CARS - Earnings call transcript Q1 2024

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Operator

Good morning, ladies and gentlemen, and welcome to the Cars.com Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded on Thursday, May 9, 2024. I would now like to turn the conference over to Catherine Chen, Vice President of IR. Please go ahead.

Unknown Executive

Good morning, everyone, and thank you for joining us. welcome the to Inc. pleasure my you Cars.com to It's

discussing this Call. Alex call CFO. First our from financial by along will Conference the greater our Then me first Alex business morning quarter. our start results Jain, Quarter XXXX finish discuss Sonia QX With XXXX are with Sonia We'll highlights Q&A. and Vetter, will detail, in the with CEO; outlook.

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

will measures adjusted measures today, operating to the We of free including margin, net non-GAAP the to measures included uncertainties. adjusted Reconciliations the appendix EBITDA and directly can tables earnings most income release adjusted discussing be expenses, cash forward-looking in Any certain risks financial adjusted non-GAAP subject financial flow. presentation. EBITDA, found be statements and financial press GAAP are and of in our with comparable our these

more recently forward-looking no risk filings, website. our section assume please our in included update is to those including in our most SEC of For to XX-K, on factors the refer We available statements. IR which obligation any filed the information,

to Now Alex. I'll call turn the over

Alex Vetter

Investor quarter like And Thank thank to our and have our also contributions you, investment call. welcome I'd everyone XXXX Robin Catherine. of you We're for excited earnings like engagement program our to our guiding last the to I'd to Relations the community. discussion leading first X shareholder to platform for her over strategy years.

national and We X% with and quarter products with suite year revenue was dealers our profitability solutions our adjusted dealer reinforces the and growth driving and pleased per growth. of inherent sales. strong strength OEMs. our year-over-year cross-selling this First track of our We're margin consumers, of the X% that we're double-digit OEM buying simplifies strategy, successful brand, car and and for of platform EBITDA across in selling our revenue up year-over-year, starting record of and of increased disciplined grew reflecting adoption growth our XX% Average

of QX achieved growth Our was platform drivers. steady strategy key our through and performance execution

Over years, first engaged our only and also expanded us transforming market quarter software with and by and market-leading but that added thoughtfully strength leading cross-selling several solutions platform our marketplace the audience. digital solutions results we've diversified addressable deliver This to commerce cars of multiple not powered approach last broaden our OEM relationships, provide growth. the ways

sales. top vehicle growth years, more proposition as We traction leverage to efficiency intersect expectations, deliver this quarterly line for potential solid best with maximize drive our operating X tailwinds putting macro in us see over footing momentum to that and greater on to even and our achieve year we the advertising value full

growing latest was efficiently launches to XX% looking Reaching Turning supply partners from cars. car to investments our benefited products. solutions. interest nearly to to in report. and according XXXX XX%, Industry them us model inventory is new connect help our OEM their in-market are and no an therefore imperative with our that It's more showcase shoppers new surprise Insights market-leading up OEM national to and our recent growth revenue renewed we in around from year-over-year drivers. consistent our strong incremental buyers in up In upfront and OEM of high-intent dynamics seen that light have normalization, OEM-related sales

solutions advertising quarter. products platform. increased in investments the Approximately of multiple across and during investments These our OEM X/X aspects marketing and of customers our first manifested

search results. on to marketplace up traditional to directly via and QX years. homepage consumer takeovers our models that advertising the lifting complement in be manufacturers as rebound the show Cars.com For helped promoting sales example, to vehicles to for EV-only product X highest continue media level new OEMs in directly also a in interested

momentum spending I'll are conditions another business. in up of by to QX note response positive which that and the also nicely signal commitments in market incremental were for earmarked real-time OEMs,

