Cars.com Inc. (CARS) Q1 2026 Earnings Call Transcript

Good morning, ladies and gentlemen, and welcome to the Cars First Quarter 2026 Earnings Conference Call. Operator Instructions. This call is being recorded on Thursday, May 7, 2026. I would now like to turn the conference over to Katherine Chen, Vice President of Investor Relations. Please go ahead.

Good morning, everyone, and thank you for joining us for the Cars.com Inc. First Quarter 2026 Conference Call. With me this morning are Tobi Hartmann, CEO; and Sonia Jain, CFO. Tobi will start by discussing business highlights from our first quarter. Then Sonia will discuss our financial results in greater detail, along with our outlook. We'll finish the call with Q&A. Before I turn the call over to Tobi, I'd like to draw your attention to our forward-looking statements and the description and definition of non-GAAP financial measures, which can be found in our presentation. We will be discussing certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted operating expenses, adjusted net income and free cash flow. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures can be found in the financial tables included with our earnings press release and in the appendix of our presentation. Any forward-looking statements are subject to risks and uncertainties. For more information, please refer to the risk factors included in our SEC filings, including those in our most recently filed 10-K, which is available on the IR section of our website. We assume no obligation to update any forward-looking statements. And now I'll turn the call over to Tobi.

Thank you, Katherine, and thank you to everyone joining us to review first quarter 2026 results. On our call in February, we set forth a near-term goal to better realize the potential of our business and put Cars.com on a stronger growth and value-creation trajectory. We have made solid progress against those objectives in Q1 and early Q2 as we build a leading automotive marketplace experience. First, we delivered on our financial commitments. Q1 revenue of $180.2 million was towards the high end of guidance and the third consecutive quarter of year-over-year growth. Adjusted EBITDA margin of 28.3% exceeded guidance by over a full percentage point. And free cash flow remained strong, up 42% year-over-year and reflecting higher conversion from EBITDA. Second, we have taken immediate cost actions. We closely examined operations to identify efficiencies and opportunities to reshape our organization into more nimble marketplace-focused teams. During this process, we identified $25 million to $30 million of recurring annualized operating cost savings to create a healthier foundation to support future growth. Third, we are leveraging existing assets and data to rapidly launch new features that improve our marketplace value. Cars.com MCP integrations for agentic AI platforms and conversational capabilities for our cars and shopping assistant are examples where we have adapted to match new shopping behavior. Consumers were more than 4x as likely to submit a lead after having a conversation with Carson, demonstrating our efficacy at stimulating purchase intent. These are positive and necessary steps to start the year and reinforce our confidence in our 2026 growth guidance. We also increased our 2026 share repurchase target to $90 million to further enhance shareholder value creation. Overall, the start of the year has been productive and the teams have moved with speed to secure wins. In terms of our three 2026 initiatives, we have pushed hard on controllables such as cost containment. Other changes like the green shoots in product and marketplace are compelling; they will take some time to mature, but we are clear on the strategy that we need to execute for the rest of the year. Historically, we have grown our product as distinct and loosely affiliated pillars. But moving forward to truly maximize our value, we must integrate into one interconnected marketplace-centric ecosystem. For car seekers, we will offer relevant and desirable listings across marketplace and dealer websites, trusted data insights and an AI-first user experience. For car sellers, our combined marketplace and appraisal capabilities will evolve into an essential resource for used car insights. And dealers and OEMs will continue to benefit from our scale in market audience but with even better ROI based on our unique first-party retail signals across marketplace, websites and media. Our marketplace model will drive vehicle transactions at scale by focusing on these differentiators. Investing in product is key to powering our marketplace flywheel and long-term growth. Let me give you some examples of our accelerated product output in the first 4 months. Starting with AI, model context protocol integrations are helping our discoverability on leading agentic AI platforms such as ChatGPT. Consumers can now browse our marketplace inventory directly within a native LLM environment before submitting leads on Cars.com. And this has added value for existing marketplace dealers who are eager to tap into agentic commerce. LLMs are still sub-1% of our traffic, and we are well positioned to benefit as these platforms grow. Turning to our own platform, Conversational Carson is a positive step towards continued personalization of the marketplace shopping experience. Finally, the Cars.com dealer app just launched in April, putting a mobile command center in the hands of marketplace dealers. Early features include AI-generated summaries of performance metrics, lead follow-up alerts and pricing intelligence. We believe our app has the broadest analytics set among our competitors, translating to the best ROI on every sales appointment and wholesale transaction. We expect greater product development velocity will continue to deliver a steady and diverse cadence of future releases. Cross-pollination, such as bringing AccuTrade data into marketplace listings, will be an increasing focus in the second half of the year. Turning to the remaining initiatives, Sonia will offer more cost detail in her remarks. The actions we took in April support our stated intention to grow adjusted EBITDA at a faster rate than revenue. We've also been clear that we must operate with better processes and organizational structure to successfully execute our marketplace strategy and grow LTV. From a go-to-market perspective, new product bundles will help clearly articulate platform value. Our products will be packaged according to integrated value delivery, which we expect to drive faster adoption than selling individual point solutions. For example, our data shows that customers with both AccuTrade and the Cars.com marketplace see inventory turns speed up by an average of 6 days. A combined marketplace and appraisal offering would not only drive dealership gross profits, but also eliminate the paradox of choice for a customer facing too many a la carte options. We have reorganized the sales team accordingly to break down product-based silos, eliminate duplication and make the sales process simpler for dealers. Combined with our ongoing localization efforts, we feel well positioned to increase overall sales productivity. For our current customers, we are fully focused on enhanced value delivery. Our leads and connections already influenced more than 30% of our customers' vehicle sales. We will keep pressing this advantage with a balanced approach to top- and lower-funnel activities that maximizes ROI on our platform. We are committed to operating a scaled platform, though metrics like traffic and unique visitors may move depending on quarterly marketing mix. Most recently, Q1 traffic and unique visitors were pressured by a tough year-over-year comp from pull-forward tariff demand in the broader industry in 2025. Setting aside this one-time impact, our underlying direct traffic remains strong. Organic traffic was close to 60% of total mix in Q1, which is similar to our historical average, even with the advent of LLMs. Direct traffic conversion was also up meaningfully year-over-year and reflected robust lead volume growth. Longer term, we have confidence that our strong brand, improving user experience and listing inventory will fuel continued marketplace strength. To recap, we delivered against revenue expectations and outperformed on adjusted EBITDA. We are changing the way we operate to drive stronger financial results and operating metrics. We are executing to transform into the leading trusted automotive marketplace, connecting consumers, dealers and OEMs. And in the process, we will create meaningful and sustainable shareholder value. Now Sonia will discuss our financial results and outlook. Sonia?

