Continued Growth in Revenue and ARPD
Achieved First Quarter Guidance and Reaffirms
Full-Year 2023 Guidance
Repaid Revolving Loan
CHICAGO, May 4, 2023
/PRNewswire/ -- Cars.com Inc. (NYSE: CARS) ("CARS" or the
"Company"), the leading digital automotive platform that provides a
robust set of digital solutions, today released its financial
results for the first quarter ended March
31, 2023.
Q1 2023 Financial and Key Metric Highlights
- Revenue of $167.1 million, up
$8.9 million, or 6%
year-over-year
- Net income of $11.5 million, or
$0.17 per diluted share, compared to
$4.3 million, or $0.06 per diluted share, in the prior year
- Adjusted EBITDA of $44.3 million,
or 26.5% of revenue, up $2.3 million
year-over-year
- Average Monthly Unique Visitors ("UVs") of 28.5 million, up 7%
year-over-year
- Traffic ("Visits") of 164.8 million, up 11% year-over-year
- Monthly Average Revenue Per Dealer ("ARPD") of $2,386, up 4% from the prior year period
- Dealer Customers of 19,186 as of March
31, 2023, 320 lower compared to 19,506 as of December 31, 2022 and 314 lower compared to the
prior year
Operational Highlights
- Generated $28.1 million in
Operating Cash Flow and fully paid the remaining $15.0 million on its Revolving Loan and returned
$7.2 million in capital to its
stockholders through share repurchases
- Launched new Marketplace packages and aligned subscription
pricing with the enhanced value of features and solutions such as
CreditIQ's Instant Finance and DealerRater, enabling customers to
better leverage cross-platform capabilities
- Strengthened editorial content with the publication of
Cars.com's first-ever affordability report, providing shoppers with
insights on comparative vehicle pricing and trends
"We drove strong first quarter performance with year-over-year
growth in key metrics - revenue, Adjusted EBITDA, and traffic. Our
subscription business continues to deliver strong recurring revenue
driven by increased product sales and customer retention. Based on
our momentum, we are confident in our growth prospects for the
second quarter and reaffirm our full-year guidance," said
Alex Vetter, Chief Executive Officer
of CARS.
Q1 2023 Results
Revenue for the first quarter totaled $167.1 million, an increase of $8.9 million, or up 6%, compared to the prior
year period. Despite declines in digital dealer customers, Dealer
revenue grew 7% year-over-year, driven by growth in website
solutions, Accu-Trade and media products. Solid growth in Dealer
revenue was partially offset by an 11% decline in OEM and National
revenue, primarily due to economic-driven reductions by certain
insurance sector customers.
Total operating expenses for the first quarter were $154.5 million, compared to $147.3 million for the prior year period.
Adjusted Operating Expenses for the quarter were $145.7 million, a $5.4
million increase compared to the prior year period. The
increase is primarily due to higher Product and technology expenses
related to the acquisition, integration and launch of Accu-Trade.
The Company also continued to invest in its sales and support staff
to increase new product sales and fulfillment. This was partially
offset by lower Depreciation and amortization.
Net income for the quarter was $11.5
million, or $0.17 per diluted
share, compared to $4.3 million, or
$0.06 per diluted share, in the first
quarter of 2022. The current year net income was primarily driven
by the $8.3 million change in the
fair value of contingent consideration associated with the
Company's acquisitions.
Adjusted EBITDA for the quarter totaled $44.3 million, or 26.5% of revenue, compared to
$42.0 million, or 27.0% of revenue,
for the prior year period.
For the quarter, Average Monthly Unique Visitors increased 7%
and total Traffic increased 11% compared to the first quarter of
2022. Organic traffic grew 7% year-over-year, driven by increased
consumer demand and enhancements made to the Company's App and
website experiences, which enabled the Company to reduce its
planned marketing investments during the quarter.
As of March 31, 2023, Dealer
Customers totaled 19,186, 320 customers lower compared to the end
of the fourth quarter of 2022, and down 314 compared to
March 31, 2022. The decrease
was primarily due to an anticipated pull-back by certain digital
dealers. Excluding these cancellations, Dealer Customers would have
increased year-over-year.
First quarter ARPD totaled $2,386,
a 4% increase compared to a year ago.
Cash Flow and Balance Sheet
Net cash provided by operating activities in the first quarter
2023 was $28.1 million, compared to
$30.4 million in the prior year. Free
Cash Flow in the first quarter totaled $22.8
million compared to $26.4
million in 2022.
