Cars.com Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, showing a mixed performance in revenue and profitability compared to the previous fiscal period. Total revenue for the third quarter reached $179.7 million, a 3% increase from $174.3 million in the same period of 2023. For the nine months, revenue rose to $538.7 million, up 6% from $509.6 million in 2023. Dealer revenue, which constitutes 89% of total revenue, increased by 2% to $159.5 million in Q3 2024, while OEM and National revenue surged by 17% to $17.0 million.
Despite the revenue growth, operating income for the third quarter decreased by 20% to $11.5 million, down from $14.3 million in the prior year. For the nine months, operating income fell to $33.7 million from $39.2 million in 2023. However, income before income taxes saw a significant increase, reaching $24.5 million in Q3 2024, compared to $2.6 million in the same period last year. Net income for the third quarter was $18.7 million, a substantial rise from $4.5 million in 2023, while net income for the nine months dropped to $30.9 million from $110.1 million, largely due to a prior year benefit from the release of a valuation allowance for deferred tax assets.
The company’s cash and cash equivalents increased to $49.6 million as of September 30, 2024, compared to $39.2 million at the end of 2023. Total current assets rose to $199.9 million, while total liabilities decreased to $616.1 million. The company also reported a total stockholders' equity of $502.4 million, up from $492.1 million at the end of 2023.
Strategically, Cars.com completed the acquisition of D2C Media Inc. and EZResults Inc. on November 1, 2023, for $80.1 million, which may include additional cash earnouts based on future performance. The acquisition is expected to enhance the company’s digital offerings and customer base. The company also continued its share repurchase program, buying back 2.0 million shares for $35.7 million during the nine months ended September 30, 2024.
Overall, Cars.com is navigating a challenging market environment characterized by changing consumer demand and macroeconomic factors, while focusing on strategic acquisitions and maintaining financial stability.
About Cars.com Inc.
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