Cars.com (CARS) 24 Feb 222021 Q4 Earnings call transcript

Good morning, and welcome to the CARS' Fourth Quarter 2021 Earnings Conference Call. This call is being recorded, and a live webcast can be found at investor.cars.com. A replay of this webcast will be available until March 10. A copy of the accompanying slides can also be found on the company's Investor Relations website. I'd now like you to turn the call over to Robbin Moore-Randolph, Director of Investor Relations.

thank joining and everyone, morning, you us. for Good you CARS' conference fourth my pleasure and the welcome to XXXX It's quarter to full call. year Sonia this Vetter, me are Jain, and CFO. With morning CEO; Alex discussing business year full an Alex will provide start highlights our and and for fourth expectations of from overview the quarter XXXX. by outlook. discuss our will greater Sonia results in detail along Then financial with our XXXX Q&A. We'll call with the finish

description to and turn Before of in statements over draw like your call I'd forward-looking found attention the measures, I and financial Alex, the definition non-GAAP be which our to to can presentation. our

discussing non-GAAP in of measure the tables found in and be free will and most non-GAAP today, included We expenses presentation. EBITDA can be with Reconciliations flow. the certain GAAP these including adjusted adjusted comparable financial EBITDA, release cash operating appendix the measures measures earnings adjusted the our margin, of to financial directly

the filings, reports, our included please IR information, factors forward-looking date. in no risk website. more available We are as which quarterly SEC our section annual, update information their the assume of on refer of For statements any to IR respective our in those and to obligation including or current

the turn to I'll over Now, Alex. call

retention. XXXX CARS increased dealer our customers, to quarter Thank and EBITDA by underpinned double adjusted you, customer growth We Robbin, welcome digit elevated delivered in deliver and and earnings full XXXX. fourth results year call. impressive revenue record and ARPD

Average inventory XX% increased adjusting leading dealer momentum customers CreditIQ credit, and the and revenue while software was demand both and brand year, continued in resulting of growth strong than retail well This widespread retail OEM grew as prices used sustained fourth in two either continued increased used the and Accu-Trade Despite organic on positioned their shortages the and prices current revenue high out throughout and quarter market revenue year's our Dealer acquisitions strategy. that XXXX total Revenue national and in production OEM enabled pandemic driven showcase to dealers half for increased revenue vehicles the increased vehicle stand accelerate the value revenue for year-over-year, conditions, solutions respectively. year just audience, margin Despite new to intent, price. on in outpacing also second dealer by continue We increased enter XX% platform last Cars.com expansion. throughout total and inventory, supply, and X%. we our high new softness. inventory related down and and dimensions XX% sales, After we constraints other remained XX% one value leading cars help that to profitability. industry and asked on Consumer the Group further us year record our skyrocket, to for number deliver new solutions. XX

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generate paramount a to is organic dealer leads Our success. high quality ability and to consistently traffic

year compared and is quarter-over-quarter. dealers to reached XX,XXX ago. unique and dealer leads historically We half For dealers the further quarter average. by low XXXX XXX the an to XXXX dealer evidenced double digits, by of is rate, a This cancellation the previous to increased which XXX increase value year, compared customers grew the end visitors increase our XXXX, X% of

For approximately the XX% remains demonstrating high technology. related dealers for also shortages. our X%, year, fuel In adoption dealer impressive increasing in This grew pandemic ARPD driven year-over-year, grew continued total credits. or solutions and XXXX innovative strong the XXXX, performance inventory despite demand adoption XXXX, the of an further in websites adjusting when to was of website's by which our

we to XX,XXX Looking but dealer and launch additional newly only to existing along and more customer opportunity also marketplace ahead, from not do we tremendous our across products with fuel network. continue acquired cross-sell to dealer develop than have solutions websites, expect DI,

our As are we and strengthen we strategy to end-to-end our transactional platform solutions new available our advance making capabilities, customers.