The Company paid down $18.8
million of debt during the first quarter, of which
$15.0 million was used to paydown
in-full the Revolving Loan, which was used to fund last year's
acquisition of Accu-Trade. Total debt outstanding as of
March 31, 2023 decreased to
$462.5 million, comprised of
$400.0 million 6.375% fixed rate
unsecured senior notes that mature in 2028 and $62.5 million outstanding on its Term Loan. At
quarter-end, the Company's net leverage ratio was 2.3x, within its
target net leverage ratio of 2.0x to 2.5x. Total liquidity was
$248.8 million, including cash and
cash equivalents of $18.8 million and
$230.0 million of revolver capacity,
as of March 31, 2023.
During the first quarter, the Company repurchased 0.4 million of
its common shares for $7.2
million.
"The strength of our integrated platform, efficiency of our
traffic generation and our asset light business model continue to
yield growth and profitability for our business, generating
$44 million of Adjusted EBITDA this
quarter, up 6% on a year-over-year basis. Additionally, our free
cash flow supports a balanced approach to capital allocation,
allowing us to pay down debt, repurchase shares and invest in key
growth areas, all while advancing our business operating strategy,"
said Sonia Jain, Chief Financial
Officer of CARS.
2023 Outlook
The Company's asset-light, diversified platform strategy
provides a solid foundation for growth. Second quarter revenue is
expected to be between $168.0 million
and $170.0 million. Guidance reflects
continued growth in Dealer Revenue partially offset by the
Company's cautious outlook on OEM and National Revenue. Please note
that in the second quarter, the Company will fully lap the
Accu-Trade acquisition and a period not yet impacted by
digital dealer pull backs. Nevertheless, the Company expects to
deliver 3 to 4% year-over-year revenue growth for the second
quarter.
Adjusted EBITDA margin for the second quarter is expected to be
between 26% and 28%, and reflects lower OEM and National
advertising revenue relative to the first quarter and increased
second quarter investments in Brand Marketing to drive growth in
the business and awareness of new products.
The Company reaffirms its full-year revenue guidance, of 3% to
6% year-over-year growth, which assumes that despite recent
improvements, historically low inventory levels will persist
throughout the year.
Margins are expected to improve over the course of the year, and
the Company expects to exit the year with fourth quarter Adjusted
EBITDA margins approaching 30%.
Q1 2023 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 CARS' 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
CARS is a leading automotive marketplace platform that provides
a robust set of digital solutions that connect car shoppers with
sellers. Launched in 1998 with the flagship
marketplace Cars.com and headquartered in Chicago, the Company empowers shoppers with
the data, resources and digital tools needed to make informed
buying decisions and seamlessly connect with automotive retailers.
In a rapidly changing market, CARS enables dealerships and OEMs
with innovative technical solutions and data-driven intelligence to
better reach and influence ready-to-buy shoppers, increase
inventory turn and gain market share.
In addition to Cars.com, CARS brands include Dealer Inspire, a
website and digital solutions provider enabling dealers to be more
efficient through connected digital experiences; FUEL, an
advertising solution providing dealers and OEMs the benefit
of leveraging targeted digital video and display marketing to
Cars.com's audience of in-market car shoppers, DealerRater, a
leading car dealer review and reputation management platform, a
digital financing technology platform CreditIQ, and Accu-Trade
Group, a leading provider of vehicle valuation and appraisal
technology.
The full suite of CARS properties includes Cars.com™, Dealer
Inspire®, FUEL™, DealerRater®, CreditIQ®, Accu-Trade™ and
NewCars.com®. For more information, visit www.Cars.com.
Non-GAAP Financial Measures
This earnings release discusses Adjusted EBITDA, Adjusted EBITDA
margin, 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. For a reconciliation of the non-GAAP measures
presented in this earnings release to their most directly
comparable financial measure prepared in accordance with GAAP, 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, and (7) 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 Accu-Trade acquisition.
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 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 desktop and mobile properties
(responsive sites and mobile apps). The Company measures UVs and
Traffic via Adobe Analytics. These metrics do not include traffic
to Dealer Inspire 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 with the three months ended June 30, 2022, Accu-Trade is included in our ARPD
metric, which had an immaterial impact on ARPD for the annual and
quarterly periods. No prior period has been recast as it would be
impracticable to do so.
