Cars.Com Stock Price, News & Analysis

Cars.com (CARS) reported Q2 2020 revenue of $102.0 million, a 31% decrease year over year due to invoice credits given to customers. The GAAP net loss was $24.6 million, compared to a loss of $6.0 million in Q2 2019. Adjusted net income dropped to $8.0 million, down from $20.0 million. Despite a 5% decline in dealer customers, unique monthly visitors increased by 6%. Operational efficiencies led to a 10% traffic growth, with mobile traffic rising to 75%. The company maintained liquidity with $232.2 million available. Outlook remains uncertain due to COVID-19 impacts.

Cars.com (NYSE: CARS) released data highlighting six trends transforming the automotive market in H2 2020 due to the pandemic. Key points include a permanent shift to digital car-buying options, with a 250% increase in dealer inquiries for digital solutions and a 63% rise in sales through their Online Shopper platform. Home delivery services surged, with 67% of dealers offering delivery by April. Notably, the used-car market is rebounding amid new-car inventory shortages. Cars.com also observed a growing interest in sedans, particularly among younger urban buyers. Despite challenges, site traffic and leads to dealers have increased continuously since May.

Cars.com (NYSE: CARS) announced it will report its Q2 financial results for the period ending June 30, 2020, on July 30, 2020. A conference call will be held at 9:00 a.m. CT to discuss these results and will feature President Alex Vetter and CFO Sonia Jain. The company, known for connecting car shoppers with sellers through its digital marketplace, aims to provide valuable insights into market performance. Investors can listen live or access a replay on the company's investor relations website.

Cars.com Inc. (CARS) has appointed Sonia Jain as its new Chief Financial Officer, effective July 6, 2020. With over a decade of experience in finance, technology, and retail, Jain previously served as CFO at Redbox and has held positions at Outerwall and Morgan Stanley. Her appointment comes at a time when CARS has strengthened its liquidity and amended its credit agreement amid the pandemic. Interim CFO Jandy Tomy will revert to her position as treasurer while continuing to support the company. Jain aims to accelerate growth and reinforce market leadership.

Cars.com Inc. (NYSE: CARS) announced an amendment to its credit facility aimed at providing increased covenant flexibility until May 2022. This includes a covenant holiday exempting net leverage and interest coverage ratios until the end of 2020, allowing a maximum net leverage of 6.5x beginning March 31, 2021, with steps down thereafter. The company maintains a minimum liquidity requirement of $75 million, with a reported liquidity of approximately $225 million as of May 31, 2020. CEO Alex Vetter expressed gratitude to their lenders for ongoing support amid the COVID-19 pandemic.

Cars.com (NYSE: CARS) recently conducted research indicating that 42% of in-market car shoppers plan to visit drive-in movie theaters this summer, revealing a trend in consumer behavior due to ongoing social distancing. This shift highlights how Americans are using their cars for entertainment and socialization amidst the pandemic. Moreover, concerns regarding public transport are driving consumers to upgrade or purchase vehicles, emphasizing the importance of car ownership for safety and freedom. Cars.com also recommends the five best cars for drive-in experiences.