We drive ended expect that with and that OEM dealer the same over can the differentiation also sustainable growth full we solutions is customers We QX dealer time. growth XX,XXX customer dealer our attracting remain for customer investment renewed in confident deliver year. will

sales highest marketplace new Our reaffirming level reached in platform years, X strong value. the our

attrition pressures. anticipated, experienced we as cuts the they profitability also by some temporary However, sequential adjust modest related as dealers to

in focused conversations making proactive other already on progress. accounts, April, with Through improve we're further we saw these and retention and

than For of vehicles to the use QX, Cars more Accu-Trade, and the And can will and Germane, through the those vehicles appraisals. had grew cross-sell In sell who customers help faster while that month XXX high-intent continue brands to operations generating Dealer Florida, that also each accounts market drive. grew to Accu-Trade for be during commerce X,XXX under auctions retail their both new acquire our them impactful growing we industry-leading levels. to great a expensive service on Toyota just Network time, need customers, buy customers. and all The Inspire which quarter, approximately our returning we buyers. simplify XXX,XXX ARPD. Media success leveraging turned and At products multiple saving cars creating fees, platform go Dealers and travel also Naples, products their over to Commerce given average, adopted XX% Accu-Trade to rising their inventory efficiently inventory and especially year-over-year. team of experience product eliminated while auction transportation has costs connected

Accurate these our XX% valuable market, Canadian accelerate subscription products. has hard the experience penetration of more website front, customers. team to to we end grew in powering than On DI our is quarter, working the and across the into X,XXX These websites digital DXC TAM year-over-year expanded and

Performance Media also early their increases is promoted website with inventory. and Moving transfers a to seeing products. interaction media Vin start leads, in to promising off significant adopters for

but also model advertising aged the powers channels our media audience right in-demand in-market targeting against move Our inventory. bin only features shopper machine learning right like proprietary the when across not to matched to promotes

tools highlight to More OEMs. marketplace of most large performance I'd than #X ownership continue vehicle recognized the a XX QX marketplace, our to finally, million to Cars.com, and enduring like their to in the at brand, monthly consistently average their They dealers us car which And which market consumers shoppers rely visited delivers traffic unique affordability budget strong engaged and to capture marketplace Building XX for for drive innovative audience Cars.com best keeping the and an our new repeat for and consumers and been of use they also increasingly our new lifestyle. to has connected on in technology vehicle. them hub, first on your to more to Cars.com strong audiences right the like the through resource journey. our garage to hallmark shop car content steer to years, quarter report our and over relationships organic research find Consumers during trust scale. in-market we're committed delivering with and like

closing, us meaningfully platform strategy the profitability focusing first In quarter. high on in advance our revenue road growth product our and help to map, improved single-digit accelerate

working pressing well-rounded strategy addresses Our needs. as sustainable propelling with intended, most and is growth a customers' that product our portfolio durable

to selling do we as buying ahead, opportunities We have think for we're simplify and immense excited this we car can show what business you everyone. and

quarter of financial Now first results. Sonia lead will our the discussion

Sonia?

Sonia Jain

levels. revenue above an seen year started was quarter, the $XXX our across quarterly exceeded the year-over-year million, We OEM strong guidance revenue Alex. compared million national that OEM revenue product the and over from of X prior amid repackaging, and slightly all national in We up solid revenue from DXC the $XXX delivering categories. rising as were you, X% grew Both growth up margin and year-over-year to over year. Dealer growth and was benefited range. million, years. growth product and OEM revenue continued acquisition and awareness the year consumer X% to footing, an Revenue continued the to by they EBITDA first we've prior on $XX raise best penetration. Thank seek additional increase investments contributions dealer driven adjusted XX% and in inventory

turning expenses. Now to

operating million total we year-over-year augmented features, back-end Product were expenditures portfolio quarter, expenses marketplace compared as ago. technology million enhanced $XXX our $XXX increased our the in invested million and systems. $X a For and year product to further

our As GAAP. as in the expensed associated compensation under And $X.X it acquisitions, deemed was a expense with through million primarily earnout we runs period, reminder, unlike G&A the the other DXC earn-out. associated earnouts the with

million products amortization. increase in the period Adjusted than to operating same technical $X million, in And higher $X our and year, primarily platform a related $XXX the software to and talent were million road map. depreciation expenses last aforementioned investments support and

income the year. to the income elevated Compared was $XX.X is per the contingent our was I'll The or in or diluted our Net $X.XX for quarter acquisitions. per prior our change with acquisitions. net net diluted associated QX outsized earnouts primarily also of to $X.X to share million share. $X.XX income in fair comparison, in million change XXXX in note, in the value consideration attributable due first

