Cars.com (CARS) 10-Q 4 May 23 2023 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2023	Apr. 27, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2023
Document Fiscal Year Focus	2023
Trading Symbol	CARS
Document Fiscal Period Focus	Q1
Entity Registrant Name	Cars.com Inc.
Entity Central Index Key	0001683606
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity File Number	001-37869
Entity Tax Identification Number	81-3693660
Entity Address, Address Line One	300 S. Riverside Plaza
Entity Address, Address Line Two	Suite 1000
Entity Address, City or Town	Chicago
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60606
City Area Code	312
Local Phone Number	601-5000
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Stock
Security Exchange Name	NYSE
Entity Incorporation, State or Country Code	DE
Document Quarterly Report	true
Document Transition Report	false
Entity Common Stock Shares Outstanding		66,721,646

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
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
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	0	0
Common Stock at par, $0.01 par value; 300,000 shares authorized; 66,850 and 69,287 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

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	66,850,000	66,287,000
Common stock, shares outstanding	66,850,000	66,287,000

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue:
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
Dealer
Revenue:
Total revenue	$ 149,843	$ 140,416
OEM and National
Revenue:
Total revenue	13,543	15,174
Other
Revenue:
Total revenue	$ 3,682	$ 2,617

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 11,479	$ 4,340
Other comprehensive income, net of tax:
Reclassification of Accumulated other comprehensive loss on interest rate swap into Net income	0	1,202
Total other comprehensive income	0	1,202
Comprehensive income	$ 11,479	$ 5,542

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2021	$ 398,020	$ 692	$ 1,544,712	$ (1,145,382)	$ (2,002)
Balance, Shares at Dec. 31, 2021		69,170,000
Net income	4,340			4,340
Other comprehensive income, net of tax	1,202				1,202
Repurchases of common stock(shares)		(338,000)
Repurchases of common stock (value)	(5,000)	$ (3)	(4,997)
Shares issued in connection with stock-based compensation plans, net	(7,696)	$ 9	(7,705)
Shares issued in connection with stock-based compensation plans, net, Shares		971,000
Stock-based compensation	5,221		5,221
Balance at Mar. 31, 2022	396,087	$ 698	1,537,231	(1,141,042)	$ (800)
Balance, Shares at Mar. 31, 2022		69,803,000
Balance at Dec. 31, 2022	$ 384,430	$ 662	1,511,944	(1,128,176)
Balance, Shares at Dec. 31, 2022	66,287,000	66,287,000
Net income	$ 11,479			11,479
Repurchases of common stock(shares)		(413,000)
Repurchases of common stock (value)	(7,174)	$ (4)	(7,170)
Shares issued in connection with stock-based compensation plans, net	(9,797)	$ 10	(9,807)
Shares issued in connection with stock-based compensation plans, net, Shares		976,000
Stock-based compensation	6,049		6,049
Balance at Mar. 31, 2023	$ 384,987	$ 668	$ 1,501,016	$ (1,116,697)
Balance, Shares at Mar. 31, 2023	66,850,000	66,850,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 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	0	1,417
Changes in fair value of contingent consideration	(8,259)	0
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	0	(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	0	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

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	NOTE 1. Description of Business and Summary of Significant Accounting Policies Description of Business. Cars.com Inc. (the “Company” or “CARS”) is a leading automotive marketplace platform that provides a robust set of digital solutions that connect car shoppers with sellers. 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 dealers and automotive manufacturers (“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™, the Company’s 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 technology solution; CreditIQ®, digital financing technology and Accu-Trade™, vehicle valuation and appraisal technology. The Company's portfolio of brands also includes NewCars.com®. Basis of Presentation . These accompanying unaudited interim Consolidated Financial Statements (“Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2022, which are included in the Company's Annual Report on Form 10-K as filed with the SEC on February 23, 2023 (the “December 31, 2022 Financial Statements”). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2022 Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for the three months ended March 31, 2023 are not necessarily indicative of results that may be expected for the year ending December 31, 2023. Use of Estimates. The preparation of the accompanying Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Reclassifications. Certain prior year balances have been reclassified to conform to the current year presentation. Principles of Consolidation . The accompanying Consolidated Financial Statements include the accounts of Cars.com Inc. and its 100 % owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation.

Revenue

Revenue	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue	NOTE 2. Revenue Revenue Summary . In the table below (in thousands), revenue is disaggregated by major products and services. The Company only has one reportable segment; therefore, further disaggregation is not applicable at this time. Three Months Ended March 31, Major products and services 2023 2022 Subscription advertising and digital solutions $ 137,334 $ 132,247 Display advertising 23,857 21,049 Pay per lead 2,275 2,417 Other 3,602 2,494 Total revenue $ 167,068 $ 158,207

