CARS - Earnings call transcript Q1 2022

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Operator

Good morning, and welcome to the Cars First Quarter 2022 Earnings Conference Call. This call is being recorded, and a live webcast can be found at investors.cars.com http://investor.cars.com. A replay of the webcast will be available until May 19. A copy of the accompanying slides can also be found on the company's Investor Relations Web site. I'd 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 first quarter my pleasure conference Cars' welcome to It's XXXX to call. With Vetter, me CEO; Alex and Jandy this Tomy, interim morning are CFO. quarter, discussing in results detail along outlook. from start our XXXX greater business our will will discuss by our Alex first then, with Jandy financial highlights Q&A. call We'll finish with the

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

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

For in please to Web annual, are forward-looking included of IR the our in update statements. risk and section SEC available current more factors our refer no obligation those which We assume reports, the quarterly including information, any to on site. filings, our

to turn I'll over Alex. call the Now,

Alex Vetter

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

and a Consumer as remains and muted outpaces strong, has continue grew the quarter, X% resulting compared new of respectively, brick-and-mortar used in and for vehicles market dealer led continued momentum the production record an revenue soaring dealers our inventory-constrained total solutions. first driven conditions, other and ongoing revenue on the XX% chip year. Despite in increased listed XX% to the retention, operating shortage. prices was environment value compared Dealer quarter. industry-leading remain average as used to demand Our OEM new product prices year dealers. continues, digital to national growth retail and adoption, prior new supply growth, customer ago, Cars.com The and revenue increased the that robust has by the for also cars, revenue. and retail impacted adopt elevated X% current for for on and and used car ongoing first This as robust. profitability both a of in to cars Sales hand, result

highest consistent us the more fourth with growth, impressive Our have and to the years and last in U.S. customers, tremendous three than XX,XXX XXX to the in dealer resulted XXX an count base compared and still increase reaching is dealer our grow dealerships XX,XXX quarter. value compared delivery we in ample room year This over to

invest of to and engage points more dealers with cross-selling are continue solution Web independent, marketplace, digital to Our additional reaching fuel inventory our which and ARPD customers solutions spectrum dealers end. retaining to with success of and underscored site we across customers substantial despite Dealers targeted consumers, for Web our bring continued creating of innovative solutions This both solutions site add journey. provide find by X,XXX ways recognizing the digital quarter seek the buying network wide the to franchise is is exceptional growth shortages. also in expanded to core who a value solutions our impact our touch us car platform. attracting and reflects opportunities along growth at ongoing the advertising our in

high-quality competitors. vital of sales is efficiently organic dealers. traffic marketplace We generate our and from Our to consistently the more success consumers than

content shopping driven strong timely that relevant by most brand, unique double increased year visitors our quarter, the a compared original the organically, advice our quality and of largely to covers traffic leads to consumers. majority And the to digits our dealers consumer comes car and us and X% For our the grew consumer ago. of for experience editorial

re-imagined our a Cars.com with we prices, elevated interest traffic recent functionality funnel. in to year-over-year page, to car nearly prior content due incremental hosts surge has launched buying expertise for searches to record gas vehicles our in Google's our XXX% March electric and purchase generated into high XXX% on traffic over a enhanced deeper This up search and EV guide shoppers landing page which in new the and the landing EV-related our marketplace comprehensive are results. guide, in search SEO electric for With editorial Inventory EVs delivered month. increase the nearly

country's EV #X this America. has quarter, Good week Morning exposure on expertise attention significant national including media morning spurred Our a long show the

