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• Annual Revenue: $175.6 million, a 10.6% increase year over year.

• Adjusted EBITDA: $1.6 million, an increase of $15.3 million year over year.

• Cash Flow from Operations: $7.7 million, a year over year improvement of $30.1 million.

• Free Cash Flow: Negative $0.2 million, a year over year improvement of $34.1 million.

• Total Unit Sales: 356,000 units, an 11.7% increase year over year.

• New Vehicle Unit Sales: 204,000 units, a 15.6% increase year over year.

• Franchise Dealer Count: Increased by 119 dealers to 8,351, a 1.4% increase year over year.

• Q4 Revenue: $46.2 million, an 11.9% increase year over year.

• Q4 Adjusted EBITDA: $0.4 million.

• Q4 Cash Flow from Operations: $5.9 million.

• Q4 Free Cash Flow: $4.1 million, an increase of $12.2 million year over year.

• Q4 Total Units: 93,000 units, a 22% increase year over year.

• Q4 New Units: 58,000 units, a 27.8% increase year over year.

• Share Repurchase: 6.1 million shares of TrueCar stock repurchased.

• Warning! GuruFocus has detected 3 Warning Signs with TRUE.

Release Date: February 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• TrueCar Inc (NASDAQ:TRUE) reported a 10.6% year-over-year revenue growth, reaching $175.6 million, marking the strongest annual revenue growth since 2017.

• Adjusted EBITDA improved significantly, growing by $15.3 million year-over-year to $1.6 million.

• The company achieved a year-over-year improvement in cash flow from operations by $30.1 million, reaching $7.7 million.

• TrueCar Inc (NASDAQ:TRUE) successfully launched TC Plus, becoming the first digital marketplace to enable the purchase and sale of new, used, and certified pre-owned vehicles entirely online.

• The company repurchased 6.1 million shares of its stock, indicating confidence in its future prospects and returning value to shareholders.

Negative Points

• TrueCar Inc (NASDAQ:TRUE) expects a modest Q1 revenue growth in the high single digits, with a negative adjusted EBITDA of approximately $5 million due to increased headcount and marketing investments.

• The company faces challenges with dealer churn, particularly among smaller independent dealers, due to high-interest rates and inventory financing difficulties.

• The loss of the American Express partnership is expected to impact Q1 revenue, creating a gap that needs to be bridged with new partnerships.

• TrueCar Inc (NASDAQ:TRUE) is experiencing a transitional phase with its OEM incentive revenue, which has not yet fully recovered to pre-pandemic levels.

• The integration of DMS with TC Plus is still in progress, requiring further development to fully automate the buying process and reduce manual tasks for dealers.