Business Combinations

Business Combinations	3 Months Ended
	Mar. 31, 2023
Business Combinations [Abstract]
Business Combinations	NOTE 3. Business Combinations Accu-Trade Acquisition. On March 1, 2022, the Company acquired certain of the assets and assumed certain liabilities of Accu-Trade, LLC; Accu-Trade Canada, LLC; Galves Market Data; and Headstart Logistics, LLC d/b/a MADE Logistics (collectively, “Accu-Trade”), which provides dealers with VIN-specific vehicle valuation and appraisal data, instant offer capabilities and logistics technology (the “Accu-Trade Acquisition”). The Company expensed as incurred total acquisition costs of $ 2.0 million, of which zero and $ 0.9 million were recorded during the three months ended March 31, 2023 and 2022, respectively. These costs were recorded in General and administrative expenses in the Consolidated Statements of Income. Purchase Price Allocation. The fair values assigned to the tangible and intangible assets acquired and liabilities assumed were determined based on management’s estimates and assumptions, as well as other information compiled by management, including third-party valuations that utilize customary valuation procedures and techniques, such as the multi-period excess earnings and the relief of royalty methods. The Accu-Trade Acquisition purchase price allocation is as follows (in thousands): Acquisition-date Cash consideration $ 64,663 Other consideration (1) 5,300 Contingent consideration (2) 23,936 Total purchase consideration $ 93,899 Assets acquired (3) $ 1,595 Identified intangible assets (4) 15,679 Total assets acquired 17,274 Total liabilities assumed (5) ( 235 ) Net identifiable assets 17,039 Goodwill 76,860 Total purchase consideration $ 93,899 (1) In connection with the Accu-Trade Acquisition, the Company entered into an agreement to provide one of the former owners with a one-year license to a certain product. The fair value of the license was determined to be $ 6.5 million, of which the Company received $ 1.2 million in cash upon the close of the Accu-Trade Acquisition. The $ 5.3 million difference between the fair value of $ 6.5 million and the $ 1.2 million in cash was recorded as non-cash consideration and the $ 6.5 million license fee was recorded in Other accrued liabilities as a contract liability on the Consolidated Balance Sheets and was amortized into Other revenue on the Consolidated Statements of Income over the one-year contract term. The revenue related to the non-cash consideration of $ 0.9 million and $ 0.4 million is a non-cash reconciling item titled Amortization of deferred revenue related to Accu-Trade Acquisition on the Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022, respectively. As of the end of the first quarter of 2023, this agreement has ended. (2) As part of the Accu-Trade Acquisition, the Company may be required to pay additional consideration to the former owners based on the achievement of certain financial targets. The Company has the option to pay consideration in cash or certain amounts in stock, which would result in a variable number of shares being issued. The amount to be paid will be determined by the acquired business’ future performance to be attained over a three-year performance period; based on certain tiered performance metrics the maximum amount to be paid is $ 63.0 million, of which a maximum of $ 15.0 million could be in stock, with additional upside for performance that exceeds the tiered performance metrics. The contingent consideration is classified as Level 3 in the fair value hierarchy. The fair value is measured based on a Monte Carlo simulation. This amount represents the estimated fair value at the time of the acquisition. For more information on the fair value of the Accu-Trade contingent consideration, see Note 4 (Fair Value Measurements). (3) Assets acquired primarily consist of accounts receivable. (4) Information regarding the identifiable intangible assets acquired is as follows: Acquisition-Date Weighted-Average Amortization Period Acquired software $ 12,926 5 Trade name 1,446 10 Customer relationships 1,307 7 Total $ 15,679 (5) Total liabilities assumed primarily consist of accounts payable. In connection with the Accu-Trade Acquisition, the Company recorded goodwill in the amount of $ 76.9 million, which is primarily attributable to sales growth from existing and future technology, product offerings, customers and the value of the acquired assembled workforce. All of the goodwill is considered deductible for income tax purposes.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	NOTE 4. Fair Value Measurements The Company's liabilities measured at fair value on a recurring basis consisted of the following (in thousands): Fair value measurement at reporting date Total as of Level 1 Level 2 Level 3 Contingent consideration $ 47,612 $ — $ — $ 47,612 Total $ 47,612 $ — $ — $ 47,612 Fair value measurement at reporting date Total as of Level 1 Level 2 Level 3 Contingent consideration $ 55,871 $ — $ — $ 55,871 Total $ 55,871 $ — $ — $ 55,871 The roll-forward of the Level 3 contingent consideration from December 31, 2022 is as follows (in thousands): As of Fair Value (1) As of Contingent consideration $ 55,871 $ ( 8,259 ) $ 47,612 (1) Fair value adjustments on contingent considerations are reflected within the Other income, net line on the Consolidated Statements of Income. The contingent consideration is classified on the Consolidated Balance Sheets based on expected payment dates. As of March 31, 2023, $ 6.2 million and $ 41.4 million were included within Other accrued liabilities and Other noncurrent liabilities on the Consolidated Balance Sheets, respectively. As of December 31, 2022, $ 9.4 million and $ 46.5 million were included within Other accrued liabilities and Other noncurrent liabilities on the Consolidated Balance Sheets. As of March 31, 2023, other than projected financial information, volatility was the only significant input and assumption in the contingent consideration valuations. The volatility input ranged from 25 % to 51 %. We expect to make payments on the contingent consideration in 2023, 2024 and 2025. For more information relating to contingent consideration, see Note 3 (Business Combinations ).

