Technology

Cars.com Reports Fourth Quarter and Full Year 2023 Results

Published

1 year ago

February 22, 2024

Exceeded Fourth Quarter Guidance, Delivered 7% Year-Over-Year Revenue Growth

Achieved 7% Year-Over-Year ARPD Growth coupled with Strong Fourth Quarter OEM Performance

Generated $137MM of Annual Cash Flows From Operating Activities

CHICAGO, Feb. 22, 2024 /PRNewswire/ — Cars.com Inc . (NYSE: CARS) (d/b/a “Cars Commerce Inc.” or the “Company”), an audience-driven technology company empowering the automotive industry, today released its financial results for the fourth quarter and year ended December 31, 2023.

Q4 2023 Financial and Key Metric Highlights

Revenue of $179.6 million, up $11.4 million, or 7% year-over-yearNet income of $8.3 million, or $0.12 per diluted share, compared to Net Income of $10.3 million, or $0.15 per diluted share, in the prior yearAdjusted EBITDA of $55.4 million, or 31% of revenue, up $5.9 million year-over-yearAverage Monthly Unique Visitors (“UVs”) of 24.3 million, compared to 24.6 million a year agoTraffic (“Visits”) of 142.7 million, up 2% year-over-yearMonthly Average Revenue Per Dealer (“ARPD”) of $2,523, up 7% year-over-yearDealer Customers totaled 19,504[1] as of December 31, 2023, up 789 compared to 18,715 as of September 30, 2023

2023 Full-Year Financial and Key Metric Highlights

Revenue of $689.2 million, up $35.3 million, or 5% year-over-yearNet income of $118.4 million, or $1.74 per diluted share, compared to Net income of $17.2 million, or $0.25 per diluted share, in the prior year. Current year Net income was primarily related to the release of a significant portion of the Company’s valuation allowanceAdjusted EBITDA of $194.9 million, or 28.3% of revenue, compared to $186.7 million, or 28.6% of revenue in the prior yearCash flows from operating activities of $136.7 million, compared to $128.5 million in the prior year, with Free cash flow of $115.8 million, compared to $108.8 million in the prior yearUVs of 26.4 million, even compared to the prior yearTraffic of 614.8 million, up 5% year-over-year, setting an all-time Company record for traffic

Operational Highlights

AccuTrade was selected by FordDirect as its preferred Vehicle Acquisition and Trade & Appraisal solution for The Shop, a newly launched preferred vendor selection program for its more than 3,000 U.S. Ford and Lincoln retailersClosed on the acquisition of D2C Media, a leading provider of website and digital advertising solutions; integration of teams and technology underway supporting the Company’s expanding presence in CanadaDebuted VIN Performance Media, a new advertising solution that combines three of the Company’s existing media products into a single solution that saves dealers time and money, while maximizing ad performance and operational efficiency

“2023 marked a year of significant progress. We advanced our platform strategy through the introduction of Cars Commerce, the rollout of our Marketplace Repackaging initiative and our expansion into Canada with the acquisition of D2C Media. Our focus on simplifying everything about buying and selling cars enabled us to continue to deliver value for consumers, dealers, and OEMs, supporting our twelve consecutive quarters of year-over-year profitable revenue growth,” said Alex Vetter, Chief Executive Officer of Cars Commerce. “We begin 2024 well-positioned to continue building on this momentum, unlocking new growth opportunities and driving commerce for the auto industry.”

Q4 2023 Results

Revenue for the fourth quarter, which includes two months of activity related to D2C Media, totaled $179.6 million, an increase of $11.4 million, or up 7%, compared to the prior year period. Excluding D2C Media, the Company’s revenue would have increased 5%, year-over-year.

Dealer revenue grew 8% year-over-year, driven by continued growth in solutions and media products and the 2023 Marketplace Repackaging initiative. OEM and National revenue also grew 8%, year-over-year driven by a 24% increase in OEM customer revenue. Sequentially, OEM and National revenue increased 6%, driven by 11% growth in OEM customer revenue.

Fourth quarter ARPD grew 7%, or $162, year-over-year to $2,523, primarily driven by the 2023 Marketplace Repackaging initiative. As of December 31, 2023, Dealer Customers totaled 19,504, including 950 dealers associated with the Company’s D2C Media acquisition, an increase of 789 compared to 18,715 at the end of the third quarter of 2023.

Total operating expenses for the fourth quarter were $164.7 million, compared to $148.4 million for the prior year period. Adjusted Operating Expenses for the quarter were $150.8 million, a $10.1 million increase compared to the prior year period. The change in Adjusted operating expenses is primarily due to continued investments in people, an increase in depreciation and amortization, and investments in marketing to support the launch of the Company’s Cars Commerce brand.