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one our option sell will million sellers it private capabilities, to to of of car annual launching XXXXs dealers. consumer We or XX certified new be sell allowing the over another to yourself party

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dealer or financing via solutions technology we across our network. opportunity bigger much deploy consumer we and unlock larger trading, As a can a

leveraging sellers. and insights platform efficiencies investment innovation advance internal build While and critical our coupled Accu-Trade high across creating growth building the as bring curtailed the that Credit and platform. industry. business momentum into These to the for year, the made solutions of with an like acquisitions, we modestly capabilities, Sales in course are in with that higher to and Cars.com participants investments omni-channel investments our quarter the XXXX, deliver pandemic. progress resume I'm and experience trade investing pleased marketing value and been for with year-over-year on with we've areas ongoing innovative on set we creative position to along car our restore and increase us priorities. enabling first IQ events over shoppers our will industry a the NADA. investment have due and In Also, technology our expenses our of we'll strategic growth. organic

accelerate While term the in the these we recover. our of acquisitions, will investments, result growth. to the half in our integrating to somewhat long begins those near second muted been term our to growth expectations year, accelerated related inventory expect growth as inventory And particularly by have shortages,

OEMs, set of diversified Our and revenue industry comes customers from other lenders automotive participants. dealer, across a

help and accelerate last month to to term ROI high Matthew to in growth, market. our Accu-Trade deliver joined that expect considerable I'm to welcome Officer. solutions drive has CreditIQ margin. we us subside, revenue the OEMs our in development these Chief journey contribution our and is products shortages long new revenue to as increased new development Crawford, both product margin, Matthews acquisitions tech pleased To solutions will innovation two Matthew bring first natural inventory also and especially who sided our product and I'm will the As for contribute Product enterprise scaled has XXXX development to to innovative and product and growth built platform work bring experience of growth. The managing, our integration. much enables year to experience rich expertise team. and faster point and in completion to and operating excited of leading a He integrated transformation after innovate us scale. both marketplaces, inflection pre-launch and our

and governance that over by turn throughout culture. our I core to to action, discuss in our performance in CARS we priorities will who the XXXX continue greater company. highlight Sonia, ESG want call Powered detail, outlook our to work environmental, and social Before I drive to the is financial

form areas the commitment to importantly come life the of consumer most ongoing business, Our has reduction perhaps carbon in in several across education. towards

leadership this our by down EV area As future vehicle in hold, increasing year. XX% content the our focused editorial will we this takes double electric on over

representation culture, continue part as in community. increasing National a to where build in employees team or Auto of also support Within inclusive to ongoing our to technology industry and of Dealers, We will identifies than partners background. XX% our our provide we Association company, industry, as our In Minority Automotive, and quarter such racial to a critical and identify our the continue of work of in CARS, proud financial male, as will do other an Women ethnic and investments are we our having [indiscernible]. education,

across value to D, critical a And are E part we our the hold will create formally tying we are turn representation our all culture. to by committed compensation call our These and of increasing executive continue cars over to And to actions accountable goals. sustainable ourselves We I'll of stakeholders. our now and Sonia. I corporate

you, Thank year We team's and Alex. growth I'm digit strong financial with EBITDA deliver in a double ended our position. execution. pleased adjusted and revenue

resulted $XX the lower the make vehicle led million, and in Revenue totaled Dealer the also dealer to other X% X% CreditIQ Dealer Accu-Trade lower chip overall. me and ARPD, production, national add acquisitions, was digital our which two revenue Performance like to quarterly lower industry be and than grew grew the reflecting reflecting million customers the our begin OEM results. grew year, strength We prior or new lowering streams revenue and was new budgets that with let million, fuel incentives But vehicle platform. revenue of year-over-year. driven for and by by new XX% advertising growth revenue capability our year-over-year. $XX.X Inspire solutions. and shortage in $XXX up quarter continued year-over-year. XX%

that deliver is diversified more sales vehicle to to growth. returning and production had cycles, of headwinds, yet year anticipated. across us strong another industry macro well our are economic will many us model than giving confidence Despite New year-over-year, allows projected slowly these however perform revenue increase business we

