CARS - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning and welcome to the Cars Second Quarter 2021 Earnings Conference Call. This call is being recorded and a live webcast can be found at investor.cars.com. A replay of the webcast will be available until August 19. A copy of the accompanying slides can also be found on the company's Investor Relations website. I would now like to turn the call over to Robbin Moore-Randolph, Director of Investor Relations.

Robbin Moore-Randolph

thank joining and everyone morning you us. for Good you Cars Second my pleasure XXXX the welcome to It's Quarter to Conference Call. morning With Jain this are; CEO; Vetter, me and CFO. Alex Sonia quarter results in detail by highlights discussing Alex quarter our greater will will financial from along start the our discuss then third our expectations. with Sonia call the finish We'll with Q&A.

be turn draw description our can to and the in your and measures the of found forward-looking over financial Alex, to call I presentation. attention Before I'd to non-GAAP definition like our statements which

We discussing of earnings EBITDA, found non-GAAP be comparable be release press presentation. Reconciliations free certain will directly today non-GAAP the can our these including adjusted cash in and in financial the adjusted measures of the and most measure measures to financial the EBITDA appendix tables margin GAAP with flow. included

more refer For with website. quarterly available interface our obligation more of Investor factors the SEC our included or that's a current section including of risk to on reports no in We the respective annual, updated information both engaging. forward-looking content which you'll are statements find any in new as and please date. filings update assume refreshed to the where information our

call Alex. over I'll Now the turn to

Alex Vetter

our Thank earnings second you welcome Robbin call. and to XXXX quarter

of Let momentum. a for focus me am We digital I strong start continued and by innovation solutions. profitable growth on expansion saying with delivered and of our our how pleased delivery, results another quarter value

we value-driving the car increasingly accelerated dealer and as by and fourth solutions. with digital-first to digital dealer consecutive double-digit the customers. growth. a our embrace towards shopping. and quarter traffic investing We our to in our a consumers core dealer steady grew for of the continue testament are execution strong and strength digital are customers This bring solutions ARPD environment plays Dealers ended industry shift Our online customers, The elevated growth to in dedication revenue value increased resulted the team. year-over-year results underpinned to XXXXX

new As expected, cycle our was slower. sales

know that into in growth a However even dealer and continuing yet the another to need still record perfect current consecutive are found. Together in sellers count is growth. matching and and is cars be their which rates for QX. retention buyers platform in ARPD translated environment dealers constrained the of proof our inventory quarter Cars.com revenue into

We focused execution our qualified ahead coming access expectations. highly EBITDA is revenue to with a audience. reliable success in adjusted our brand. and of Our provide resulted to Core the Cars.com in customers in-market pure market-leading

comes or quality audience organically. be scale audience paid easily leadership. continues a to market And marketing can't our our of us to majority traffic It's towards the that replicated Importantly acquired through tactics.

to sourcing We are dealers the the of dealers drives on digital high-value sales. thousands in rely category and fastest-growing Cars.com marketplace for traffic who including

is billion marketplace reviews local XX% is biggest shoppers our Approximately automotive as marketplaces it search, on spends Just site car more dealers, and far to enabling useful consider across vitally life's and read important their $X of of efficient research car important mates, digital consumer The models, during than purchases. shop also search. to to the the to industry most paid less one journey. be third-party purchase them

an a opportunity information-rich Pach, Brian convert to into the higher which for when consultant is of shift study a audience found is traffic to industry cost and more some to who spend purchase that inefficiencies a Google referral a Cars.com our likely In compared to recently SEM sale Google Cars.com generate in engaged us. said, than SEM XXx Google dealers cost There to that dealer sales. realized more of by published He automotive inefficient offer disposing automotive shoppers lower independent influencer. SEM massive no engagement was intent. towards SEM fact, an many as Brian and marketing dealers twice to are comparing deliver from surprise with Xx more per sale. This third-party industry to leading marketplaces X marketplace

