Posts

Cars.com posts Q4 net loss related to CreditIQ acquisition

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

Read More

Hertz Posts Higher Revenue, Plans to Relist Amid Travel Rebound

Car-rental company Hertz Global Holdings Inc. said it plans to relist on a major stock exchange by the end of 2021 as its quarterly revenue surged amid a travel rebound.

For April through June, Hertz posted sales of $1.87 billion, growth of 62% compared with the first three months of the year. Sales remained significantly lower than pre-pandemic levels but marked a substantial recovery compared with last year’s spring quarter, when the pandemic brought much of leisure and business travel to a halt.

As vaccination campaigns helped ease the pandemic in the first half of this year, more people hit the road again. Meanwhile, automotive production challenges have squeezed all corners of the car market, raising prices for used cars and keeping rental fleets tight. For Hertz, demand has been resurgent and slim car-rental inventories industrywide boosted the company’s results, Chief Executive Paul Stone said.

“The rental-car industry was among

Read More