Thank you, Tobi. The first quarter was another positive step in improving our growth trajectory and profitability. Revenue was in line with expectations, while adjusted EBITDA beat our guidance range by over a full point. As Tobi stated, we are focused on our marketplace-centric strategy and are pleased with the performance of this core piece of our business. And as you read in our April announcement, we are focused on more product integration and innovation while working diligently to enable operational efficiencies. These cost benefits are beginning to manifest in our results; all revenue-driving measures will compound and support accelerated growth as we move through the year. Now to discuss the quarter. First quarter revenue of $180.2 million was up 1% year-over-year, above the midpoint of our guidance range. Dealer revenue growth was driven by enhanced value delivery across websites and marketplace as well as dealer count growth, which was up 140 customers year-over-year based on core marketplace strength. We're encouraged by steady marketplace improvement given its criticality to our strategy and importance to our revenue, profitability and cash flow profile. ARPD of $2,473 was consistent on both a year-over-year and sequential basis. Over the medium to long term, we expect this metric to continue growing based on underlying value delivery and increased product adoption. More immediately, we've made good progress in aligning marketplace and website packaging to our value proposition. For example, in marketplace, Premium Plus, our top-tier offering, has grown to nearly 7% of subscribers, and we anticipate reaching 15% adoption across marketplace customers before year-end. For new and renewing website customers, subscription demand for our top website packages remains steady. Our work on core web vitals has improved site speed for many of our customers by nearly 30%. We have also released timely features like improved EV data, which is particularly important as dealers are now selling a growing supply of used EVs without the benefit of government incentives. The dealer media performance continues to temper otherwise favorable ARPD drivers; the planned refresh of our media suite, including AI VIN videos, should set us up for better traction in the second half of the year. In addition to these product-specific refinements, our new marketplace-first approach requires our distinct product pillars to evolve into more integrated subscription offerings. With these integrated offerings, we are entering a new phase of our cross-selling strategy, which we expect will deliver a distinct lever for ARPD growth. We'll share more updates on our work here in the coming months. Turning to dealer count. While our customer base was up year-over-year from marketplace net adds, on a quarter-over-quarter basis, we experienced some pressure in solutions that resulted in overall dealer count decline. Recall, the website business has grown significantly over the last few years as we became a preferred OEM vendor and gained share. We're now in a different phase of growth that is more oriented around innovation and package value versus pure market share gains. Recent investments we've made to improve technical performance on site speed, security and other metrics are garnering favorable customer feedback. Rounding out the solutions discussion, AccuTrade subscribers were down sequentially. As you heard Tobi mention, we expect AccuTrade sales to improve as it becomes more fully integrated with our marketplace. The strength of dealer revenue and, more specifically, marketplace is encouraging, and we expect this momentum to drive total revenue growth in 2026 and balance softness in OEM advertising. In the first quarter, OEM and national revenue was down $2 million year-over-year. There have been ongoing signals that OEM budgets are in flux. As an example, some manufacturers are opting to invest in vehicle incentives to offset the impact of tariffs rather than advertising in Q1. Based on proactive and positive conversations with our partners, we are cautiously optimistic that Q2 represents a trough for OEM media and that we will begin to grow on a sequential basis in the latter half of the year. Moving to operating cost. First quarter operating expenses were $163.6 million, down 5% year-over-year. The decrease was primarily due to lower depreciation and amortization expense, specifically