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Cars.com shares cruise on 1Q earnings beat, rising brand awareness

The online vehicle marketplace posted revenue of $154.2 million Friday morning, a 4% year-over-year decline, versus analyst expectations of $152.3 million
The backs of several cars
Awareness of the company reached 73%, the highest in its 20-year history

Cars.com Inc (NYSE:CARS) shares rallied Monday after first-quarter earnings came in ahead of Street expectations Friday morning and brand awareness hit an all-time high.

The online vehicle marketplace saw adjusted net income fall 27% to $20.7 million, or $0.31 per share. That crushed analyst expectations of $0.04 per share. The dip was primarily due to a decline in dealer count. 

Shares revved up 4.5% to $21.75 after the opening bell.

Awareness of the company reached 73%, the highest in its 20-year history, and average monthly unique visitors climbed 16% year-over-year to 22.4 million.

Revenue came in at $154.2 million, a 4% year-over-year decline, versus Street projections of $152.3 million. 

"These first quarter results are in line with our expectations,” CEO Alex Vetter said. “Our traffic strategy and continued product innovation are driving record traffic, higher conversion, and better-quality leads, all of which drive higher profitability for our dealer customers.”

The company is still exploring strategic alternatives but didn’t offer a timetable.

Contact Andrew Kessel at [email protected]

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