Cars.com Q4 2024: Contradictions Unveiled in AccuTrade Growth, Dealer Stability, and OEM Impact

These are the key contradictions discussed in Cars.com's latest 2024Q4 earnings call, specifically including: AccuTrade adoption and growth, dealer count and revenue stability, and OEM endorsements:



Record Revenue and Profitability:
- Cars.com Inc. reported revenue of $719 million for full year 2024, marking a 4% year-over-year increase, with adjusted EBITDA growth and free cash flow reaching multiyear highs.
- The growth was driven by strong product innovation, increased dealer engagement with solutions like AccuTrade, and a robust consumer traffic on the Cars.com marketplace.

AccuTrade Expansion:
- AccuTrade expanded to over 1,000 dealerships, with appraisal volume up 35% year-over-year and vehicles acquired post-appraisal per dealer up 23% in Q4.
- This success was attributed to OEM endorsements for the trade and appraisal technology, which increased dealer adoption and usage.

DealerClub Acquisition:
- The acquisition of DealerClub, a reputation-based wholesale marketplace, is expected to create a $10 billion opportunity by integrating with the Cars.com platform.
- The integration of AccuTrade and DealerClub aims to optimize vehicle lifecycle management and enhance marketplace efficiency.

Marketplace and Consumer Traffic:
- The Cars.com marketplace reached over 23 million shoppers, with over 143 million visits in Q4, a 6% year-over-year increase in repeat visitation.
- Increased brand investments and AI-enhanced shopping tools contributed to winning consumer mindshare and driving high-quality traffic to dealers.