the amortization of customer list associated with our 2017 spin-off, as well as more efficient marketing spend. Q1 adjusted operating expenses were $145.9 million, down 6% year-over-year from lower depreciation and amortization and strong cost controls across the organization. For the following line item detail, all comparisons are on a year-over-year basis, unless otherwise noted. Product and technology expense increased $900,000 on a reported basis and decreased $300,000 on an adjusted basis. Higher severance costs and licensing and hardware expenses were the primary drivers of the reported increase. For adjusted expenses, lower compensation more than offset the aforementioned technology spend. Marketing and sales decreased roughly $700,000 on both a reported and adjusted basis, benefiting from a more efficient marketing mix. General and administrative expense was up nearly $1 million on a reported basis and up $2 million on an adjusted basis. The reported increase was primarily due to severance compensation and third-party costs, which were partially offset by the elimination of the D2C earn-out expense accrual. On an adjusted basis, compensation and third-party costs combined to push total adjusted G&A higher for the quarter. Several of these were discrete items that while individually insignificant, aggregated into slightly elevated total expense. Over the medium to long term, we still expect to realize operating leverage in this line. First quarter net income was $5 million or $0.08 per diluted share compared to a net loss of $2 million or $0.03 per diluted share a year ago. Net income was primarily driven by lower depreciation and amortization. Adjusted net income for the first quarter was $26.7 million or $0.45 per diluted share compared to $24 million or $0.37 per diluted share a year ago. Adjusted EBITDA of $51 million in the first quarter was up slightly year-over-year, while adjusted EBITDA margin of 28.3% was consistent year-over-year and more than 1 percentage point above our guidance range. On to the cash flow statement and balance sheet. Net cash provided by operating activities totaled $39.8 million for the quarter compared to $29.5 million last year. Free cash flow was $33.5 million for the quarter, up from $23.7 million a year ago, primarily due to favorable working capital changes from compensation accruals and the 2024 federal tax refund. In the first quarter, we bought back 2.5 million shares for $20 million, returning approximately 60% of in-period free cash flow to shareholders. Through April 30, 2026, we have bought back 3.8 million shares of common stock for $32.9 million, an efficient use of capital at current valuation levels that reduced shares outstanding by 5% since the beginning of the year. Driving shareholder value remains a priority and is reflected in our recent decision to increase our 2026 share repurchase target by 50% from $60 million to $90 million. Based on year-to-date activity, we are pacing solidly towards this target, and we'll continue to opportunistically leverage strong free cash flow conversion for capital returns and debt paydown. Lastly, debt outstanding was $455 million as of March 31, 2026, for a total net leverage ratio of 1.8x. Total liquidity was $359.6 million as of March 31, 2026, providing the capacity and flexibility to meet our capital allocation priorities. And now we'll conclude with outlook. Second quarter revenue growth is expected to be flat to up 2% year-over-year. Dealer revenue should continue to be a growth driver based on better value delivery and product upgrades and adoption. Based on year-to-date performance, we expect second quarter OEM and national revenue to face similar year-over-year pressures as Q1. The episodic nature of advertising and media investments is also driving our slightly wider than usual quarterly guidance range to account for possible timing variances in customer spending. Second quarter adjusted EBITDA margin is expected to be between 28% and 29%. Our priority is to grow adjusted EBITDA dollars year-over-year at a faster rate than revenue. Embedded within our guidance range is also a partial quarter of savings from the cost reduction program that was initiated in April. We are also reaffirming full year 2026 guidance of flat to 2% revenue growth and adjusted EBITDA margin of 29% to 30%. And with that, I'd like to open the line for Q&A. Thank you.

