Cars.com Reports Fourth Quarter and Full Year 2024 Results
Record Full Year Revenue of $719 Million, up 4% Year-Over-Year
AccuTrade Connected Expands to ~1,000 Subscribers
Generated $153MM of Annual Net Cash Provided by Operating Activities, up 12% Year-Over-Year
Announces $250 Million Share Repurchase Authorization
CHICAGO, Feb. 27, 2025 /PRNewswire/ -- Cars.com Inc. (NYSE: CARS) (d/b/a "Cars Commerce Inc." or the "Company"), an audience-driven technology company empowering the automotive industry, today released its financial results for the fourth quarter and year ended December 31, 2024.
"Our fourth quarter was highlighted by strong OEM and National revenue, which was up 15% year-over-year, and robust Adjusted EBITDA margin of nearly 31%, capping a year of solid growth and consistent profitability improvement. As the automotive industry looks for efficiency, the benefits of leveraging our platform of connected solutions are leading to measurable benefits and meaningful sales impact for our customers," said Alex Vetter, Chief Executive Officer of Cars Commerce. "We are excited about new capabilities and additional product enhancements in 2025 that give us confidence in accelerating organic growth and creating long-term, sustainable value for shareholders."
Q4 2024 and Full Year Financial Highlights
(in thousands, except per share data) Quarter Ended December 31, Year Ended December 31,
2024 2023 Change % 2024 2023 Change %
Revenue $180,431 $179,606 NM $719,152 $689,183 4 %
Net income 17,304 8,346 107 % 48,188 118,442 (59 %)
Adjusted net income 32,508 32,748 (1 %) 114,923 108,777 6 %
Adjusted EBITDA 55,488 55,404 NM 209,717 194,884 8 %
Net income per diluted share 0.26 0.12 117 % 0.72 1.74 (59 %)
Adjusted net income per diluted share 0.49 0.48 2 % 1.71 1.59 8 %
NM = Not meaningful
Q4 2024 Key Metrics and Operational Highlights
(in millions, except dealer data)
Quarter Ended
December 31, September 30, December 31, Change % Change %
2024 2024 2023 Y/Y
Q/Q
Average Monthly Unique Visitors 23.1 24.5 24.3 (6 %) (5 %)
Traffic ("Visits") 143.8 154.2 142.7 (7 %) 1 %
Monthly Average Revenue Per Dealer ("ARPD") $2,475 $2,478 $2,523 NM (2 %)
Dealer Customers 19,206 19,255 19,504 NM (2 %)
NM = Not meaningful
-- Organic traffic was 61% of traffic share in the fourth quarter, up from
58% in the prior year period, demonstrating the Cars.com marketplace's
differentiated traffic acquisition strategy and leading consumer brand
-- Average Monthly Unique Visitors was down 5% YoY in line with seasonal
trends, balanced by repeat visitation up 6% YoY, reflecting our ability
to consistently attract high-intent, in-market shoppers as vehicle
inventory supply improves
-- Cars.com exited 2024 with the highest monthly unique visitors and, on
average, the most time spent on site per visit, among automotive
marketplace competitors*
-- AccuTrade Connected grew to a new record of approximately 1,000
subscribers, and has been endorsed by ten OEM partners as of January
2025, supporting broader dealer awareness and additional sales
opportunities
-- DealerClub acquisition closed in January 2025, adding dealer-to-dealer,
reputation-based wholesale auction capabilities to Cars Commerce
platform
"AccuTrade had a strong fourth quarter and we believe the durable improvements we made to the customer and product experience will continue serving as tailwinds for subscriber growth throughout 2025. The addition of DealerClub's wholesale auction capabilities, now allows customers to appraise, source, retail, and wholesale vehicles all within the Cars Commerce platform, demonstrates our commitment to delivering superior ROI through simplified solutions that power dealership growth," added Mr. Vetter. "Our team is focused on integrating DealerClub and cross-selling solutions to drive ARPD and transaction revenue growth in 2025 and beyond."
*Source: Comscore Plan Metrix Multi-Platform, Desktop & Mobile, December 2024, U.S., Target Audience 18+, Total Unique Visitors / Viewers (Target Audience) and Average Minutes Per Visit, Custom-Defined List including [M] CARS.COM, [C] CARGURUS.COM, [E] AUTOTRADER.COM, [C] KBB.COM, [P] CARFAX.COM.
Q4 2024 Results
Revenue for the fourth quarter totaled $180.4 million, an increase of $0.8 million and up slightly compared to the prior year period. Subscription-based Dealer revenue was down 1% year-over-year, reflecting external pressures on dealer profitability and marketing spend, partially offset by D2C Media growth. OEM and National revenue grew 15% year-over-year, capturing strong demand from automakers seeking increased consumer awareness as on-lot inventory levels increased.
