Cars.com Inc. (CARS) Bundle
A Brief History of Cars.com Inc.
Company Overview
Cars.com Inc. is a leading online automotive marketplace that connects car buyers and sellers. As of 2024, the company has undergone significant transformations, including strategic acquisitions and expansion into new revenue streams.
Financial Performance
For the nine months ended September 30, 2024, Cars.com reported total revenue of $538.7 million, a 5.7% increase from $509.6 million for the same period in 2023. The revenue breakdown is as follows:
| Revenue Source | Q3 2024 ($ Million) | Q3 2023 ($ Million) | % Change |
|---|---|---|---|
| Dealer Revenue | 481.2 | 460.3 | 4.0% |
| OEM and National Revenue | 48.1 | 40.5 | 18.6% |
| Other Revenue | 9.4 | 8.8 | 6.8% |
Net income for the nine months ended September 30, 2024, was $30.9 million compared to $110.1 million in the prior year, reflecting various operational adjustments and market conditions.
Key Operating Metrics
As of September 30, 2024, the company reported the following key metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Traffic (Visits in Thousands) | 154,219 | 151,379 | 2% |
| Average Monthly Unique Visitors (Thousands) | 24,547 | 25,980 | -5.5% | Dealer Customers | 19,255 | 18,715 | 2.9% |
Stock Performance
As of September 30, 2024, the company's stock performance has seen fluctuations, with a share price averaging around $17.85 during the nine months, leading to a market capitalization of approximately $1.5 billion based on outstanding shares of 66.1 million. The share repurchase program initiated in February 2022 has resulted in the buyback of 2 million shares, totaling $35.7 million.
Debt and Liquidity Position
As of September 30, 2024, Cars.com had total indebtedness of $470 million with an average interest rate of 6.4%. The company reported liquidity of $329.6 million, including cash and undrawn revolving credit facilities of $280 million available for future borrowing.
| Debt Type | Principal Amount ($ Million) | Interest Rate (%) | Due Date |
|---|---|---|---|
| Senior Unsecured Notes | 400 | 6.375 | 2028 |
| Revolving Loan | 70 | 6.8 | N/A |
Acquisitions
In 2024, Cars.com acquired D2C Media, enhancing its digital advertising capabilities. The total purchase consideration for D2C Media was approximately $80.1 million, which included identifiable intangible assets valued at $39 million, contributing significantly to the company's growth strategy.
Conclusion
Cars.com continues to adapt to the evolving automotive marketplace through strategic initiatives and operational efficiencies.
A Who Owns Cars.com Inc. (CARS)
Ownership Structure
As of 2024, Cars.com Inc. (CARS) has a diverse ownership structure primarily composed of institutional investors, retail investors, and company insiders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Shareholder Name | Ownership Percentage | Number of Shares Owned |
|---|---|---|---|
| Institutional Investor | The Vanguard Group, Inc. | 11.5% | 7,500,000 |
| Institutional Investor | BlackRock, Inc. | 9.8% | 6,500,000 |
| Institutional Investor | Wellington Management Group LLP | 7.3% | 4,800,000 |
| Retail Investor | Various Individual Investors | 35.4% | 23,500,000 |
| Insider | Company Executives and Board Members | 3.0% | 2,000,000 |
| Other | Other Institutional Holders | 32.0% | 21,000,000 |
Recent Shareholder Activity
In 2024, Cars.com has seen notable activity related to share repurchases and institutional investment. The company has repurchased approximately 2 million shares as part of its ongoing buyback program at an average price of $17.85 per share, totaling around $35.7 million. The current liquidity position, including cash and undrawn credit facilities, is reported at approximately $329.6 million.
Stock Performance
The stock performance of Cars.com Inc. has been characterized by fluctuations influenced by broader market trends and company-specific developments. As of September 30, 2024, the stock price was trading at approximately $18.50, reflecting a year-to-date increase of 12%. The company's market capitalization is estimated at around $1.2 billion based on the current share price and outstanding shares.
Key Financial Metrics
For the nine months ended September 30, 2024, Cars.com reported total revenue of $538.7 million, up from $509.6 million in the same period of 2023. The net income for the same period was approximately $30.9 million, a significant decline from the prior year's $110.1 million, largely due to increased operational costs and investments in growth.
Future Ownership Trends
Looking forward, Cars.com is expected to continue attracting institutional investors due to its strategic initiatives aimed at enhancing digital offerings and expanding market reach. The company’s focus on integrating advanced technology solutions is likely to bolster its position within the competitive automotive marketplace.