Net income for the quarter was $8.3 million, or $0.12 per diluted share, compared to Net income of $10.3 million, or $0.15 per diluted share, in the fourth quarter of 2022. The change in Net income is primarily attributable to the changes in the fair value contingent consideration associated with the Company’s prior acquisitions.

Adjusted EBITDA margin expanded sequentially throughout the year, reaching 31% of revenue for the quarter, or $55.4 million, compared to 29% of revenue, or $49.5 million, for the prior year period.

2023 Full-Year Results

Revenue for the year totaled $689.2 million, an increase of $35.3 million, or up 5%, compared to the prior year period. Dealer revenue grew 7% year-over-year, driven by the continued growth in solutions and media and the 2023 Marketplace Repackaging initiative. OEM and National revenue was down 5%, year-over-year; while OEM revenue increased 8% relative to the prior year, revenue from insurance customers was down compared to a year ago. Other Revenue was $4.5 million lower compared to the prior year primarily due to the planned expiration of a non-cash transition services agreement related to AccuTrade in the first quarter of 2023.

For the year, total operating expenses were $635.1 million, compared to $587.8 million in 2022. Adjusted Operating Expenses for the year were $594.1 million, a $38.2 million increase compared to the prior year that was largely driven by increased compensation and employee related expenses, particularly in Marketing and sales and Product and technology. Additionally, as the Company has accelerated product development and technology investments, Depreciation and amortization expense was also up, year-over-year.

Marketing and sales costs increased primarily due to higher compensation and higher investments in Brand Media to support both the Company’s Possibilities advertising campaign and launch of its enterprise brand, Cars Commerce.

2023 Net income totaled $118.4 million, or $1.74 per diluted share, compared to Net income of $17.2 million, or $0.25 per diluted share in the prior year. The increase in Net income is primarily related to the release of a significant portion of the Company’s valuation allowance, given the expectation of projected future income and utilization of the Company’s tax assets.

Adjusted EBITDA for the year totaled $194.9 million, or 28.3% of revenue, compared to $186.7 million, or 28.6% of revenue, in the prior year period.

The Company remained focused on driving high-quality traffic at scale. Organic traffic remained strong at 61% for the year and Average Monthly Unique Visitors for the year were in line with the prior year. In 2023, total Traffic increased 5%, reaching 614.8 million, a new all-time Company record.

Cash Flow and Balance Sheet

Net cash provided by operating activities in 2023 was $136.7 million, compared to $128.5 million in the prior year. Free cash flow in 2023 totaled $115.8 million compared to $108.8 million in 2022. The increase is primarily due to an $8.2 million year-over-year increase in Adjusted EBITDA and favorable working capital, partially offset by a year-over-year increase in cash taxes of $17.1 million.

In 2023, the Company made $36.3 million in debt payments. Total debt outstanding was $490.0 million as of December 31, 2023 and the Company’s net leverage (as defined in the Company’s credit facility) remained within its target net leverage range of 2.0x to 2.5x, improving to 2.3x, compared to 2.4x as of December 31, 2022. Total liquidity as of December 31, 2023 was $234.2 million, which is defined as Cash and cash equivalents of $39.2 million and revolver capacity of $195.0 million.

For the year, the Company repurchased 1.7 million of its common shares, or 2.6% of the 66.3 million shares outstanding at December 31, 2022, for $31.3 million.

“2023 was a year with robust revenue growth and strong Adjusted EBITDA margins, driven by our focus on execution. Our asset light business model consistently generates strong free cash flow conversion that enables us to invest in growth areas that continue to deliver sustained value for consumers, customers, and shareholders,” said Sonia Jain, Chief Financial Officer of Cars Commerce.

2024 Outlook

The Company expects to deliver another year of strong growth. The Company believes market conditions are improving, with increased OEM production, new model launches, and rising dealer inventory, which coupled with a still cautious consumer makes the Company’s in-market solutions more valuable.

First quarter revenue is expected to be between $179 million and $181 million, representing year-over-year growth of 7% to 8%. First quarter revenue outlook reflects continued strong growth in Dealer revenue driven by continued adoption of the Cars Commerce suite of products, the D2C acquisition, and the full period impact of the 2023 Marketplace Repackaging Initiative. OEM and National Advertising spend is also expected to be up year-over-year, but historically has experienced some seasonality from the fourth quarter to the first quarter. For the year, the Company anticipates continued growth across its platform with both dealer and OEM customers which is reflected in its revenue growth guidance of 6% to 8%.

Adjusted EBITDA margin for the first quarter of 2024 is expected to be between 27% and 29%. It’s important to note, the Company has seasonally higher investments in Marketing and sales in the first quarter, due to the timing of in-person industry events. The Company expects margins to improve over the course of the year and deliver a full year Adjusted EBITDA margin between 28% to 30%.

