Cars.com Inc.

Quarterly Financial Information

Unaudited (in thousands)

Three months ended

Year ended

Three months ended

Year to date

March 31, 2016

June 30, 2016

September 30, 2016

December 31, 2016

December 31, 2016

March 31, 2017

June 30, 2017

September 30, 2017

September 30, 2017

Revenues:

Retail:

Direct revenue

$

81,805

$

82,123

$

84,651

$

84,845

$

333,424

$

83,635

$

83,273

$

82,504

$

249,412

National advertising revenue

24,251

27,756

31,214

31,114

114,335

24,936

28,441

32,002

85,379

Other revenue

3,549

3,701

3,963

3,804

15,017

3,674

3,996

4,319

11,989

Total retail revenue

109,605

113,580

119,828

119,763

462,776

112,245

115,710

118,825

346,780

Wholesale revenue

42,884

43,070

42,467

41,909

170,330

40,929

40,914

41,074

122,917

Total revenues

152,489

156,650

162,295

161,672

633,106

153,174

156,624

159,899

469,697

Operating expenses:

Cost of revenue and operations ^(a)

13,559

13,628

15,033

14,574

56,794

15,902

15,540

18,176

49,618

Product and technology ^(a)

19,150

19,575

17,436

16,909

73,070

18,917

19,522

18,422

56,861

Marketing and sales

58,342

53,263

48,670

50,757

211,032

59,001

50,512

50,733

160,246

General and administrative ^(b)

5,421

5,987

5,736

6,781

23,925

7,739

17,445

9,180

34,364

Affiliate revenue share

1,994

2,108

2,162

2,265

8,529

2,361

2,355

2,121

6,837

Depreciation and amortization ^(b)

20,245

20,214

21,090

21,557

83,106

22,073

22,377

21,893

66,343

Total operating expenses

118,711

114,775

110,127

112,843

456,456

125,993

127,751

120,525

374,269

Operating income

33,778

41,875

52,168

48,829

176,650

27,181

28,873

39,374

95,428

Nonoperating income (expense):

Interest income (expense), net

-

12

41

41

94

41

(1,770

)

(5,431

)

(7,160

)

Other income (loss), net

(79

)

133

88

72

214

84

51

64

199

Income before taxes

33,699

42,020

52,297

48,942

176,958

27,306

27,154

34,007

88,467

Provision for income taxes

-

-

452

136

588

418

2,345

13,019

15,782

Net income

$

33,699

$

42,020

$

51,845

$

48,806

$

176,370

$

26,888

$

24,809

$

20,988

$

72,685

Net income

$

33,699

$

42,020

$

51,845

$

48,806

$

176,370

$

26,888

$

24,809

$

20,988

$

72,685

Non-GAAP reconciliation to adjusted EBITDA

Interest (income) expense, net

-

(12

)

(41

)

(41

)

(94

)

(41

)

1,770

5,431

7,160

Provision for income taxes

-

-

452

136

588

418

2,345

13,019

15,782

Depreciation and amortization ^(c)

20,245

20,214

21,090

21,557

83,106

22,073

22,377

21,893

66,343

Stock-based compensation

-

-

-

-

-

-

481

1,012

1,493

Transaction related costs and other

-

-

-

-

-

104

4,560

317

4,981

Restructuring costs

-

-

-

-

-

-

1,671

280

1,951

Costs related to the headquarters move

-

-

-

-

-

697

2,731

130

3,558

Write-off and loss on assets

-

-

-

-

-

-

1,383

63

1,446

Adjusted EBITDA

$

53,944

$

62,222

$

73,346

$

70,458

$

259,970

$

50,139

$

62,127

$

63,133

$

175,399

The presentation changes have no impact on Total operating expenses, Net income, and Adjusted EBITDA.

(a) Cost of revenue and operations has been reclassified from Product support, technology and operations into a separate line item.  Product support, technology and operations has been renamed Product and technology.

(b) Depreciation has been reclassified from General and administrative into a new line item named Depreciation and amortization.

(c) Depreciation and amortization have been combined in the Non-GAAP reconciliation to adjusted EBITDA.  Previously, these balances were presented separately.