Operator Instructions. Our first question comes from the line of Tom White from D.A. Davidson.

One on AI and then I have a follow-up. But Tobi, I was hoping maybe you could share your latest thoughts on how you feel about the prospect of consumers increasingly relying on horizontal LLMs and increasingly maybe personal agents to help them shop for cars. And what does that mean for Cars.com's ability to interface directly with consumers? And are there ways that you guys can maybe make your business more resilient or better positioned for that sort of future, maybe by making some of your data more proprietary or protected or anything else?

Thanks for your questions. Yes, we do think that we are in a highly relevant space because car purchasing is very complex, and we have data accumulated over the past 20-plus years. As we discussed earlier on this call, we are making that data more discoverable, which we're in the midst of doing. We've made some great progress there. And then we have a great brand, which is also something that we see increasingly becoming more important: people start initially at a high level of searching, but then once they're getting down into deeper funnel metrics, they do rely on the branded context and the branded information that comes from Cars.com. So big picture, automotive is obviously a complex industry, and it requires deep vertical expertise. A car is the second largest purchase for consumers. And the vast majority of consumers spend time researching in depth, on average 8 to 9 hours. We have a great brand, and we are in the process of making it more discoverable and bringing it up front in the site experience. So that will be a major focus for our future product development. But let me just add, in the spirit of what I talked about earlier regarding interconnectivity: that's why it's important to interconnect everything as opposed to driving in siloed subsidiaries. So that's actually what we're doing underneath the platform and across different data cycles. Thank you.

Great. Maybe just a quick follow-up on AccuTrade and I was hoping to get a bit more color on what's happening there. I think you mentioned subscribers were down sequentially. Is there maybe any seasonality happening there? Is what's happening with subscribers a function of the automotive backdrop more generally? Or is this more of a product-market fit issue that you plan to work on via bundling with the core marketplace? Just a little more color on what's happening at AccuTrade.

Sure thing. Yes, I want to be very transparent. We're in the midst of rearranging and refocusing towards a more interconnected experience and more interconnected product. That means we are deemphasizing the stand-alone solution as opposed to really bundling it up and making it part of an integrated marketplace experience. We have a pretty exciting product roadmap. We will have more to share over the next couple of months and quarters. There's a lot in the making. That's why you may see the number go down a little bit temporarily because we are deemphasizing simply selling it as a stand-alone solution versus making it an integrated part. So I wouldn't call this a trend in the industry or anything; it's more the result of what we're doing internally. And I would say it's according to plan. Thanks.

Our next question is from Rajat Gupta from JPMorgan.

Sorry, I was on mute. Could you clarify the MCP integration opportunity? How many agentic AI platforms have connected? What does that usage funnel look like in terms of lead quality for dealers? I have a quick follow-up.

Right now, it's just one. And we're working towards other channel integrations, not just with ChatGPT. Again, we also mentioned the traffic is well below 1%.

Got it. And it looks like OEM and national is coming in weaker than expected, both in 1Q, including the 2Q guidance that Sonia had mentioned. But it seems like you feel comfortable reiterating the margin guidance. Is it just the cost outs that are offsetting some of the drop-through from the OEM national weakness? I'm curious if there's any other color you could give. Also an update on the OEM and national for guidance. I think the previous outlook was flat year-over-year.

So I think in terms of the margin guidance, certainly some of the actions that we took in April were helpful. In addition to that, we continue to be focused on driving efficiencies in the business. I think you heard Tobi talk a little bit about the shifts that we're making in terms of marketing and focusing on lead generation versus solely top-of-funnel metrics. At the end of the day, that's what dealers really value from us. Those are some of the levers we have at our disposal to deliver on margins in addition to, over time, the interconnected nature of the platform which will naturally lend itself to more efficiencies. And marketplace in and of itself is also a fairly high-margin business.

Our next question is from Marvin Fong from BTIG.

I guess I'd like to dive a little deeper into the solutions business. I think you described entering a new phase of growth there. Any commentary on whether we should expect the count of website customers to continue to decline for a few more quarters? Last call we talked about how some dealers are striking out on their own, developing their own solutions. Has that dynamic continued? Some additional commentary would be great.