Our market over X% strong new competitors. both end generate was traffic to across efficiently particularly resulted in quarter than far SEO growth. to car and used segment audience this year-over-year. efficiently comes us drive not owned year-over-year ability strong and traffic traffic our unique was more up traffic rented high-quality a of Most organically. We our and meaning is XX%

the editorial important is way mobile Editorial the their an with our is consumers to content resonates strong content and June our brand Index attributed our consumers editorial shopping the and deeper in our our highlighted into immediately car In strengthened quarter with our us. catalog X and partners content placement number journey. of website with quality to frequently app will A OEM reach also their begin most our content via industry-leading This our vehicles. Our strength engage of of our American-made shoppers highlights search. their move index. differentiator earlier marketplace content rated who is we our for organic XXXX which Made efficient experience our car in which of consumer sellers American out an release

the it again promote Our stories than more content media received. AMI is brand. this campaign always delivered annual And well Cars.com and XXX that year

by consecutive don't other models growth. specific in-market across dealers credits, allows demand. efficient range our with And but our end we and of reach quarters FUEL COVID-related platforms. growth dealer an with with the most dealer audience match. in streaming driven the supports increase a for market increase a our solutions. we for of their QX. XX,XXX also an customers exact ARPD end. broadly, connect last Dealer seeking grew them represents advertising dealers XX on website traffic now reaching over for for have we This grown dealer All consecutive drive inventory And Adjusting XXX match ARPD invoice supply and customers and customers four solution. year-over-year at quarter. lots are advertise dealers quarter largely to pure customer was audience FUEL fourth messages and Our value sustainable their year's video

strengthen of to cars FUEL accretive audience, gain began directly points X,XXX generated revenue website grew quarter making our the and it vehicle this their is existing the the car program. along digital highly also realize traction audience. end, bottom they during our Choice innovative by buying consumers revenue has more as Dealer of public. to buy a and their provider campaigns run entries journey. become acquisition across GM's dealers in our FUEL network, the with are we in-market By power dealer leveraging our to double-digits to the Dealers of pure from dealer solutions touch to sequentially total have quarter adopting to fact, many new continues ability line. powered In leading

expect We our four direct deliver websites. growth of Dealer in as in other business pipeline, the Inspire, launch the continued which includes we now

was better long OEM for the quarter than supply maintain for by Nevertheless, disruptions limited, results initially national and national advertising. and expected. shortages, OEM we continuing As as view a performance production chain remains as expected, ship we'll muted and our the were but conservative

industry-leading reliance the page has footprint. times load achievements cloud-based platform launch cloud-based the quarter reduces optimized speed new But marketplace and centers brands fresh on also our which dealer update environmental important, ability One faster, more our bolstering to up physical quickly Migrating This SEO solutions new our the leading to market. design We've platform. was the user platform of minimizes of to data and the platform our of and authority. a with Cars.com experience at enhancing technology bringing the efficiency we unlocks most the innovate and notable our faster, successful XX% modern new driving our also inventory. across to

broader as strong industry solutions sales, shoppers leverage vehicle is supply. in for connect results on demand continued of they half Dealers to demand profitability Cars the dealer first past efficiently, digital ensure reporting of profits marketplaces decade fewer to that were positioned consumer and trends. the the continues the as year. second for to Turning best well with the are half record and Retail sales on record XXXX outpace more

detail the our Now financial call results. I'll to Sonia discuss over to in turn

Sonia Jain

with our am as as solid results. were guidance. momentum. I growth Alex. We continued you, line Top our adjusted expectations, Thank EBITDA strong well pleased exceeded both revenue and financial delivered and

last Performance was national continued chain, the marketplace in of the the led performance in year, in was revenue yielded $XX cash of revenue $XXX pullback up and disruption advertising the well flow. Absent up quarter car credit. still in to by second did expected, the in And year-over-year. quarter despite $XX.X invoice ARPD The by and last customers impact, estimated grew year's on robust sequentially was in last the quarter year-over-year which million, year-over-year, as a provided second product yet penetration in OEM COVID for continued growth grew digital our business million, last down Inspire of pandemic-related prior both Revenue Dealer of totaled up pullback. and lapping driven improvement X% year-over-year. year-over-year. for and XX% better million marked continued $XX XX% year's COVID-related perform another quarter and impressive Inspire, dealer lapping OEM than million new Dealer XX% growth an supply the increased but credits by year's second XX% revenue website, to after as advertising. Dealer Our invoice X.X% quarter. also for from driven revenue or customers dealer the grew

expenses. to on Moving

for Our were operating $XXX.X year second for million the quarter to expenses prior compared million $XXX.X period. the

well the last due second to expenses new first platform. all XXXX, primarily growth We This as cost investments quarter our reduced uncertain our COVID-XX investments product to our The is as expenses in of Compared face the material and technology business. reflects reduction in cloud-based across environment. an increased lines X.X%. and of year support quarter of to of operating

our continually spend marketing lean opportunities seek and less than return. the efficiency evaluate the marketing that spend highest the into quarter, for provide our was planned. We and For channels

dealer XX% to our the was benefits efficiently and more and diluted ROI to revenue consumer or the income million for traffic a XX% $XX.X Adjusted $X.XX This quarter of million or Net $X million per we audience our revenue, period. strong second compared the was share. for demand prior high-quality deliver SEO $XX.X to quarter brand, EBITDA of or customers. reached year of

continue the ways in to drive efficiencies EBITDA to adjusted margin. and adjusted look to EBITDA for business We improve

these of that turning foundation solid metrics the quarterly Now are our key results. to operating

