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Cars.com Understates Net Income by $3 Million
Digital auto marketplace corrects two years of financial results in current report but will leave the errors uncorrected in prior filings.
February 27, 2023
Cars.com Inc. (CARS), an online marketplace for automobile buyers and sellers, revealed it had overstated its Deferred Tax Assets (DTAs) valuation allowance by $30.8 million. The error occurred in 2020 but was not discovered until the first quarter of 2022. In its latest annual report, Cars.com corrected multiple errors from its 2020 and 2021 financial statements, including:
—In 2020, Cars.com overstated its net loss by $28 million, or 35.5%
—In 2021, Cars.com understated net income by $3 million, or $28.5%
The company says the errors are not material and will leave the errors uncorrected in prior year filings.
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