Cars.com Expects Q1 Revenue of $179M-$181M Vs $180.54M Est
Portfolio Pulse from Benzinga Newsdesk
Cars.com forecasts Q1 revenue of $179M-$181M, indicating a 7%-8% year-over-year growth, driven by Dealer revenue, the D2C acquisition, and the 2023 Marketplace Repackaging Initiative. OEM and National Advertising spend is expected to increase, with overall revenue growth guidance of 6%-8% for the year. Adjusted EBITDA margin is projected to be 27%-29% for Q1, with an expected improvement to 28%-30% for the full year, despite higher Q1 marketing and sales investments.
February 22, 2024 | 12:33 pm
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Cars.com expects Q1 revenue to grow 7%-8% year-over-year, driven by Dealer revenue, the D2C acquisition, and the 2023 Marketplace Repackaging Initiative, with an overall annual revenue growth guidance of 6%-8%. Adjusted EBITDA margin for Q1 is projected at 27%-29%, with an improvement to 28%-30% for the full year.
The positive revenue growth forecast for Q1 and the full year, driven by strategic initiatives like the D2C acquisition and the Marketplace Repackaging, alongside expected improvements in EBITDA margins, suggest a bullish outlook for Cars.com. This is likely to be viewed positively by investors, potentially leading to a short-term uptick in the stock price.
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