Cars.com (CARS) 8-K Quarterly Financial Information and Key Operating Metrics

Exhibit 99.1

Cars.com, Inc.

Quarterly Financial Information and Key Operating Metrics

(in thousands, except key operating metrics)

	Three months ended (unaudited)												Year ended (audited)			Three months ended (unaudited)												Year ended (audited)
	Mar 31, 2015			Jun 30, 2015			Sep 30, 2015			Dec 31, 2015			Dec 31, 2015			Mar 31, 2016			Jun 30, 2016			Sep 30, 2016			Dec 31, 2016			Dec 31, 2016
Revenues:
Retail	$	100,276		$	105,408		$	107,525		$	111,423		$	424,632		$	109,605		$	113,580		$	119,828		$	119,763		$	462,776
Wholesale		43,715			42,798			42,548			42,817			171,878			42,884			43,070			42,467			41,909			170,330
Total		143,991			148,206			150,073			154,240			596,510			152,489			156,650			162,295			161,672			633,106
Operating expenses:
Product support, technology and operations		28,215			28,732			28,842			30,901			116,690			32,709			33,203			32,469			31,483			129,864
Marketing and sales		54,277			51,167			51,017			55,318			211,779			58,342			53,263			48,670			50,757			211,032
General and administrative		7,550			7,682			7,467			8,225			30,924			7,502			8,037			7,738			8,925			32,202
Affiliate revenue share		1,519			1,598			1,711			1,898			6,726			1,994			2,108			2,162			2,265			8,529
Amortization of intangible assets		18,164			18,164			18,164			18,166			72,658			18,164			18,164			19,088			19,413			74,829
Total		109,725			107,343			107,201			114,508			438,777			118,711			114,775			110,127			112,843			456,456
Operating income		34,266			40,863			42,872			39,732			157,733			33,778			41,875			52,168			48,829			176,650
Other income (loss), net		186			(8	)		(123	)		50			105			(79	)		145			129			113			308
Income before taxes		34,452			40,855			42,749			39,782			157,838			33,699			42,020			52,297			48,942			176,958
Provision for income taxes		—			—			—			—			—			—			—			452			136			588
Net Income	$	34,452		$	40,855		$	42,749		$	39,782		$	157,838		$	33,699		$	42,020		$	51,845		$	48,806		$	176,370
Non-GAAP reconciliation to adjusted EBITDA
Provision for income taxes		—			—			—			—			—			—			—			452			136			588
Depreciation		2,041			2,079			1,875			2,165			8,160			2,081			2,050			2,002			2,144			8,277
Amortization of intangible assets		18,164			18,164			18,164			18,166			72,658			18,164			18,164			19,088			19,413			74,829
Othernon-operating items		(186	)		8			123			(50	)		(105	)		79			(145	)		(129	)		(113	)		(308	)
Adjusted EBITDA	$	54,471		$	61,106		$	62,911		$	60,063		$	238,551		$	54,023		$	62,089		$	73,258		$	70,386		$	259,756
Key Operating Metrics
Traffic (Visits)		115,270,000			108,311,000			106,634,000			98,917,000			429,132,000			113,479,000			105,375,000			102,723,000			90,756,000			412,333,000
Dealer customers		20,348			20,385			20,545			20,918			20,918			20,833			20,450			21,743			21,572			21,572
Average vehicle listings		4,407,000			4,444,000			4,371,000			4,631,000			4,463,000			4,713,000			4,768,000			4,614,000			4,880,000			4,744,000

Cars.com, Inc.

Non-GAAP Financial Measures

Adjusted EBITDA Definition

Adjusted EBITDA

We use Adjusted EBITDA as anon-GAAP financial performance measure to supplement the financial information presented on a GAAP basis. Thisnon-GAAP financial measure should not be considered in isolation from or as a substitute for the related GAAP measure, nor should it be considered superior to the related GAAP measure, and should be read together with financial information presented on a GAAP basis. Also, ournon-GAAP measure may not be comparable to similarly titled measures of other companies. We define Adjusted EBITDA as net income before (1) interest expense, (2) income taxes,(3) non-operating items (which are primarily comprised of gains on marketable securities held in trust and interest income), (4) depreciation and (5) amortization. When Adjusted EBITDA is discussed in reference to performance, the most directly comparable GAAP financial measure is net income. We use Adjusted EBITDA, anon-GAAP financial performance measure, for purposes of evaluating our performance. Therefore, we believe that this measure provides useful information to investors by allowing them to view our businesses through the eyes of our management and board of directors, facilitating comparison of results across historical periods, and providing a focus on the underlying ongoing operating performance of our businesses. Investors should consider the limitations of using Adjusted EBITDA, including the fact that such measure does not provide a complete measure of our operating performance. Adjusted EBITDA is not intended to be an alternative to net income as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. In particular, Adjusted EBITDA is not intended to be a measure of free cash flow available for management’s discretionary use, as Adjusted EBITDA does not consider certain cash requirements, such as working capital needs, capital expenditures, and contractual commitments.

Metric Definitions

Traffic (Visits)

Traffic is an internal metric representing the number of visits to Cars.com desktop and mobile properties (web browser and apps). Visits refer to the number of times visitors accessed Cars.com properties during the period, no matter how many visitors make up those visits. Traffic (Visits) numbers provide an indication of our consumer reach. Although our consumer reach does not directly result in revenue, we believe our ability to reach diverse demographic audiences is attractive to our dealers and national advertisers.

Dealer customers

Dealer customers represents the car dealerships using our products as of the end of each reporting period. Each 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.

Average vehicle listings

Average vehicle listings represents the daily average of vehicles listed for sale on Cars.com properties. The daily average is calculated on a monthly basis and averaged for the reporting period.