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	NOTE 5. Debt As of March 31, 2023, the Company was in compliance with the covenants under its debt agreements. Term Loan. As of March 31, 2023, the outstanding principal amount under the Term Loan was $ 62.5 million and the interest rate in effect was 7.2 %. During the three months ended March 31, 2023, the Company made $ 3.8 million in Term Loan payments. Revolving Loan. As of March 31, 2023, $ 230.0 million was available to borrow under the Revolving Loan. The Company paid down $ 15.0 million and had zero drawdowns on the Revolving Loan during the three months ended March 31, 2023. The Company’s borrowings are limited by its Senior Secured Leverage Ratio and Consolidated Interest Coverage Ratio, which are calculated in accordance with the Company's Credit Agreement, and were 0.3 x and 5.7 x as of March 31, 2023, respectively. Senior Unsecured Notes. In October 2020, the Company issued $ 400.0 million aggregate principal amount of 6.375 % Senior Unsecured Notes due 2028. Interest on the notes is due semi-annually on May 1 and November 1. Fair Value. The Company's debt is classified as Level 2 in the fair value hierarchy and the fair value is measured based on comparable trading prices, ratings, sectors, coupons and maturities of similar instruments. The approximate fair value and related carrying value of the Company's outstanding indebtedness, as of March 31, 2023 and December 31, 2022 were as follows (in millions): March 31, 2023 December 31, 2022 Fair value $ 440.2 $ 435.4 Carrying value 462.5 481.3

Interest Rate Swap

Interest Rate Swap	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Interest Rate Swap	NOTE 6. Interest Rate Swap The interest rate on borrowings under the Company’s Term Loan and Revolving Loan is floating and, therefore, subject to fluctuations. In order to manage the risk associated with changes in interest rates on its borrowing under the Term Loan and Revolving Loan prior to the October 2020 refinancing, the Company entered into an interest rate swap (the “Swap”) effective December 31, 2018. Under the terms of the Swap, the Company was locked into a fixed rate of interest of 2.96 % plus an applicable margin, as defined in the Company’s Credit Agreement, on a notional amount of $ 300 million until May 31, 2022. Although the Swap was initially designated as a cash flow hedge of interest rate risk, hedge accounting was discontinued in June 2020. The loss on the hedge that was recorded in Accumulated other comprehensive loss at that time was amortized into Interest expense, net in the Consolidated Statements of Income ratably over the remaining term of the Swap. The Swap expired on May 31, 2022 and, as such, is no longer recorded on the Consolidated Balance Sheets. During the three months ended March 31, 2023 and 2022, zero and $ 1.4 million, respectively was reclassified from Accumulated other comprehensive loss and recorded in Interest expense, net. During the three months ended March 31, 2022, the Company made payments of $ 2.1 million related to the Swap and $ 0.2 million was reclassified as a tax benefit from Accumulated other comprehensive loss into Income tax expense (benefit) on the Consolidated Statements of Income.

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 7. Commitments and Contingencies From time to time, the C ompany may become involved in actions, claims, suits or other legal or administrative proceedings arising in the ordinary course of business. The Company is currently not involved in any pending or threatened litigation or claim that if determined adversely against the Company, individually or in the aggregate, would have a material adverse impact on the Company’s financial position, results of operations or cash flows. The Company records a liability when it believes that it is both probable that a loss will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, at least quarterly, developments in its commitments and contingencies that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Stockholders' Equity	NOTE 8. Stockholders' Equity On February 24, 2022, the Company announced that its Board of Directors authorized a three-year share repurchase program to acquire up to $ 200 million of the Company 's common stock. The Company may repurchase shares from time to time in open market transactions or through privately negotiated transactions in accordance with applicable federal securities laws and other applicable legal requirements and subject to the Company's blackout periods. The timing and amounts of any purchases under the share repurchase program will be based on market conditions and other factors, including price. The repurchase program may be suspended or discontinued at any time and does not obligate the Company to repurchase any specific amount or number of shares. The Company funds the share repurchase program principally with cash from operations. During the three months ended March 31, 2023, the Company repurchased and subsequently retired 0.4 million shares for $ 7.2 million at an average price paid per share of $ 17.38 . During the three months ended March 31, 2022, the Company repurchased and subsequently retired 0.3 million shares for $ 5.0 million at an average price paid per share of $ 14.78 .

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Stock-Based Compensation	NOTE 9. Stock-Based Compensation Restricted Share Units (“RSUs”). RSUs represent the right to receive unrestricted shares of the Company’s common stock at the time of vesting, subject to any restrictions as specified in the individual holder’s award agreement. RSUs are subject to graded vesting, generally ranging between one and three years and the fair value of the RSUs is equal to the Company's common stock price on the date of grant. RSU activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value): Number Weighted-Average Outstanding as of December 31, 2022 3,771 $ 12.88 Granted 1,676 16.47 Vested and delivered ( 1,496 ) 10.53 Forfeited ( 26 ) 14.92 Outstanding as of March 31, 2023 (1) 3,925 $ 15.29 (1) Includes 63 RSUs that were vested, but not yet delivered. Performance Share Units (“PSUs”). PSUs represent the right to receive unrestricted shares of the Company’s common stock at the time of vesting. The fair value of the PSUs is equal to the Company’s common stock price on the date of grant. Expense related to PSUs is recognized when the performance conditions are probable of being achieved. The percentage of PSUs that shall vest will range from 0 % to 200 % of the number of PSUs granted based on the Company’s future performance related to certain revenue and adjusted earnings before interest, income taxes, depreciation and amortization targets over a three-year performance period. These PSUs are subject to cliff vesting after the end of the respective performance period. PSU activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value): Number Weighted-Average Outstanding as of December 31, 2022 245 $ 14.78 Granted 267 16.47 Vested and delivered — — Forfeited — — Outstanding as of March 31, 2023 512 $ 15.66 Stock Options. Stock options represent the right to purchase shares of the Company’s common stock at the time of vesting, subject to any restrictions as specified in the individual holder’s award agreement. Stock options are subject to three-year cliff vesting and expire 10 years from the grant date. Stock option activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value and weighted-average remaining contractual term): Number of Options Weighted-Average Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding as of December 31, 2022 1,067 $ 6.28 7.98 $ 4,296 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding as of March 31, 2023 1,067 $ 6.28 7.73 $ 9,449 Exercisable as of March 31, 2023 513 $ 2.80 6.97 $ 7,134 There were no stock options granted during the three months ended March 31, 2023. The fair value of the stock options granted during the three months ended March 31, 2022 are estimated on the grant date using the Black-Scholes option pricing model, using the following assumptions: 2022 Risk-free interest rate 2.21 % Weighted-average volatility 65.22 % Dividend yield 0 % Expected years until exercise 6.5

