Online auto portal Cars.com (CARS) reported fourth quarter results. Revenue slipped 3% to $156.6 million due to reduction in ad spending. Net income more than tripled to $151.8 million, thanks to the recent tax reforms which brought in $131 million as tax benefits. However, operating expenses surged $4.9 million, mainly due to increase in G&A expenses.
Monthly unique visitors remained flat vs. prior year period, while site visits dropped 2% to 89.3 million. Site traffic via mobile improved 6%, which accounts now for 60% of overall site traffic. On the dealer front, the company had 21,296 customers; average vehicle listings inched up 1% to 4.9 million.
The company also updated that it has closed the Dealer Inspire and Launch Digital Marketing acquisition. It’s worth noting that the auto portal acquired these two companies for $161 million last month.
Cars.com now believes its revenue to increase in the range of 10% to 11% in fiscal 2018. It also expects the two acquisitions to contribute $45 million to the top line.