Core Insights - Treatment.com AI Inc.'s Rocket Doctor has been selected for the 2025 Heal.LA Bioscience and Healthcare Accelerator, aimed at enhancing access to healthcare in underserved communities [2][3] - The accelerator will provide Rocket Doctor with strategic mentorship, regulatory support, and access to a network of healthcare leaders and potential partners, facilitating its growth in the U.S. market [4][8] - Rocket Doctor's innovative, physician-led platform utilizes AI-enabled tools to deliver remote care, focusing on communities with limited access to healthcare [3][5] Company Overview - Rocket Doctor is a technology-driven digital health platform that allows healthcare providers to manage virtual or hybrid practices, aiming to redefine modern healthcare by removing barriers to care [6] - The platform is designed to empower healthcare providers with AI-powered tools, enabling high-quality care delivery, particularly in underserved and remote areas across North America [6][10] - Treatment.com AI is focused on improving healthcare efficiency through its Global Library of Medicine, which supports healthcare professionals by reducing administrative burdens and enhancing patient care quality [10]

Financial Performance - Total revenues for Q1 2025 were $44,810,000, representing a 9.0% increase from $41,052,000 in Q1 2024[18] - Net loss for Q1 2025 was $10,136,000, compared to a net loss of $5,848,000 in Q1 2024, indicating a 73.0% increase in losses year-over-year[18] - Operating expenses for Q1 2025 totaled $56,008,000, an increase of 15.4% from $48,537,000 in Q1 2024[18] - The company reported a comprehensive loss of $10,136,000 for Q1 2025, compared to a comprehensive loss of $5,848,000 in Q1 2024[18] - Adjusted EBITDA for Q1 2025 was a loss of $3.8 million, compared to a positive $936,000 in Q1 2024[103] - The net loss for the three months ended March 31, 2025, was $10.1 million, compared to a net loss of $5.8 million for the same period in 2024[128][129] Assets and Liabilities - Total current assets decreased to $122,080,000 as of March 31, 2025, down from $135,128,000 at December 31, 2024, a decline of 9.7%[15] - Total liabilities decreased to $33,909,000 as of March 31, 2025, down from $41,554,000 at December 31, 2024, a reduction of 18.4%[15] - Stockholders' equity decreased to $111,096,000 as of March 31, 2025, from $118,137,000 at December 31, 2024, a decline of 5.9%[15] - Cash and cash equivalents at the end of Q1 2025 were $98,026,000, down from $111,835,000 at the end of Q4 2024, a decrease of 12.3%[22] Revenue Sources - Dealer revenue increased to $40.8 million in Q1 2025, up 13.5% from $36.0 million in Q1 2024[71] - For the three months ended March 31, 2025, approximately 8.5% of the company's revenue was derived from arrangements with car manufacturers to promote vehicle sales through consumer incentives, down from 9.6% for the year ended December 31, 2024[178] - The termination of the partnership with American Express in April 2025, which accounted for approximately 5% of the company's units in the twelve months prior to the termination notice, is expected to negatively impact revenue from manufacturer arrangements[182] Expenses - Cash used in operating activities for Q1 2025 was $(7,895,000), compared to cash provided of $2,049,000 in Q1 2024[22] - Stock-based compensation expense for the three months ended March 31, 2025, totaled $3.3 million, up from $2.6 million in Q1 2024, reflecting a 26.3% increase[63] - Sales and marketing expenses rose by $2.94 million, or 13.3%, to $25.02 million, accounting for 55.8% of revenues compared to 53.8% in 2024[115] - General and administrative expenses increased by $0.6 million, or 6.3%, to $10.08 million, accounting for 22.5% of revenues compared to 23.1% in 2024[119] Market and Economic Conditions - The macroeconomic environment continues to pose challenges, including limited new vehicle inventories and rising vehicle costs, impacting financial results[84] - The company acknowledges that economic conditions affecting consumer demand for automobiles, such as interest rates and inflation, may materially impact its business and financial condition[152] - Consumer prices increased by 9.1% during the twelve months ended June 30, 2022, impacting purchasing behavior and car sales[157] Operational Challenges - The company aims to roll out the TrueCar+ offering, which integrates various car-buying processes into a single platform, but faces technical challenges in scaling