Cars.com Projects FY24 Revenue Growth Of 4.5%-5.5%, Compared To Previous Range Of 6.0%-8.0%; Sees Q3 Revenues Of $178M-$181M Vs. $185.76M Estimate
Portfolio Pulse from Benzinga Newsdesk
Cars.com has revised its FY24 revenue growth projection to 4.5%-5.5%, down from the previous 6.0%-8.0%. Q3 revenues are expected to be $178M-$181M, below the $185.76M estimate. The company cites the CDK cyber incident and slower AccuTrade Connected subscriptions as factors. Adjusted EBITDA margin for Q3 is expected to be 26.5%-28.5%, and for FY24, it remains at 28.0%-30.0%.
August 08, 2024 | 11:40 am
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Cars.com has revised its FY24 revenue growth projection to 4.5%-5.5%, down from the previous 6.0%-8.0%. Q3 revenues are expected to be $178M-$181M, below the $185.76M estimate. The company cites the CDK cyber incident and slower AccuTrade Connected subscriptions as factors. Adjusted EBITDA margin for Q3 is expected to be 26.5%-28.5%, and for FY24, it remains at 28.0%-30.0%.
The downward revision in revenue growth projections and lower-than-expected Q3 revenue estimates are likely to negatively impact investor sentiment in the short term. The CDK cyber incident and slower adoption of AccuTrade Connected subscriptions are significant factors contributing to this outlook.
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