Total operating expenses for the fourth quarter were $160.7 million, compared to $164.7 million for the prior year period. The earnout associated with D2C Media is classified as compensation expense and is reflected primarily in General and administrative expense. This quarter, the Company expensed $2.7 million associated with the D2C earnout. Adjusted operating expenses for the quarter were $149.6 million, relatively flat compared to the prior year period with sustained emphasis on investments in Product and technology to drive long-term growth.
Net income for the fourth quarter was $17.3 million, or $0.26 per diluted share, compared to Net income of $8.3 million, or $0.12 per diluted share, in the fourth quarter of 2023. The change in Net income is primarily attributable to the gain on the sale of an equity investment. Adjusted net income for the quarter was $32.5 million, or $0.49 per diluted share, compared to $32.7 million, or $0.48 per diluted share a year ago.
Adjusted EBITDA for the fourth quarter totaled $55.5 million, or 30.8% of revenue, representing the strongest quarter of Adjusted EBITDA performance on both a dollar and margin basis in fiscal 2024.
Full Year Results
Revenue for fiscal 2024 totaled $719.2 million, a new full year record, increasing $30.0 million and up over 4% year-over-year. Subscription-based Dealer revenue was up 3% year-over-year, driven by solutions growth in dealer websites and trade and appraisal products, and the acquisition of D2C Media. OEM and National revenue was up 18% year-over-year, based on greater marketing by manufacturers to reach in-market shoppers as vehicle inventory levels rose throughout the year.
Total operating expenses for the year were $665.7 million, compared to $635.1 million in 2023, which included $11 million in expenses classified as compensation associated with the D2C earnout. Adjusted Operating Expenses for the year were $616.6 million, a $22.5 million increase compared to the prior year that was largely driven by compensation and employee-related expenses to accelerate Product and technology investments. Accordingly, Depreciation and amortization expense also grew year-over-year, in-line with the elevated focus on product and technology development.
Net income for the year totaled $48.2 million, or $0.72 per diluted share, compared to Net income of $118.4 million, or $1.74 per diluted share in the prior year. Net income in the prior year had benefited from the release of a significant portion of the Company's valuation allowance, given the expectation of projected future income and utilization of the Company's tax assets. Adjusted net income for the year was $114.9 million, or $1.71 per diluted share, compared to $108.8 million, or $1.59 per diluted share a year ago.
Adjusted EBITDA for the year totaled $209.7 million, or 29.2% of revenue, compared to $194.9 million, or 28.3% of revenue, in the prior year period. Adjusted EBITDA growth reflected strong fixed cost leverage, operating leverage from improved marketing and advertising efficiency, and overall revenue growth.
Cash Flow and Balance Sheet
Net cash provided by operating activities for the year ended December 31, 2024 was $152.5 million, compared to $136.7 million in the prior year. Free cash flow in the year ended December 31, 2024 totaled $128.1 million, compared to $115.8 million in the prior year. Free cash flow increased primarily due to Adjusted EBITDA growth, partially offset by increased net working capital and capital expenditures.
The Company repaid $30.0 million of debt during 2024, reducing total debt outstanding to $460.0 million as of December 31, 2024. The Company's total net leverage (as defined in the Company's credit facility) remained 2.0x as of December 31, 2024, at the low-end of its target total net leverage range of 2.0x to 2.5x. Total liquidity as of December 31, 2024 was $340.7 million, which is defined as Cash and cash equivalents of $50.7 million and revolver capacity of $290.0 million.
Share Repurchase and 2025 Authorization
The Company continues to execute on its capital allocation strategy and repurchased 2.8 million shares of common stock for $49.2 million in 2024. In the second half of 2024, the Company repurchased 2.0 million shares representing approximately 49% of free cash flow, in-line with its target to return 50% of free cash flow to shareholders via share repurchases for this period.
In February 2025, the Company announced the authorization of a $250 million share repurchase program with a three-year term. The Company is targeting share repurchases totaling $60 to $70 million for 2025, demonstrating its commitment to both return capital to shareholders and offset expected dilution from stock-based compensation.
"Our highly leverageable operating model, market-leading brand, and focus on cost discipline lifted fourth quarter Adjusted EBITDA margin to the midpoint of our guidance range despite modest revenue growth. Furthermore, free cash generation reached the highest level since 2018, giving us the flexibility to both meet our share repurchase commitment and invest in product and technology capabilities to augment our platform. Looking ahead, we remain committed to utilizing our newly approved share repurchase authorization to return capital to shareholders while simultaneously investing for long-term growth," said Sonia Jain, Chief Financial Officer of Cars Commerce.