Dealer Customers. Dealer Customers represent dealerships using
the Company's 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. Multi-franchise dealerships at a single
location are counted as one dealer. Beginning June 30, 2022, this key operating metric includes
Accu-Trade; however, no prior period has been recast as it would be
impracticable to do so.
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.
Forward-looking statements include information concerning the
Company's industry, Dealer Customers, results of operations,
business strategies, plans and objectives, market potential,
outlook, trends, future financial performance, planned operational
and product improvements, potential strategic transactions, recent
acquisitions, such as CreditIQ and Accu-Trade, liquidity, including
draws from the Company's revolving credit facility, expense
management and other matters and involve known and unknown risks
that are difficult to predict. These statements often include 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. As a result,
the Company's actual financial results, performance, achievements,
strategic actions or prospects may differ materially from those
expressed or implied by these forward-looking statements.
Forward-looking statements are based on the Company's current
expectations, beliefs, strategies, estimates, projections and
assumptions, based on its experience in the industry as well as the
Company's perceptions of historical trends, current conditions,
expected future developments, current developments regarding the
COVID-19 pandemic, global supply chain shortages, fluctuating fuel
prices and other factors the Company thinks are appropriate. Such
forward-looking statements are necessarily based upon estimates and
assumptions that, while considered reasonable by the Company and
its management based on their knowledge and understanding of the
business and industry, are inherently uncertain. These statements
are expressed in good faith and the Company believes these
judgments are reasonable. However, you should understand that these
statements are not guarantees of strategic action, performance or
results. The Company's actual results and strategic actions could
differ materially from those expressed in the forward-looking
statements. Given these uncertainties, forward-looking statements
should not be relied on in making investment decisions. Comparisons
of results between current and prior periods are not intended to
express any future trends, or indications of future performance,
unless expressed as such, and should only be viewed 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 the
Company's control.
Forward-looking statements are subject to a number of risks,
uncertainties and other important factors, many of which are beyond
the Company's control, that could cause its 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 the Company's Annual Report on Form 10-K, its
Quarterly Reports on Form 10-Q, its Current Reports on Form 8-K and
its other filings with the Securities and Exchange Commission,
available on the Company's website at investor.cars.com or via
EDGAR at www.sec.gov. All forward-looking statements contained in
this press release are qualified by these cautionary statements.
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 the Company and
speak only as of the date of this press release. The Company
undertakes 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 Investor Relations Contact:
Robbin Moore-Randolph
rmr@cars.com
312.601.5929
CARS Media Contact:
Marita
Thomas
mthomas@cars.com
312.601.5692
Cars.com
Inc.
|
Consolidated
Statements of Income
|
(In thousands,
except per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
Dealer
|
|
$ 149,843
|
|
$ 140,416
|
OEM and
National
|
|
13,543
|
|
15,174
|
Other
|
|
3,682
|
|
2,617
|
Total
revenue
|
|
167,068
|
|
158,207
|
Operating
expenses:
|
|
|
|
|
Cost of revenue
and operations
|
|
29,795
|
|
27,752
|
Product and
technology
|
|
24,101
|
|
21,307
|
Marketing and
sales
|
|
58,297
|
|
57,094
|
General and
administrative
|
|
18,304
|
|
16,560
|
Depreciation and
amortization
|
|
24,042
|
|
24,553
|
Total operating
expenses
|
|
154,539
|
|
147,266
|
Operating income
|
|
12,529
|
|
10,941
|
Nonoperating
expense:
|
|
|
|
|
Interest
expense, net
|
|
(8,244)
|
|
(9,330)
|
Other income,
net
|
|
8,239
|
|
208
|
Total
nonoperating expense, net
|
|
(5)
|
|
(9,122)
|
Income before
income taxes
|
|
12,524
|
|
1,819
|
Income tax
expense (benefit)
|
|
1,045
|
|
(2,521)
|
Net income
|
|
$
11,479
|
|
$ 4,340
|
Weighted-average
common shares outstanding:
|
|
|
|
|
Basic
|
|
66,530
|
|
69,463
|
Diluted
|
|
67,747
|
|
70,899
|
Earnings per
share:
|
|
|
|
|
Basic
|
|
$ 0.17
|
|
$ 0.06
|
Diluted
|
|
0.17
|
|
0.06
|
Cars.com
Inc.