Yes, I do think we are entering a slightly different phase of growth. You've talked about it a little bit over the last several quarters: initially on websites, in particular, as we got onto OEM programs, we had the opportunity for rapid market share gains and the business switched to a mode where it's not just unit count growth. It is, in fact, even more important to think about the packages that we're putting forward to dealers and how we integrate improvements and enhancements into these packages. So it becomes a little bit more of an ARPD game. I think we certainly would like to see unit count numbers stay stable over a longer period of time with maybe some modest upward improvement. We feel pretty good about the steps we've taken over the last several quarters: improvements in site speed, enhancements on the security side to improve technical performance of websites, and the ability to integrate some of what we've done for marketplace with solutions. A good example is how we can leverage Carson, the marketplace AI assistant, to enable experiences on dealer websites in a more intuitive way. How we can take AI videos, which we launched as part of our IMV product, and bring that over to the dealer website experience. Things don't always move linearly, but we believe we're taking the right steps to continue to grow websites.

Got it. And then my follow-up: on the repackaging, the last time there was major repackaging there was some dealer churn, and I believe that also embedded a price increase. How should we think about dealer counts as you roll out the new set of packages? Do you expect there will be a period of choppiness, or do you think you can grow the dealer base right out of the gate as you roll out these packages?

In terms of what we saw in dealer count this quarter, the decline we saw was largely related to solutions. We do believe we have a robust plan to tackle that. The goal is to grow dealer count; it is critical to how we think about continuing to grow our marketplace business. Growing dealer count brings more inventory to us and, in turn, brings more consumers to us. Critical to our ability to grow dealer count is how we go to market with more interconnected solutions. There's a lot on the product roadmap we're excited about, which Tobi alluded to earlier—specifically, the integration of AccuTrade and marketplace, which puts powerful data tools in the hands of dealers and allows them to manage one of their biggest assets more effectively, which is inventory.

And maybe let me just add what Sonia mentioned. Historically, this has not been the center of gravity for the company. By looking at the market and the different customer segments, we feel there's a lot of room for us to grow. But we need to treat the product—we need to have the right product fit to cater to the needs of dealers. It's not just 2 or 3 product types; going forward, it's more like 6 to 8 different product types. That's what we're working on behind the scenes. To sum it up, we believe there is significant headroom for us to grow. At the same time, we do not want to create the impression that overnight the number of dealers will jump. This is a concentrated effort that will take a couple of quarters, and it's going to be product-first, data-first and AI-first. That's what we're working on.

Our next question is from Gary Prestopino from Barrington Research.

Two questions. One dealing with the cost savings, Sonia. You said you annualized the $25 million to $30 million for 2027. Is that an absolute number that we should expect to capture as we model, and where are those costs coming out of? Is it SG&A, cost of goods sold? Can you help us out there?

So the $25 million to $30 million is the discrete value on an annualized basis of the changes we announced in April. It doesn't necessarily mean a $25 million to $30 million year-over-year step down in 2026, if that's your question. But what it does enable us to do is be more thoughtful about reallocation in the business as we work to build out more of the interconnections to marketplace. In terms of where the costs are coming out of, they are distributed across the lines of our P&L. We took a hard look across the business—operations, product and technology, marketing and sales, G&A—those were all important areas for us to look at how we can simplify our go-to-market process. Improvements in tooling and interconnectivity have also allowed us to work more efficiently. Reducing layers in the organization is also important to speed decision-making. Those are some of the changes we made.

Okay. That's helpful. And then just a question, Tobi: as you're going to market with an integrated sales product offering, you're going to bundle it, right? I would assume that will drive an increase in average revenue per dealer just from bundling. But at the same time, does that preclude a salesperson from going into a dealership and also selling a single point solution? Will they still have the autonomy to sell a single point solution or will they have to bundle to get the full Cars.com offering?

It's a great question. It's the trade-off. By and large, point solutions will be deemphasized—not because they're not important, but because you need to understand the holistic nature of a dealership's infrastructure. There are many systems in place, and replacing them one by one is much harder to sell and less convenient for dealers than coming in with the core marketplace partnership. It is very easy to interact with us, to get listings, and to activate or deactivate certain features that come as embedded functions with marketplace integration. That's how we're thinking about it. We want to make it as easy as possible for dealers to use different features depending on their needs rather than forcing a single solution that competes with legacy systems. So will we still sell point solutions? Yes—if it makes sense and there's a very specific need by a dealer. But the broad strategy is leading with marketplace and providing an interconnected experience.