Our our of drives a high of concentration greatest organic traffic is and strengths. brand consistently one

a traffic visitors monthly this quarter. quarter, and represents As our at right In XXX.X XX% find buying purchase and car had strong car dealership. the over increase XX% Alex metrics year-over-year channels highest the quarter second months. the of marketplace the XX.X generated organic in our and the respectively. average volume in million interest vehicle dealer This and dealer next using year-over-year. attract dealer remains increase XX% six of unique in they visits. are we of the ended XX,XXX sequential mentioned, to basis we XX on we right growth our XXX with notably, customers million customers who customers Consumer through audience an to We an audience of And a intend

customer this new additions result as inventory of anticipated, slower As were shortages. largely quarter, a

However, into record remain the our X,XXX. retention Website third quarter. the continuing rates at is trend and to customer levels grew customers

has since years harder securing program Dealer over quarter, we to and growth. and and in comps three the achieving Inspire been Our extremely solutions acceptance we dealers every focus expect been on And We've it these continued their get delivering OEM goals while successful bought customers. ago. great growing

deliver website build longer-term continue on to pipeline through we to grow GM ARPD the our to customers. on opportunity the We relationships, our upsells other And OEM marketplace cross-sell remaining and the and capitalize business intend FordDirect also on will to products. in new launch

for website our with adjusting invoice increase to increased FUEL still ARPD penetration and pandemic-related to after products driven even across customer quarter, the regards base, This was of XX% our credit increased year-over-year. For by specifically solutions.

liquidity remains strong. and sheet balance Our

months activities of Our at LTM for $XXX the with prior provided $XX.X up million, was from and $XX.X six flow year ending free million year end the cash year XXXX, To was million. cash by $XX the was cash in this in resulted quarter million period. in to June XX, million, put the of up prior. first Free balance for total yield compared $XX.X undrawn operating in revolver million XX%. our million six-month our XX% flow period context, the $XX.X was $XXX combined liquidity cash Net XX%

is Our down also has allowed the times to from a us leverage year business. continue to strong ago. and consistent X.X generation times just Net cash delever to X.X

And of in Our to quarter million innovation which we half in $XX were reflecting total financial debt an in year, have was and to debt penetration, we million, prepayments. flexibility and at the $XX prepayment. in business the $XX voluntary strategically million end growth. July, invest pay $XXX.X the the million additional drive product of first voluntary Overall, made down brands

outlook. our to turning Now

and expect revenue represents growth. X% quarter between which to be We year-over-year to X% $XXX third $XXX million million,

mentioned, a conservative that expectation on supply our As on the and continue trend we taking stand of based chain quarter. disruption revenue are will the OEM national into current third

our growth website strong better quarter record delivery That we're FUEL will solutions and this expectations. and said, of high in value trend Second but continues than furthering and in expected we the OEM revenue national expect QX. new And cycle, performed that have down seeing continued sales dealer a dealer retention our to with to our grow. customers Despite responded lengthening are our sequentially products momentum continue revenue was rates.

adjusted XX.X% between EBITDA quarter margin third expect and XX.X%. We

includes reduced line and execution as national as our and around the to OEM we margin as and demonstrated. summary, highest around in one As In driving solid margin mentioned, increased product growth. well drive business through revenue, marketing clearly value customers we have to technology expectations our to our committed innovation delivering guidance remain particularly investments of

in back debt us with the enabling and to to I'd And strategically organic call turn in innovation, pursue to acquisitions. invest Alex. like a position bolt-on financial strong pay down that, We are operational and

Alex Vetter

proud you Thank am our I and Sonia. continued execution. of consistent

by for across to our driving coming our it's In to to in anniversary clean neighborhoods the Cars.com support also addition together country. our In Chicago. measurable up business, celebrated businesses in results and XXrd June, in underrepresented local communities the hometown DNA

company, far the drive to sustainable that take innovate, expands cities communities half environment. confident and execute we're proud as in the day In year, value working industry, commitment second bringing will home as and we begin beyond we I'm our Q&A. action. town our we communities back Operator, we're giving growth, continue serve. every Our enter to the closing, local I'm while continue of profitable to the to to ready we