Meanwhile, adjusted $X.XX or the compared a net per million quarter diluted for was $XX.X ago. or income diluted per year $X.XX $XX.X to share share million

$XX range. strong Adjusted points pleased margin of our adjusted exceeded from nearly EBITDA. of basis while flow-through resulted first to was which X/X We're of margin of quarter year-over-year adjusted million, revenue EBITDA the EBITDA the our for guidance XX.X% with expansion our growth XXX

first positive new expect these response growth budget to on slightly the BXC for ARPD dealers strong the packaging to are total metrics from Unit cuts to from our strengthen ARPD value rate quarter, ended we as to temporary to down by customers. reached due we back contribution key accounts XX,XXX Moving for full grow lower proposition. expand profitability. some win what year quarter-over-quarter and X% Nevertheless, count and offset work up with year-over-year as declining customers. We Accu-Trade customers in continued we partially based to into QX. quarter believe dealer $X,XXX by economics

keep accounts, improve time ARPD customer to higher across over believe as dealership. ramp do accelerate tool We're overall tier it time the additional to us for While and it in this curve is strong, exploring growing learning delivery. the their [indiscernible] for next retention scores several satisfaction through over enhanced sign and are new up existing utilization to products we quarters dealers does packages And implement cross-sell opportunity customers future. our we significant and ways the take marketplace of near actively expect a into Accu-Trade and

at higher million costs flow adjusted improved turning by EBITDA $XX strong Now provided our favorable offset by Free operating driven onetime year-to-date. million, of $XX capital, $X sheet. cash cash remained by roughly year-over-year, working primarily balance and activities timing and million expense. partially to interest cash totaled Net

repurchased During first $X.X we quarter, the XXX,XXX million. for shares

equivalents also and to comfortably and debt X.Xx, reduced our brings March $XXX outstanding million down leverage This repaid cash of range million, and last $XXX net March revolver $XX total we to total as year X.Xx. of XXXX. and of target to including million of of Altogether, of our $XXX $XX as We XX, X.Xx XXXX. liquidity within XX, million debt from X of million capacity ample have cash

our in million loan we transaction. discussed our loan neutral also in As maturing and balances at the release, borrowed new and a earnings on $XXX revolving revolver eliminating leverage maturity new current amended existing the required May a $XX facility ahead current million We need date. credit recently facility term revolving any extinguishing on term effectively for Replacing the our in both XXXX. with the outstanding clothing, amortization of loan,

allows bolsters return financial or or our returning growth, capital, separately us on million through $XX capital and organic of liquidity acquisitions all-revolver structure best through to the flexibility, pursue whether additive to incremental This shareholders. adding

deploy flow cash shareholder our drives to conversion, strong look We capital free in that incremental a and enjoy value. manner we'll

Looking our our remaining debt. we committed under share will repurchase remain authorization continue and paying to $XXX of buybacks also million, down we ahead, will

related we to additional anticipate addition, QX certain making payments and earn-out In in acquisitions.

guidance. in-market X%. environment continued shoppers. the as reflects year-over-year of also increased their growth and quarter OEMs advertising driven in more deliver X% with conclude adoption Dealer dealer strength to that Inspire expect range and sales of expected $XXX increasing what OEM we In accelerate, our revenue like products million competitive national directed $XXX a from perceive now we growth revenue, million. necessitates marketing in to and XXXX, I'll the of by to Accu-Trade. to of second to revenue or is benefiting Guidance

March As revenue QX of in began a guidance year's last reminder, benefits XXXX. also from repackaging our initiative, which

at We as points XXX guidance second adjusted investments timing certain additional quarter deliver reflects margin support of the our year-over-year investments between as product This initiatives of to expect brands shifts the to and and midpoint development from XX.X%, first the marketplace expansion EBITDA quarter to basis second range. quarter. an the XX.X% of well

to well X% updating the are look portfolio, for poised are For between model, open our flywheel, like an growth guidance forward year, XX%. differentiated EBITDA X% I'd asset-light and product the efficient on as XX% progress the feeds with our revenue margin our our which ranges With marketplace a year. we as goals and to on reaffirming business of Operator? adjusted strategy, throughout that, to to to deliver And platform we call Q&A. you growing

Operator

begin question first now of the will comes question-and-answer We [Operator from Rajat Gupta JPMorgan. line your the session. Instructions] from

