Dealership know-how firm Cars.com posted a $6 million net loss within the fourth quarter, which it stated was primarily related to its November acquisition of automotive monetary know-how firm CreditIQ.
The Chicago-based firm stated Thursday that the net loss for the quarter ended Dec. 31 in contrast with net revenue of $7.2 million in the identical quarter a 12 months earlier. Cars.com stated the $6 million loss stems largely from a $9.6 million compensation expense related to its $30 million buy of CreditIQ, whereas the net revenue within the fourth quarter of 2020 was attributed to tax advantages ensuing from federal coronavirus pandemic aid laws.
Revenue rose 3.5 % to $158.3 million within the fourth quarter of 2021.
“Our enterprise has demonstrated resiliency and profitability throughout a interval of uncertainty,” CEO Alex Vetter informed analysts on the corporate’s fourth-quarter earnings name Thursday.
Shares of Cars.com had been buying and selling up 1 % to $14.31 Thursday morning.
For the complete 12 months 2021, Cars.com swung to net revenue of $7.7 million from a net loss of $817.1 million in 2020. The firm had attributed final 12 months’s net loss to a pandemic-related noncash goodwill and intangible asset impairment pre-tax cost of $905.9 million. Revenue rose 14 % to $623.7 million in 2021.
The firm had 19,179 dealership prospects as of Dec. 31, a rise of 150 from Sept. 30, and a rise of 807 from Dec. 31, 2020. Monthly common income per dealership rose 3 % to $2,333 within the fourth quarter, which Cars.com attributed to progress in its digital merchandise and its Fuel digital video advertising platform.
Cars.com in November acquired CreditIQ, a know-how supplier for digital retailing and financing, together with on-line credit score and mortgage approvals. Vetter stated Thursday that the combination of CreditIQ with Cars.com’s automobile listings market and digital merchandise, together with dealership web sites, is underneath method and the platform has been “effectively obtained” by its dealership prospects.
“We anticipate to start scaling this know-how to a wider viewers,” together with dealerships and lenders, Vetter informed analysts.
Also Thursday, Cars.com introduced a share repurchase program price up to $200 million over the following three years.
Q4 income: $158.3 million, up 3.5% from a 12 months earlier
Q4 net loss: $6 million, in contrast with net revenue of $7.2 million a 12 months earlier
Q4 adjusted EBITDA: $46.8 million, down 3.4% from a 12 months earlier
Full-year 2021 income: $623.7 million, up 14% from a 12 months earlier
Full-year 2021 net revenue: $7.7 million, in contrast with a net loss of $817.1 million a 12 months earlier
Full-year 2021 adjusted EBITDA: $189.2 million, up 21% from a 12 months earlier
Guidance: First-quarter income of $156.5 million to $158.5 million. Full-year income progress starting from 6% to 8%.
https://www.autonews.com/retail/carscom-posts-q4-net-loss-related-creditiq-acquisition