Operator

first with White Instructions] [Operator Tom D.A. of from comes question line Davidson. Your the

Tom White

of just of the be that if curious clarify, then then FUEL. the shortages whether Good morning dealer maybe entering a there's my marketplace on quarter. I Great. any and on bit I could retention, for third particularly dealer perking guys, did I to be core I've And us new new sales One over starting said and up question, up might reason reduced to sense quarter course correctly for maybe give quarter. looks you Inspire? you a a was a guess congrats think on maybe follow-up what the count, cadence all. thanks for that are sales dealer dealer taking of hoping like nice the count maybe the at and And was you just could got And here, hear both you

Sonia Jain

Yeah.

question. So I'll for it the Thanks off. start

of job the dealer rates our the that we when That to we've quarters. see with count. a comes far in when the So talking about over a benefits bit think understandably do sales the cycle one last strong this growing you The makes frankly visibility easier new we really certainly And about several continuing saw continuation been trend count into was was that have. it little we that massive dealer slower quarter. QX of QX retention

with some we know to want QX the to at but improvement we as QX. that. look if to continue, think inventory what along don't Alex I add count expecting lines are more I in to you So saw of see we shortages dealer expected in

Alex Vetter

grow And the the did as follow-on dealer question was Inspire. marketplace

portfolio growth seeing of solutions. across are our we So

Tom White

it was that? dealers of power more was proactive comment about talk that. a messaging the you that driver catching a doing hoping It inventory a I you seems is Thanks like great. follow-up on Can maybe factor. sounds bit for bit. there. just little a FUEL. here maybe product like a like fire And Obviously could then acquisition Okay, Also the type on pricing

to I pricing over months? for a XX direction Like next here to $X,XXX do qualify month can think think that it what product. per go like the XX was you minimum

Alex Vetter

think the industry's the And small market what strike that auto population you're that's to progressive think I realizing side represents buy audience. I really is capitalize of percentage the a the in-market that regardless are cycle. look dealers we'll FUEL they Only entering on an should is the Well, car. awareness your attacking, which time new, of actively buy

video can the big was we entering so And to And dollars of cycle. that to but dealers disruptive done are being migrate a because getting and the really I these digital first job a we're team people messages television there. of to industry educating we're number pickup out traditional in saw proud the QX. I'm saying market platforms video, on the leverage how run of auto into

the you for I obviously, level, enroll have think to the marketplace be spending on in to FUEL.

is So the that. addition an is on product still anchor top our FUEL of marketplace.

average I revenue per for per north is hovering exclusivity month. the think $XXXX our of geographic dealer

it's substantial again, communicate message. So work it the marketplace. me unlimited buy then with to the dealers why gives opportunities premium But to a or why

Sonia Jain

now to where Yeah. the think is audience, really then always bring OTT understand, driving targeted the continue terms given to our that and value of to product and question is to pricing premium product a bit. terms understand, exclusivity and sits the bit little distributing units the we the is just a in back helping platform adoption. in I a we're the audience. our And dealers can come the of add lever, value it And And in-market multiples average on, within we a of I on little more pricing, The It's maybe think of portfolio. really ARPD. our there a of your on focus product right

Tom White

you. Thank Great.

Alex Vetter

Thanks, Tom.

Operator

the comes Matt Capital. from Wegner with question of next Craig-Hallum line Your

Matt Wegner

our for Thanks for on Wegner Dyer. taking Matt is This Steve questions. guys. Hey,

One for have where your XXX. just on on on me. think that I'm penetration wonderingm QX rate mentioned that? was you it dealer Do FUEL. today. at is couple a an around you I is that's Just update in where

Alex Vetter

Yeah. we sold higher a XX%, only through at more bit I still of penetration mean, look we're our codes geographic about this a little and on nationally. ZIP

you swaths so can by the And bigger opposite. you can dealer have or a of geography far have

percentage we're looking at And innings country's early on of FUEL. in it rate. a sell-through we're again, So the of

premium subscription think at a I X,XXX potential dealer the around can X,XXX this I those audience look platform I points. to when at think volume be price

I some more that to much profitable way dealers for think, a time will cars. sell it to realize there's take just

As profits. you know, dealers are reporting record

So but a more, to the there's a growing disproportionately little their of invest bit are that hesitancy ones progressive the dealers faster. sales rates are