the operating year's $X in basis, recorded to per Moving technology price last or increase increased the digital was the income recognized quarter or $X and was solutions. increased $XX prior Adjusted million pullback under a to is for in adjusted driven product to uncertainty as the $XX quarter compared million debt the compensation $XXX Cost total have operating expense in investments solutions expenses, due to Current XX.X% well of This in lower On as which given compared and the of by $XXX $XX G&A. compared accounting one-time revenue revenue EBITDA current EBITDA strong million quarter for The to acquisition, due totaled mix, loss part higher year-over-year. primarily pandemic. to million X% of prior expenses upfront ago. were quarter during investments year. by as of higher year related deemed XX.X% expenses reflect gradual an growth purchase $X that product for expense slightly quarter and expenses the the growth our CreditIQ in million for million the $XX net pandemic. of of the This a impacted year. fuel revenue million million expense accordingly comes the million compensation our at million adjusted other our of margin a $XX of Net purchase was also specifically in acquisition. curtailed to business the lower been OEM advertising in areas margin, and is

XX,XXX and take ended to the of with to I metrics to turn customers an our an trends. compared increase full key a review prior as moment We XXX Before to our of sequentially. quarter results, operating dealer increase year the XXX I'd like year

grow dealer shoppers. the customers. drove of We value a inventory a continued constrained website XXX Our is we saw and shortages, our of base ended our strong our website. acceptance within customer the in OEM We adoption this Strong grown them and in ability growth increase with includes GM directly year countries we've environment to inventory compared market connecting program Ford dealers the Despite website by evidence year ago. performance audience. to launch which XX dealer customers, provide this

monthly XX year-over-year. of an unique had we increase X% quarter the average For million visitors,

a fuel was incremental to traffic. perhaps but driving year-over-year the year-over-year, more in traffic dealer down driving for importantly, And digital ARPD strong grew other high XX% our customers. listings these driven vehicle by We X% XXX visits, year-over-year down of are continued our context million disproportionately demand also level we sales was double we delivered and digits X% of even solutions.

operating in incremental to year revenue increased our expenses revenue pandemic on the Total for lenders leverage. flow XX% all $XXX free of increased flow empowering which put year to X year. activities our and compared remain been credit, inorganic to continue Net of and for flow higher maintaining being for will revenue including strong million set our our interest a while was cash lower XXXX invest Cars.com Alex CreditIQ accounting million last website, current is for compared year. expense, by the well organic piloting To solution. X.X% during expenses and both On operating after as the year-over-year. capital and yield totaled gradual year-over-year, are has technology million innovative and optimizing strong Free billion in working launching investments basis adjusted enabler, the and In the and reception sustainable normalized we ended context, were invoice this year, further totaled CreditIQ purchase related mentioned, million. products, $XXX growth a financial on the modest reinvestment and growth us performance. investments cash provided by full $XX of XX% CreditIQ. on in year opportunities has new innovation, dealers platform the year with to an Even integrating cash technology moving that areas LTM we sheet adjusting balance $X.X operating to Overall, levels to To consumers, Now, higher impacted last $XXX Dealer by year, these million, million. focused products, pandemic. were in reflects end, to rolling make dealer now OEMs, Total year-over-year suite our beyond. up $XXX flat as increased XX%. $XXX curtailed with $XX in last cash still to Insider the million XXXX We we'll flexibility and out as and Current prior XXXX Accu-Trade. million enthusiastic. compared

of to total within Net our while target our to in us ago. compared to of $XXX million. year a approximately X.X generation just debt repay X.X down times. resulting $XXX.X times X.X leverage X at is range Our And flow strong to enabled million year-end cash debt, of times