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share	NOTE 10. Earnings Per Share Basic earnings per share is calculated by dividing Net income by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the Accu-Trade Acquisition, the Company may pay up to $ 15.0 million of the contingent consideration in stock at a future date. Those potential shares have been excluded from the computations below because they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period . The computation of Earnings per share is as follows (in thousands, except per share data): Three Months Ended March 31, 2023 2022 Net income $ 11,479 $ 4,340 Basic weighted-average common shares outstanding 66,530 69,463 Effect of dilutive stock-based compensation awards (1) 1,217 1,436 Diluted weighted-average common shares outstanding 67,747 70,899 Earnings per share, basic $ 0.17 $ 0.06 Earnings per share, diluted 0.17 0.06 There were 554 and 1,738 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended March 31, 2023 and March 31, 2022, respectively, as their inclusion would have had an anti-dilutive effect.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 11. Income Taxes Deferred Tax Asset and Valuation Allowance. The Company has concluded a valuation allowance is required against its deferred tax assets as of March 31, 2023. In reaching this conclusion, in accordance with U.S. GAAP, the Company has evaluated all available evidence, both positive and negative, and determined that the Company’s history of recent losses, primarily due to the goodwill and indefinite-lived intangible asset impairments, was sufficient significant negative evidence to require a valuation allowance. Therefore, the Company has recorded a valuation allowance to reduce its deferred tax assets as of March 31, 2023 to the amount that is more likely than not to be realized in future periods. At each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Effective Tax Rate. The effective income tax rate, expressed by calculating the income tax expense (benefit) as a percentage of income before income tax, was 8.3 % for the three months ended March 31, 2023, which varied from the statutory federal income tax rate of 21 %, primarily due to the incremental tax deduction that the Company received upon vesting of its equity awards. (In thousands, except percentages) Three Months Ended March 31, 2023 Income tax provision at statutory rate $ 2,630 21.0 % State income taxes, net of federal income tax benefit 340 2.7 Stock-based compensation ( 1,891 ) ( 15.1 ) Uncertain tax positions 289 2.3 Valuation allowance 714 5.7 Other, net ( 1,037 ) ( 8.3 ) Income tax expense $ 1,045 8.3 %

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation . These accompanying unaudited interim Consolidated Financial Statements (“Consolidated Financial Statements”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial statements. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to the rules and regulations of the SEC. These Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto for the year ended December 31, 2022, which are included in the Company's Annual Report on Form 10-K as filed with the SEC on February 23, 2023 (the “December 31, 2022 Financial Statements”). The significant accounting policies used in preparing these Consolidated Financial Statements were applied on a basis consistent with those reflected in the December 31, 2022 Financial Statements. In the opinion of management, the Consolidated Financial Statements contain all adjustments (consisting of a normal, recurring nature) necessary to present fairly the Company's financial position, results of operations, cash flows and changes in stockholders' equity as of the dates and for the periods indicated. The unaudited results of operations for the three months ended March 31, 2023 are not necessarily indicative of results that may be expected for the year ending December 31, 2023.
Use of Estimates	Use of Estimates. The preparation of the accompanying Consolidated Financial Statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect amounts reported in the Consolidated Financial Statements and accompanying disclosures. Although these estimates are based on management’s knowledge of current events and actions that the Company may undertake in the future, actual results may differ from those estimates. Reclassifications. Certain prior year balances have been reclassified to conform to the current year presentation.
Principles of Consolidation	Principles of Consolidation . The accompanying Consolidated Financial Statements include the accounts of Cars.com Inc. and its 100 % owned subsidiaries. All intercompany transactions and accounts are eliminated in consolidation.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Revenue Disaggregated by Sales Channel and Major Products and Services	Revenue Summary . In the table below (in thousands), revenue is disaggregated by major products and services. The Company only has one reportable segment; therefore, further disaggregation is not applicable at this time. Three Months Ended March 31, Major products and services 2023 2022 Subscription advertising and digital solutions $ 137,334 $ 132,247 Display advertising 23,857 21,049 Pay per lead 2,275 2,417 Other 3,602 2,494 Total revenue $ 167,068 $ 158,207

Business Combinations (Tables)