Our QX Popular live. expertise of answer live questions with EV editors stream their where consumer installment in leadership our the and share continues event second our

connected continue platform Convention, our on marketplace empower and rare Michelle's using we our our As to of the which solutions, manager our "Cars.com of dealers Cars quote, enterprise together, including total it our XXX strategy. just winning evidenced using In brings including them had of Dealer show. recent I the all solution, Accu-Trade. great Fuel business, is their very and traffic-driving content we editorial full leading Dodge across testimonial leading the dealership." days, sell efficiently that at newest for strategy, sales to Cars.com, Scalise, it's NADA more three making don't platform. Inspire, knowledgeable solutions, CreditIQ go-to-market development suite DealerRater and trade technology industry's demonstrating our everything cars and and of by and a to leverages closed We such is easier our full for and We says, our Security solutions car Ram value Jeep success a nearly run Chrysler the suite from scale OEMs Michelle Amityville our Michelle business customers New delivered business. products executing from and She York our customer. and industry-leading appreciates value one are the Cars

need in begin is larger the dealer will biggest which revenue our current second into environment the acquisition. our more recession quarter impact of was have dealers to inventory to far, more solutions, in our By strong that seamlessly constrained suite with wanting and and I'm packed with XXXX. new booth learn launch the about digital in performance Our platform. integrated than pleased solutions to vehicle a are our

Dealers So it from power set with and ranging second help them help was help surprising to our appraisal our Accu-Trade, multi-store ease. sought-after inventory March, store are began valuation of we and the buy solutions them data solution wasn't pilot to them efficiently with end-to-end our solution valuation capabilities We're equipping vehicle right and in and drive to a and expanding cars sales. single with In are the solution value that digital interested source extending solution. acquisition a the to markets piloting select program this most the operators during dealers much-needed of in quarter. appraisal

NADA. industry, stages of CreditIQ, solution, the drew are from early are financing, seeing in but household interest demand at We're Our and in the strong incremental technology to also XXX Dealer excited finance larger who dealers use an audiences. financing auto names Cars.com online of plus digital The million power high Inspire million site. our to visits to audience end-market strong with in across visits our Web platform reach is intent XXX our

I'll expand I again, I line the Our addition call updating want turn you we the CreditIQ, to how Jandy. opportunity once to pleased these am results of with rollout In delivered and and Accu-Trade on summary, continues. expectations, in now look solutions. over of we and with our continues momentum the reiterate to that forward to

Jandy Tomy

X% the Revenue result the a impact to continues driven Thank dealer customers X% $XXX The grew a to year. totaled increase prior ago. X% year $XXX by you, rates compared Dealer million, Alex. ongoing and million retention X% growth was I'm start solid revenue as in shortage from pleased year. solutions. ARPD in our digital of further inventory to to with our national customer which and and our growth strong revenue, adoption XX% of down a OEM

that this fourth Despite with until the rising begin inventory of macroeconomic solid growth. headwinds diversified to deliver we'll year business another inflation interest car model of rates, New expected year. is quarter inventory shortages, us to gives our and recover the associated confidence

increase for $X million $XX OEM and million or product to the higher for CreditIQ a to quarter, Accu-Trade. $XXX totaled including of basis, million and and in of of at higher return operating integration costs, compared per marketing, revenue and share EBITDA primarily On prior year business. were year. for total well Turning driven operating year product This to the compensation to higher our delivered including range. $X.XX the an to growth national the diluted increase adjusted and million income to solutions ago. the as technology higher expense quarter NADA lower an guidance $X in a within the in-person were expenses $XX by is million, million, per million due reflect our quarter Margins as consulting Net expenses addition an adjusted $XXX $XXX or expenses, mix, share, or compared diluted XX% We compared ago. $X.XX our the revenue

is evidenced by at end. we key than The dealer the underpinned more dealers, customers business strong years. dealer by growth XXX This XX,XXX dealers at deliver our in to number in putting turning us our of customers is Now metrics, fundamentals. of quarter retains highest attracts quarter, our and value three

to Our Web grow. site business also continues

XX, XX% and quarter customers. in consistently for site customers, for high-quality traffic had ago. OEM dealer delivered we something XXX March solutions unique year-over-year. up products. Dealer and of As X,XXX ARPD growth total from is Web our grew in by year-over-year, the driven grew X% revenue Generating Inspire fuel a year digital we've our

visitors unique which XXX.X For down X% had visits. while we UVs, and was our traffic represents We million monthly year-over-year, million car average best the first in-market grew shoppers by quarter, XX.X X%.

