In This Article:
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Total Revenue: $46.5 million, a 13.1% increase year-over-year and an 11.4% increase from the prior quarter.
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Net Loss: Decreased to $5.8 million from $7.9 million in Q3 2023.
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Adjusted EBITDA: Achieved profitability of $0.2 million.
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Franchise Dealer Revenue: Grew 12.7% year-over-year and 5.5% quarter-over-quarter.
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New Car Sales Growth: Increased by 16.3% year-over-year.
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TrueCar Marketing Solutions (TCMS) Revenue: Contributed $1 million in dealer revenue.
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OEM Revenue: Decreased by 11.5% year-over-year but increased by 45% from the second quarter.
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TC Plus Pilot: Approximately 30 consumers completed the entire process online, expanding dealer's market reach.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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TrueCar Inc (NASDAQ:TRUE) reported a 13.1% increase in total revenue for Q3 2024 compared to the same period last year.
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The company achieved adjusted EBITDA profitability of $0.2 million, indicating improved financial performance.
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TrueCar Inc (NASDAQ:TRUE) saw a 16.3% year-over-year growth in new car sales, outperforming the industry's decline.
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The launch of TC Plus, enabling consumers to buy vehicles entirely online, marks a significant innovation in the automotive retail space.
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TrueCar Inc (NASDAQ:TRUE) is leveraging its proprietary data to enhance marketing solutions, contributing $1 million in dealer revenue in Q3.
Negative Points
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TrueCar Inc (NASDAQ:TRUE) reported a net loss of $5.8 million for Q3 2024, although this was an improvement from the previous year.
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OEM business revenue declined by 11.5% year-over-year due to the absence of heavily marketed incentive programs.
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The company's wholesale business is not expected to be a growth driver, potentially impacting future revenue streams.
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Dealer activations have been flat, with challenges in stabilizing the independent dealer count.
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The exit of American Express as an affinity partner in April 2025 could impact the company's affinity program revenue.
Q & A Highlights
Q: Can you provide more detail on revenue guidance for the fourth quarter, specifically regarding TC MS, wholesale, and OEM? A: Our main focus is driving dealer revenue, especially on the franchise side. Wholesale is not expected to grow significantly and is more about enabling TC Plus. We are not providing specific guidance for each line item but are focused on overall revenue growth and penetrating the franchise dealer network. (Jantoon Reigersman, CEO; Oliver Foley, CFO)