|
Consolidated Balance
Sheets
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
March 31,
2023
|
|
December 31,
2022
|
Assets:
|
|
(unaudited)
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
18,838
|
|
$
31,715
|
Accounts receivable,
net
|
|
114,035
|
|
107,930
|
Prepaid
expenses
|
|
11,369
|
|
8,377
|
Other current
assets
|
|
409
|
|
605
|
Total current
assets
|
|
144,651
|
|
148,627
|
Property and equipment,
net
|
|
45,692
|
|
45,218
|
Goodwill
|
|
102,856
|
|
102,856
|
Intangible assets,
net
|
|
687,930
|
|
707,088
|
Investments and other
assets, net
|
|
21,092
|
|
21,081
|
Total assets
|
|
$ 1,002,221
|
|
$
1,024,870
|
Liabilities and
stockholders' equity:
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
17,424
|
|
$
18,230
|
Accrued
compensation
|
|
12,412
|
|
19,316
|
Current portion of
long-term debt, net
|
|
15,444
|
|
14,134
|
Other accrued
liabilities
|
|
62,068
|
|
54,332
|
Total current
liabilities
|
|
107,348
|
|
106,012
|
Noncurrent
liabilities:
|
|
|
|
|
Long-term debt,
net
|
|
438,739
|
|
458,249
|
Other noncurrent
liabilities
|
|
71,147
|
|
76,179
|
Total noncurrent
liabilities
|
|
509,886
|
|
534,428
|
Total
liabilities
|
|
617,234
|
|
640,440
|
Commitments and
contingencies
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Preferred Stock at par,
$0.01 par value; 5,000 shares authorized; no shares
issued and outstanding as of March 31, 2023 and
December 31, 2022,
respectively
|
|
—
|
|
—
|
Common Stock at par,
$0.01 par value; 300,000 shares authorized; 66,850 and
66,287 shares issued and outstanding as of March 31,
2023 and
December 31, 2022, respectively
|
|
668
|
|
662
|
Additional paid-in
capital
|
|
1,501,016
|
|
1,511,944
|
Accumulated
deficit
|
|
(1,116,697)
|
|
(1,128,176)
|
Total stockholders'
equity
|
|
384,987
|
|
384,430
|
Total liabilities and
stockholders' equity
|
|
$ 1,002,221
|
|
$
1,024,870
|
Cars.com
Inc.
|
Consolidated
Statements of Cash Flows
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$ 11,479
|
|
$
4,340
|
Adjustments to
reconcile Net income to Net cash provided by operating
activities:
|
|
|
|
|
Depreciation
|
|
4,884
|
|
4,014
|
Amortization of
intangible assets
|
|
19,158
|
|
20,539
|
Amortization of
accumulated other comprehensive loss on interest rate
swap
|
|
—
|
|
1,417
|
Changes in fair value
of contingent consideration
|
|
(8,259)
|
|
—
|
Stock-based
compensation
|
|
5,982
|
|
5,221
|
Deferred income
taxes
|
|
(228)
|
|
(374)
|
Provision for doubtful
accounts
|
|
447
|
|
27
|
Amortization of debt
issuance costs
|
|
781
|
|
816
|
Amortization of
deferred revenue related to Accu-Trade Acquisition
|
|
(883)
|
|
(442)
|
Other, net
|
|
134
|
|
87
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
(6,552)
|
|
4,442
|
Prepaid expenses and
other assets
|
|
(3,039)
|
|
(3,073)
|
Accounts
payable
|
|
(859)
|
|
1,081
|
Accrued
compensation
|
|
(6,904)
|
|
(13,488)
|
Other
liabilities
|
|
12,000
|
|
5,751
|
Net cash provided by
operating activities
|
|
28,141
|
|
30,358
|
Cash flows from
investing activities:
|
|
|
|
|
Payments for acquisitions,
net of cash acquired
|
|
—
|
|
(64,770)
|
Capitalization of internally
developed technology
|
|
(5,172)
|
|
(3,516)
|
Purchase of property and
equipment
|
|
(199)
|
|
(492)
|
Net cash used in
investing activities
|
|
(5,371)
|
|
(68,778)
|
Cash flows from
financing activities:
|
|
|
|
|
Proceeds from Revolving Loan
borrowings
|
|
—
|
|
45,000
|
Payments of long-term
debt
|
|
(18,750)
|
|
(2,500)
|
Payments for stock-based
compensation plans, net
|
|
(9,797)
|
|
(7,696)
|
Repurchases of common
stock
|
|
(7,100)
|
|
(5,000)
|
Net cash (used in)
provided by financing activities
|
|
(35,647)
|
|
29,804
|
Net decrease in cash
and cash equivalents
|
|
(12,877)
|
|
(8,616)
|
Cash and cash
equivalents at beginning of period
|
|
31,715
|
|
39,069
|
Cash and cash
equivalents at end of period
|
|
$ 18,838
|
|
$ 30,453
|
Supplemental cash
flow information:
|
|
|
|
|
Cash paid for income
taxes
|
|
$
96
|
|
$
17
|
Cash paid for interest
and swap
|
|
1,486
|
|
2,743
|
Cars.com
Inc.
