad spending due to tariff impacts, leading to a suspension of full-year revenue guidance. The company experienced a net loss of $2 million for the first quarter, primarily due to severance-related costs. OEMs are managing their media commitments more closely, creating uncertainty in media revenue. The company noted a pullback in discretionary media spending from dealers, impacting ancillary media solutions. Q: Understanding the impact of tariffs on dealer and OEM ad spending and used car volumes. How significant is the uncertainty in these areas? A: Alex Vetter, CEO: The tariff news has increased consumer demand, with more traffic to our marketplace as consumers look to secure deals before tariffs impact prices. Dealers are leaning into technologies like Accutrade and Dealer Club to source used cars due to concerns about new car supplies. However, OEMs are more unpredictable, with some moving to month-to-month commitments, creating uncertainty in our full-year outlook. Q: How should we think about the growth in Accutrade customer accounts, given recent endorsements? A: Alex Vetter, CEO: We are confident in Accutrade's growth potential, with increased dealer interest due to concerns about new car supply. While onboarding and training take time, the top quartile of dealerships are acquiring 50 cars a month using our software, indicating strong potential for further adoption. Sonia Jain, CFO, added that the impact of endorsements is expected to be more visible in Q2. Q: What drove the margin upside in Q1 compared to initial expectations? A: Sonia Jain, CFO: We focused on cost management, with Dealer Club integration costs coming in lower than planned. General cost discipline and a targeted headcount reduction also contributed, though the latter's benefits will be more visible in future quarters. Q: Can you explain the mixed signals from dealers and OEMs regarding media spending, and how does this affect Q2 revenue expectations? A: Alex Vetter, CEO: Dealers are pulling back on discretionary media spending but remain committed to our marketplace. OEMs are moving to month-to-month commitments, creating uncertainty. Despite this, we expect Q2 revenue to be up year-over-year, driven by strong marketplace and solutions growth. Q: With the positive activity around Accutrade and Dealer Club, how quickly can prospects be converted, and is there a monetization opportunity? A: Alex Vetter, CEO: Dealer Club is seeing rapid growth, with 2,500 prospects and a 60% monthly increase in transactions. We are focusing on integration with Accutrade to enhance efficiency. While we are not charging sellers currently, the synergy with our platform positions us well for future monetization opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
Yahoo
08-05-2025
- Automotive
- Yahoo
Cars.com to Participate in Upcoming Investor Conference
CHICAGO, May 8, 2025 /PRNewswire/ -- Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc" or the "Company"), an audience-driven technology company empowering the automotive industry, today announced that Alex Vetter, Chief Executive Officer of Cars Commerce and Sonia Jain, Chief Financial Officer of Cars Commerce will participate at the following investor conference: J.P. Morgan 53rd Annual Global Technology, Media and Communications ConferenceDate: May 13, 2025Presentation Time: 3:30 p.m. CT / 4:30 p.m. ET The presentation will be available as a live webcast accessible on the Investor Relations website at An archived replay will be available on the website shortly after the conclusion of the presentation. ABOUT CARS COMMERCE Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at View original content to download multimedia: SOURCE Cars Commerce
Yahoo
08-05-2025
- Automotive
- Yahoo
Cars.com (NYSE:CARS) Misses Q1 Revenue Estimates
Online new and used car marketplace (NYSE:CARS) fell short of the market's revenue expectations in Q1 CY2025, with sales flat year on year at $179 million. Its GAAP loss of $0.03 per share was significantly below analysts' consensus estimates. Is now the time to buy Find out in our full research report. Revenue: $179 million vs analyst estimates of $180.2 million (flat year on year, 0.6% miss) EPS (GAAP): -$0.03 vs analyst estimates of $0.12 (significant miss) Adjusted EBITDA: $50.72 million vs analyst estimates of $47.48 million (28.3% margin, 6.8% beat) Operating Margin: 3.6%, down from 7.1% in the same quarter last year Free Cash Flow Margin: 13.2%, similar to the previous quarter Dealer Customers: 19,250, in line with the same quarter last year Market Capitalization: $723.5 million "We were encouraged to see growing momentum across our core marketplace and solutions portfolio as the first quarter progressed. Dealer count improvement, coupled with record unique visitors to signal that we are winning share in our key end markets at a critical time when the automotive industry is seeking trusted, efficient, and highly effective tools to cut through external noise," said Alex Vetter, Chief Executive Officer of Cars Commerce. Originally started as a joint venture between several media companies including The Washington Post and The New York Times, (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers. A company's long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Regrettably, sales grew at a sluggish 4.5% compounded annual growth rate over the last three years. This was below our standard for the consumer internet sector and is a tough starting point for our analysis. This quarter, missed Wall Street's estimates and reported a rather uninspiring 0.6% year-on-year revenue decline, generating $179 million of revenue. Looking ahead, sell-side analysts expect revenue to grow 4.2% over the next 12 months, similar to its three-year rate. This projection doesn't excite us and indicates its newer products and services will not lead to better top-line performance yet. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. As an online marketplace, generates revenue growth by increasing both the number of users on its platform and the average order size in dollars. struggled with new customer acquisition over the last two years as its dealer customers were flat at 19,250. This performance isn't ideal because internet usage is secular, meaning there are typically unaddressed market opportunities. If wants to accelerate growth, it likely needs to enhance the appeal of its current offerings or innovate with new products. Unfortunately, dealer customers were once again flat year on year in Q1. The quarterly print isn't too different from its two-year result, suggesting its new initiatives aren't accelerating buyer growth just yet. Average revenue per buyer (ARPB) is a critical metric to track because it measures how much the company earns in transaction fees from each buyer. ARPB also gives us unique insights into a user's average order size and take rate, or "cut", on each order. ARPB growth has been subpar over the last two years, averaging 2.8%. This raises questions about its platform's health when paired with its flat dealer customers. If wants to grow its buyers, it must either develop new features or lower its monetization of existing ones. This quarter, ARPB clocked in at $2,473. It declined 1.3% year on year, mirroring the performance of its dealer customers. We enjoyed seeing beat analysts' EBITDA expectations this quarter. On the other hand, its revenue, EPS, and dealer customers missed. Zooming out, we think this was a mixed quarter. The stock traded up 1.5% to $11.49 immediately following the results. So should you invest in right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
08-04-2025
- Automotive
- Yahoo
Unpacking Q4 Earnings: Cars.com (NYSE:CARS) In The Context Of Other Online Marketplace Stocks
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including (NYSE:CARS) and its peers. Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition. The 13 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 2.1% while next quarter's revenue guidance was in line. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.9% since the latest earnings results. Originally started as a joint venture between several media companies including The Washington Post and The New York Times, (NYSE:CARS) is a digital marketplace that connects new and used car buyers and sellers. reported revenues of $180.4 million, flat year on year. This print fell short of analysts' expectations by 2.4%. Overall, it was a softer quarter for the company with a slight miss of analysts' number of dealer customers estimates. "Our fourth quarter was highlighted by strong OEM and National revenue, which was up 15% year-over-year, and robust Adjusted EBITDA margin of nearly 31%, capping a year of solid growth and consistent profitability improvement. As the automotive industry looks for efficiency, the benefits of leveraging our platform of connected solutions are leading to measurable benefits and meaningful sales impact for our customers," said Alex Vetter, Chief Executive Officer of Cars Commerce. delivered the weakest performance against analyst estimates of the whole group. The company reported 19,206 active buyers, down 1.5% year on year. The stock is down 26.6% since reporting and currently trades at $11.24. Read our full report on here, it's free. Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America. MercadoLibre reported revenues of $6.06 billion, up 37.4% year on year, outperforming analysts' expectations by 2.8%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates and a solid beat of analysts' number of unique active users estimates. The stock is down 12.7% since reporting. It currently trades at $1,850. Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free. Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor's visits. Teladoc reported revenues of $640.5 million, down 3% year on year, in line with analysts' expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts' expectations. Teladoc delivered the slowest revenue growth in the group. The company reported 93.8 million users, up 4.7% year on year. As expected, the stock is down 32.7% since the results and currently trades at $7.40. Read our full analysis of Teladoc's results here. Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers EverQuote reported revenues of $147.5 million, up 165% year on year. This number topped analysts' expectations by 10%. Overall, it was an exceptional quarter as it also produced EBITDA guidance for next quarter exceeding analysts' expectations. EverQuote pulled off the fastest revenue growth among its peers. The stock is up 5.9% since reporting and currently trades at $21.33. Read our full, actionable report on EverQuote here, it's free. Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods. The RealReal reported revenues of $164 million, up 14.4% year on year. This print was in line with analysts' expectations. However, it was a slower quarter as it produced full-year EBITDA guidance missing analysts' expectations significantly and a slight miss of analysts' number of active buyers estimates. The RealReal delivered the highest full-year guidance raise among its peers. The company reported 408,000 users, up 7.1% year on year. The stock is down 31% since reporting and currently trades at $5.49. Read our full, actionable report on The RealReal here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. Sign in to access your portfolio
Yahoo
28-02-2025
- Automotive
- Yahoo
Cars.com Inc (CARS) Q4 2024 Earnings Call Highlights: Record Revenue and Strategic Growth ...