Our next question is from Naved Khan from B. Riley Securities.

Just a couple of questions from me. One, on the website business: we saw a decline in dealer customers. Last quarter you said that might be a passing trend or noise. Is there a change in competitive dynamics, or is there something else causing the sequential decline again in website customer count? What can you do to correct it? Second, on organic traffic around 60%: as more traffic goes to AI overviews and AI modes, what are you doing to stay in that organic result mix the top-of-funnel providers are creating?

Thanks, Naved. I'll start with websites. I still think some of this is noise. We are entering a different phase of growth for websites: we initially grew through significant market share gains as we got onto OEM programs and brought in a significant number of dealers at a time. That dynamic has shifted since we are on program with most OEMs now; dealer acquisition is coming in smaller pieces. It's still active in the pipeline, but what we're focused on more is not unit growth; it's the packages we're putting forward to market and the interconnectivity between marketplace and websites. Specifically, leveraging marketplace innovation on dealer websites—Carson conversational search for dealer websites, bringing AI videos to dealer websites—those are things we're excited about. There's a real opportunity to push website customers into higher-tier packages since 50% of them are still in the base package. We feel good about this business and have a solid foundation. There will be trade-offs between volume and ARPD at times, but I view much of the recent movement as noise.

Regarding your question on traffic: we welcome discoverability via LLMs, but the traffic is well below 1% today. We know what people are searching for, and those platforms can be a great entry point for high-level searches. Our advantage is in a complex industry where purchase intent and decision journeys require specificity. That's where our strength comes in—driving deeper funnel leads. You'll see us focus more on the right leads and lead quality rather than pure traffic. In the past, we chased visitors and traffic as a key metric. Moving forward, we will prioritize generating the right leads because smaller dealers and larger dealers have very different needs and ROI expectations. As part of an interconnected marketplace experience, getting lead allocation and lead generation right is essential.

Our next question is from Joe Spak from UBS.

Sonia, I want to go back to some of the OpEx comments and get a better understanding of the trends. I know you mentioned OpEx was down a lot year-over-year, but really that was D&A, which was a result of some actions in the fourth quarter. So that's the lower trend. You still had G&A up year-over-year. How should we expect individual line items like product, marketing and G&A to trend over the balance of the year?

You're right that much of the year-over-year operating cost decrease was tied to depreciation and amortization. There are two pieces: one is some customer list items from the spin that are now fully amortized, which is a permanent step down, and some reduction is due to accounting for office leases. You won't see the benefit of the April actions in our Q1 numbers; those actions will start to flow through Q2 and beyond. The majority of the actions took place in April and some in May, so you won't see the full benefit in Q2 either, but it is reflected in our guidance for Q2 and the full year. Regarding G&A, I recognize the Q1 trend looks a bit odd; most of it was tied to a couple of discrete items—third-party costs and severance—that created a blip. Over the longer term, we expect to get leverage out of G&A and across the P&L. That's the goal for expanding margins in the business.

Okay. Second question: I was going through the NADA annual report, which mentioned dealer advertising in 2025 is up high single digits and that third-party listings were roughly 20% of spend but down a point versus 2024. I'm not exactly sure how they're bucketing it or how to compare that to your business. If that display advertising and other line is most relevant, you grew nicely within that revenue line. How should we think about Cars.com's performance within those high-level dealer spending metrics, and which line should we be looking at?

Thanks for the question. Broadly, we think we should do better and the market is attractive. We don't see major headwinds from dealers changing behavior en masse, but we do see an opportunity for Cars.com to grow by improving product fit and tailoring solutions to dealers' needs. Historically, product offerings were siloed: dealer websites, marketplace listings and other subscriptions. If you look at a dealer's overall spend, when we can provide integrated solutions that drive efficiency and synergy, we can compete more effectively. We believe there is headroom for growth if we combine our assets to deliver better outcomes for dealers.

Our next question is from Doug Arthur from Huber Research.

Sonia, you might have covered this, but was website management up in the quarter? I realize with the integrated strategy it might not be as relevant as a single number, but did that number increase quarter-over-quarter?

If you're asking about website units, we did see some volatility in that number; they were down a little on a year-over-year and quarter-over-quarter basis.

There are no further questions at this time. This concludes today's conference call. Thank you for your participation. You may now disconnect.