Rajat Gupta

had and then I quarter guidance clarification the second Great. question. broader one on another

you always the up. quarter, seasonally, quarter at to is versus sequentially. look second if also higher revenue So Typically, first you've EBITDA guided

time it Just does you there the And down XQ. some step is quantify in to mentioned could shift curious a around? have Maybe spending follow-up. was OpEx EBITDA. if And anything this the from you that? know shift to else mind like seasonality XQ a when how why midpoint imply keep comes some I I in to much

Sonia Jain

the always been events. given has the Historically, quarter a It's investment, you bit for you're No, typically with higher Thank QX timing Sonia. a little question. right. particularly of

in kind still that against we're target. full of year. that given a literally of change of on outlook QX Nothing performance shift believe very really you into We saw the of of areas. couple see target. pacing we're were in a material a much how in QX. terms a well shifted you Just together, the quarters that if couple little we would X And planning can that of investments, bit a just take for timing for originally investments our we of some It's

Rajat Gupta

it. Got it. Got

combined Is do like anticipated. OpEx you think first to mean you was about? line what had that with the half tracking right initially way in So

Sonia Jain

That's the the think right quarters. about it it, way to individual as take half first versus

Rajat Gupta

And pipeline tie then some further the provided further what the ARPD And we helpful. around platform could the accretive be back pricing to just you for of expectations dealer Our a are as ARPD? sense full that stand if the are guidance you incremental wondering retention That's with having to do dealers for helpful some initiatives product where in improve I'm well? on, way. year. them count with you to like perspective, from to Understood. in attachment work that should on as get like monetization? that come back is any to the that Or trajectory

you the year. So through think just curious the like count two of and how the about those should course we as the ARPD commingle

Alex Vetter

the your in don't meaning to think first Well, question. we dealers question, that we're the lever last is of which win of Great we of backwards going is all, to address price part our pricing I'll need pull to terms adoption, win not back. dealer

fact, now with we're our to again. last year action dealers that pricing due engaging seeing In us are canceled

company, inquiries contacting to year-to-date. their hand, us fact, dealer In the inbound up dealers meaning XX% are raising

our they that inventory. So and we're is realize fantastic, moving seeing dealers need value help

to integrated can growth dealer think expenses initiatives by we both dealers help help drive I CreditIQ their giving can to is tools initiative on We a then integrating be Cross-sell from big to ARPD and we that dealers And the smaller think to their to sit franchise things upside not trade-in third-party remains of spending pulls own independent and to going like and and there. dealer big them on control a business. lot priority we're with then them, into entry smaller see growing data be information. dealers' other website for protect going dealers or for website size. a inventory point like and with value the be And dealerships which and testing Accu-Trade But we're natively that the financing are an first-party websites. take away with marketplace down like the us for offering dealers selling that's larger -- online continue to are for solutions. an things data ARPD our going reduce smaller that also because it our will

Rajat Gupta

a in XQ the more expect can there is we dealer it Or low -- is ARPD is fair count? for like to as like... point well is that So ARPD as to

Alex Vetter

and us gains Our make We to right? want grow to dealer grow want calls to reliably count we plan for ARPD. on incremental both,

So we're do to that's -- both. seeking

Operator

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

Thomas White

you are other talked social. part platforms what you the for suggest you able bit engage it on sort like we're more of and Great to I'm direct would have operations they're transformation dealer count digital say any On kind to that of dealers comment this find Alex, their more spend hoping relates of of hand, color with But digital local need priorities you're of particularly investments like thing And hand, guys dealers the I to chatter inventories a dealers despite I that the could kind broader peers you on, to and guess have count of next undergoing to on grow about have But for follow-up. grow local the their quick significant dealers. dealers years. maybe able was we rising hearing We've marketing search curious yours, your a on their And just kind a change prioritizing can and I been sources for to generally? of kind the share talking seeing of heard as a year as from paying couple if been years. of lot of then incremental dealer just one dealers kind demand. own from of

