Cars.com Inc. reported a total revenue of $719.2 million for the fiscal year ended December 31, 2024, marking a 4% increase from $689.2 million in 2023. The company's net income, however, decreased significantly to $48.2 million, down 59% from $118.4 million in the previous year. This decline in profitability was primarily attributed to a substantial tax benefit recognized in 2023 due to the release of a valuation allowance for deferred tax assets, which was not repeated in 2024. The company’s operating income remained relatively stable, with a slight decrease to $53.5 million from $54.1 million in 2023.
In terms of operational metrics, Cars.com reported an average of 25.5 million unique monthly visitors in 2024, a decrease of 3% from the previous year. Despite this decline, total traffic to the site increased by 2% year-over-year, reaching 627.6 million visits, driven by improved user engagement strategies. The number of dealer customers also saw a slight decline, with 19,206 dealers subscribed to the platform as of December 31, 2024, down from 19,504 in 2023. The monthly average revenue per dealer remained stable at approximately $2,483.
Strategically, Cars.com made significant acquisitions to enhance its service offerings. In November 2023, the company acquired D2C Media, a Canadian digital solutions provider, for $80.1 million, which is expected to bolster its presence in the Canadian market. Additionally, in January 2025, Cars.com acquired DealerClub, a dealer-to-dealer digital auction platform, for approximately $25.3 million, with potential performance-based earnouts of up to $88 million. These acquisitions are part of the company's strategy to expand its digital solutions and improve operational efficiencies.
The company’s financial position remains strong, with cash and cash equivalents totaling $50.7 million as of December 31, 2024, and total liquidity of $340.7 million, including available borrowing capacity. Cars.com has also initiated a new share repurchase program, authorizing the buyback of up to $250 million of its common stock over the next three years, reflecting confidence in its long-term growth prospects. Looking ahead, Cars.com aims to continue enhancing its platform capabilities and expanding its dealer network while navigating the evolving automotive landscape, which includes increasing consumer demand for digital solutions in car buying and selling.
About Cars.com Inc.
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