Q4 2023 Earnings Call

As previously announced, management will hold a conference call and webcast today at 8:00 a.m. CT. This webcast may be accessed at the Cars Commerce Investor relations website, investor.cars.com. An archive of the webcast will be available at investor.cars.com following the conclusion of the call.

About Cars Commerce

Cars Commerce is an audience-driven technology company empowering the automotive industry. The Company simplifies everything about car buying and selling with powerful products, solutions and AI-driven technologies that span pretail, retail and post-sale activities – enabling more efficient and profitable retail operations. The Cars Commerce platform is organized around four industry-leading brands: the flagship automotive marketplace and dealer reputation site Cars.com, award-winning technology and digital retail technology and marketing services from Dealer Inspire, essential trade-in and appraisal technology from AccuTrade, and exclusive in-market media solutions from the Cars Commerce Media Network. Learn more at www.carscommerce.inc.

Non-GAAP Financial Measures

This earnings release discusses Adjusted EBITDA, Adjusted EBITDA margin and Free Cash Flow and Adjusted Operating Expenses. These financial measures are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). These financial measures are presented as supplemental measures of operating performance because the Company believes they provide meaningful information regarding the Company’s performance and provide a basis to compare operating results between periods. In addition, the Company uses Adjusted EBITDA as a measure for determining incentive compensation targets. Adjusted EBITDA also is used as a performance measure under the Company’s credit agreement and includes adjustments such as the items defined below and other further adjustments, which are defined in the credit agreement. These non-GAAP financial measures are frequently used by the Company’s lenders, securities analysts, investors and other interested parties to evaluate companies in the Company’s industry. For a reconciliation of the non-GAAP measures presented in this earnings release to their most directly comparable financial measure prepared in accordance with GAAP, see “Non-GAAP Reconciliations” below.

Other companies may define or calculate these measures differently, limiting their usefulness as comparative measures. Because of these limitations, non-GAAP financial measures should not be considered in isolation or as substitutes for performance measures calculated in accordance with GAAP. Definitions of these non-GAAP financial measures and reconciliations to the most directly comparable GAAP financial measures are presented in the tables below.

The Company defines Adjusted EBITDA as net income (loss) before (1) interest expense, net, (2) income tax (benefit) expense, (3) depreciation, (4) amortization of intangible assets, (5) stock-based compensation expense, (6) unrealized mark-to-market adjustments and cash transactions related to derivative instruments, and (7) unrealized foreign currency exchange gains and losses, and (8) certain other items, such as transaction-related items, severance, transformation and other exit costs and write-off and impairments of goodwill, intangible assets and other long-lived assets.

Transaction-related items result from actual or potential transactions such as business combinations, mergers, acquisitions, dispositions, spin-offs, financing transactions, and other strategic transactions, including, without limitation, (1) transaction-related bonuses and (2) expenses for advisors and representatives such as investment bankers, consultants, attorneys and accounting firms. Transaction-related items may also include, without limitation, transition and integration costs such as retention bonuses and acquisition-related milestone payments to acquired employees, consulting, compensation and other incremental costs associated with integration projects, fair value changes to contingent considerations and amortization of deferred revenue related to the Accu-Trade acquisition.

The Company defines Free Cash Flow as net cash provided by operating activities less capital expenditures, including purchases of property and equipment and capitalization of internally developed technology.

The Company defines Adjusted Operating Expenses as total operating expenses adjusted to exclude stock-based compensation, write-off and impairments of goodwill, intangible assets, long-lived assets, severance, transformation and other exit costs and transaction-related items.

Key Metric Definitions

Average Monthly Unique Visitors (“UVs”) and Traffic (“Visits”). The Company defines UVs in a given month as the number of distinct visitors that engage with its platform during that month. Visitors are identified when a user first visits an individual Cars.com property on an individual device/browser combination or installs one of its mobile apps on an individual device. If a visitor accesses more than one of its web properties or apps or uses more than one device or browser, each of those unique property/browser/app/device combinations counts toward the number of UVs. Traffic is defined as the number of visits to Cars.com desktop and mobile properties (responsive sites and mobile apps). The Company measures UVs and Traffic via Adobe Analytics. These metrics do not include traffic to Dealer Inspire or D2C Media websites.

Monthly Average Revenue Per Dealer (“ARPD”). The Company believes that its ability to grow ARPD is an indicator of the value proposition of its platform. The Company defines ARPD as Dealer revenue, excluding digital advertising services, during the period divided by the monthly average number of Dealer Customers during the same period. Beginning with the three months ended June 30, 2022, AccuTrade is included in our ARPD metric. No prior period has been recast as it would be impracticable to do so and the inclusion of AccuTrade would have had an immaterial impact on ARPD for prior periods. Additionally, beginning December 31, 2023, this key operating metric includes D2C Media.

