Cars.com (CARS 29.65, +1.36) has jumped 4.8% in pre-market after beating earnings expectations.
The online automotive marketplace reported above-consensus fourth quarter earnings of $0.48 per share on a 3.2% year-over-year decline in revenue to $156.57 million, which was just ahead of estimates.
Average monthly unique visitors to the company's site were unchanged year-over-year while traffic declined 2.0% year-over-year to 89.3 million. Mobile traffic grew 6.0% year-over-year, making up 60.0% of total traffic. The share of mobile traffic increased from 56.0% one year ago. Average vehicle listing count rose 1.0% year-over-year to 4.9 million.
Dealer customer count was little changed quarter-over-quarter at 21,296 while direct dealer customers increased 3.0% to 14,356. Affiliate dealer customers declined 6.0% quarter-over-quarter to 6,940.
Looking at the revenue breakdown, Direct revenue declined 1.2% to $83.84 million, National advertising revenue fell 7.4% to $28.80 million, and Other revenue rose 1.6% to $3.87 million. This caused Retail revenue to decline 2.7% to $116.50 million. Wholesale revenue fell 4.4% to $40.07 million.
Cars.com CEO noted that the company has converted almost 60.0% of its wholesale revenue into its direct sales channel. The company completed the acquisition of Dealer Insipre and Launch Digital Marketing, which broadened the company's suite of digital dealer solutions.
Going forward, the company expects that revenue for the fiscal year will be between $689 million and $695 million, which envelops current market expectations. The company expects that its acquisition of Dealer Inspire and LDM will be accretive to adjusted net income per share 2018 and will become accretive to GAAP earnings in 2019.