this offering[162] - The company is currently unable to effectively respond to rapid changes in technology and consumer demands, which could lead to decreased demand for automobiles on its platform[208] - The company may need to implement further measures to reduce operating costs and improve margins, but success is not guaranteed[200] Dealer Relationships - The company relies significantly on revenues from TrueCar Certified Dealers, and failure to maintain or increase these revenues would harm financial performance[164] - The company has observed a decrease in independent dealers due to industry consolidations and financial pressures, which may affect dealer network stability[170] - The company’s ability to attract manufacturers to participate in incentive programs is critical, as failure to do so could reduce growth and harm operating results[179] Strategic Initiatives - In June 2023, the company announced a strategic restructuring plan, resulting in a workforce reduction of approximately 24%[199] - The company is focused on enhancing its software ecosystem and improving customer acquisition efficiency[80] - The company has fully impaired the right-of-use asset associated with a lease amounting to $6.8 million as of March 31, 2025[55]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $44.8 million, an increase of $3.8 million or 9.2% year over year [5] - Adjusted EBITDA was negative $3.8 million, indicating a loss [5] - New unit sales volume increased by 23% year over year, significantly outpacing the industry's growth of 6.8% in new vehicle retail sales for the quarter [5] Business Line Data and Key Metrics Changes - The transition of certain OEM incentives from American Express to AAA auto buying side progressed rapidly, with AAA program revenue in March approaching previous levels seen with American Express [5] - Performance marketing campaigns have achieved the lowest cost per sale since 2022, effectively driving unit sales growth for dealer partners [5] Market Data and Key Metrics Changes - Approximately 50% of new vehicles retailed in the U.S. are imported, and tariffs are estimated to add about $4,500 in additional costs for new vehicles sold, equating to roughly 10% of the average pre-tariff new vehicle MSRP [8] - Despite the tariffs, strong and stable demand is expected to continue in the near term as dealers sell through pre-tariff inventory [9] Company Strategy and Development Direction - The company is focused on scaling the TC Plus product, which aims to change the car buying experience for consumers and dealers [6] - A pilot program with a singular dealer group is being used to co-create tools and solutions for broader rollout [6] - The company is also onboarding additional pilot dealer groups to expand the TC Plus offering [7] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of tariffs on the automotive sector, noting that the operational response from OEMs will dictate changes in new vehicle supply and pricing [8] - The company is taking steps to mitigate potential slowdowns in growth and aims to manage cash flow effectively in various scenarios [10] - Due to high uncertainty, the company refrained from providing financial guidance for Q2 and beyond [10] Other Important Information - The company is leveraging AI for personalized consumer experiences in marketing campaigns, which has shown attractive results [14][15] - The revenue mix is crucial for margins, with OEM revenue typically having the highest margin [23] Q&A Session Summary Question: Can you clarify the product enhancements mentioned in your letter? - Management highlighted the use of Gen AI for personalized email campaigns as an example of product enhancement [14] Question: How should we think about changes to OEM incentive ad spending? - Management indicated that OEMs may need to support vehicle sales more, which could benefit the company [16] Question: How should we think about margins across the business? - Management discussed three main cost buckets: headcount, marketing expense, and overhead, emphasizing the importance of efficiency [20][24] Question: Is the loss of the American Express business fully compensated by AAA? - Management confirmed that the transition is progressing and nearing previous levels [25] Question: What is the exposure to different OEMs regarding tariffs? - Management noted that not all OEMs are impacted equally and emphasized adaptability to help OEMs with their specific issues [31][32] Question: Are there