Accu-Trade We be revolver to hand will soon. on about at The excited of and and due our funded cash acquisition expected close close with an are million drawn. mix $XX

for production are levels dealers our that near will record this year. profits and incentives. XXXX And guidance, budgets with we with inventory our record of our pressure and year-to-date of improve shift in or foundation increase in range turning as million revenue our highs, quarter part low Now, first at delays at are we to growth. face advertising our XXXX It less the new our vehicle $XXX.X rates core backdrop, term and this and in OEM inventory will and half contemplates OEMs expect to customer experiencing in shortages reflects solid while the continue of model are to first and retention dealers a that outlook are $XXX.X said, the between and of their growth releases latter With revenue both creates to will year. the That a pleased These our time. inclined meet strength the environment ARPD revenue. growth million. lower platform

acquired quarter, X% growth recover. Full as to expect with an and solution throughout the growth the second year-over-year in year, the fourth in year. between see the year-over-year announced half assuming range digit growth out to also double accelerate to the expected began roll we year inventory revenue have is and We continue covers of revenue inventory recently to X%

of mix, revenue increased which investment. revenue, Turning impact margin, revenue our includes includes EBITDA a our first adjusted quarter outlook margin with solutions mix expected versus lower to OEM from our along the

our through platform invest investments These as brand quarter, marketing. we in driving and in platform During we growth. our to advance accelerated into will quarter dealer COVID network. industry continue our begin investments capability curtailed acquisitions and to adoption end-to-end us the to restore integrating for And will future position due areas our events first our

expenditures XX% be for the new accelerates inventory quarter, growth we adjusted and revenue OEM EBITDA growth returns, million in because margin investments half Capital in factors, year we to first weighted are we to strategically shareholder also these between between are deliver flow. strong the and see in capital solutions that to and anticipate $XX million and value. for our fourth remain expected deploying first as year. $XX and Given expect the expected XX% towards to to to our quarter range be and growth Margins the committed modest rise business, expected XX%. are the towards cash year free the of of greatest drive another will We

underscores million $XXX Our next leverage term cash our projections. and It business the program net the the also three of CreditIQ, maintaining in reflects share have us capacity both the years our shares. strength while repurchasing the gives strength Accu-Trade, organic value over and of confidence opportunities long conservative invest growth and and to repurchase we flow, which our growth in

that, our our momentum, customers the to growth, investment valuations. call investing With to further believe progress shares innovate consumers growth. and and and tremendous there's XXXX believe made well are over faster, strong deliver better our to I'll we positioned In turn these tremendous at platform Alex. sustainable we've and With drive current this our serve organic us in value strategy, back We're in summary, enabling furthering growth. and in ourselves significant in our entering and with support

you, for the we robust Thank year. In Sonia. growth delivered closing,

deliver revenue to strategy clearly continue growth to platform Our differentiated value. and is

they've our platform. accelerate We exciting and marketplace new unique have growth. winning to sustainable And solutions added

term growth beyond. period demonstrated up profitability supports and and and momentum of compelling the for CARS now questions. that, a Operator? our And adjusted long revenue we Our EBITDA for to With XXXX business call like uncertainty. has in resiliency open during

Naved [Operator open. Naved, come ahead. your Instructions] line Khan go is Our from Truist. first Please question now from

on This Naved. the Robert taking question. for is for Zeller Thanks

environment. and customers say dealer in to the want the this just All ARPD well. impressive see to First good as tough growing growth it's with more to return

mentioned in accelerate growth expect year the to the assumes quarter. to press full the you growth guidance revenue X% release, X% and So you throughout

to your contribution there this the into in So net these three next of baked is to one XXXX? be a affect three do one these then, multiples earnouts benefit acquisitions company to And target meaningful what you. your years? expect to the seen most do as over from And over acquisitions - are debt? Thank the how years, - the down recognizes the or your leverage you ability next pay

great them I try I'm me get if going know No, anything. and missed questions, to let

guiding X% reflects high to we out You would of And completed. that say annually I X% are know, sort to acquisitions to the of that range starting is guidance, revenue with end growth. get what we've the

bought I And had think have businesses table. strong what bring but understandably, extremely technology, right, the distribution. to we haven't the we've necessarily that's customer that the

products limited our So over network we a doing the - these across expect started be year, to that done in out, rolling course already fashion we've with of the CreditIQ.

