Clocks 3 Percent Revenue Growth in Q4; Plans $200 Million Buyback

By Benzinga
February 25, 2022 Updated: February 25, 2022

Automotive marketplace platform Inc. reported fourth-quarter FY21 revenue growth of 3 percent year-on-year to $158.30 million, marginally missing the consensus of $158.37 million.

Average Monthly Unique Visitors improved 6 percent Y/Y to 23.6 million. Traffic (Visits) of 134.0 million dropped 3 percent Y/Y.

Monthly Average Revenue Per Dealer of $2,333 was up 3 percent Y/Y, driven by continued growth in FUEL and digital solutions.

Dealer revenue grew 8 percent Y/Y, driven by dealer customers and ARPD. OEM and national revenue were 23 percent lower Y/Y.

The adjusted EBITDA margin contracted 200 bps to 30 percent.

The company reported EPS loss of $(0.09) versus $0.10 prior year. held $39.1 million in cash and equivalents and generated $21.8 million in operating cash flow.

Share Buyback announced a $200 million share repurchase program.

“We achieved double-digit Revenue and Adjusted EBITDA growth this year, by driving continued adoption of our superior digital solutions across the industry,” said Alex Vetter, CEO.

Outlook sees Q1 FY22 revenue of $156.5 million–$158.5 million, below the consensus of $160.8 million, reflecting the impact of industry-wide inventory shortages on advertising budgets, particularly for OEMs.

The company forecasts FY22 revenue growth of 6 percent–8 percent, with double-digit revenue growth in Q4, assuming inventory shortages have recovered in the second half.

The company expects Q1 Adjusted EBITDA margin to be 26 percent–28 percent and to approach 30 percent in Q4.

By Anusuya Lahiri

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