Dealer Customers. Dealer Customers represent dealerships using our products as of the end of each reporting period. Each physical or virtual dealership location is counted separately, whether it is a single-location proprietorship or part of a large, consolidated dealer group. Multi-franchise dealerships at a single location are counted as one dealer. Beginning June 30, 2022, this key operating metric includes AccuTrade; however, no prior period has been recast as it would be impracticable to do so. Additionally, beginning December 31, 2023, this key operating metric includes D2C Media.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical facts are forward-looking statements. These statements often use words such as “believe,” “expect,” “project,” “anticipate,” “outlook,” “intend,” “strategy,” “plan,” “estimate,” “target,” “seek,” “will,” “may,” “would,” “should,” “could,” “forecasts,” “mission,” “strive,” “more,” “goal” or similar expressions. Forward-looking statements are based on our current expectations, beliefs, strategies, estimates, projections and assumptions, experience in the industry as well as our perceptions of historical trends, current conditions, expected future developments, and other factors we think are appropriate. Such forward-looking statements are based on estimates and assumptions that, while considered reasonable by Cars Commerce and its management based on their knowledge and understanding of the business and industry, are inherently uncertain. While Cars Commerce and its management make such statements in good faith and believe such judgments are reasonable, you should understand that these statements are not guarantees of future strategic action, performance or results. Our actual results, performance, achievements, strategic actions or prospects could differ materially from those expressed or implied by these forward-looking statements. Given these uncertainties, you should not rely on forward-looking statements in making investment decisions. When we make comparisons of results between current and prior periods, we do not intend to express any future trends, or indications of future performance, unless expressed as such, and you should view such comparisons as historical data. Whether or not any such forward-looking statement is in fact achieved will depend on future events, some of which are beyond our control.

Forward-looking statements are subject to a number of risks, uncertainties and other important factors, many of which are beyond our control, that could cause our actual results and strategic actions to differ materially from those expressed in the forward-looking statements contained in this press release. For a detailed discussion of many of these and other risks and uncertainties, see “Part I, Item 1A., Risk Factors” and “Part II, Item 7., Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission (“SEC”) on February 22, 2024 and our other filings filed with the SEC and available on our website at investor.cars.com or via EDGAR at www.sec.gov.

You should evaluate all forward-looking statements made in this press release in the context of these risks and uncertainties. The forward-looking statements contained in this press release are based only on information currently available to us and speak only as of the date of this press release. We undertake no obligation, other than as may be required by law, to update or revise any forward-looking or cautionary statements to reflect changes in assumptions, the occurrence of events, unanticipated or otherwise, or changes in future operating results over time or otherwise. The forward-looking statements in this report are intended to be subject to the safe harbor protection provided by the federal securities laws.

Cars Commerce Investor Relations Contact:
Robbin Moore-Randolph
rmr@carscommerce.com
312.601.5929

Cars Commerce Media Contact:
Marita Thomas
mthomas@carscommerce.com
312.601.5692

[1]As of December 31, 2023, this key metric includes the addition of 950 D2C Media only customers.

Cars.com Inc.

Consolidated Statements of Income

(In thousands, except per share data)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Revenue:

Dealer

$ 161,393

$ 149,424

$ 621,661

$ 579,222

OEM and National

15,410

14,330

55,904

58,557

Other

2,803

4,447

11,618

16,097

Total revenue

179,606

168,201

689,183

653,876

Operating expenses:

Cost of revenue and operations

30,918

28,875

122,205

114,959

Product and technology

25,230

23,166

99,584

89,015

Marketing and sales

58,835

56,515

235,471

221,879

General and administrative

23,069

16,128

76,807

67,593

Depreciation and amortization

26,619

23,706

101,000

94,394

Total operating expenses

164,671

148,390

635,067

587,840

Operating income

14,935

19,811

54,116

66,036

Nonoperating expense:

Interest expense, net

(8,254)

(8,442)

(32,425)

(35,320)

Other (expense) income, net

(4,790)

5,093

(3,586)

(8,140)

Total nonoperating expense, net

(13,044)

(3,349)

(36,011)

(43,460)

Income before income taxes

1,891

16,462

18,105

22,576

Income tax (benefit) expense

(6,455)

6,200

(100,337)

5,370

Net income

$ 8,346

$ 10,262

$ 118,442

$ 17,206

Weighted-average common shares outstanding:

Basic

66,510

66,546

66,742

68,215

Diluted

68,326

68,513

68,227

69,649

Earnings per share:

Basic

$ 0.13

$ 0.15

$ 1.77

$ 0.25

Diluted

0.12

0.15

1.74

0.25

Cars.com Inc.