considerations for stock buybacks? - Management stated that share buybacks are always considered as part of capital allocation strategies [34] Question: Can you provide insights on TC Plus and its economic benefits? - Management confirmed that TC Plus is driving both online purchases and increased volumes for dealers [38] Question: What is the timeline for CDK and Tech Yield integrations? - Management expressed confidence in the timeline for integrations but noted complexities with CDK [66] Question: What is the current behavior in dealership conversations? - Management reported that dealer morale is good, and sales are holding up despite uncertainty [70]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $44.8 million, an increase of $3.8 million or 9.2% year over year [5] - Adjusted EBITDA was negative $3.8 million, indicating ongoing challenges in profitability [5] - New unit sales volume increased by 23% year over year, significantly outpacing the industry's growth of 6.8% in new vehicle retail sales for the quarter [5] Business Line Data and Key Metrics Changes - The transition of OEM incentives from American Express to AAA auto buying side progressed rapidly, with AAA program revenue in March approaching previous levels seen with American Express [5] - Performance marketing campaigns have achieved the lowest cost per sale since 2022, effectively driving unit sales growth for dealer partners [5] Market Data and Key Metrics Changes - Approximately 50% of new vehicles retailed in the U.S. are imported, and tariffs are estimated to add about $4,500 in additional costs for new vehicles sold, equating to roughly 10% of the average pre-tariff new vehicle MSRP [9] - Despite the tariffs, there is no expected material impact on strong demand in the near term as dealers sell through pre-tariff inventory [10] Company Strategy and Development Direction - The company is focused on scaling the TC Plus product, which aims to enhance the car buying experience for consumers and dealers [6] - A pilot program with a singular dealer group is being utilized to co-create tools and solutions for broader rollout [6] - The company is also onboarding additional pilot dealer groups to expand consumer access to TC Plus [8] Management's Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding the impact of tariffs on vehicle supply and pricing, indicating that the operational response from OEMs will dictate changes in retail sales volumes [9][10] - The company refrained from providing financial guidance for Q2 and beyond due to high levels of uncertainty in market dynamics [11] Other Important Information - The company is taking steps to mitigate potential slowdowns in growth and aims to manage cash flow effectively in various scenarios [11] - The integration with dealer management systems (DMS) providers is critical for automating deal documentation and desking activities [7] Q&A Session Summary Question: Can you clarify the product enhancements mentioned in the letter? - Management highlighted the use of Gen AI for personalized email campaigns as an example of product enhancement aimed at improving consumer experience [15][16] Question: How should we think about changes to OEM incentive ad spending? - Management indicated that OEMs may need to support vehicle sales more, which could benefit the company, but the uncertainty makes it hard to predict [17] Question: How should we think about margins across the business? - Management noted that margins will be influenced by revenue mix and flexibility in the cost structure, with OEM revenue typically having the highest margin [20][24] Question: What is the status of the transition from American Express to AAA? - Management confirmed that the transition is progressing and nearing previous levels, though not yet fully complete [26] Question: What is the exposure to different OEMs regarding tariffs? - Management stated that not all OEMs will be impacted equally, and the company is focused on helping OEMs navigate their specific challenges [30][32] Question: Is there consideration for stock buybacks? - Management confirmed that stock buybacks are always considered as part of their capital allocation strategy [35] Question: Can you provide insight into dealer behavior amid uncertainty? - Management reported that dealer morale remains strong, and there are no significant red flags in the field despite the uncertainty [69][70]