our dealers value More delivery our leads We year-over-year. XX% grew was up. to importantly,

despite this, of XX% more down year-over-year. All levels inventory being than

operating million and free to primarily quarter, than last current first in we $XX tax refund the was quarter received $XX last year activities the a related in lower by due cash compensation the This flow and the was $XX year the million, decline that year. million period. quarter Act was CARES higher For first $X provided cash to payments million cash

cash borrowed of year debt X.X a and million the on given X.X cash our range end with slightly purchase we During fund resolver total $XX times million step-up in resulting we And times, to with X.X and on ago. at target price together temporary this funded to is generation. strong hand, the consistent of from X.X M&A, leverage while our X improved are above leverage our of Accu-Trade, times quarter outstanding Net comfortable upfront $XXX net of quarter, times.

and capital at and $X strong have total revolver authorized sheet In began a buying on for March, million returning million modest share recently million. our With first of quarter. We the $XXX our made under shares was we net the XXX,XXX the total shareholders. end our leverage, program liquidity purchases of repurchase to available balance our $XXX we

as continuation the our Now turning have X.X% first-quarter million, lower This reflects the negative will between inventory to growth XXX and to well of we further expect X%. performance industry-wide solid which our continue revenue to incentive guidance, deliver our of delays in mute new to OEM quarter, a as releases year-over-year for the impact This nearly shortage, on $XXX spend ongoing growth. second environment production low national representing and revenue specifically. and model guidance

experiencing our are this record dealers time. inclined remain OEMs shift during to budgets and dealers and increase advertising While profits less are rates retention their strong, or

growth We our our out ramp growth products. as our newly expect revenue we and roll and products to up year subscription accumulate, the acquired accelerate throughout in

reaffirming with double-digit in X% fourth revenue growth X%, are full-year We our quarter. the and for expectations between growth

consumer on shortages in buying spending does behavior not a worsening fourth quarter, inventory assumes guidance Our macroeconomic environment on and solutions. recover and dealer and impact the products have the to car begin

turn reflects second as impact well growth, the conclusion, as as our and particular, and lower positioned Our and the Alex. is that, focused connection dealer expectation with our to year-over-year on accelerates projected remains growing expenses we revenue to mix this with and EBITDA invest higher integration to and begins in in EBITDA recently delivering growth our for recover our acquired expected our I'd XX% margin value team inventory. call the for adjusted to and revenue solutions With and our to revenue XX% over of back the including the during Adjusted by our customers launch XX% in quarter like environment, marketing revenue as of margin quarter in revenue macroeconomic approach people, consumers, of continue to business continued fourth execution national OEM to well shareholders. In to solutions. is challenging OEM

Alex Vetter

rapidly preferences. begin our in consumer you, platform enabling by dealers Jandy. with in And progress that, I'm a to Operator? strategy, better pleased and that's advancing with Thank driven our OEMs to Q&A. industry our we're compete evolving ready changing

Operator

The of Dan [Operator the first you. comes Thank Your Kurnos instructions] from Benchmark line question Co. of

line open. Your is

Dan Kurnos

the you on things, environment. conversations, couple at result just super comments morning. of just I customer you've made, especially Alex, Good be it's the know thanks. about Great, this acquisitions positive, made dealer Jandy you're NADA, in environment. growth, tough nice having early with it's a pretty just were May the

So, I asked thinking things? you I feel lot, how but this are especially important it's about like a now.

things think you some now, bundling, locked guys in commit? know about thinking you're side. like on are testing I Or CXB the trying right how get and piloting to to doing I longer-term these especially

strong think a how it to strategy kind help the more just to in maybe and see, So that momentum you us through robust light and the you that dealer just of quarters to here over backdrop coming of continue the the evolves offer. now trying be have product