Business Combinations (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combinations [Abstract]
Schedule of Accu-Trade Acquisition purchase price allocation	Acquisition-date Cash consideration $ 64,663 Other consideration (1) 5,300 Contingent consideration (2) 23,936 Total purchase consideration $ 93,899 Assets acquired (3) $ 1,595 Identified intangible assets (4) 15,679 Total assets acquired 17,274 Total liabilities assumed (5) ( 235 ) Net identifiable assets 17,039 Goodwill 76,860 Total purchase consideration $ 93,899 (1) In connection with the Accu-Trade Acquisition, the Company entered into an agreement to provide one of the former owners with a one-year license to a certain product. The fair value of the license was determined to be $ 6.5 million, of which the Company received $ 1.2 million in cash upon the close of the Accu-Trade Acquisition. The $ 5.3 million difference between the fair value of $ 6.5 million and the $ 1.2 million in cash was recorded as non-cash consideration and the $ 6.5 million license fee was recorded in Other accrued liabilities as a contract liability on the Consolidated Balance Sheets and was amortized into Other revenue on the Consolidated Statements of Income over the one-year contract term. The revenue related to the non-cash consideration of $ 0.9 million and $ 0.4 million is a non-cash reconciling item titled Amortization of deferred revenue related to Accu-Trade Acquisition on the Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022, respectively. As of the end of the first quarter of 2023, this agreement has ended. (2) As part of the Accu-Trade Acquisition, the Company may be required to pay additional consideration to the former owners based on the achievement of certain financial targets. The Company has the option to pay consideration in cash or certain amounts in stock, which would result in a variable number of shares being issued. The amount to be paid will be determined by the acquired business’ future performance to be attained over a three-year performance period; based on certain tiered performance metrics the maximum amount to be paid is $ 63.0 million, of which a maximum of $ 15.0 million could be in stock, with additional upside for performance that exceeds the tiered performance metrics. The contingent consideration is classified as Level 3 in the fair value hierarchy. The fair value is measured based on a Monte Carlo simulation. This amount represents the estimated fair value at the time of the acquisition. For more information on the fair value of the Accu-Trade contingent consideration, see Note 4 (Fair Value Measurements). (3) Assets acquired primarily consist of accounts receivable. (4) Information regarding the identifiable intangible assets acquired is as follows: Acquisition-Date Weighted-Average Amortization Period Acquired software $ 12,926 5 Trade name 1,446 10 Customer relationships 1,307 7 Total $ 15,679 (5) Total liabilities assumed primarily consist of accounts payable.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Company's Liabilities Measured at Fair Value on a Recurring Basis	The Company's liabilities measured at fair value on a recurring basis consisted of the following (in thousands): Fair value measurement at reporting date Total as of Level 1 Level 2 Level 3 Contingent consideration $ 47,612 $ — $ — $ 47,612 Total $ 47,612 $ — $ — $ 47,612 Fair value measurement at reporting date Total as of Level 1 Level 2 Level 3 Contingent consideration $ 55,871 $ — $ — $ 55,871 Total $ 55,871 $ — $ — $ 55,871
Schedule Of Contingent Consideration	The roll-forward of the Level 3 contingent consideration from December 31, 2022 is as follows (in thousands): As of Fair Value (1) As of Contingent consideration $ 55,871 $ ( 8,259 ) $ 47,612 (1) Fair value adjustments on contingent considerations are reflected within the Other income, net line on the Consolidated Statements of Income.

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Schedule of approximate fair value and related carrying value of the Company's outstanding indebtedness	The approximate fair value and related carrying value of the Company's outstanding indebtedness, as of March 31, 2023 and December 31, 2022 were as follows (in millions): March 31, 2023 December 31, 2022 Fair value $ 440.2 $ 435.4 Carrying value 462.5 481.3

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Summary of RSU Activity	RSU activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value): Number Weighted-Average Outstanding as of December 31, 2022 3,771 $ 12.88 Granted 1,676 16.47 Vested and delivered ( 1,496 ) 10.53 Forfeited ( 26 ) 14.92 Outstanding as of March 31, 2023 (1) 3,925 $ 15.29
Summary of PSU Activity	PSU activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value): Number Weighted-Average Outstanding as of December 31, 2022 245 $ 14.78 Granted 267 16.47 Vested and delivered — — Forfeited — — Outstanding as of March 31, 2023 512 $ 15.66
Summary of Stock Option Activity	Stock option activity for the three months ended March 31, 2023 is as follows (in thousands, except for weighted-average grant date fair value and weighted-average remaining contractual term): Number of Options Weighted-Average Weighted-Average Remaining Contractual Term (in years) Aggregate Outstanding as of December 31, 2022 1,067 $ 6.28 7.98 $ 4,296 Granted — — — — Exercised — — — — Forfeited — — — — Outstanding as of March 31, 2023 1,067 $ 6.28 7.73 $ 9,449 Exercisable as of March 31, 2023 513 $ 2.80 6.97 $ 7,134
Summary of Fair Value of Stock Options Granted are Estimated Using Black Scholes Option Pricing Model	The fair value of the stock options granted during the three months ended March 31, 2022 are estimated on the grant date using the Black-Scholes option pricing model, using the following assumptions: 2022 Risk-free interest rate 2.21 % Weighted-average volatility 65.22 % Dividend yield 0 % Expected years until exercise 6.5

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Computation of Earnings (Loss) Per Share	The computation of Earnings per share is as follows (in thousands, except per share data): Three Months Ended March 31, 2023 2022 Net income $ 11,479 $ 4,340 Basic weighted-average common shares outstanding 66,530 69,463 Effect of dilutive stock-based compensation awards (1) 1,217 1,436 Diluted weighted-average common shares outstanding 67,747 70,899 Earnings per share, basic $ 0.17 $ 0.06 Earnings per share, diluted 0.17 0.06 There were 554 and 1,738 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended March 31, 2023 and March 31, 2022, respectively, as their inclusion would have had an anti-dilutive effect.

