Cars.com Inc.

304 million visits across dealer-inspired websites. Our opportunity continues to expand with the addition of AccuTrade and Credit IQ, and we look forward to updating you on the rollout of these solutions. In summary, once again, we delivered results in line with expectations, and I want to reiterate how pleased I am that our momentum continues. I'll now turn the call over to Jandy.

Thank you, Alex. I'm pleased with our solid start to the year. Revenue totaled $158 million, a 3% increase compared to the prior year. Dealer revenue grew 6% to $140 million as a result of 4% growth in dealer customers and 1% growth in ARPD, driven by strong customer retention rates and further adoption of our digital solution. The ongoing inventory shortage continues to impact our OEM and national revenue, which was down 16% from a year ago. New car inventory isn't expected to begin to recover until the fourth quarter this year. Despite the macroeconomic headwinds associated with inventory shortages, inflation, and rising interest rates, our diversified business model gives us confidence that we'll deliver another year of solid growth. Turning to expenses, for the quarter, total operating expenses were $147 million compared to $137 million a year ago. On an adjusted basis, operating expenses were $141 million, $10 million higher compared to the prior year. This increase is primarily due to an increase in marketing, including the return to an in-person NADA, as well as higher product and technology expense driven by higher compensation and consulting costs, including the addition of the integration of Credit IQ and AccuTrace. Net income for the quarter totaled $4 million, or $0.06 per diluted share, compared to $5 million or $0.08 per deleted share a year ago. We delivered adjusted EBITDA at $42 million or 27% of revenue within our guidance range. Margin for the quarter reflects our product mix, lower OEM and national revenue, and higher growth in our solutions business. Now turning to our key metrics. Our business is underpinned by strong fundamentals. The value we deliver attracts and retains dealers evidenced by growth of 321 dealers in the quarter, putting us at 19,500 dealer customers at quarter end. This is our highest number of dealer customers in more than three years. Our website business also continues to grow. As of March 31st, we had 5,500 website customers, up 800 from a year ago. Dealer Inspire revenue in total grew 15% year over year. ARPD for the quarter grew 1% year over year, driven by growth in our digital solutions and fuel products. Generating unique, high-quality traffic is something we've consistently delivered for our dealer and OEM customers. For the first quarter, we had 26.6 million average monthly unique visitors and 148.5 million visits. We grew our UVs, which best represents in-market car shoppers, by 2% year-over-year, while traffic was down 5%. More importantly, our value delivery was up. We grew our leads to dealers 12% year-over-year. All of this despite inventory levels being down more than 30% year-over-year. For the quarter, cash provided by operating activities was $30 million, and free cash flow was $26 million, $18 million lower than the first quarter last year. This decline was primarily due to a $9 million cash tax refund that we received last year in the first quarter related to the CARES Act and higher compensation payments in the current year period. During the quarter, we borrowed $45 million on our resolver and together with cash on hand, funded the upfront purchase price of Accutrade, resulting in total debt outstanding of $520 million at quarter end and net leverage of 2.7 times. Net leverage improved from 2.9 times a year ago. And while 2.7 times is slightly above our target range of 2 to 2.5 times, we are comfortable with this temporary step-up to fund M&A given our consistent, strong cash generation. We have $185 million available on our revolver, and our total liquidity was $215 million at the end of the quarter. With our strong balance sheet and modest net leverage, we began returning capital to shareholders. In March, we made the first purchases under our recently authorized share repurchase program, buying 338,000 shares for a total of $5 million. Now turning to guidance. For the second quarter, we expect to deliver revenue between $161 and $163 million, representing year-over-year growth of 3.5 to nearly 5%. This guidance reflects the continuation of our solid first quarter performance, as well as the ongoing industry-wide inventory shortage, which will continue to mute our growth. This low production environment, further delays in new model releases, and lower incentive spend have a negative impact on our OEM and national revenues specifically. While dealers are experiencing record profits and our retention rates remain strong, Dealers and OEMs are less inclined to increase or shift their advertising budgets during this time. We expect revenue growth to accelerate throughout the year as our growth in our subscription products accumulates and we roll out and ramp up our newly acquired products. We are reaffirming our full year expectation for revenue growth between 6% and 8% with double-digit growth in the fourth quarter. Our guidance assumes inventory shortages begin to recover in the fourth quarter and the macroeconomic environment does not have a worsening impact on car buying consumer behavior and dealer spending on products and solutions. Our expectation for the second quarter adjusted EBITDA margin of 26% to 28% reflects the impact of our projected revenue mix with lower OEM revenue and growing solutions revenue, as well as higher year-over-year expenses as we continue to invest in marketing and in our people, including the integration and launch of our recently acquired dealer solution. Adjusted EBITDA margin is expected to approach 30% by the fourth quarter as revenue growth accelerates and OEM and national revenue begins to recover in connection with inventory. In conclusion, our business is well-positioned for continued growth, in particular during this challenging macroeconomic environment. Our team remains focused on execution and delivering value to our consumers, customers, and to our shareholders. With that, I'd like to turn the call back over to Alex.

Thank you, Jandy. I'm pleased with our progress in advancing our platform strategy, enabling OEMs and dealers to better compete in a rapidly evolving industry that's driven by changing consumer preferences. And with that, we're ready to begin our Q&A. Operator?