Alex Vetter

point, add the to people us your we feature quarter dealers We call who our of from to see the Good pleased hear platform growth continued a range to Dan. because, solutions voice. to got suite a the level were very the opportunity Thanks, and of in full with Sure. like your solutions. with participate that start we've in to enterprise entry across dealer

think gives relationship the grow over tremendous flexibility time. so, and dealers' individual that problems And to then us solve I

dealer more that active You're for in share. them talked all we've acquisition seeing that lenders both On that Street. eager discussions to these better strong brand-new ARPD at from look for out to TAMs the solutions us. to every opening with with our are sold. in now When who keep on help And we've cars we're can compete the tools help then, I up in is vehicle get CreditIQ, opportunities how buy the will U.S. been are mind, in side, able CreditIQ, adding interested large market figure that they and Accu-Trade in

of think we're grows the question so, with less wide long-term winning then opportunity that solutions we're quote and us And And ARPD. certainly, focused I I trying on service. cross-selling opportunity customer that because into winning need, net lock dealers on knowing we've gives say with about meet contracts, We're the a to would your contracts. value, chosen

win going going our delivery keep Our what but And we're solution that's I philosophy Web to continue add see, them value to grow based these site with service products is our delivery. and lead want on sales to to and capabilities. we think growth. innovation, dealers to are now you new double-digit

Dan Kurnos

you're sort there's this Alex, of in hesitation to just the from these And that communicate, trying to clear, very even having be basically the conversations the no uncertainties environment, obviously, though, front, communications. still macro given you're conversation, constructive in

Alex Vetter

No. Yes.

first are well, their -- we all, are that shift think profits, toward know I business aggressively eager tech. also to record of reporting dealers they and

the limited fuel tech. this eagerness their think in on environment how fewer any run it's relying side, other they they on there's I because resources, inventory. But broader and can dealing on dealership been things an like marketing is strategies with such if Technology with are there Solutions softness, about

are so that would are OEMs right have don't they be product and the obviously much. which doing to think areas now And as I only push so, soft us not again, for

Dan Kurnos

the sort just as Got year, understanding just the on of are you guys Alex, tricky it. of we macro, marketing kind go forward And investing. the front, throughout again

got bunch is 'XX. now, to stuff a for invest You've telling of think which against I very

how you that how coming TAM EBITDA maintaining environment going you of the depending healthy of sort Just quarters, of talked levels expansion sort versus after the over do the kind balance evolves? about on

Jandy Tomy

which we've that Jandy. here bit It our focused I this use results money cash of to profitability people marketing company on year into with tremendous Dan, we're back back right? into as a that's is us so continue and things strong these But it's seeing is which guidance consistently well putting question. flow of So to expenses. and acquisitions, across we're business, flow. be this you're business a great invest and generating. It's that's you our we we gives about the is with our it's as the mean cash our the operating year, given a end, can right, one rest into the great in that are into quarter see very the company options, a numbers what we've lot very, the our for more cash been a little -- obviously, of flow

mix And we're certainly, the So, as into it's mindful back revenue a cash changes, balance. constantly the impacts looking to the of for but business. growth we're investing flow, into

Dan Kurnos

a And Got year. the Thanks start solid very it. much. to

Alex Vetter

Dan. Thanks,

Jandy Tomy

Dan. Thanks,

Operator

line of of comes Your from the White D.A. next Davidson. Tom question

Your line is open.

