Cars.com Reports Revenue Dip

By Staff Writer November 10, 2020

Cars.com reported revenue for the third quarter ending Sept. 30 of $144.4 million, compared to $152.1 million in the prior-year period.

The decrease was primarily due to a decline in national advertising revenue and lower dealer count, largely COVID related, partially offset by continued growth in solutions revenue compared with the prior-year period.

Total operating expenses for the third quarter of 2020 were $125.3 million, 9 percent lower than the prior-year period when excluding a $461.5 million goodwill and intangible asset impairment charge in that period. The decrease in Total Operating Expenses compared to the prior year period is primarily due to reduced marketing spending and the cessation of the Affiliate Revenue Share expense in the second quarter. 

Net loss for the third quarter of 2020 was $12.3 million, or $0.18 per diluted share, compared to Net loss of $426.2 million, or $6.38 per diluted share, in the third quarter of 2019. The Net loss is primarily due to an approximately $30.9 million non-cash charge for the correction of an error related to the calculation of the valuation allowance for income taxes established in connection with an impairment recorded during the three months ended March 31, 2020. Net loss in the third quarter of 2019 included a Goodwill and Intangible asset impairment charge of $431.3 million, net of tax. Adjusted Net Income for the third quarter of 2020 was $34.6 million, or $0.50 per diluted share, compared to $21.3 million, or $0.32 per diluted share, in the third quarter of 2019.

Adjusted EBITDA for the third quarter of 2020 was $49.0 million, or 34 percent of revenue, an increase of 7 percent compared to $45.9 million, or 30 percent of revenue, for the prior-year period. The increase in Adjusted EBITDA is primarily due to reduced expenses, largely attributable to a prudent level of marketing spend in a period of strong organic traffic growth and the cessation of the Affiliate Revenue Share expense in the second quarter. 

For the third quarter, Average Monthly Unique Visitors and Traffic grew 10 percent year over year. Dealer customers were 18,130 as of September 30, 2020, an increase of 1 percent, compared to 18,033 dealer customers at June 30.

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Last modified on Tuesday, 10 November 2020 15:11