Q2 2024 Cars.com Inc Earnings Call Transcript
Key Points
- Cars.com Inc (CARS) reported a 6% year-over-year increase in Q2 revenue, marking the 15th consecutive quarter of revenue growth.
- OEM and national performance was particularly strong, with a 28% year-over-year increase, driven by increased demand from both new and existing partners.
- The company achieved record free cash flow of $56 million for the first half of 2024, the highest level in three years.
- Cars.com Inc (CARS) expanded its dealer customer base and maintained average revenue per dealer (ARPD), despite industry disruptions.
- The company secured new OEM endorsements, including certifications from Stellantis and Jaguar Land Rover, which are expected to drive future growth.
- The CDK disruption in June significantly impacted sales momentum and delayed product launches, affecting revenue growth.
- AccuTrade subscriber growth did not meet expectations, with challenges in dealer adoption and operational process changes.
- The company revised its full-year revenue growth guidance to 4.5% to 5.5%, down from previous expectations.
- There was a 1% unexpected impact from discrete items related to legacy solutions contracts, affecting Q2 revenue.
- Despite efforts, AccuTrade did not see growth in dealer customers during Q2, and the sales pipeline was affected by the CDK incident.
Ladies and gentlemen, and welcome to the Cars Second-Quarter 2024 conference call. At this time, all lines are in listen-only mode. Following the presentation, we will conduct a question-and-answer session. (Operator Instructions) This call is being recorded on Thursday, August 8, 2024 .
I'd now like to turn the conference over to Katherine Chen, Vice President of IR. Please go ahead.
Good morning, everyone, and thank you for joining us. It's my pleasure to welcome you to the Cars.com, Inc. second quarter 2024 conference call. With me this morning are Alex Vetter, CEO; and Sonia Jain, CFO. Alex will start by discussing the business highlights from our second quarter. Then Sonya 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 definition of non-GAAP financial measures, which can be found
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