Financial Performance - Revenue for Q1 2025 was $44.8 million, a 9% year-over-year increase compared to $41.1 million in Q1 2024[7] - Non-GAAP expenses for Q1 2025 were $48.6 million, a 21% year-over-year increase compared to $40.1 million in Q1 2024[7] - Adjusted EBITDA for Q1 2025 was -$3.8 million, compared to $0.9 million in Q1 2024, with margin decreasing from 2% to -8%[7] Traffic and Units - Traffic in Q1 2025 was 5.8 million average monthly unique visitors, a 24% year-over-year decrease from 7.7 million in Q1 2024[9] - Total units in Q1 2025 were 86,000, a 9% year-over-year increase from 79,000 in Q1 2024[9] - Dealer count decreased by 1% year-over-year, from 11,388 in Q1 2024 to 11,272 in Q1 2025[9] Dealer Metrics - Franchise dealer count in Q1 2025 was 8,336, a 2% year-over-year increase[9, 19] - Independent dealer count in Q1 2025 was 2,936, an 8% year-over-year decrease[9, 23] Revenue Breakdown - Net Franchise Revenue for Q1 2025 was $28.5 million[14] - Net Independent Revenue for Q1 2025 was $6.0 million[14]

Company Performance - TrueCar reported a quarterly loss of $0.09 per share, which aligns with the Zacks Consensus Estimate, compared to a loss of $0.04 per share a year ago [1] - The company posted revenues of $44.81 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 1.91%, and showing an increase from $41.05 million year-over-year [2] - TrueCar shares have declined approximately 58.2% since the beginning of the year, while the S&P 500 has decreased by only 3.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $47.26 million, and for the current fiscal year, it is -$0.14 on revenues of $198.53 million [7] - The estimate revisions trend for TrueCar is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Internet - Services industry, to which TrueCar belongs, is currently ranked in the bottom 37% of over 250 Zacks industries, suggesting potential challenges for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for Q1 2025 was $44.8 million, representing a year-over-year increase of $3.8 million (+9.2%) [5] - Net loss increased to -$10.1 million, compared to -$5.8 million in the same period last year [5] - Adjusted EBITDA decreased to -$3.8 million from $0.9 million in the same period last year [5] - Revenue for Q1 2025 was $44.8 million, a 9.2% increase year-over-year from $41.1 million in Q1 2024, but a 3.0% decrease from $46.2 million in Q4 2024 [54][60] - Net loss for Q1 2025 was ($10.1 million), compared to ($5.8 million) in both Q1 2024 and Q4 2024 [54][56] - Adjusted EBITDA for Q1 2025 was ($3.8 million), down from $0.9 million in Q1 2024 [54][56] - Total costs and operating expenses increased to $56,008 thousand, up 15.4% from $48,537 thousand year-over-year [102] - Net loss for the period was $10,136 thousand, compared to a net loss of $5,848 thousand in the same quarter of the previous year, representing a 73.0% increase in losses [102] - Adjusted EBITDA for the three months ended March 31, 2025, was $407 thousand, a significant improvement from a loss of $3,802 thousand in the same period of 2024 [107] Sales and Market Performance - New unit sales volume increased by 23% year-over-year, significantly outpacing the industry's growth of 6.8% in new vehicle retail sales for the quarter [5] - Total units sold in Q1 2025 were 86,000, a 9.3% increase year-over-year but a 7.7% decrease sequentially [70] - Total dealer revenue grew by $4.8 million (+13.3%) year-over-year, driven by a $1.7 million (+6.2%) increase in franchise dealer revenue [61] - OEM revenue for Q1 2025 was $3.8 million, a decline of $1.1 million (-22.4%) year-over-year [62] - Approximately one-third of the pilot dealer group's TrueCar-enabled sales were driven by TC+ consumers completing transactions online [3] Inventory and Financing - The average new vehicle inventory reached 2.7 million units, a decrease of 198 thousand units (-6.7%) quarter-over-quarter but an increase of 248 thousand units (+9.9%) year-over-year [25] - The average APR for new vehicle loans increased to 6.9% in Q1 2025, up from 6.6% in Q4 2024 [16] - The 25% tariffs on imported vehicles are estimated to add approximately $4,500 in additional costs per new vehicle sold in the US, equating to roughly 10% of the average pre-tariff new vehicle MSRP [7] Expenses and Cash Flow - Technology and development expenses totaled $8.1 million in Q1 2025, up 0.0% year-over-year [75] - General and administrative expenses were $10.1 million on a GAAP basis, up 6.3% YoY, and $7.8 million on a non-GAAP basis, up 4.2% YoY in Q1 2025 [76] - Sales and marketing expenses