Consolidated Balance Sheets

(In thousands, except per share data)

December 31, 2023

December 31, 2022

Assets:

Current assets:

Cash and cash equivalents

$ 39,198

$ 31,715

Accounts receivable, net

125,373

107,930

Prepaid expenses

12,553

8,377

Other current assets

1,314

605

Total current assets

178,438

148,627

Property and equipment, net

43,853

45,218

Goodwill

147,058

102,856

Intangible assets, net

669,167

707,088

Deferred tax assets, net

112,953

Investments and other assets, net

20,980

21,033

Total assets

$ 1,172,449

$ 1,024,870

Liabilities and stockholders’ equity:

Current liabilities:

Accounts payable

$ 22,259

$ 18,230

Accrued compensation

31,669

19,316

Current portion of long-term debt, net

23,129

14,134

Other accrued liabilities

68,691

54,332

Total current liabilities

145,748

106,012

Noncurrent liabilities:

Long-term debt, net

460,119

458,249

Deferred tax liabilities, net

8,757

1,401

Other noncurrent liabilities

65,717

74,778

Total noncurrent liabilities

534,593

534,428

Total liabilities

680,341

640,440

Commitments and contingencies

Stockholders’ equity:

Preferred Stock at par, $0.01 par value; 5,000 shares authorized; no
shares issued and outstanding as of December 31, 2023 and 2022,
respectively

—

Common Stock at par, $0.01 par value; 300,000 shares authorized;
65,929 and 66,287 shares issued and outstanding as of
December 31, 2023 and 2022, respectively

659

662

Additional paid-in capital

1,500,232

1,511,944

Accumulated deficit

(1,009,734)

(1,128,176)

Accumulated other comprehensive income

951

—

Total stockholders’ equity

492,108

384,430

Total liabilities and stockholders’ equity

$ 1,172,449

$ 1,024,870

Cars.com Inc.

Consolidated Statements of Cash Flows

(In thousands)

Year Ended December 31,

2023

2022

Cash flows from operating activities:

Net income

$ 118,442

$ 17,206

Adjustments to reconcile Net income to Net cash provided by operating activities:

Depreciation

22,331

16,380

Amortization of intangible assets

78,669

78,014

Amortization of Accumulated other comprehensive loss on interest rate swap

—

2,362

Changes in fair value of contingent consideration

5,537

8,130

Stock-based compensation

28,491

22,342

Deferred income taxes

(114,498)

1,283

Provision for doubtful accounts

2,986

1,888

Amortization of debt issuance costs

3,042

3,235

Unrealized gain on foreign currency denominated transactions

(2,072)

—

Amortization of deferred revenue related to AccuTrade Acquisition

(883)

(4,417)

Other, net

1,026

1,202

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable

(15,567)

(9,337)

Prepaid expenses and other assets

(5,101)

(423)

Accounts payable

3,722

2,611

Accrued compensation

11,638

(4,296)

Other liabilities

(1,043)

(7,669)

Net cash provided by operating activities

136,720

128,511

Cash flows from investing activities:

Payments for acquisitions, net of cash acquired

(76,168)

(64,663)

Capitalization of internally developed technology

(19,602)

(17,886)

Purchase of property and equipment

(1,280)

(1,828)

Net cash used in investing activities

(97,050)

(84,377)

Cash flows from financing activities:

Proceeds from Revolving Loan borrowings

45,000

Payments of Revolving Loan borrowings and long-term debt

(36,250)

(41,250)

Payments for stock-based compensation plans, net

(9,205)

(6,256)

Repurchases of common stock

(31,293)

(48,982)

Payments of debt issuance costs and other fees

—

Net cash used in financing activities

(31,748)

(51,488)

Impact of foreign currency on Cash and cash equivalents

(439)

—

Net increase (decrease) in Cash and cash equivalents

7,483

(7,354)

Cash and cash equivalents at beginning of period

31,715

39,069

Cash and cash equivalents at end of period

$ 39,198

$ 31,715

Supplemental cash flow information:

Cash paid for income taxes

$ 17,636

$ 545

Cash paid for interest and swap

30,416

33,370

Cars.com Inc.

