Vehicles.com posts a revenue of $ 5.Three million within the first quarter
Car dealership Cars.com made money with slightly higher sales in the first quarter, an improvement over the same quarter last year when the coronavirus pandemic set in in the United States
The Chicago vehicle registration company reported net income of $ 5.3 million on Thursday, compared to a net loss of $ 787.4 million for the same period last year. This loss was impacted by non-cash goodwill and an impairment of $ 905.9 million on intangible assets related to the pandemic.
Revenue rose 3.5 percent to $ 153.3 million, compared with a 4 percent decrease in the prior-year quarter. Cars.com said the increase was due to the growth in average revenue per dealer. That metric rose 8 percent to $ 2,268 in sales of its technology products, including the websites and vehicle market businesses offered by the Dealer Inspire unit and Fuel video marketing product.
“We maintained strong momentum in our business in the first quarter and achieved continuous sequential growth in dealer customers as well as year-on-year growth [average revenue per dealer] and across all major financial measures, “said Alex Vetter, CEO of Cars.com, in a statement. “So far this year we’ve seen positive industry trends, an indication of strong consumer demand and continued retail health. These trends strengthen confidence in our growth prospects for 2021. “
Cars.com reported 18,823 dealership customers as of March 31, a number that the company said has almost returned to pre-pandemic levels after falling in 2020 as dealers cut their marketing costs. The company reported 18,938 dealer customers as of March 31, 2020.
451 dealers have been added since the fourth quarter of 2020. This was the largest quarter-on-quarter increase since Cars.com became a public company in 2017.
Cars.com stock price fell 2.4 percent to $ 12.80 in afternoon trading in New York.
The company announced Thursday that it has become a preferred website provider for FordDirect, a joint venture with Ford and Lincoln dealerships that offers products such as websites and marketing tools, and gives Cars.com access to approximately 3,000 dealerships in the United States USA Provides Cars.com websites grew 4 percent to 26 million while website traffic fell slightly.
Cars.com reported financial guidance for the second quarter only, with revenue forecast of $ 152 million to $ 154 million. No estimate of net income was provided.
“Our balance sheet remains strong and gives us sufficient flexibility to opportunistically pay off debt and continue our investments in product innovation, marketing and talent acquisition to help merchants meet consumers both physically and digitally,” said CFO Sonia Jain in a statement.
The first quarter of last year was hit by the rapid spread of the coronavirus from March and personal business restrictions in some states and communities that had closed some dealer showrooms. Cars.com offered dealership customers several months of discounts and cut spending and staffing last spring to help keep the pandemic going financially.