And some time, headroom – so room of us lot to it will FUEL. there's go on but take a

Matt Wegner

you. looking fuel the Got then the year-over-year ARPD being QX, Makes And concessions ARPD, just maybe is fueled marketplace of a of I and did kind sense. excluding kind in when by on guess, grow, websites? the at growth basis, if

Sonia Jain

across DI invoice actually DI, our growth we drivers are marketplace where the highly So product, the to continued saw credits is on accretive are at across notable improvements the and core in of all think those benefits I of improvement ARPD which business, going after marketplace, customers then seeing the over adjust most also products. so more but we're all be you some for of ARPD growth ARPD to fueled year-over-year

Matt Wegner

it. Got me That's all helpful. guys. Very for Thanks.

Alex Vetter

you. Thank

Operator

with next Citi. Nick line from of the Jones Your comes question

Nick Jones

of tools you costing users using record taking first Cars.com online questions. on and on that versus is I like maybe kind for driving touch profits being efficiency just and and guess, more. Thanks much how cars Great. can of marketing the

velocity of was down come used earth. then the growth? on cloud-based we've about which renovation, question, think, I think in will launched back of platform seen that that out how the – car kind web recently that only in come second And Thanks. enabling should line that like we products new to and to how to contribute might start cost at, the terms prices top it's

Alex Vetter

the and audience we to dealer vividly, continue first those is embracing I very peers. to many very platforms look undervalued. see Sure, digital profitability, but record factors that, outperforming dealers are believe view there Nick. Well, their long are that are Cars.com digital the And contributing

even see value form, most trade-in. see revenues vehicles to gen new F&I the and in acquiring front XX% of If frankly our secondary lead you Yet the dealer just in stand-alone are end is that audience. back convert, don't almost more systems turn sale. shopper its look attribute dealers the contacting at to have opportunities with any buy to car business vividly a represents rudimentary. selling the dealers car, our that through associated a The people tracking of inventory our a a we very Cars.com progressive And or finance, that or actually value and end, that dealers the

an on we're COVID. that's because cycle adoption of think, here accelerating, I So

call our I with cases, many cost they're we inventory groups their to engaged like, how versus digital and doing think in the the SEM. those some the talking talked fraction at they're of about inventory to more interrupt other acquire the hand. In sell technology tasks on are of trying are while even audience dealer users, who's marketing tactics a other of platforms XX about, using raising to actively

So being I the than the on past. of win adoption the to history far we'll tactics profitable right of side and aggressive model continue more dealer to here our we're think

not the And tell of about, flip most the to we're make pleased are to I'll There's smaller was our staff. question, responding product We're about improvements but it daily what that, if cloud-based have beta the way with daily nimbly much platform. second platform. user weeks, teams And working systems updates months the legacy doing in not seeing I'm took where come your together, you, really a our think to changes. post now that improvements I feedback. the pace only

our coms, and it's an and or tools had them we've that given people there look before power where technologists our we many dot like aren't to complicated was talk you product if think, I so And dated. infrastructure here, XX-year-old

to far on market. to we're now more so feel And our bring innovation in way. show we new well data the of I our think And that competitive solutions is ability pace to

Nick Jones

Great. you. Thank

Operator

question with next BTIG. of Fong from Your comes line the Marvin Instructions] [Operator

Marvin Fong

thought, about you for I I the my questions. would quarter. Congratulations taking on retailing. a conceptual question question Thank with digital lead high-level Great.

digital are an We've diligently. dealer working are retailing doing obviously I you know other roll from some retention. that, solutions out guys You on seen platforms, excellent and with job guys

your for because these are they how clear dealers, enhance solutions, they're curious, clamoring providing your happy are view might retention these with Just on in what what's guys it's rates. retention? with dealer that of products In very terms the conversations you

you So us give maybe could there? just insight some

Alex Vetter

two one, Sure, to I be couldn't happier dealer retail Marvin. Well, digital that. with the for websites to Number answers through be progress and that making enabling we're Inspire Dealer best-in-class.

our GM's program. that this see with You recognition through and participation

gotten direct physical Now of their storefront that dealers for their store. investment dealers as decades invest are -- in to what's got is two and over last the more the which opposed realizing to digital they've most

I'm so, be digital And first to platforms that more dealers online pleased shopper very and investing our are are best-in-class.