Non-GAAP Reconciliations

(In thousands)

(Unaudited)

Three Months Ended December 31,

Year Ended December 31,

2023

2022

2023

2022

Reconciliation of Net income to Adjusted EBITDA

Net income

$ 8,346

$ 10,262

$ 118,442

$ 17,206

Interest expense, net

8,254

8,442

32,425

35,320

Income tax (benefit) expense

(6,455)

6,200

(100,337)

5,370

Depreciation and amortization

26,619

23,706

101,000

94,394

Stock-based compensation, including related payroll tax expense

7,844

5,390

30,127

22,966

Non-operating foreign exchange income

(2,072)

—

(2,072)

—

Write-off of long-lived assets and other

389

929

1,027

999

Severance, transformation and other exit costs

1,226

960

3,574

4,329

Transaction-related items

11,253

(6,370)

10,698

6,144

Adjusted EBITDA

$ 55,404

$ 49,519

$ 194,884

$ 186,728

Reconciliation of Net cash provided by operating activities to Free cash flow

Net cash provided by operating activities

$ 45,140

$ 37,220

$ 136,720

$ 128,511

Capitalization of internally developed technology

(4,764)

(4,739)

(19,602)

(17,886)

Purchase of property and equipment

(543)

(576)

(1,280)

(1,828)

Free cash flow

$ 39,833

$ 31,905

$ 115,838

$ 108,797

Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2023:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 30,918

$ —

$ (396)

$ 30,522

Product and technology

25,230

—

(2,518)

22,712

Marketing and sales

58,835

(48)

(1,566)

57,221

General and administrative

23,069

(6,003)

(3,364)

13,702

Depreciation and amortization

26,619

—

26,619

Total operating expenses

$ 164,671

$ (6,051)

$ (7,844)

$ 150,776

Total nonoperating expense, net

$ (13,044)

$ 4,745

$ —

$ (8,299)

(1) Includes transaction related items, unrealized gain on foreign currency denominated transactions, severance, transformation and other exit costs, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Three Months Ended December 31, 2022:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 28,875

$ —

$ (224)

$ 28,651

Product and technology

23,166

—

(1,765)

21,401

Marketing and sales

56,515

—

(1,164)

55,351

General and administrative

16,128

(2,373)

(2,237)

11,518

Depreciation and amortization

23,706

—

23,706

Total operating expenses

$ 148,390

$ (2,373)

$ (5,390)

$ 140,627

Total nonoperating expense, net

$ (3,349)

$ (5,229)

$ —

$ (8,578)

(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2023:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 122,205

$ —

$ (1,571)

$ 120,634

Product and technology

99,584

—

(9,360)

90,224

Marketing and sales

235,471

(48)

(6,078)

229,345

General and administrative

76,807

(10,797)

(13,118)

52,892

Depreciation and amortization

101,000

—

101,000

Total operating expenses

$ 635,067

$ (10,845)

$ (30,127)

$ 594,095

Total nonoperating expense, net

$ (36,011)

$ 3,465

$ —

$ (32,546)

(1) Includes transaction related items, severance, transformation and other exit costs, unrealized gain on foreign currency denominated transactions, and write-off of long-lived assets and other.

Reconciliation of Operating expenses to Adjusted operating expenses for the Year Ended December 31, 2022:

As Reported

Adjustments (1)

Stock-Based Compensation

As Adjusted

Cost of revenue and operations

$ 114,959

$ —

$ (983)

$ 113,976

Product and technology

89,015

—

(6,851)

82,164

Marketing and sales

221,879

—

(5,068)

216,811

General and administrative

67,593

(8,943)

(10,064)

48,586

Depreciation and amortization

94,394

—

94,394

Total operating expenses

$ 587,840

$ (8,943)

$ (22,966)

$ 555,931

Total nonoperating expense, net

$ (43,460)

$ 7,946

$ —

$ (35,514)

(1) Includes transaction related items, severance, transformation and other exit costs, and write-off of long-lived assets and other.

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SOURCE Cars Commerce

Technology

China Matters’ Feature: Bridging Cultures at China-CEEC Expo: Central and Eastern European Voices in Ningbo

Published

5 minutes ago

May 23, 2025

NINGBO, China, May 23, 2025 /PRNewswire/ — As the 2025 China-Central and Eastern European Countries Expo opened in Ningbo on May 22, cultural and business exchanges between China and the CEE region were spotlighted. Among the many contributing to this growing partnership are Vladimir Tzanev and Fang Yu, in different professions but with a shared connection to Ningbo.

The Bulgarian pianist Vladimir Tzanev has spent the past two decades working across China. But Ningbo, in eastern China’s Zhejiang Province, is where he and his family want to call home. “My children were born here—they’re Ningbo natives now,” he says in a smile. Alongside his wife, a fellow musician from Latin America, Vladimir established a music society in the city that welcomes students from all walks of life. “Music is a language that opens any door,” he says. “And here in Ningbo, we found an audience eager to listen.”

Fang Yu, meanwhile, has a different story related to the city. After years of working in Slovakia, she returned to China in 2015 and dove into trades with CEE countries. Based in Ningbo, she helps connect Chinese companies with partners from CEE countries, especially through platforms like the China-CEEC Expo. “Trades are built on human connection,” she explains. “And Ningbo is a perfect bridge.”

