Dealership technology company Cars.com posted a $6 million net loss in the fourth quarter, which it said was primarily related to its November acquisition of automotive financial technology company CreditIQ.
The Chicago-based company said Thursday that the net loss for the quarter ended Dec. 31 compared with net income of $7.2 million in the same quarter a year earlier. Cars.com said the $6 million loss stems in large part from a $9.6 million compensation expense related to its $30 million purchase of CreditIQ, while the net profit in the fourth quarter of 2020 was attributed to tax benefits resulting from federal coronavirus pandemic relief legislation.
Revenue rose 3.5 percent to $158.3 million in the fourth quarter of 2021.
“Our business has demonstrated resiliency and profitability during a period of uncertainty,” CEO Alex Vetter told analysts on the company’s fourth-quarter earnings call Thursday.
Shares of Cars.com were trading up 1