Alex Vetter

Sure, Tom. question. Great

not third-party as and retailer retail traffic auto, front category come channels you want growth. the their research mean people retail the straight independent they understand enter to wouldn't any on the they as isn't has own before to through just nonnegotiable independent rely I there why consumer That know, objective to auto out XXX% need proven have their said, data The that trusted consumer door of and over consumer. a that generate are I is is that, for XX of years out as First a but is all, for reliably there, not seeking want much advice meta market.

is industry regardless marketplace that desire through directly the third-party see get of come to we And so durable. investment more put data platform to our research them, to traffic to extremely

traffic exception, websites, that second buying higher other they're that power of disproportionate other most and X,XXX their combined. a than point, amount is are traffic dealer leads. the think spending dealers to Without money converts the see at over on we to marketplace I that generate all because we efficient that the rate traffic sources Cars.com channels much

more the bigger And see macro that that rising marketplaces so featured marketing when to are And experiencing dealers is inventory profitability is profitability we their dealers these coming down sales. universally waning, challenged. with trend their it's interrogate levels and to far pricing dealer mix, it need generate cost supports overall cars, are effective you on because on meaning challenges be

Thomas White

a and could, Just if OEM national. on quick I follow-up,

I kind You of of like I have to move with kind it in it of object, or that spend looks But and or OEMs do confidence revenue guys that can in TV know, to to to second. be shiny TikTok. pre-pandemic this it line guys the comes levels had about reasonable I like accelerated the their OEMs return encouraging guess, latest of of some to and here? things focus when maybe kind impact And you any Or connected time in bit say risk rising there frame is the quarter, accelerate a kind interactions the social guess, any item of growth the I guess, prepared inventories. have there, remarks in it's going don't brand

line. understand kind the this to Just of trajectory trying long-term like for

Alex Vetter

the to overwhelmingly that that research it manufacturer outside consumer not at and again, going buyers influence. agency-led, And Tom, and shows same to channel. that and any ironically, marketing go that the a is OEMs, behavior the that journey, car that, realistic, buy we you're to of nor without is brands and is their little online answer advertising and do not to a bypass believe is car all fundamental want all shopping does map to in spend agencies it's largely bit directly car

And can be shoppers to think got so they've as shop, prepandemic OEM front while that confident OEMs where of they we return become do more they to levels. in shop,

I answer dollars is to think but We your increase an pleased we timing difficult only we is as probably more OEM to in QX. the saw one terms more were scatter not in reactive upfront, question saw results well, strong conditions. on with which of in market

progress years. continued the few with and to pleased in it's the really hard reliably predict but OEM momentum we're been the over even so also channel last quarter the And the

think right we're rate a healthy on we now. So growth very

Operator

Your next Securities. the question Riley of Naved comes from line B. from Khan

Naved Khan

if then So me. seasonality, expect traction So to And else? kind I've start How Accu-Trade. the Accu-Trade. that is a question kind have the of to one. the as maybe addition back previous on sequential that the couple think the trajectory, about fastest Is quarter that's of on exit you a any final or to But from Actually, something it that versus in the point about other with just NADA think count is growing first increasing second X last should sort quarters. half, the of in I might It's of Or what the due Maybe just some questions put year. in the do seen to we great meaning account. of think trajectory? think be the I you is seeing I I'm count driving up this you show the versus quarter? half just that acceleration? wondering are hear the

Sonia Jain

question, start on can with count. first thanks maybe for Well, start -- maybe the Naved, one your we dealer can we

couple talked really the in in years. we've we last of of strongest the new bit a sales some remarks, about in how QX, little strong saw we think I our prepared seen

to improve. I think to starting retention also pleased see we're

think was able customer are of referring in and lot year the to the So particular, April, marketplace deliver perspective, that being give promising up we for were us rest growth dealer of full year green a about to. as that we which the confidence in from a of month we think dealer shoots count

a that context of right hopefully, now. -- give little we're that bit seeing So helps on what

terms Last access the more more to us. in a by spent That's a platform for focused on time the focus lot That's it and comes and our year, I behind cross-sell. of our think intentionality repackaging marketplace we expanding bit marketplace allowed dealers Accu-Trade. to adding quite to of when packages.