Income Taxes (Tables)

Income Taxes (Tables)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Varied from Statutory Federal Income Tax Rate	The effective income tax rate, expressed by calculating the income tax expense (benefit) as a percentage of income before income tax, was 8.3 % for the three months ended March 31, 2023, which varied from the statutory federal income tax rate of 21 %, primarily due to the incremental tax deduction that the Company received upon vesting of its equity awards. (In thousands, except percentages) Three Months Ended March 31, 2023 Income tax provision at statutory rate $ 2,630 21.0 % State income taxes, net of federal income tax benefit 340 2.7 Stock-based compensation ( 1,891 ) ( 15.1 ) Uncertain tax positions 289 2.3 Valuation allowance 714 5.7 Other, net ( 1,037 ) ( 8.3 ) Income tax expense $ 1,045 8.3 %

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Percentage of ownership by the company	100%

Revenue - Additional Informatio

Revenue - Additional Information (Details) - Segment	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue from Contract with Customer [Abstract]
Number of reportable segment	1	1

Revenue - Summary of Revenue Di

Revenue - Summary of Revenue Disaggregated by Sales Channel and Major Products and Services (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total revenue	$ 167,068	$ 158,207
Subscription Advertising And Digital Solutions [Member]
Disaggregation of Revenue [Line Items]
Total revenue	137,334	132,247
Display Advertising [Member]
Disaggregation of Revenue [Line Items]
Total revenue	23,857	21,049
Pay Per Lead [Member]
Disaggregation of Revenue [Line Items]
Total revenue	2,275	2,417
Other Major Product And Services [Member]
Disaggregation of Revenue [Line Items]
Total revenue	$ 3,602	$ 2,494

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022	Mar. 01, 2022
Business Acquisition [Line Items]
Goodwill	$ 102,856		$ 102,856
Amortization of deferred revenue	883	$ 442
Accu-Trade Acquisition
Business Acquisition [Line Items]
Business Acquisition, Transaction Costs	0	900		$ 2,000
Goodwill	76,900			76,860
License fee	6,500
Cash				$ 1,200
Additional cash consideration required to be paid to former owners of acquired business	$ 63,000
Revenue targets for contingent consideration performance period	3 years
Preliminary fair value of the license	$ 6,500	6,500
Preliminary fair value difference	5,300
Amortization of deferred revenue	$ 900	$ 400

Business Combination - Acquisit

Business Combination - Acquisition Purchase Price Allocation (Details) - USD ($) $ in Thousands		Mar. 01, 2022	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Identified intangible assets		$ 15,679
Goodwill			$ 102,856	$ 102,856
Accu-Trade Acquisition
Business Acquisition [Line Items]
Cash consideration		64,663
Other consideration	[1]	5,300
Contingent consideration	[2]	23,936
Total purchase consideration		93,899
Assets acquired	[3]	1,595
Identified intangible assets	[4]	15,679
Total assets acquired		17,274
Total liabilities assumed	[5]	235
Net identifiable assets		17,039
Goodwill		76,860	$ 76,900
Total consideration		$ 93,899
[1] In connection with the Accu-Trade Acquisition, the Company entered into an agreement to provide one of the former owners with a one-year license to a certain product. The fair value of the license was determined to be $ 6.5 million, of which the Company received $ 1.2 million in cash upon the close of the Accu-Trade Acquisition. The $ 5.3 million difference between the fair value of $ 6.5 million and the $ 1.2 million in cash was recorded as non-cash consideration and the $ 6.5 million license fee was recorded in Other accrued liabilities as a contract liability on the Consolidated Balance Sheets and was amortized into Other revenue on the Consolidated Statements of Income over the one-year contract term. The revenue related to the non-cash consideration of $ 0.9 million and $ 0.4 million is a non-cash reconciling item titled Amortization of deferred revenue related to Accu-Trade Acquisition on the Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022, respectively. As of the end of the first quarter of 2023, this agreement has ended. As part of the Accu-Trade Acquisition, the Company may be required to pay additional consideration to the former owners based on the achievement of certain financial targets. The Company has the option to pay consideration in cash or certain amounts in stock, which would result in a variable number of shares being issued. The amount to be paid will be determined by the acquired business’ future performance to be attained over a three-year performance period; based on certain tiered performance metrics the maximum amount to be paid is $ 63.0 million, of which a maximum of $ 15.0 million could be in stock, with additional upside for performance that exceeds the tiered performance metrics. The contingent consideration is classified as Level 3 in the fair value hierarchy. The fair value is measured based on a Monte Carlo simulation. This amount represents the estimated fair value at the time of the acquisition. For more information on the fair value of the Accu-Trade contingent consideration, see Note 4 (Fair Value Measurements). Assets acquired primarily consist of accounts receivable. Information regarding the identifiable intangible assets acquired is as follows: Total liabilities assumed primarily consist of accounts payable.