Tom White

super the about guess, maybe the more and that should getting you. it's a levels dealers Thank of follow-up digital consumer at behaving offering guys. about kind trade-ins there little dealership. period but differentiated off, growth maybe platforms growth sort business just kind of that business? normalization How solution early, there, bit Good of -- a I little a do when consumer Accu-Trade to Alex, morning, to inventory sort of happens? they rate I'm is of like sort I forward inventory in bit kind from see anticipate once of and we Accu-Trade any competing I you first of you know rate looking could start traditional more like start some of the guess channels a how And I the normalize the of other of used out from that there? still kind local as guess like talk the

Alex Vetter

third-party various here. trading. mean flash us all now Accu-Trade of widgets in dealerships that's partners, spending, develop cars, source or to with helping in some their in different our I Tom, proper couple pricing Well, and analytics the on vendors trade-in on at or basis. at from are dealer-to-dealer that to five for dealer any trying $XX,XXX cases, we Accu-Trade variable tools into examples. that, dealer bring we cases, Sure. a our excess frankly, fewer suite vendor that through get particularly model allow go-to-market into time. are have three can number many together But an -- intentionally the them a being are we whether on a as an Web pricing pilot certainly suppliers them disruptive site dealerships believe somewhat to enter because and do But to a dealer them strategy providers, different enterprise is see network. as a we're wants in pilot services subscription from does, they're network obviously, smaller you right And month We of tools to on can we look I what things bringing a these given if and of well, we do go-to-market opportunity

strength mileage when as I than, of generic VIN-specific up we -- don't tools a a really look at it backing that offer guarantee. make don't They down the a market. things, valuation few type Accu-Trade with comes capabilities to rely the are far think we you third-party certainly, model more in And such inspections. is valuation the precise trade, say, on

stores, to their they in buying online, things them using this, we've it of across in but Software-as-a-Service one dealers are as not channel. of and where narrow lot we're service do any using their type know a without aren't friction we're dealers And physical that Accu-Trade business are and buy lanes cars that the a helping whole it enabling So, got doing seller. them their between just model in

Accu-Trade. we but wouldn't quarter the next this about more of dealer reason pilot, reveal country hear the in in success our to no every want finding some that going we're there's stories as You're

Jandy Tomy

value something right the can behavior in change can the that a impact reason dealers no the trade-in they Great -- right, form. continue dealership, is it reason car And on vehicles. if This change at and value Accu-Trade forward, is to to buy use looking in going point. the environment to the are they there's spot vehicles, acquire that use the that to physical further properly to way point, in no consumer would

Tom White

the just whether quarter? And Got you ARPD then, if quick apologies comment listings guys Jandy, business and this, on dealer did thanks. core it. I count missed appreciate this I but that, a for grew follow-up,

Jandy Tomy

did. It

Tom White

Okay, terrific.

Operator

question Truist. Khan Your Naved next of the comes from line of

Your line is open.

Unidentified Analyst

if guys. question. the Hey, may. for for on taking Naved. is Two Thanks This [indiscernible] I questions, Vincent

we've inventory the thing somewhat inflation dealer signs So appears be price that settling first approving some to of seen down. and

expect how the by the margin time? new So, And how dynamics outlook second, confident to revenue by year. these recover for rebounding on over spend do XQ, latter-half in you OEM approaching the of given marketplace expected the levels inventory XX% try to ad EBITDA are the into car you pre-COVID now then, growth

Alex Vetter

even flush. levels still but inventory of I Sure. interesting, those what's side, dealerships cars relying car are levels you to know tech the Well, acquire inventory that first are have all, healthy look very inventory, on and massively, used robust business if down of new think the car particularly keep at those we on and do levels remains

I used the levels. model subscription to even inventory car down, tied though somewhat our think is pricing is coming

dealer strength and inventory. few our are just inventory So, ago of is last are lower had lower that have most rate additions than, a we at actually good in subscription year a levels coming at we the because they quarters the think were much say, ARPD over overall quite considering we've down

even ARPD, dynamic. to that grow levels increase, somewhat being stabilize and/or as helps tied so, just it And inventory

I let your part the question? is comment opportunity think the Jandy -- for I'll us, second on that of obviously,