So see I of come think And Accu-Trade you that really year. through. ADA our one think hits this an some I at of was

about potential know, to So lot in business. out I It's don't and other and we're accretive excited the Alex, front dealers of to want with ARPD us with if or think hugely you relative provides of -- I EBITDA also platforms that there. a to? EBITDA value

Alex Vetter

I No, with pleased there. progress say the would we're

you much going were on more maybe signaled focus sure for current we to dealers year are recall, we in successful. that this making As

than So really in there more with use Accu-Trade the was it was it growth. time on helping be spent cycle first and focused the that quarter successful bought dealers

on fact dealer and our getting have the steady So that we're focused sales engagement motions been growth.

soon onboarding we experience, healthy in business the to As able be this to very rates scale and utilization we the nail future. should as

Operator

question line next the from Gary Research. Your from Barrington of Prestopino comes

Gary Prestopino

questions Several here.

just is to with to, mainly where to attrition curious see from. Alex, metropolitan there, major were of terms some well. as what in related I'm dealerships not in the that X- coming say, dealers was you where that attrition areas attrition QX in and independents that all, of happened had First as X-point where

Alex Vetter

that we Gary. hit macro I geo or And with that specific, expense we're pressure to face-to-face metrics reactionary sales our show any for wasn't to now phone traffic, experienced to calls lot everything their wouldn't of from felt the a realize them been oxygen Like of now dealer it really the size, they're either with their business. walking reassess. was segmentation vivid meaning in those What's more to is that force away or to we're right customers we just like base, website whole was time even is getting size store. starting dealers leads of cutbacks canceling the The CRM was are shape that this or good that say churn

to but did of wanting specific And to QX, to just knee-jerk were nice out but cancels QX start more count, the a have weren't reactions. in take dealer so most we we us, in significant That cost. think

Gary Prestopino

is then terms Accu-Trade, of you XXX,XXX you correct? in . quarter, in say as that when And said, appraisals the generated, Okay. it

Alex Vetter

Correct.

Gary Prestopino

turn How them? of into actual transaction of or you those all in appraisals many an general, do

Alex Vetter

don't they transactions, in are because that customers giving into offers can Well, their all I turn Gary. you dealers assure cars.

a those dealer or can And so to to they and they smaller sell consumer car, to actually dealer allows this somebody And is that market much willing percentage convert them that it inventory. to do But want trust. the know they a value if of data-driven do give that's when the driven.

the still So there's providing consumer appraisal value in even the and just conducting utility.

us the dealer network, to And to inventory in appraised. starting are we is build appears. vehicle allows that's that that see where intelligence what else the Importantly,

open what who back that the and we who show So that buy if and car, then dealer doesn't car, can did marketplace. retailing the they're in start retail the point to now dealer vehicle price appraise the --

use are dealers in won our help more showing done to is here or they're improving every else that that using used cars but ultimately, dealers lost. and data -- So the understand opportunities Accu-Trade buying they've day far past. than of anything And

Gary Prestopino

talking had big. the that quarter dealer of mean, still pretty at a Yes, XXX you're it's for end So right? X,XXX you appraisals big that's I -- quarter, number. about the dealerships still

Alex Vetter

dealers really at many vehicles includes Right. who got haven't we've And volume. appraised that that

the their satisfaction our can and and degree we the dramatically XXX higher so that we of success with KPI know And vehicles get internal appraise is is if secure. is platform a first dealer their to retention

days we're that first that's on So why first XXX and appraisals. XXX focused that

Gary Prestopino

or you Performance Media. And or then about put any in statistics can anything stats

any us with Is mentioned there? growth. solid I think share can there it of you statistics quarter had you a

Sonia Jain

and up can vehicle continues and fairly their still But interaction showing greater engagement generally grow Performance probably each Media to as with with leads pages, itself early VIN in It's back come a continues transfers that in with We're to speaking, lot more and manifests use Media, increase. them the website, detail We seeing, typically who across see innings. back dealers Performance to more consumer information. at we concrete adoption rate. some a we'll come dealers

Gary Prestopino

that of And initiative, year, the had had marketplace quarter? tier XX% at that Has the That's dealers change of the packages. precipitously this opted upper Okay. about the then you good. end for of by changed end the repackaging

Sonia Jain

change mix. material No the in

Gary Prestopino

had XXXX, is then lastly, And XX,XXX beyond has you the about CreditIQ. Okay. dealers How that all? -- at that increased