|
Non-GAAP
Reconciliations
|
(In
thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2023
|
|
2022
|
|
|
|
|
Reconciliation of
Net income to Adjusted EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
11,479
|
|
$
4,340
|
|
|
|
|
Interest expense,
net
|
|
8,244
|
|
9,330
|
|
|
|
|
Income tax expense
(benefit)
|
|
1,045
|
|
(2,521)
|
|
|
|
|
Depreciation and
amortization
|
|
24,042
|
|
24,553
|
|
|
|
|
Stock-based
compensation
|
|
6,952
|
|
5,417
|
|
|
|
|
Write-off of long-lived
assets and other
|
|
135
|
|
(45)
|
|
|
|
|
Severance,
transformation and other exit costs
|
|
1,217
|
|
392
|
|
|
|
|
Transaction-related
items
|
|
(8,777)
|
|
556
|
|
|
|
|
Adjusted
EBITDA
|
|
$
44,337
|
|
$
42,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Net cash provided by operating activities to Free cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
28,141
|
|
$
30,358
|
|
|
|
|
Capitalization of
internally developed technology
|
|
(5,172)
|
|
(3,516)
|
|
|
|
|
Purchase of property
and equipment
|
|
(199)
|
|
(492)
|
|
|
|
|
Free cash
flow
|
|
$
22,770
|
|
$
26,350
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Operating expenses to Adjusted operating expenses for the Three
Months Ended March 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
29,795
|
|
$
—
|
|
$
(307)
|
|
$
29,488
|
Product and
technology
|
|
24,101
|
|
—
|
|
(2,057)
|
|
22,044
|
Marketing and
sales
|
|
58,297
|
|
—
|
|
(1,433)
|
|
56,864
|
General and
administrative
|
|
18,304
|
|
(1,917)
|
|
(3,155)
|
|
13,232
|
Depreciation and
amortization
|
|
24,042
|
|
—
|
|
—
|
|
24,042
|
Total operating
expenses
|
|
$ 154,539
|
|
$
(1,917)
|
|
$
(6,952)
|
|
$ 145,670
|
|
|
|
|
|
|
|
|
|
Total nonoperating
expense, net
|
|
$
(5)
|
|
$
(8,259)
|
|
$
—
|
|
$
(8,264)
|
|
|
|
|
|
|
|
|
|
(1)
Includes transaction related items,
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 March 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
|
Adjustments
(1)
|
|
Stock-Based
Compensation
|
|
As
Adjusted
|
Cost of revenue and
operations
|
|
$
27,752
|
|
$
—
|
|
$
(195)
|
|
$
27,557
|
Product and
technology
|
|
21,307
|
|
—
|
|
(1,240)
|
|
20,067
|
Marketing and
sales
|
|
57,094
|
|
—
|
|
(1,305)
|
|
55,789
|
General and
administrative
|
|
16,560
|
|
(1,615)
|
|
(2,677)
|
|
12,268
|
Depreciation and
amortization
|
|
24,553
|
|
—
|
|
—
|
|
24,553
|
Total operating
expenses
|
|
$ 147,266
|
|
$
(1,615)
|
|
$
(5,417)
|
|
$ 140,234
|
|
|
|
|
|
|
|
|
|
Total nonoperating
expense, net
|
|
$
(9,122)
|
|
$
(170)
|
|
$
—
|
|
$
(9,292)
|
|
|
|
|
|
|
|
|
|
(1)
Includes transaction related items,
severance, transformation and other exit costs, and write-off of
long-lived assets and other.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/cars-reports-first-quarter-2023-results-301815767.html
SOURCE Cars.com Inc.