First Quarter and Full Year 2025 Outlook
First quarter revenue is expected to be between $178 million and $181 million, relatively consistent with revenue in the prior year period. Dealer revenue reflects the fourth quarter exit rate for the Company's subscription products, which was negatively impacted by pressure on dealer spending at year end. OEM and National revenue is expected to continue growing year-over-year, supporting increased marketing and advertising activity by automakers as they compete for consumer demand amidst rising vehicle inventory levels.
For the full year, the Company anticipates revenue of $745 million to $755 million, driven by ongoing growth initiatives related to improved adoption of AccuTrade, broad-based repackaging across multiple product lines, and new product launches, including DealerClub.
Adjusted EBITDA margin for the first quarter of 2025 is expected to be between 25.5% and 27%. In addition to seasonally higher Marketing and sales investments for large-scale industry events in the first quarter, the Company is also investing to accelerate integration of DealerClub following the close of that acquisition in January 2025.
For the full year, the Company expects to deliver Adjusted EBITDA margin between 29% to 31%, driven by leverageable revenue growth and sustained cost discipline.
Q4 2024 Earnings Call
As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor Relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.
About Cars Commerce
Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities - enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, a reputation-based dealer-to-dealer wholesale auction from DealerClub and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.
Non-GAAP Financial Measures
This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company's performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company's credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company's lenders, securities analysts, investors and other interested parties to evaluate companies in the Company's industry.
While a reconciliation of non-GAAP measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to, as applicable, the timing, amount, valuation and number of future employee equity awards and the uncertainty relating to the timing, frequency, and effect of acquisitions and the significance of the resulting transaction-related expenses, the Company has provided a reconciliation of non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP in this earnings release, see "Non-GAAP Reconciliations" below.
Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.
The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.
Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the AccuTrade acquisition.
The Company defines Adjusted Net Income as GAAP net income (loss) excluding, net of their related tax effects: (1) amortization of intangible assets, (2) stock-based compensation expense, (3) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, (4) unrealized foreign currency exchange gains and losses, and (5) certain other items, such as transaction-related costs, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.
The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.
The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.
Key Metric Definitions
Average Monthly Unique Visitors ("UVs") and Traffic ("Visits"). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified when a user first visits an individual Cars.com property on an individual device/browser combination or installs one of its mobile apps on an individual device. If a visitor accesses more than one of its web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measured UVs and Traffic via Adobe Analytics through the year ended December 31, 2023. As of January 1, 2024, the Company began to measure UVs and Traffic via RudderStack, which we believe better aligns to the Company's product and technology platform and provides improved visibility into its UVs and Traffic. Prior period UVs and Traffic information has not been recast, as it is impracticable to do so. These metrics do not include traffic to Dealer Inspire or D2C Media websites.
Monthly Average Revenue Per Dealer ("ARPD"). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services, during the period divided by the monthly average number of Dealer Customers during the same period. Beginning December 31, 2023, this key operating metric includes D2C Media.
Dealer Customers. Dealer Customers represent dealerships subscribed to our products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Beginning December 31, 2023, this key operating metric includes D2C Media.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as "believe," "expect," "project," "anticipate," "outlook," "intend," "strategy," "plan," "estimate," "target," "seek," "will," "may," "would," "should," "could," "forecasts," "mission," "strive," "more," "goal" or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.
Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see "Part I, Item 1A., Risk Factors" and "Part II, Item 7., Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K for the year ended December 31, 2024, as filed with the Securities and Exchange Commission ("SEC") on February 27, 2025 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.
You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.
Cars Commerce Investor Relations Contact:
Katherine Chen
ir@carscommerce.inc
408.768.6847
Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.inc
312.601.5692
Cars.com Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
Three Months Ended December 31, Year Ended December 31,
2024 2023 2024 2023
Revenue:
Dealer $159,551 $161,393 $640,722 $621,661
OEM and National 17,745 15,410 65,894 55,904
Other 3,135 2,803 12,536 11,618
Total revenue 180,431 179,606 719,152 689,183
Operating expenses:
Cost of revenue and operations 31,730 30,918 124,332 122,205
Product and technology 29,040 25,230 113,931 99,584
Marketing and sales 53,838 58,835 231,502 235,471
General and administrative 21,359 23,069 88,707 76,807
Depreciation and amortization 24,683 26,619 107,182 101,000
Total operating expenses 160,650 164,671 665,654 635,067
Operating income 19,781 14,935 53,498 54,116
Nonoperating expenses:
Interest expense, net (7,739) (8,254) (32,197) (32,425)
Other income (expense), net 8,064 (4,790) 40,562 (3,586)
Total nonoperating income (expense), net 325 (13,044) 8,365 (36,011)
Income before income taxes 20,106 1,891 61,863 18,105
Income tax expense (benefit) 2,802 (6,455) 13,675 (100,337)
Net income $17,304 $8,346 $48,188 $118,442
Weighted-average common shares outstanding:
Basic 65,071 66,510 66,006 66,742
Diluted 66,802 68,326 67,387 68,227
Earnings per share:
Basic $0.27 $0.13 $0.73 $1.77
Diluted 0.26 0.12 0.72 1.74
Cars.com Inc.