Alex Vetter

are modestly out has number of I focus what's websites, able increase there dealer in big been exciting Gary, now grow will on key our in that technology not talk can that volume. off is opportunity we directly count, marketplace, that dealer now a them. the do wanting hand is softness And to us they about dealer The only for because websites. things know which been now but to their to on we're rolling in don't the have to of about front more lenders shoppers dealers. put which offers

with The lenders their more about understanding the now increasing platform distributional our of broader we're lenders. understood strength is level of doing conversations better so that our And by is with of capabilities. also having

hope We there. front. that on tuned exciting developments some to stay So have

Operator

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

Douglas Arthur

growth much what was I much you how X% How unpack speaking, in you can from at was business closed -- QX? November line you growth the generally think the So DXC, -- rate dealer which the in and DI. if in was

Sonia Jain

Yes.

we we impact little time the bit about DXC's at bought a them. talked I So think

from traditional on fairly the to that selling going a of platform as individual went of level find at which you year-over-year beginning we Part a Dealer little basically of year-over-year in rate. comparison to seen you is that, branded But apples-to-apples with double-digit you years, if and I back prior bit we growth for we've are be is individual moving do think So revenue our consistent a sort couple they're would reason metric. on an We're particularly contributing points level. away the a year opposed what tried the growth this acquisition, lap growth of more to in the is Inspire that year-over-year our of growth. focused lot before they're a now

as takeaways for marketplace, side So QX growth business. the and media be business, of QX our improvement areas all generally, across the solution side one saw business the revenue and of of we the our of should

Operator

of from Fong Your comes next BTIG. Marvin line question from the

Marvin Fong

Great.

That's a Sorry, could DXC sequentially, question. my on have did less I so that understand like see contribution sequentially help understand ARPD quarter. partial down But DXC. what ARPD only had we been -- call us little of you the fourth up late, just I quarter first was if a the but bit hopped exclude I in and we

Sonia Jain

on upsells selling increasingly No, ARPD. a on and it's is of DXC QX, Canada. Accu-Trade they mix a a probably and -- bit it's question, really our the drag a up great website slightly would -- for sequentially it's accretive, websites Marvin. a a don't of now a revenue pull of have isn't flat we is that the also to If we DXC product. in is bit -- ARPD, little great while it margin growth business and it's been out

Marvin Fong

we about quarters think set talked Great, take on kind I super couple said get guys of that of of a mice all helpful. it Accu-Trade. you I the floor question up. would just got last when then to win mean, kind And a a you direct,

So And a have about of kind of Accu-Trade expect of and should hitting of should we see sort little timing been kind nice start for to think bump? of kind that we of sort seeing? Or soon? same level the dealer count to do kind expect we that the adoption of the being you the increases of

Alex Vetter

Marvin. the for Thanks question,

pickup started the XX% dealers, disproportionate number stores the We sales of which actually to is the with about to coming Ford were our have Ford specifically, in new in in dealers TAM. of Ford total our see the

but So and we're we with expect seeing the acceleration Ford OEM first OEM the well. of endorsements happened not that endorsement, only to other that due hopefully build signs to dealers as

Marvin Fong

in that OEM advertising more with from know I did the maybe you from about obviously issue Really And or said you what [indiscernible]. you campaign much it issue and or is and National tied great a I I if demand attribute just would of there commitment EVs, of of inventory just this to great recently. a And Great. there's more kind to to the turn customer Tesla could strength a guys broad-based here. in kind how mean, sales appreciate I slip base? so see one

Alex Vetter

which Specifically on purchase, think have digital to consumers the they we and Cars.com, lot need platforms like OEMs, information, why other questions and Elon we it's education have. of consumer a right? a is prior EV which issue, we well challenge, for are perfect think Tesla The as as

can distance generate added so that time recharge of battery like what range things to driving EV our around life so terms can and content see model range consumers anxiety. each reliably reduce and to in to And and we've

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Unknown Executive

more do Operator, on the have we line? any questions

Operator

this are I will over call to There back questions at Catherine no the further Chen. time. you, turn

Unknown Executive

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Operator

for gentlemen, participating. Ladies thank and you

may now You disconnect.

Cars.com (CARS) 9 May 242024 Q1 Earnings call transcript