Conclusion
As of 2024, the ownership landscape of Cars.com Inc. reflects a mix of institutional and retail investors, with significant stakes held by major asset management firms. The ongoing share repurchase program and strategic growth initiatives position the company favorably for future performance.
Cars.com Inc. (CARS) Mission Statement
Overview of Mission Statement
The mission of Cars.com Inc. is to empower car shoppers with comprehensive resources and tools needed to make informed decisions while connecting them with dealers and OEMs. Cars.com aims to enhance the car buying journey through innovative technology and a robust digital marketplace.
Financial Performance
As of September 30, 2024, Cars.com reported total revenue of $179.7 million, representing a 3% increase from $174.3 million in the same period of the previous year. For the nine months ended September 30, 2024, total revenue reached $538.7 million, up from $509.6 million in 2023, reflecting a 6% growth.
| Period | Total Revenue (in millions) | Net Income (in millions) | Operating Income (in millions) |
|---|---|---|---|
| Q3 2024 | $179.7 | $18.7 | $11.5 |
| Q3 2023 | $174.3 | $4.5 | $14.3 |
| 9M 2024 | $538.7 | $30.9 | $33.7 |
| 9M 2023 | $509.6 | $110.1 | $39.2 |
Key Operating Metrics
Cars.com tracks several key performance indicators to evaluate its business operations:
- Traffic: 154,219 thousand visits in Q3 2024, up 2% from 151,379 thousand in Q3 2023.
- Average Monthly Unique Visitors: 24,547 thousand in Q3 2024, down 6% from 25,980 thousand in Q3 2023.
- Dealer Customers: 19,255, an increase of 3% from 18,715 in September 2023.
Revenue Breakdown
For the three months ended September 30, 2024, the revenue composition was:
| Revenue Type | Revenue (in millions) | % of Total Revenue |
|---|---|---|
| Dealer | $159.5 | 89% |
| OEM and National | $17.0 | 9% |
| Other | $3.1 | 2% |
Cost Structure
Cars.com’s operating expenses for the three months ended September 30, 2024, totaled $168.2 million, a 5% increase from $160.0 million in Q3 2023. The breakdown of operating expenses is as follows:
| Expense Type | Amount (in millions) | % of Total Revenue |
|---|---|---|
| Cost of Revenue and Operations | $31.6 | 18% |
| Product and Technology | $29.2 | 16% |
| Marketing and Sales | $58.3 | 32% |
| General and Administrative | $21.5 | 12% |
| Depreciation and Amortization | $27.6 | 15% |
Share Repurchase Program
As of September 30, 2024, Cars.com had repurchased a total of 2.0 million shares for $35.7 million at an average price of $17.85 per share under its authorized share repurchase program.
Liquidity Position
As of September 30, 2024, Cars.com reported cash and cash equivalents of $49.6 million, with total liquidity of $329.6 million including an undrawn revolving loan.
Debt Position
The company’s total outstanding indebtedness as of September 30, 2024, was $470 million at an average interest rate of 6.4%, including $400 million in senior unsecured notes due in 2028.
How Cars.com Inc. (CARS) Works
Business Model
Cars.com Inc. operates primarily as a digital automotive marketplace, connecting car buyers with dealers. The company generates revenue through various streams, including:
- Dealer Revenue: Represents 89% of total revenue for the nine months ending September 30, 2024, amounting to $481.2 million. This segment includes subscription-oriented services for dealers, which increased by $20.9 million or 5% compared to the previous year.
- OEM and National Revenue: Accounted for 9% of total revenue, totaling $48.1 million, showing a 19% increase year-over-year.
- Other Revenue: Comprising 2% of total revenue, this segment generated $9.4 million, reflecting a 7% increase.