This year, Slovakia is one of the guest-of-honor countries of the Expo, which holds special meaning for Fang. It was during a government delegation visit from Ningbo to Slovakia that she established a connection with the city. Since then, she’s seen firsthand how face-to-face conversations and shared experiences create trust and opportunities. “When we started, few people knew about these countries or their products,” she recalled. “Now, thanks to events like the China-CEEC Expo, more products from the region are stepping into the spotlight.”

From classical music to Slovakian wine, Vladimir and Fang are helping build more than just business ties—they’re weaving personal stories into the fabric of China-CEEC cooperation. And Ningbo, with its open arms and mind, is right at the center of it all.

YouTube Link: https://www.youtube.com/watch?v=VQo35CxFus4

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SOURCE China Matters

Technology

eFuse Market worth $737.4 million by 2030 | MarketsandMarkets™

Published

5 minutes ago

May 23, 2025

DELRAY BEACH, Fla., May 23, 2025 /PRNewswire/ — The global eFuse Market is anticipated to grow from estimated USD 557.0 million in 2024 to USD 737.4 million by 2030, at a CAGR of 4.9% during the forecast period. Growth in the eFuse Market is being accelerated by more challenging electronic systems and higher demands for reliable protection in automotive, data center, and consumer devices. Because advanced eFuse technologies are small, accurate in current limitation, and can diagnose themselves, more are being used. It ensures that high-power systems are safe, work efficiently, and maintain proper temperatures. By using WBG semiconductors, companies are able to develop faster and more energy-efficient supply chain solutions. Using technologies makes it easier to prevent the damage caused by circuits. Improved eFuse solutions can be added to the battery management system of electric vehicles (EVs), so overcurrent and overheating are detected and dealt with quickly. Circuit protection has improved in various sectors after the introduction of eFuses. eFuses supports real-time detection of faults and effective handling of electricity because of improved technology. As a result, the system can handle overcurrent, overvoltage, and temperature issues smoothly. This means that eFuses in automotive use can deliver exact current restriction and fast fault finding, which is suitable for electric vehicles. This helps manufacturers ensure safety, reduce moments when things break down, and reduce power consumption in important and reliable systems.

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Thin shrink small outline package, by application

Many electronics use eFuses in TSSOP packages because they are compact. It is an excellent solution for applications in automobiles, telecoms, and personal electronics, given that cooling and dependability are very important. If any issue related to fast faults is found, the system imposes a high current control and it can stop to avoid overheating. Thanks to TSSOP eFuses, the system remains safe even when it is exposed to high currents and voltages. What is more, their function supports quick fault detection, so the system responds immediately if a fault occurs within the circuit, which keeps it working well at all times. TSSOP allows manufacturers to efficiently manage power flow, and therefore, eFuses are chosen for modern, advanced electronic devices due to their ability to solve thermal issues.

Auto retry, by type

Auto Retry, by type, is anticipated to maintain strong growth momentum during the forecast period in the eFuse Market. eFuses are categorized into two types: auto retry and latched. The increasing adoption of auto retry eFuses stems from their ability to automatically reset after a fault is detected, ensuring continuous operation in critical systems. It results in less downtime and better reliability, which is why auto retry eFuses are preferred for use in automotive electronics, industrial systems, and data centers. Due to a focus on keeping systems running and tolerating faults, auto retry eFuse sales are predicted to increase a lot. Many industries are starting to use auto retry eFuse technologies to guarantee effective results and cut down on the work needed for upkeep in crucial electronics.

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Asia Pacific segment is expected to be the fastest-growing region during the forecast period.

During the forecast period, Asia Pacific is expected to be the fastest-growing region in the eFuse Market. There is strong demand for eFuses in Asia, fueled by government action and investments to update power grids to cope with huge electricity use. China, Japan, and India have begun many grid expansion efforts, helping to increase reliability and leading to more eFuses being adopted in the region.

Key Players

Some of the major players in the eFuse Market are Littelfuse, Inc. (US), TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION (Japan), Semiconductor Components Industries, LLC (US), and Texas Instruments Incorporated. (US), and Alpha and Omega Semiconductor. (US). The major strategies adopted by these players include acquisitions, product launches, agreements, partnerships, and expansions.

Littelfuse, Inc. (USA)

Littelfuse, Inc. (USA) leads in the eFuse Market by providing advanced circuit protection. Littelfuse’s presence in over 20 countries helps the company deal with the challenges in the semiconductor industry. The company’s main aim is to develop eFuse technology to produce smaller and more efficient solutions for automotive, industrial, and consumer areas. The company spends a lot on research and development to create eFuse chips, including simple Protection ICs designed for 5V through 28V, which safeguard the systems. More than half of the company’s earnings come from the electronics segment, which helps various companies with tools, servers, and telecom infrastructure. Littelfuse secures its number one ranking in the market by acquiring other companies, forming partnerships, and introducing new products, offering reliable circuit protection for electric vehicles and data centers.

