Q2 2025 Cars.com Inc Earnings Call Transcript
Key Points
- Cars.com Inc (CARS) reported a 5% year-over-year growth in OEM and national revenue, indicating strong performance in these segments.
- The company achieved a record dealer count of 19,412, marking the best sequential organic growth in over three years.
- Cars.com Inc (CARS) successfully launched new AI-powered consumer features, enhancing user engagement and lead submission rates.
- The company repurchased $23 million of shares in Q2, demonstrating a commitment to returning value to shareholders.
- Accutrade's subscriber base grew significantly, and the company secured an enterprise-level deal with a large independent dealer group, showcasing strong product adoption.
- Dealer revenue experienced temporary softness, with a 1% year-over-year decline, impacting overall revenue growth.
- Average Revenue Per Dealer (ARPD) decreased by approximately $40 year-over-year and sequentially, due to customer and product mix.
- OEM revenue showed fluctuations beyond normal seasonality, with sell-through rates declining nearly 3% year-over-year on certain display products.
- Net income for the second quarter decreased to $7 million from $11 million a year ago, primarily due to changes in the fair value of contingent consideration for prior acquisitions.
- Free cash flow was down year-over-year, primarily reflecting increased earnout payments associated with the D2C acquisition.
Good morning ladies and gentlemen, and welcome to the Cars.com 2nd quarter 2025 earnings call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press 0 for the operator.
This call is being recorded on Thursday, August 7, 2025. I would now like to turn the conference over to Katherine Chen, Vice President of Investor Relations. Please go ahead.
Good morning everyone, and thank you for joining us for the Cars.com inc 2nd quarter 2025 conference call. With me this morning are Alex Vedder, CEO, and Sonia Jain, CFO.
Alex will start by discussing the business highlights from our 2nd quarter.
Then Sonia will discuss our financial results in greater detail along with our outlook. We'll finish the call with Q&A.
Before I turn the call over to Alex, I'd like to draw your attention to our forward-looking statements and
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