Consolidated Balance Sheets
(In thousands, except per share data)
December 31, 2024 December 31, 2023
Assets:
Current assets:
Cash and cash equivalents $50,673 $39,198
Accounts receivable, net 133,741 125,373
Prepaid expenses 13,782 12,553
Other current assets 16,134 1,314
Total current assets 214,330 178,438
Property and equipment, net 40,704 43,853
Goodwill 143,279 147,058
Intangible assets, net 585,690 669,167
Deferred tax assets, net 100,530 112,953
Investments and other assets, net 27,332 20,980
Total assets $1,111,865 $1,172,449
Liabilities and stockholders' equity:
Current liabilities:
Accounts payable $33,498 $22,259
Accrued compensation 36,295 31,669
Current portion of long-term debt, net - 23,129
Other accrued liabilities 47,092 68,691
Total current liabilities 116,885 145,748
Noncurrent liabilities:
Long-term debt, net 455,288 460,119
Deferred tax liabilities, net 6,773 8,757
Other noncurrent liabilities 21,434 65,717
Total noncurrent liabilities 483,495 534,593
Total liabilities 600,380 680,341
Commitments and contingencies
Stockholders' equity:
Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no shares -
issued and outstanding as of December 31, 2024 and December 31, 2023,
respectively
Common Stock at par, $0.01 par value; 300,000 shares authorized; 64,391 643 659
and 65,929 shares issued and outstanding as of December 31, 2024 and
December 31, 2023, respectively
Additional paid-in capital 1,473,986 1,500,232
Accumulated deficit (961,546) (1,009,734)
Accumulated other comprehensive income (1,598) 951
Total stockholders' equity 511,485 492,108
Total liabilities and stockholders' equity $1,111,865 $1,172,449
Cars.com Inc.
Consolidated Statements of Cash Flows
(In thousands)
Year Ended December 31,
2024 2023
Cash flows from operating activities:
Net income $48,188 $118,442
Adjustments to reconcile Net income to Net cash provided by operating activities:
Depreciation 26,677 22,331
Amortization of intangible assets 80,505 78,669
Changes in fair value of contingent consideration (33,473) 5,537
Stock-based compensation 30,553 28,491
Deferred income taxes 11,894 (114,498)
Provision for doubtful accounts 3,389 2,986
Amortization of debt issuance costs 2,249 3,042
Unrealized loss (gain) on foreign currency denominated transactions 3,697 (2,072)
Gain on sale of equity investment (10,846)
Amortization of deferred revenue related to AccuTrade acquisition - (883)
Other, net 662 1,026
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (12,321) (15,567)
Prepaid expenses and other assets (5,390) (5,101)
Accounts payable 11,104 3,722
Accrued compensation 5,313 11,638
Other liabilities (9,677) (1,043)
Net cash provided by operating activities 152,524 136,720
Cash flows from investing activities:
Payments for acquisitions, net of cash acquired (216) (76,168)
Capitalization of internally developed technology (21,381) (19,602)
Purchase of property and equipment (3,000) (1,280)
Net cash used in investing activities (24,597) (97,050)
Cash flows from financing activities:
Proceeds from Revolving Loan borrowings - 45,000
Payments of Revolving Loan borrowings and long-term debt (30,000) (36,250)
Payments for stock-based compensation plans, net (7,475) (9,205)
Repurchases of common stock (49,179) (31,293)
Payments of contingent consideration (27,435)
Payments of debt issuance costs and other fees (1,869)
Net cash used in financing activities (115,958) (31,748)
Effect of exchange rate changes on Cash and cash equivalents (494) (439)
Net increase in Cash and cash equivalents 11,475 7,483
Cash and cash equivalents at beginning of period 39,198 31,715
Cash and cash equivalents at end of period $50,673 $39,198
Supplemental cash flow information:
Cash paid for income taxes $6,487 $17,636
Cash paid for interest 32,525 30,416
Cars.com Inc.