as they'll in so meaningful the benefit, sort and indicated, going beyond. is But you benefit come really, to to some have XXXX XXXX. of And

to really which sheet. to believe times. moving was delever net ratio. range leverage managed We balance we we've comfortable think, us. the leverage I target And with for question, and our really pleased that's a much think we ended X.X I year how about We're our at on next your how think

a are We business. growth

expect to we improvement EBITDA. over adjusted and deliver so, time And continued

about. earnouts, leverage And talking contemplating, feel the that so the even with levels we - we're at were very comfortable

Dan question Benchmark from next comes Our from Company. Kurnos

Your Please line go open. is now ahead.

the the of I a good asking of morning. a terms here. in Alex, strategy from thanks you lot think risk guys Great, ask I question, go-to-market at of sort

made you the are cash about, a You've it's just flush dealers what got obviously, now. right portfolio. with now comprehensive more interesting, And remarks how is yet

in and you needs which and and your this, guys they approach. start don't can to can now hey, more offer now in tools here's is the But - as know, complete now a obviously you you dealers an off you a offer we you the pricing certainly had platform on or that? and Is cars length? - those shifting forward to towards have, outlook my I Do continue but, raising look, nobody, environment, - to Are view contemplated you guess, say back environments, sort have this model So SaaS have your like being sort changing effectively? bundling sell even now of top that arsenal challenge. to just guys the contract nobody of go contemplations know in excellent more to retention,

Dan of which thanks for you're out fastest that have business part don't the our point to growing the question, variable right traffic is solutions, dependence. our software or marketing

have the And these we in them SaaS into base. invest that can same same But very benefits like sticky established our so, marketplace customer solutions we're software broadly selling the reoccurring that does.

I that's because time, so, across see over strong software our we And we're think EBITDA portfolio our getting margins growth in really solutions. do of where cumulating

so is hasn't, States. message need increasingly the of resonates telling platform. believe because they do we know, cars digital dealers, It's not our are it rethinking in to really well, factors even have don't the is allows the find want, lengths consistent going advertising OEMs who is our their to aggressively specific scarcely start It's digitally or model they still platform, What their marketing and needed. if advertise inventory. to We're had scarce regardless contract consumers dealerships because And but trend this that environment, actually do have United spread you that's platform as need more and And to a We inventory. throughout reliable. shipped think cars marketing start or that to macro haven't with format. their them I just to be to shifting found. they traditionally, of based. the that distribution than change That's this anything And OEMs have environment. consistent like a in

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So again? know, you that you much, share, just watched think capture. about, be help have how meaningful could competitive us being that not knowing will think ultimately space, know, that in you you you to do How even results

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the on EBITDA see investments into meaningful the then in see you pressure outer here as some Now, why we've both invest to to our into which develop But got appreciation some a revenue near-term websites. our solution make integrate technology we margin our margins we is to year and this periods. and short-term marketplace

subscription tremendous for outlook a of the be XXXX is year financial As as to the a you and has lot back on But implication model, end. our going it the profound know, impact because in beyond. revenue in our current isn't

our question Research. Gary open, comes now ahead. from next Barrington And is go please Prestopino line from Gary, your

I series Good of a questions. morning have all.

year-over-year a much Alex, Can touch some So metrics all, that? on basis? retention on you dealer maybe can how of on improved your first you slap has

- we're experiencing cut see, was like half in operating think slower we've dealer mean, a rate as I strong growth, sales environment. our I which rate. numbers, more XXXX, in been coming our at a cancellation Sure, you can normal from we've which new are And

to traffic far. think which just value a quarter pleased in this the delivery dealer continues and our consistent dealer see our growth We're thus first persistent our is contribution organically of that I delivery, been year to has So and growth driven. bigger

but it's into we our steady is largely and as doesn't a competitors some up really incremental a audience by which the just where back generate to appreciating tapping dealers, So that that growth see new sales. of any in driven dealer value bidding privilege, SEM, really our incremental selling are or dealers

give Okay, did the the then in Are that still quarter? us Sonia, Inspire metric grew you out out? giving what Dealer and revenue you

I metric We out. that do give And it believe was XX%.