Full Year Revenue: $719 million, up 4% year over year. Fourth Quarter Revenue: $180.4 million, a new quarterly record. OEM and National Revenue Growth: Up 15% year over year in Q4. Free Cash Flow: $128 million, reaching a multi-year high. Adjusted EBITDA: $55 million for Q4, with a margin of 30.8%. Net Income for Q4: $17 million or $0.26 per diluted share. Adjusted Net Income for Q4: $33 million or $0.49 per diluted share. Dealer Counts: 19,206 dealer customers, down 49 dealers quarter over quarter. ARPD (Average Revenue Per Dealer): $2,475, effectively flat quarter over quarter. Share Repurchase: 2.8 million shares for $49 million in 2024. Total Debt Outstanding: $460 million as of December 31, 2024. Total Liquidity: $341 million as of December 31, 2024. 2025 Revenue Guidance: $745 million to $755 million. 2025 Adjusted EBITDA Margin Guidance: 29% to 31%. Warning! GuruFocus has detected 4 Warning Signs with CARS. Release Date: February 27, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Inc (NYSE:CARS) achieved record full-year revenue of $719 million in 2024, marking a 4% year-over-year increase. The company reported a multi-year high in free cash flow at $128 million, showcasing strong operating discipline. OEM and National revenue outperformed expectations, growing 15% year-over-year in Q4, the best quarterly revenue since 2021. AccuTrade reached over 1,000 dealerships, with appraisal volume up 35% year-over-year, indicating strong dealer adoption. The acquisition of DealerClub positions Inc (NYSE:CARS) to enter the $10 billion wholesale market, enhancing platform capabilities. Dealer revenue was slightly down year-over-year in Q4, with some pressure on dealer advertising revenue. Marketplace performance experienced seasonal softness, with elevated churn and fewer upgrades affecting dealer accounts and ARPD. Q1 2025 adjusted EBITDA margin is expected to be lower year-over-year due to investments in DealerClub integration. The company anticipates some pressure from targeted rate increases, which may elevate churn in the near term. Despite strong consumer metrics, dealer revenue expectations for Q1 2025 are based on a slightly down year-over-year exit rate from Q4. Q: Can you discuss the full-year revenue guidance and the expected impact of DealerClub on 2025 revenue? A: Sonia Jain, CFO: We expect two-thirds of our incremental growth in 2025 to come from dealer revenue, including marketplace and upsells like websites, AccuTrade, and media products. DealerClub's revenue contribution is not heavily factored in as we focus on integration, but we are optimistic about its potential impact later in the year. Q: What happened to dealer revenues in the fourth quarter, and what are the expectations moving forward? A: Alex Vetter, CEO: We experienced seasonal softness in Q4, with some pullback in media solutions as inventory levels normalized. However, we are seeing good momentum in Q1 as inventory levels have returned to normal, similar to prior cycles. Q: How is AccuTrade performing, and what are the expectations for its growth? A: Alex Vetter, CEO: AccuTrade showed strong momentum in Q4, with appraisal volume up 13% from Q1 to Q4. Dealers are increasingly using AccuTrade for vehicle appraisals and acquisitions. OEM endorsements are expected to drive further growth, particularly in the second half of the year. Q: Can you explain the margin guidance for 2025 and the impact of DealerClub on margins? A: Sonia Jain, CFO: Q1 margins reflect the Q4 exit rate and investments in DealerClub integration. We expect margins to improve throughout the year as revenue grows and DealerClub integration progresses. The full-year margin expansion is driven by natural flow-through benefits from our platform strategy. Q: How are you incorporating macroeconomic uncertainties, such as tariffs, into your full-year guidance? A: Sonia Jain, CFO: We assume a relatively stable macro environment and are actively monitoring key indicators like consumer affordability and interest rates. Our initiatives for the back half of the year, including repackaging and bundling, are expected to strengthen value delivery and retention. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