that's is a websites desire our users if model. think excited We're of more that get and what generating funnel. to the volume where is makes seeing even we're Cars.com into tool the people marketplace our me legacy dealer is e-mail leads, two I which dealers' through different we And best. generating times However, than more monetization is a are using the relevancy

vividly even companies funnel. dealerships So digital retail converting as in see subscribe Cars.com is an their industry is world system. still why what's own retail, desire towards digital very this biggest That's many inherent through more the they in people digital that to as the shifts the there's get to

larger opportunity. dealers the it are We're users want only dealers bullish But tool. more strategy solution at marketplace at XX,XXX invest And time, through move to bolsters want XX,XXX their format. come we're a towards that more think closer our our retail to as going to in very a digital to more first to same dealerships universe I so digital much in

Marvin Fong

follow-up, on a advertising. if may I And Terrific.

I think percent only or more. XX% is year-over-year, right, car new inventories it a was down yet are down my math if few

OEMs sort compared thought Just revenue. ask could could to And doing you obviously than in your to how about better actual going state you maybe update of how lot. number think able just of of with You're much the you cars are framework Are us on give us Thanks. generate now? a of to inventory? kind the conversations I'd how if the right

Alex Vetter

shopping. revenue was expected. we frankly I it. relatively and but hoped saw stores seeing And a old about strategy rethink to talked an being people about a we their at in-market people every five others audiences actually XX to I bounce notable ad I'm that quarter we trying convert. to starting shift people's are end only actively what get glad they we're of in over OEMs noted national on mean, better which in-market that dealers. I captured Yeah. day versus school think Look There's audiences is It's active parcel while really got the and And it OEM. vis-a-vis banner and small you million click bucket did dealer think just interruptive need a you the are month and think reaching people a is understanding revenue, to our they're shopping. the had we've shoppers get the part sales what the push million than OEMs to by more and only much I other vehicle There's through similar to heavy of with in we

So thinking. a was I shift notable in think that OEM

that as opportunities grow we're conversations they back, the of native the dealership opportunities as offering both now the Cars.com to about complement EV coming go to to much try experience deeper on sales think about OEMs their opposed share which having talking site within compete I and supply with are to.

shift excited in And about leading. conversations the that so, I'm but you'll OEMs to there, the have tuned really stay are

Marvin Fong

Alex. so much, Terrific. Thanks

Operator

line Research. of the question next from comes Your Arthur Huber Doug with

Doug Arthur

Yeah. Thanks.

puts EBITDA the And quarter and on certainly as spend is you conservative takes was the third of in marketing. are investment the marketing margin as What the some talked Sonia, not about and guidance Obviously, in technology QX there? the for side. anticipated. high you

So, overly if being you're I'm here? conservative wondering

Sonia Jain

for the question. Thanks No.

adjusted guide, So two really I things. margin think it's on EBITDA the

national and are be for by is production the of So to continued seeing. which OEMs that going components one QX, really it challenges is our OEM for the driven driving expectations

sequential to So the facing. they're decline to are solely expecting we there, due challenges a really see production

just very our business. we're of did quarter. being have little some our a of our in that They good products, when see appreciate value dialogues of the the I the I may one us one the this a invest As facts benefit mentioned quarter does we of pull is back having things their then the investment this little to component more our a is which when QX. our in one and think mentioned do production. are EBITDA strength have as of flow-through brand. trying mentioned, We mix. revenue expecting we it But to audience yes, allowed high-margin you last And to in be with coming are Alex facts about channels bit comes great going organic into And And reason them. more in bit. it year have And sort to things but of that's marketing are of incrementally overall of calls, earlier impact our to the really the that's

Doug Arthur

business? a to in expect which fairly kind was sequentially you of decent up be Difficulty] down QX would in [Technical spend, So at marketing QX,

Sonia Jain

Yeah.

QX We an was higher from in to marketing spend QX. certainly increase basis a sequential expecting to quite than Not it are but see on QX. in QX, where

Doug Arthur

Okay. All Thank right. you.

Alex Vetter

Thank you, Doug.

Operator

any further will closing Vetter no questions. Alex remarks. call the for are over to there I Currently, turn now Instructions] [Operator

Alex Vetter

section look I on posted present Conference with interest for the out just next to Thank much. other that Cars. at to the will how IR call. I concludes the will be new listen Automotive want of I and Sonia along website. on that JPMorgan XX. Information call our week very our And you August everyone to events Well, their in presentation thank

Operator

you today's This for concludes conference call. Thank participating.

now may disconnect. You

Cars.com (CARS) 8 Aug 212021 Q2 Earnings call transcript