Cars.com (NYSE:CARS) reported a 5.92% year-over-year increase in its Q3 FY2023 revenue, reaching $174.3 million, aligning with market predictions. The company also anticipates a Q4 revenue of $178 million. This comes as the company's GAAP EPS rebounded to $0.07 per share, a significant improvement from a $0.04 loss per share last year.
In addition to the rise in revenue and earnings, the company's Free Cash Flow increased by 33%, amounting to $30.4 million. Gross Margin also saw an upward trajectory, climbing to 82.2%. Despite these positive financial results, the number of dealer customers decreased by 870 year-over-year, resulting in a total of 18.7 thousand.
The digital marketplace company, which was initially a joint venture that included the Washington Post and New York Times, is now working on increasing market adoption and customer acquisition strategies to attract commission-paying sellers and create flywheel scale effects.
As part of its growth strategy, CEO Alex Vetter announced the launch of Cars Commerce, a B2B brand designed to streamline car transactions. Furthermore, Cars.com expanded its presence in the Canadian market through the acquisition of D2C Media Inc. This move is expected to strengthen the company's position in the automotive digital marketplace.
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