During quarter the

yes. QX, For

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over Correct. will time network It'll and out dealer dealer-to-dealer build then consumer as to we dealer start as trading. the enable

the offer specific pay? has does up. it's individual there you've an the I knock What of that an this you wanted instant data a lot dealer in that about happens ability talk the actually back if all extent down valuation. extent maybe can that here the got been vehicles? to an guaranteed that the to - issue the there's for that, work? car just to But the solution Okay, How would value misrepresents realize it's give that to it

Sure, best But to a me my unpack lot let give there. go here.

all signals as our of of First network about and each our every data demand think well the incredible power obviously, you marketplace. set forward-looking the is that across generate day, websites, our when we dealer of pretty data as

periods know, coming be is to be can And hyper we precise of both our therefore it's predictive worth data, to worth over provide see dealers guarantees be accurately, our get to next, going agreed wholesale event to and buy vehicle. set so, who's likely therefore, And partner price forward-looking few data, it's what want today that through in buy data over using can don't what a using in the we pretty to the [Gals] the historical cars periods. car what inventory and able terms you that we our worth instant

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taking any this. understanding risk you're not is So on my

the will somebody the car, that You've the car take take backing dealers it is that to want got don't correct? if

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traffic? that's last a And comp were comp people was lastly, traffic on versus year great. - lot elevated your a this but little there tough a of just was maybe comment what your you okay, up. following on Can the expeditions, through then weren't fishing then maybe traffic visitors, were And down but

yes you at we We've But due we traffic, and frankly recall traffic elevated relaunched elevated to COVID shelter also have made did more efficient. issues. year last had the and home platform our a it lot

by conversion volumes our inventory look but, part up now lead also scarce double-digits. delivery lead at you of If lead or driven our that's

they're for actually went been repeat quickly. dealer the they past the visitation finding are that visitors year because have contacting three, the than unique this higher in looking consumers are more and car down Our

double-digit And value our we're seeing offering. so, in improvement subscription

the So over think scarcity we're the that's worried decline right driven not come time. will I part about inventory now. But environment by of that visit

just no Alex to mentioned, to now, listings about are down or there, XX%. just Yes add close inventories down as

of think think so really And see is a a what healthy, vehicles. that context, with traffic about in consumer vibrant actually when I lot you marketplace you demand for

thank Okay, you.

line Steve Capital your open, question next Group. ahead. Craig-Hallum from Our Steve, comes from please is now Dyer go

Good Steve. for on morning, Ryan

Hi Ryan.

Curious growth Inspire into customers cross how How are nice marketplace Dealer were from of website solutions, much solutions? continues differently, sold website or said maybe customers much marketplace sequentially. there those on also those

fairly to see, customers. continue consider group customers be are of we We to study only who of a what solutions sort

to is though, think growth I coming you quarter consider look balanced growth way. in is very a our our at important the what's for our to even or the when growth for year us

can present, point and for cross-sell demonstrate websites that in calls, products, them a both Inspire our dealers talked traffic or or you them cross-sell little meaningfully marketplace, are - opportunity Dealer of dealers growth value perhaps our on into our of year. solutions come as cross-sell come using their well we we to In attractive marketplace last bit via first. as specific we've to well us first dealer other to that And can that our benefit of as marketplace to a their that have who as traditionally coming to not them to and And we DI via that does that then us marketplace, may we're about our strong to driving into them. considered dealers dealer actually the us from see some us, DI the to customers. it a for our terms how a But leads to that our referral really marketplace, And we really know, when FUEL, drives bring be dealers for marketplace Dealer website are built continue we those your whether as it's solutions. Inspire

will One creative sounds kind more this Good. year on expectations for Accu-Trade call elaborate announcement, on financial more it margin at those purchase - - XXXX, given time of the us in year this on for of a one guess? guess, other just comment price, specifically out this lot you this the that can on measured a on be I the years XXXX this for I call? intersect to expectations on benefit here and far Curious and comments, guess

established largely acquiring of That creative It after us it What's base said, what it's grow base. think more business to does we a been is a get through fully to I third-party key, it to substantial CreditIQ. more a is continue being that and which grow no, for though, opportunity order slightly base expect do is it its into expect close. we really And that to customers, distributed partners. XXXX. platform, technology. integrated Yes, there a be then is to we to We're to mean, do for have Accu-Trade in our