Business Combinations - Acquisi

Business Combinations - Acquisition Purchase Price Allocation (Parenthetical) (Details) - USD ($) $ in Thousands			3 Months Ended
		Mar. 01, 2022	Mar. 31, 2023	Mar. 31, 2022
Business Acquisition [Line Items]
Amortization of deferred revenue			$ 883	$ 442
Identified intangible assets		$ 15,679
Acquired software
Business Acquisition [Line Items]
Identified intangible assets		$ 12,926
Weighted-Average Amortization Period (in years)		5 years
Trade name
Business Acquisition [Line Items]
Identified intangible assets		$ 1,446
Weighted-Average Amortization Period (in years)		10 years
Customer relationships
Business Acquisition [Line Items]
Identified intangible assets		$ 1,307
Weighted-Average Amortization Period (in years)		7 years
Accu-Trade Acquisition
Business Acquisition [Line Items]
Preliminary fair value of the license			6,500	6,500
Cash		$ 1,200
Amortization of deferred revenue			900	$ 400
Preliminary fair value difference			5,300
License fee			$ 6,500
Revenue targets for contingent consideration performance period			3 years
Additional cash consideration required to be paid to former owners of acquired business			$ 63,000
Potentional contingent consideration to be paid in stock			$ 15,000
Identified intangible assets	[1]	$ 15,679
[1] Information regarding the identifiable intangible assets acquired is as follows:

Fair Value Of Measurements - Sc

Fair Value Of Measurements - Schedule of Company's Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 47,612	$ 55,871
Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	47,612	55,871
Total	47,612	55,871
Recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Total	0	0
Recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	0	0
Total	0	0
Recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	47,612	55,871
Total	$ 47,612	$ 55,871

Fair Value Measurements - Sched

Fair Value Measurements - Schedule Of Contingent Consideration (Details) - Level 3 $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration, Beginning	$ 55,871
Contingent consideration fair value adjustment	(8,259)	[1]
Contingent consideration, Ending	$ 47,612
[1] Fair value adjustments on contingent considerations are reflected within the Other income, net line on the Consolidated Statements of Income.

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) $ in Millions	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Volatility | Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration, volatility range	25
Volatility | Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent Consideration, volatility range	51
Other Accrued Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 6.2	$ 9.4
Other Noncurrent Liabilities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Contingent consideration	$ 41.4	$ 46.5

Debt - Additional Information (

Debt - Additional Information (Details) $ in Millions		3 Months Ended
	Oct. 30, 2020 USD ($)	Mar. 31, 2023 USD ($)	Oct. 31, 2020
Line Of Credit Facility [Line Items]
Net Leverage Ratio		5.7
DebtInstrumentCovenantDescription		The Company’s borrowings are limited by its Senior Secured Leverage Ratio and Consolidated Interest Coverage Ratio, which are calculated in accordance with the Company's Credit Agreement, and were 0.3x and 5.7x as of March 31, 2023, respectively.
6.375% Senior Unsecured Notes Due 2028
Line Of Credit Facility [Line Items]
Proceeds from issuance initial public offering	$ 400
Interest rate on debt issued			6.375%
Debt instrument, payment terms		Interest on the notes is due semi-annually on May 1 and November 1.
Term Loan
Line Of Credit Facility [Line Items]
Line of credit		$ 62.5
Effective interest rate		7.20%
Repayment of loan		$ 3.8
Revolving Credit Facility
Line Of Credit Facility [Line Items]
Senior Secured Leverages Ratio		0.3
Repayment of loan		$ 15
Amount available to borrow		$ 230

Debt - Schedule of Carrying Val

Debt - Schedule of Carrying Values and Estimated Fair Values of Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Outstanding indebtedness, carrying value	$ 438,739	$ 458,249
Level 2
Debt Instrument [Line Items]
Outstanding indebtedness, fair value	440,200	435,400
Outstanding indebtedness, carrying value	$ 462,500	$ 481,300

Interest Rate Swap - Additional

Interest Rate Swap - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Derivative [Line Items]
Reclassified from accumulated other comprehensive (loss) into Interest expense, net	$ 0	$ 1.4
Reclassified from accumulated other comprehensive (loss) into income tax expense (benefit)		0.2
Swap | Designated as Hedging Instrument | Cash Flow Hedging
Derivative [Line Items]
Fixed rate of interest	2.96%
Notional amount	$ 300
Payments related to fair value		$ 2.1

Stockholders' Equity Additional

Stockholders' Equity Additional Information (Details) - Common Stock [Member] - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended
	Feb. 24, 2022	Mar. 31, 2023	Mar. 31, 2022
Stockholders Equity [Line Items]
Share repurchase program, duration	3 years
Stock Repurchase Program, Authorized Amount	$ 200
Share purchased and retired		0.4	0.3
Share purchased and retired, amount		$ 7.2	$ 5
Stock Purchased Average Price Per Share		$ 17.38	$ 14.78

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	3 years
Options expiration period	10 years
RSUs | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	1 year
RSUs | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	3 years
PSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share units performance period	3 years
PSUs | Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share units vesting percentage	0%
PSUs | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share units vesting percentage	200%

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of RSU Activity (Details) - RSUs shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Share Units
Share Units, Outstanding as ofDecember 31, 2022 | shares	3,771
Share Units, Granted | shares	1,676
Share Units, Vested and delivered | shares	(1,496)
Share Units, Forfeited | shares	(26)
Share Units, Outstanding as of March 31, 2023 | shares	3,925	[1]
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Outstanding as of December 31, 2022 | $ / shares	$ 12.88
Weighted-Average Grant Date Fair Value, Granted | $ / shares	16.47
Weighted-Average Grant Date Fair Value, Vested and delivered | $ / shares	10.53
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	14.92
Weighted-Average Grant Date Fair Value, Outstanding as of March 31, 2023 | $ / shares	$ 15.29	[1]
[1] Includes 63 RSUs that were vested, but not yet delivered.