Jandy Tomy

year-over-year directly absolutely. of Yes, recover to and the to necessarily to to not outlook worse. certainly asking, and from year margins From I perspective. we it rather year flat the back the OEM XX% expecting revenue Well, Yes. reaching tied the an you isn't be the a end were margins the returning by end mean are perspective of get growth. by

growth year-over-year not perspective. of rather the and of year, recovery the more OEM flat a by assuming a we're end So, in massive from

question are dealer a that a ARPD and just though. -- asked solutions to point, on count Alex's the put -- components marketplace, grow to the And the point a that. then of perspective, growing from at little So, ARPD, marketplace. from that and there's a in drove really the said growth. and lower The Web a being the year-over-year Like from It's year-over-year. marketplace, pure was core the just then Tom little finer did ARPD core count his of site inventory fuel and subscriptions perspective, several bit business bit the right, I growth, There down rates, there's think and fuel there's year-over-year. just dealer that other at marketplace coming marketplace dealer was of from Alex ARPD down levels was dealers it, bit end new down solutions a about the

to So, clarified sure make I wanted I that.

Unidentified Analyst

you. thank Awesome,

Jandy Tomy

you. Thank

Operator

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

open. Your line is

Doug Arthur

the Yes, Inspire thanks. clarify, listings attributed, ex as Jandy, saying for was ex just total bit down new to core ex-Dealer you revenues, Or business little year-over-year? solutions, are ARPD down? as a the was well fuel, that,

Jandy Tomy

I don't that to broken look know don't that we know way. because it answer You what? the at out actually

You actually, no, the Marketplace, by was up. growth. was here is. just know it It solutions year-over-year, the driven customer core up

Doug Arthur

listing customers said, that if caught the that -- lower coming if guys mean I marketplace believe, I I you Alex, dealer because price. a correctly, are core you new Okay, at in

So, solutions be in adoption the new that overall reading a of up Is pretty you're given ARPD. strong must it? fair

Jandy Tomy

growth, it's rate, it's lower coming the in count Well, revenue. dealer though even customer bringing at customer a alone, in just incremental still right,

that combination the year-over-year. yes, growth leads question? of factors So, those revenue answer Does two to

Doug Arthur

Yes. Yes.

you of year, the you the to at back -- going just as here there's what lot the then rest And given variables outlook, mean, I a of do your the that feel -- margin for fact look in demand Okay. flexible where expenses, of or you you much in? how depending expense, flexibility come you marketing, have modulate what's feel how revenues do on how on some expenses do these particularly

Jandy Tomy

one mean of question. have It's fair different business. flexibility areas Marketing the is in I certainly a we example.

proven operators, softer, talking coming that are especially lines back revenue curb ago strong there we did to, COVID, you we spending years some try to the to I'm be but are to look go if areas when other think I levers in pretty that certainly then. can -- two to about back pulling of But we've mean, I not

Doug Arthur

you. Okay, I it. got Thank

Jandy Tomy

Thanks, Doug.

Alex Vetter

Thank you, Doug.

Operator

[Operator from instructions] comes Gary line next question Prestopino. the of Your

Your line is open.

Gary Prestopino

questions of Jandy. A talking amount here, good deals kind Or most of -- you, deals were your dealers business point for did Thank XXX Alex up those goodly you're you sign a it? you also NADA, in morning about marketplace all, of new when of nearly and wanting closing couple would solutions? looking get at to first of

Alex Vetter

were Gary, us Well, to but It there dealer absolute Accu-Trade. run the sign-ups with the the of was they that wanting participate board, majority front. were with across an home on

And so, getting the the up all dealers enablement side in now we're as the of running. production and initial and all beginning those pilot those QX, orders

Gary Prestopino

that up most were the -- were across we're Was mixed Or of that independents the signing was dealers Accu-Trade board? for the just it franchises? versus

Alex Vetter

a dealer tenant do It's for but almost show, all have big franchise. NADA we are operators largely is that interested franchise sure.