Non-GAAP Reconciliations
(In thousands, except per share data)
(Unaudited)
Reconciliation of Net income to Adjusted EBITDA
Three Months Ended December 31, Year Ended December 31,
2024 2023 2024 2023
Net income $17,304 $8,346 $48,188 $118,442
Interest expense, net 7,739 8,254 32,197 32,425
Income tax expense (benefit) 2,802 (6,455) 13,675 (100,337)
Depreciation and amortization 24,683 26,619 107,182 101,000
Stock-based compensation, including related payroll tax expense 7,166 7,844 32,373 30,127
Transaction-related and other one-time items (6,989) 12,868 (27,644) 15,299
Non-operating foreign exchange loss (gain) 2,783 (2,072) 3,746 (2,072)
Adjusted EBITDA $55,488 $55,404 $209,717 $194,884
Reconciliation of Net income to Adjusted Net income
Three Months Ended December 31, Year Ended December 31,
2024 2023 2024 2023
Net income $17,304 $8,346 $48,188 $118,442
Stock-based compensation, including related payroll tax expense 7,166 7,844 32,373 30,127
Amortization of intangible assets 17,312 20,655 80,505 78,669
Transaction-related items 2,744 11,253 (21,722) 10,698
Non-operating foreign exchange loss (gain) 2,783 (2,072) 3,746 (2,072)
Other one-time items (9,733) 1,615 (5,922) 4,601
Valuation allowance - (5,069) (101,182)
Income tax impact of adjustments (5,068) (9,824) (22,245) (30,506)
Adjusted net income $32,508 $32,748 $114,923 $108,777
Adjusted net income per share, diluted $0.49 $0.48 $1.71 $1.59
Weighted-average common shares outstanding, diluted 66,802 68,326 67,387 68,227
Reconciliation of Net cash provided by operating activities to Free cash flow
Three Months Ended December 31, Year Ended December 31,
2024 2023 2024 2023
Net cash provided by operating activities $30,007 $45,140 $152,524 $136,720
Capitalization of internally developed technology (4,611) (4,764) (21,381) (19,602)
Purchase of property and equipment (954) (543) (3,000) (1,280)
Free cash flow $24,442 $39,833 $128,143 $115,838
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2024:
As Reported Adjustments
(1) Stock-Based As Adjusted
Compensation
Cost of revenue and operations $31,730
$ - $(149) $31,581
Product and technology 29,040 (2,642) 26,398
Marketing and sales 53,838 (43) (1,360) 52,435
General and administrative 21,359 (3,814) (3,015) 14,530
Depreciation and amortization 24,683 24,683
Total operating expenses $160,650 $(3,857) $(7,166) $149,627
Total nonoperating income (expense), net $325 $(8,063)
$ - $(7,738)
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other.
Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2023:
As Reported Adjustments
(1) Stock-Based As Adjusted
Compensation
Cost of revenue and operations $30,918
$ - $(396) $30,522
Product and technology 25,230 (2,518) 22,712
Marketing and sales 58,835 (48) (1,566) 57,221
General and administrative 23,069 (6,003) (3,364) 13,702
Depreciation and amortization 26,619 26,619
Total operating expenses $164,671 $(6,051) $(7,844) $150,776
Total nonoperating expense, net $(13,044) $4,745
$ - $(8,299)
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other.
Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2024:
As Reported Adjustments
(1) Stock-Based As Adjusted
Compensation
Cost of revenue and operations $124,332
$ - $(922) $123,410
Product and technology 113,931 (11,388) 102,543
Marketing and sales 231,502 (174) (5,722) 225,606
General and administrative 88,707 (16,489) (14,341) 57,877
Depreciation and amortization 107,182 107,182
Total operating expenses $665,654 $(16,663) $(32,373) $616,618
Total nonoperating income (expense), net $8,365 $(40,561)
$ - $(32,196)
(1) Includes transaction related items, unrealized gains and losses on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other.
Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2023:
As Reported Adjustments
(1) Stock-Based As Adjusted
Compensation
Cost of revenue and operations $122,205
$ - $(1,571) $120,634
Product and technology 99,584 (9,360) 90,224
Marketing and sales 235,471 (48) (6,078) 229,345
General and administrative 76,807 (10,797) (13,118) 52,892
Depreciation and amortization 101,000 101,000
Total operating expenses $635,067 $(10,845) $(30,127) $594,095
Total nonoperating expense, net $(36,011) $3,465
$ - $(32,546)
(1) Includes transaction related items, severance, transformation and other exit costs, unrealized gains and losses on foreign currency denominated transactions, and write-off of long-lived assets and other.
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SOURCE Cars Commerce