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of RSU Activity (Parenthetical) (Details) shares in Thousands	3 Months Ended
	Mar. 31, 2023 shares
RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
RSUs vested but not yet delivered	63

Stock-Based Compensation - Su_3

Stock-Based Compensation - Summary of PSU Activity (Details) - PSUs shares in Thousands	3 Months Ended
	Mar. 31, 2023 $ / shares shares
Number of Share Units
Share Units, Outstanding as ofDecember 31, 2022 | shares	245
Share Units, Granted | shares	267
Share Units, Vested and delivered | shares	0
Share Units, Forfeited | shares	0
Share Units, Outstanding as of March 31, 2023 | shares	512
Weighted-Average Grant Date Fair Value
Weighted-Average Grant Date Fair Value, Outstanding as of December 31, 2022 | $ / shares	$ 14.78
Weighted-Average Grant Date Fair Value, Granted | $ / shares	16.47
Weighted-Average Grant Date Fair Value, Vested and delivered | $ / shares	0
Weighted-Average Grant Date Fair Value, Forfeited | $ / shares	0
Weighted-Average Grant Date Fair Value, Outstanding as of March 31, 2023 | $ / shares	$ 15.66

Stock-Based Compensation - Su_4

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]
Share Units, Outstanding as of December 31,2022	1,067
Share Units, Granted	0
Share Units, Exercised	0
Share Units, Forfeited	0
Share Units, Outstanding as of March 31, 2023	1,067	1,067
Share Units, Exercisable as of March 31, 2023	513
Weighted- Average Grant Date Fair Value, Outstanding as of December 31, 2022	$ 6.28
Weighted- Average Grant Date Fair Value, Granted	0
Weighted Average Grant Date Fair Value, Exercised	0
Weighted- Average Grant Date Fair Value, Forfeited	0
Weighted- Average Grant Date Fair Value, Outstanding as of March 31, 2023	6.28	$ 6.28
Weighted- Average Grant Date Fair Value, Exercisable as of March 31, 2023	$ 2.80
Weighted-Average Remaining Contractual Term, Outstanding	7 years 8 months 23 days	7 years 11 months 23 days
Weighted-Average Remaining Contractual Term, Exercisable as of March 31, 2023	6 years 11 months 19 days
Aggregate Intrinsic Value, Outstanding	$ 9,449	$ 4,296
Aggregate Intrinsic Value, Exercisable as of March 31, 2023	$ 7,134

Stock-Based Compensation - Su_5

Stock-Based Compensation - Summary of Fair Value of Stock Options Granted are Estimated Using Black Scholes Option Pricing Model (Details)	3 Months Ended
	Mar. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Risk-free interest rate	2.21%
Weighted-average volatility	65.22%
Dividend yield	0%
Expected years until exercise	6 years 6 months

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Accu-Trade Acquisition
Business Acquisition [Line Items]
Potentional contingent consideration to be paid in stock	$ 15

Earnings Per Share - Computatio

Earnings Per Share - Computation of Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands		3 Months Ended
		Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Net income		$ 11,479	$ 4,340
Basic weighted-average common shares outstanding		66,530	69,463
Effect of dilutive stock-based compensation awards	[1]	1,217	1,436
Diluted weighted-average common shares outstanding		67,747	70,899
Earnings per share, basic		$ 0.17	$ 0.06
Earnings per share, diluted		$ 0.17	$ 0.06
[1] There were 554 and 1,738 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended March 31, 2023 and March 31, 2022, respectively, as their inclusion would have had an anti-dilutive effect.

Earnings Per Share - Computat_2

Earnings Per Share - Computation of Earnings (Loss) Per Share (Parenthetical) (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share [Abstract]
Potential common shares excluded from diluted weighted-average shares outstanding	554	1,738

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate, income tax expense (benefit) percentage	8.30%
Federal statutory rate	21%

Income Taxes - Schedule of Effe

Income Taxes - Schedule of Effective Income Tax Rate Varied from Statutory Federal Income Tax Rate (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income tax provision at statutory rate	$ 2,630
State income taxes, net of federal income tax benefit	340
Stock-based compensation	(1,891)
Uncertain tax positions	289
Valuation allowance	714
Other, net	(1,037)
Income tax expense	$ 1,045	$ (2,521)
Income tax provision at statutory rate, percent	21%
State income taxes, net of federal income tax benefit, percent	2.70%
Stock-based compensation, percent	(15.10%)
Uncertain tax positions, percent	2.30%
Valuation allowance, percent	5.70%
Other, net, percent	(8.30%)
Income tax expense (benefit), percent	8.30%