Gary Prestopino

Okay.

to product or the product? the using So, dealer does it dealer long you starts from the out take to and the CreditIQ, Accu-Trade you either roll for for actually time that sign these entities how up the

Alex Vetter

through our turn existing the Dealer or of quickly, working details. through particularly it any fairly in-house, because solutions. side We're can information all already a either those of Inspire on We of the lot have digital we dealers'

just start delivery -- It's dealership solution. a totality little the to really time. takes But the revenue I to is bit in-store are tech Accu-Trade. their the in quickly. embrace get that to use the get process value lanes, of service wanting certainly, appraisal dealers operation more the fully requiring recognition that's for and more dealer their them appreciate think even to for trying time a and little we to whole can

Jandy Tomy

of it's sure really they kind fully appreciate make So to training product issue that a everything does… the

Alex Vetter

Right.

Jandy Tomy

from difficulty] enjoy the So, it. all they can [technical

Gary Prestopino

going the and if really they to product were Accu-Trade Would a were cars to source up signed have from or dealers that consumers? didn't a you that know competing for these double had dealers product source

Alex Vetter

widget is the dealers Certainly, sourcing to value is tools Well, Web site through Gary, a integrated that interface. are on and none marketplace. obviously sales dealer think one they're things there, that do will their solution or answer the of With all vendor country that Web part from through And our matrix a of or source both various using today. multiple either technology, through various like from their leads do I do can tools. so use both buying a type they'll site, they a one the third-party because across have for third-party Accu-Trade, those a

And can far on, my less I site I my from own a actually God, to buy have easier. oh, so, lot time. it's Web from reporting, things dealers and I can people cars Cars.com, initially directly of train save and

no we addition replace will So, I use. think reason solutions to a but they also there other that we can't of do lot existing be is tools, in that

Okay. back you. they back marketplace when to wanted to I point can this you, They to said, And buy because be tell Or dealers a you have about and won don't. solution? Accu-Trade. lot a sell cars But of customer let's to They Accu-Trade? them sell a get already now we the as we've well just use they can then marketplace do onto Accu-Trade, heard marketplace because from and buy the as will

So, as well. that's nice positive been a

Gary Prestopino

questions, get a then, of And more I off. promise I'll couple Okay.

consistent marketing, of at those Just whole quarter, the as operations, year, percent the Jandy, terms expenses G&A. revenue sales a of throughout levels in going look technologies, terms a as are percentage and in as in to pretty be product much we of of the sales, sales

Jandy Tomy

perspective, of also So, the down year, but and the elevated we more owned marketing and because in throughout will a trending NAG. only each than we dollars year, -- of still tech is little for Accu-Trade quarter come a bit a is look Year-over-year, still bit the you be we're a of to month. It's it you QX. QX see QX, at if one because did rest bit. simply lower expecting than it out frankly, spend from is Product that. kind last will sales light But in pure

So, going Stock-based of being there. stock-based bit kind it to at the more a Accu-Trade into of comp bit. this see fully little employees look you for comp. go then equity brought of year, the rest a program We in is year. a have to the step up you'll G&A, without little up And actually

of kind you But G&A normalized of the stock-based and year. be is probably without if will comp rest it stock-based flattish the for So, at out. comp, look

Gary Prestopino

share Okay. repurchase. just your on And then, lastly,

Just the of buying the curious, had you stock announcement on XXX,XXX only that out in repurchased left after was you quarter. you or Were locked your shares leaving?

Jandy Tomy

of set the when we period. do And -- certainly in have opportunity we windows. cooling-off plan timing trading the the put to place, XXbX-X have restricted a XX-day needed of We didn't they because a have up

part reason that's beginning of why the were the toward concentrated of the month. kind of the shares So,

Gary Prestopino

thank Okay, you.

Jandy Tomy

Gary. Thanks,

Operator

the call Alex phone. other no back to Vetter, are There CEO. over turn I'll over questions the

Alex Vetter

rest your of Thank interest you Cars, week. the and your enjoy for in

Operator

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

may You disconnect. now

Cars.com (CARS) 7 May 222022 Q1 Earnings call transcript