Q1 2025 Cars.com Inc Earnings Call Transcript
Key Points
- Cars.com Inc (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.
- Cars.com Inc (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.
Good morning, ladies and gentlemen, and welcome to the Cars.com First Quarter 2025 Earnings Conference Call.
(Operator Instructions)
I would now like to turn the conference over to Katherine Chen, President of Investor Relations. Please go ahead.
Good morning everyone and thank you for joining us. It's my pleasure to welcome you to the Cars.com Inc. First quarter 2025 conference call.
With me today are Alex Vetter, CEO, and Sonia Jain, CFO.
Alex will start by discussing the business highlights from our First 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 the description and definitions of non-gap financial measures which can be found in our presentation.
We will be discussing certain non-GAAP financial measures today, including adjusted
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