Accu-Trade it's what get that us to of established that's revenue hearing half integrated really in a expect the is going XXXX. anyway, Accu-Trade So we as be see even you that know, a more And business But X% XXXX is you subscriptions a put them this numbers I to our start the you're of rolling is since we you're be some full if in particularly guidance is we to it range want more to into to we'll from year the to that expect X%. do on until CreditIQ because for dealers. bit XXXX more But there it'll platform. platform going to back subscription would see material you think And out investment going weighted. we tell for model, them out get do around our annual growth try I to and what to fully our both contribution of impact not it, - when harder be a put have

the of that's helps tell look seeing growth expect to know, part talked also about what our us of to would that And If there range, gets year. I you over that end reason ramping I little high the you bit. you, acquisitions. the of the we we've the a hope of quarter-by-quarter of revenue part course how that accelerate, is

Fung Thank you [Martin of now Martin, Our next open. is Please question your line comes BTIG]. from proceed.

could and finer questions. Good put a morning just thanks Accu-Trade point. with guidance Accu-Trade, taking so just on you I my more for also few a guess

to how in doing stop private just a core So a the apply the model, the backstop, pay So would year you the Accu-Trade on we a is that structure, generate then good could to able it for number saying anything transactions you're X% Sonia, on that you also on for scale transactions you to about, that and revenue provide appreciate would of what full in that elaborate maybe if be do the they would comeback interpret but you result know, just acquisition? subscription the on think also one to, party whether X% you're more a be can the dealer with So you're other words, is then great talking business? be the tiered will how just private platform, you more party the for does mean talking like Thanks. with being and be success about? can more dealers volume? through a volume does And lot subscription the that more

solution Martin, want sellers give choices Hey for transact. consumers how to so they private questions our to is great multiple going

we of through the in enable and can think when we're that open it private if unsuccessful the advertise the be selling get guarantee help will is longer so, want marketplace immediate can we their And tell just that buyers, cars.com technology that them and our And open this you're we just to Part in Accu-Trade, what that egress. car from their going out in an immediately is you they and point. opportunities price car at this you to car can know saying market, choice. entertain list to that will they want enable them fetch point consumer they worth. what of provide the other if market, If you're in see of

seller So go through a it'll market network. dealer work to either or open wants way, the whether if

like are want is, scaling we've to gotten know, as those the we because And to tremendous dealer exciting the enabler, us stream you desperate a that you far what's software know, participation, we revenue general steady see buy provide. directly as dealers initial SaaS have think response cars.com acquisition more cars to business, public. cumulate a being more the of I and from through sellers Accu-Trade on to

a lot be for the this solutions being feed volume generate costs charging software model are meant use and without dealers more to come dealers a of success. in And efficient our a path participants basis. is scale that I along variable with category, by to software to think much death to our per transaction on

traditional going be ways I far existing quo the to market. find wholesaling so, of than for status And and they're cars, more flock think that model the over and it profitable to dealers our them are this buying to