Financial Performance
As of September 30, 2024, Cars.com reported the following financial metrics:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Year-over-Year Change |
|---|---|---|---|
| Total Revenue | $179.7 million | $174.3 million | 3% |
| Net Income | $18.7 million | $4.5 million | 317% |
| Operating Income | $11.5 million | $14.3 million | -20% |
| Earnings Per Share (Diluted) | $0.28 | $0.07 | 300% |
Key Operating Metrics
Cars.com tracks several key operating metrics to evaluate its performance:
| Metric | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 |
|---|---|---|
| Traffic (in thousands) | 154,219 | 151,379 |
| Average Monthly Unique Visitors (in thousands) | 24,547 | 25,980 |
| Dealer Customers | 19,255 | 18,715 |
| Monthly Average Revenue Per Dealer | $2,478 | $2,548 |
Expenses and Cost Structure
The company’s operating expenses for the nine months ending September 30, 2024, were as follows:
| Expense Category | Amount (in thousands) | Year-over-Year Change |
|---|---|---|
| Cost of Revenue and Operations | $92,602 | 1% |
| Product and Technology | $84,891 | 14% |
| Marketing and Sales | $177,664 | 1% |
| General and Administrative | $67,348 | 25% |
| Depreciation and Amortization | $82,499 | 11% |
| Total Operating Expenses | $505,004 | 7% |
Debt and Liquidity
As of September 30, 2024, Cars.com reported:
- Cash and Cash Equivalents: $49.6 million
- Total Indebtedness: $470.0 million, with an average interest rate of 6.4%.
- Available Borrowings under Revolving Loan: $280.0 million
Market Position and Strategy
Cars.com aims to leverage its extensive digital platform to enhance dealer relationships and provide innovative solutions for car buyers. The company emphasizes growth in dealer customers and engagement through digital solutions that cater to the evolving automotive marketplace.
How Cars.com Inc. (CARS) Makes Money
Revenue Streams
Cars.com Inc. generates revenue primarily through three main streams: Dealer revenue, OEM and National revenue, and Other revenue.
Dealer Revenue
Dealer revenue is the largest source of income for Cars.com, accounting for approximately 89% of total revenue for the three months ended September 30, 2024. This revenue stream includes subscription fees for marketplace services, digital experience solutions, and media products sold to dealerships.
For the three months ended September 30, 2024, Dealer revenue was as follows:
| Metric | Q3 2024 | Q3 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Dealer Revenue | $159,513,000 | $157,116,000 | $2,397,000 (2%) |
OEM and National Revenue
This segment consists of products sold to Original Equipment Manufacturers (OEMs), advertising agencies, and automotive dealer associations. For the three months ended September 30, 2024, this revenue accounted for approximately 9% of total revenue, amounting to:
| Metric | Q3 2024 | Q3 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| OEM and National Revenue | $17,014,000 | $14,549,000 | $2,465,000 (17%) |
Other Revenue
Other revenue includes income from vehicle listing data sold to third parties and pay-per-lead products. For the three months ended September 30, 2024, this revenue represented 2% of total revenue:
| Metric | Q3 2024 | Q3 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Other Revenue | $3,124,000 | $2,668,000 | $456,000 (17%) |
Financial Performance Overview
For the nine months ended September 30, 2024, Cars.com reported total revenue of:
| Metric | 2024 | 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Total Revenue | $538,721,000 | $509,577,000 | $29,144,000 (6%) |
Operating Expenses
The company’s operating expenses for the nine months ended September 30, 2024, totaled:
| Expense Category | 2024 | 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Cost of Revenue and Operations | $92,602,000 | $91,287,000 | $1,315,000 (1%) |
| Product and Technology | $84,891,000 | $74,354,000 | $10,537,000 (14%) |
| Marketing and Sales | $177,664,000 | $176,636,000 | $1,028,000 (1%) |
| General and Administrative | $67,348,000 | $53,738,000 | $13,610,000 (25%) |
| Depreciation and Amortization | $82,499,000 | $74,381,000 | $8,118,000 (11%) |
| Total Operating Expenses | $505,004,000 | $470,396,000 | $34,608,000 (7%) |
Net Income
For the nine months ended September 30, 2024, Cars.com reported a net income of:
| Metric | 2024 | 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Net Income | $30,884,000 | $110,096,000 | $(79,212,000) (-72%) |
Key Operating Metrics
Cars.com also tracks key operating metrics that reflect its performance:
| Metric | Q3 2024 | Q3 2023 | Change (2024 vs 2023) |
|---|---|---|---|
| Traffic (Visits) | 154,219,000 | 151,379,000 | 2% |
| Average Monthly Unique Visitors | 24,547,000 | 25,980,000 | (6%) |
| Dealer Customers | 19,255 | 18,715 | 3% |
| Monthly Average Revenue Per Dealer | $2,478 | $2,548 | (3%) |
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Resources:
- Cars.com Inc. (CARS) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Cars.com Inc. (CARS)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Cars.com Inc. (CARS)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.