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Cars.com - Investor Relations CARS Reports Third Quarter 2021 Results Achieves High End of Guidance Range for the Quarter Continues Growth in ARPD , Dealer Customers and Revenue Acquires CreditIQ , Automotive Finance Platform CHICAGO , Nov. 4 , 2021 / PRNewswire / -- Cars.com Inc. ( NYSE : CARS ) ( " CARS " or the " Company " ) , a leading automotive marketplace platform that provides a robust set of industry - specific digital solutions , today released its financial results for the quarter ended September 30 , 2021 . Q3 2021 Financial and Key Metric Highlights • Revenue of $ 156.6 million , up $ 12.2 million , or 8 % year - over - year • Net income of $ 2.4 million , or $ 0.03 per diluted share • Adjusted EBITDA of $ 45.8 million , or 29 % of Revenue • • Year - to - Date Net cash provided by operating activities of $ 116.2 million , up 20 % year - over - year , with Free Cash Flow of $ 98.3 million , up 17 % year - over - year Average Monthly Unique Visitors ( " UVs " ) of 24.3 million , down 4 % year - over - year • Traffic of 142.4 million , down 10 % year - over - year • Monthly Average Revenue Per Dealer ( " ARPD " ) of $ 2,332 , up 7 % from $ 2,183 in the prior - year period • Dealer Customers of 19,029 as of September 30 , 2021 , up 184 compared to 18,845 as of June 30 , 2021 , and up 899 , or 5 % , compared to September 30 , 2020 Operational Highlights • Acquired CreditIQ , which is expected to close shortly , enabling the Company to enter the multi - billion - dollar auto finance market ; Cars.com's 142.4 million visits , coupled with 247.5 million visits across 5,200 Dealer Inspire websites , will power CreditIQ's auto finance technology and create a new , lender - based revenue source • Paid down $ 32.5 million of debt , bringing total debt repayments to $ 107.5 million for the nine months ended September 30 , 2021 , and will use $ 30.0 million of cash on hand to fund upfront consideration for the acquisition of CreditIQ , demonstrating the Company's continued strength in Free Cash Flow and focus on maintaining a strong balance sheet " Revenue continues on a consistent growth trajectory , driven by growth in ARPD from accelerating adoption of our industry - leading digital solutions , new dealer growth and record retention levels , " stated Alex Vetter , President and Chief Executive Officer of CARS . " Our acquisition of CreditIQ will further strengthen the capabilities of our platform as we enter into a new and growing market , where the advantages of our category - leading brand and dealer network strengths are significant differentiators . " Q3 2021 Results Revenue for the third quarter totaled $ 156.6 million , an increase of $ 12.2 million , or 8 % , compared to the third quarter of 2020. Dealer revenue grew 12 % year - over - year , driven by 7 % growth in ARPD primarily related to continued penetration of the Company's FUEL and digital solutions products and 5 % growth in dealer customers . OEM and national revenue declined 14 % year - over - year due to pullbacks in OEM spending associated with fewer new model releases and continued inventory shortages , both resulting from supply - chain disruptions . Total operating expenses were $ 144.5 million in the third quarter of 2021 , compared to $ 125.3 million for the prior - year period . Adjusted Operating Expenses for the third quarter were $ 136.4 million in the third quarter of 2021 , an increase of $ 15.6 million compared to the prior- year period . The third quarter of 2020 reflects the Company's continued effective management of expenses , driven by the uncertainty caused by the COVID - 19 pandemic ; as a result , operating expenses were lower than those in the Company's typical operating environment . The year- over - year increases were due to higher marketing expense as the Company returned to a more typical spending environment , as well as increased compensation and higher Product and Technology expense related to continued investments to accelerate growth in the business . GAAP net income was $ 2.4 million , or $ 0.03 per diluted share , in the third quarter of 2021 , compared to GAAP net loss of $ 12.3 million , or $ ( 0.18 ) per diluted share , in the same period of the prior year . Adjusted EBITDA was $ 45.8 million , or 29 % of revenue , in the third quarter of 2021 , compared to $ 49.0 million , or 34 % of revenue , for the same period of the prior year . The Company remains focused on driving high - quality traffic and leads while continuing to optimize marketing investments . Due to the record high traffic in the third quarter of 2020 in the midst of COVID - related restrictions , the Company experienced a decline in UVs and Traffic of 4 % and 10 % , respectively , year - over - year for the three months ended September 30 , 2021. In addition , the Company experienced certain short- term negative impacts to UVs and Traffic in connection with the completion of the Technology Transformation . Compared to 2019 , UVs were up 5 % and Traffic was down 1 % . Organic traffic remains strong at 68 % of Traffic for the third quarter of 2021 . For the third quarter of 2021 , ARPD was $ 2,332 , up 7 % year - over - year and up 1 % , compared to the second quarter of 2021 , driven by continued growth in dealer solutions . Dealer Customers totaled 19,029 at the end of the third quarter , up 899 , or 5 % , compared to the prior year period and up 184 , or 1 % , compared to June 30 , 2021 , supported by continued record retention rates and new sales . Cash Flow and Balance Sheet Net cash provided by operating activities for the nine - month period ended September 30 , 2021 was $ 116.2 million , up 20 % , compared to $ 96.9 million in the same period of the prior year . Free Cash Flow for the nine months ended September 30 , 2021 totaled $ 98.3 million , up 17 % , compared to $ 84.3 million in the same period of the prior year . The Company made $ 32.5 million in debt payments during the third quarter , reducing total debt outstanding to $ 490.0 million as of September 30 , 2021. In the first nine months of 2021 , the Company repaid $ 107.5 million of its outstanding debt , of which $ 100.0 million were voluntary prepayments . The Company's total net leverage ratio as of September 30 , 2021 improved to 2.3x , compared to 3.8x as of September 30 , 2020. Total liquidity was $ 281.5 million , including cash and cash equivalents of $ 51.5 million and $ 230.0 million of revolver capacity , as of September 30 , 2021 .