X%. maybe, for know, then your And do you growth, our growth a have X% question bit in expectation an to business. to the little We organic around meaningful

bring on and know, integration table. range XXXX It's year acquisitions. you X% I X%, reflect the and end think in the is what the businesses. I the inclusion going mentioned to to these the an that be, acquisitions does to as these transparency, high investment they the of all for of

it's is the impacts it why overall, revenue, but to going they're incremental small so which a range. And be guidance relatively contributor

in think you a national of timing to range I the of core, be, inventory in a pickup start us think returns, going the is when the of that think, we and when in seeing and bit revenue. I organic growth of some about could move higher the OEM one factors our

what since that? here, on I up. seems, did I I other question for see, it thoughts have your brought could share line, that's national? a volatile sneak Then are revenue maybe It your you I mean, human all one expectations in

no, view taken stance and have its the a our that national contribution is that conservative more particularly provided. more to guidance in view and but the QX factored year OEM that into we on Yes, and to range we

have we you the November to full December, to know, from inventory think about seeing to think, we been when I also, when year, know, December some January, it trends, you improving right comes site. more just gradual we even own had that our just when on have we than a That at look is said, listings little pickup the being bit number the of expected. we

the our transparently QX, you through guide on national we include know, year. some we as frankly, second more sequential again in you quarter. why for recover pressure and we which compare are But expecting OEM year, to one a of see to year-over-year inventory drivers of to meaningful basis acceleration in sort the growth So of half go last for begin does and and the pressure is expect it revenue we to the as on are even

awesome. much. so Okay, it. Appreciate Thank you

Our is from Research. Doug, next Doug [Operator Huber Instructions] Please question your go line comes ahead. now Arthur open. of

in question? saying not believe, to you're added the subscription year, answer I'm you. between that If a of - dealers a bit is clear so catch playing weighted? think Sonia, even XXX a for you're just the to the net it's combination two I of number. spread mean, it's that Yes, little and DI dealers your be of at look subscription, you DI thank I I kind up in traditional here prior entire

No, it's weighted. DI not

or dealer during lost is in combination that back or And of customers, of terms a is dealers the is it gaining of pandemic some traditional new the it both?

had a I the you the seen number that what it's question, to to combination dealers two, And think great last over providing quarters. know, I part since uptick sort seen QX, is, timeframe, come we've is tell a you delivery a an a XXXX in of of who we've dropped the several the But in also have, we pandemic been back. That's in of new testament that that dealers just us. coming would value

So it's a mix of the two.

around really - that on is not whatever earnings you're adjusted expectations, at and Okay, I It is $X.XX run metric you detail, that believe issue, with share, don't it looking income, more. which assume on for rate, based provide fair came to is is line me, that or share a a just to price? is you not looks any a net a out at tax don't want per adjusted house in

use don't really that metric. We

that have that in out, a focused mentioned as flow the EBITDA as result I direct would impacting part QX, an and and think from impacts of EBITDA to the think We one-time on focused kind I the cash portion we're we're perspective some of I about went in you But be story through right, and were EPS adjusted think that GAAP adjust the price that purchase like there's adjusted great because of the flow a of EPS. flow. different. EBITDA we through just and acquisition. related there businesses, on cash And more frankly, to how this far CreditIQ P&L you're is you reason did if right,

few opportunities the over is what themselves, repurchase you we kind there? there sort should share the you a of know, urgency cadence to a Okay, get and of million kind XXX on then just years, finally, present sense trying as of, for program, know, expect that,

step I a talk is a in program. for we to, business and believe little three just take that's moment, value there and that It's how long-term here. No, back bit think our about got year We right. a a

We're on we've also of just two of at and repurchase continue just a, lot and are right to think our evidence really focus sense product three we of and be roadmap. priorities that lot kind all on over that place, the do to a necessarily of intend free we also value we generate, of there's the We're all our on telegraph allocation recent this, investing after us. a the we be with two is that's maintaining in not neighborhood, comfortable which changed times the years. acquisitions you've find the you seen in I know, leverage capital even we to half have growth. And cash think embedded Our to what we makes focused to and outlined focused shares, a But not still when to market. flow, utilize is which in lot is, this plan why going course of we're going of in share a

Okay, terrific. Thank you.

Alex to now And call to there for like remarks. Vetter, further no the the closing questions. turn any I'd over CEO

thank engagement your everybody you today. Well for

call you for joining. concludes This thank today's

now may your disconnect You lines.