Cars.com (CARS) Q4 2024 earnings summary

Executive summary

• Achieved record full-year 2024 revenue of $719.2M, up 4% year-over-year, with Q4 revenue of $180.4M, a new quarterly record.

• Adjusted EBITDA grew 8% to $209.7M (29.2% margin), with margin up ~90 bps year-over-year, reflecting improved cost discipline.

• Net income for 2024 was $48.2M, down from $118.4M in 2023 due to a prior-year tax benefit, while adjusted net income rose to $114.9M.

• Free cash flow reached $128.1M, the highest since 2018, representing ~11% FCF yield and 61% FCF conversion.

• Advanced platform growth drivers included the DealerClub acquisition, AccuTrade expansion, and strong OEM/National revenue.

Financial highlights

• Q4 net income was $17.3M ($0.26/diluted share), up from $8.3M last year, primarily due to a gain on sale of an equity investment.

• Adjusted Net Income for Q4 was $33M ($0.49/diluted share), similar year-over-year.

• Adjusted EBITDA for Q4 was $55.5M (30.8% margin), the highest quarterly margin in 2024.

• Dealer count at quarter-end was 19,206, with Q4 ARPD at $2,475, flat sequentially and down year-over-year.

• $30M of debt repaid in 2024, reducing total debt to $460M; total liquidity at year-end was $340.7M.

Outlook and guidance

• Q1 2025 revenue expected between $178M–$181M, with adjusted EBITDA margin of 25.5%–27%.

• Full-year 2025 revenue guidance is $745M–$755M, with adjusted EBITDA margin expected at 29%–31%.

• Growth initiatives and new launches, including DealerClub integration, are weighted to the back half of 2025.

• Share repurchases targeted at $60M–$70M for 2025; capital expenditures projected at $25M–$27M.