Semiconductor Components Industries LLC (USA)

Semiconductor Components Industries LLC (USA) is becoming a prominent name in eFuse by delivering dependable circuit protection. Based in regions across North America, Europe, and Asia, Onsemi works to mitigate the risks in the variable semiconductor industry. The company focuses on inventing new eFuse products that are built to handle tasks in healthcare, IT, and consumer electronics, particularly in servers, hard drives, and industrial-grade relays. The company strives to enhance its eFuse technology through extensive research, enabling features that respond to today’s demands. The Power Solutions Group is a major contribution to Advanced Micro Devices’ overall income, and it provides eFuse solutions for both cars and industrial purposes. To improve its marketplace, Onsemi increases production thanks to government incentives, forms partnerships to meet global chip shortages, and grows by finding new and reliable electronic solutions in this period of change.

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Related Reports:

Automotive Fuse Market

Circuit Protection Market

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Technology

PLAYSAFE ID RAISES $1.12M TO MAKE ONLINE GAMING SAFER

Published

5 minutes ago

May 23, 2025

– Pre-seed round backed by Early Game Ventures, Hartmann Capital, and Overwolf –

LONDON, May 23, 2025 /PRNewswire/ — PlaySafe ID, the platform for gamers that keeps cheaters, hackers, bots, and predators out of games, has raised $1.12M (€1 million) in pre-seed funding to bring trust, fairness, and accountability to gaming communities, without compromising player privacy or freedom.

The round was led by Early Game Ventures, with participation from Hartmann Capital and Overwolf. The raised capital will fuel rapid expansion and strategic platform integrations, as the company gears up for a major go-to-market push and targets 250,000+ users in the coming months.

“This round gives us the firepower to move fast, expand our world-class team, and partner with games that want the most fair and safe environment for players to enjoy,” said Andrew Wailes, CEO of PlaySafe ID. “This is now more important than ever before. With cheating in games as a mass-epidemic that ruins fun for players daily, and the Online Safety Act ushering in long overdue requirements for child protection in gaming, PlaySafe ID’s mission to safeguard gamers isn’t just relevant – it’s now essential for compliance and the future of global gaming.”

Built with a privacy-first mindset, PlaySafe ID issues a verified, anonymised, and game-agnostic digital ID that proves a user is real and hasn’t been caught cheating or being inappropriate to children in games. These are core problems that continue to erode online experiences across games. By offering a single, secure identity layer, the platform empowers both developers and communities to enforce fair play across titles, without sacrificing player anonymity, or the open and creative nature of games.

Early Game Ventures, which led the round, is known for backing early-stage frontier tech. “We believe PlaySafeID is building the trust layer for gaming—and beyond. In a world where AI and anonymity are eroding safety and fairness, PlaySafeID restores balance with identity, transparency, and accountability,” said Cristian Munteanu, Managing Partner at Early Game Ventures. “PlaySafeID builds a network-effects flywheel. Once a gamer is verified through PlaySafeID, that identity becomes portable across games, platforms, and genres. The more developers adopt it, the more valuable it becomes to players—and vice versa. Eventually, the verified identity becomes a default layer of the gaming stack, just like your Steam account or your Xbox Live profile. It’s a winner-takes-all kind of play.”

Hartmann Capital, an investment firm focused on emerging digital ecosystems, also participated in Playsafe ID’s pre-seed round. “Gaming has quickly become the new social center of our world, with over 3 billion active gamers globally. Despite its immense social and economic value, the gaming ecosystem remains largely ungoverned. Accountability is fragmented across platforms, allowing bad actors to evade consequences by simply creating new accounts or migrating between games.” said Felix Hartmann, Managing Partner at Hartmann Capital. “Playsafe introduces a judicial system for the digital world—ensuring accountability, safety, and fairness in online spaces that have grown increasingly toxic and uninhabitable. As a universal authority beyond any single game or even nation, Playsafe establishes a digital rule of law across multiplayer platforms worldwide.”

PlaySafe ID is currently in integration talks with several major gaming platforms, with first partnerships set to launch later this year.

For further information:
Raptor PR for PlaySafe ID
Emma Weeks
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emma@raptorpr.com

About PlaySafe ID

PlaySafe ID stops cheating, botting, and child abuse in games. The company enables players to enjoy gaming at its fairest by issuing anonymised ‘PlaySafe IDs’ to users who verify themselves. With a single ID issued to each user, penalties can now be issued to users who are caught cheating or being inappropriate to children across all PlaySafe Protected games. The company was founded in response to the cheating and bots prolific in online games, and the growing need to keep children safe from predators and bad-actors.

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SOURCE PlaySafe ID; Hartmann Capital