were $25.0 million on a GAAP basis, up 13.3% YoY, and $24.5 million on a non-GAAP basis, up 14.5% YoY in Q1 2025 [81] - TrueCar.com acquisition expense was $4.3 million, down 19.8% YoY, while cost per sale for TrueCar.com units was $170, down 11.9% YoY [82] - Partner marketing spend was $9.2 million, up 21.4% YoY, driven by a 19.1% YoY growth in units attributed to the partner network [82] - Cash and equivalents as of March 31, 2025, were $98.0 million, with no debt [55][56] - The company ended Q1 2025 with $98.0 million in cash and equivalents, down from $133.7 million at the end of Q1 2024 [83] - Cash usage included a $4 million payment to former equity holders of Digital Motors and a $1.4 million one-time payment to American Express [83] - Free cash flow for the three months ended March 31, 2025, was $(10,570) thousand, compared to $4,146 thousand in the previous quarter, reflecting a significant decrease [110] - The company reported a net cash used in operating activities of $(7,895) thousand for the period, compared to $2,049 thousand in the same quarter of 2024 [110] Strategic Initiatives - The company aims to complete back-end integrations with two dealer management system providers by the end of July 2025 [6] - TrueCar aims to enhance its growth strategy by improving lead quality through artificial intelligence and machine learning [91] - The company is focused on developing and scaling its TrueCar+ product to allow dealers to sell more inventory online [91] - TrueCar's management will host a call on May 6, 2025, to discuss financial results and business developments [84] Asset and Liability Management - Cash and cash equivalents decreased to $98,026 thousand as of March 31, 2025, down from $111,835 thousand at the end of 2024, reflecting a decline of 12.3% [104] - Total assets decreased to $145,005 thousand as of March 31, 2025, down from $159,691 thousand at the end of 2024, a reduction of 9.2% [104] - Total liabilities decreased to $33,909 thousand, down from $41,554 thousand at the end of 2024, indicating a decline of 18.4% [104]

Group 1 - TrueCar, Inc. announced its financial results for the first quarter ended March 31, 2025, in a stockholder letter [1] - A live call to discuss the first quarter results is scheduled for May 6, 2025, at 9:00 a.m. ET [2][3] - TrueCar is a leading automotive digital marketplace connecting auto buyers and sellers through a network of Certified Dealers [5] Group 2 - TrueCar provides a suite of vehicle discovery tools, price ratings, and market context for new, used, and Certified Pre-Owned vehicles [5] - The company powers auto-buying programs for over 250 leading brands, including Sam's Club, AAA, and Navy Federal Credit Union [5] - TrueCar utilizes its Investor Relations website and social media platforms for disclosing material non-public information [4]

Investment Rating - The report assigns an "Overweight" (OW) rating to General Motors (GM) and Ford, while Tesla and Rivian are rated "Underweight" (UW) [6][7]. Core Insights - The automotive industry is experiencing varied performance metrics across different companies, with GM and Ford showing potential upside in their stock prices, while Tesla and Rivian face significant downside risks [6][7]. - The report highlights the importance of valuation metrics such as EV/EBITDA, P/E ratios, and sales growth projections for assessing investment opportunities within the automotive sector [6][22]. Global Auto OEMs Investment Comparables - General Motors (GM) has a current price of $44.57 with a market cap of $43.067 billion and a target price of $53.00, indicating a 19% upside potential [6]. - Ford (F) is priced at $9.63 with a market cap of $38.294 billion and a target price of $11.00, representing a 14% upside [6]. - Ferrari (RACE) is valued at $439.97 with a target price of $460.00, showing a 5% upside [6]. - Tesla (TSLA) is currently priced at $241.37 with a target price of $120.00, indicating a -50% downside [6]. - Rivian (RIVN) has a price of $11.60 with a target price of $11.00, reflecting a -5% downside [6]. Global Auto Parts Suppliers Valuation Metrics - The average EV/EBITDA for US auto parts suppliers is projected at 1.8x for 2024, with a corresponding EBITDA margin of 12% [22]. - Aptiv (APTV) is rated "Overweight" with a current price of $51.71 and a target price of $102, indicating a 97% upside [22]. - Borg Warner (BWA) is rated "Overweight" with a price of $26.45 and a target price of $46, representing a 74% upside [22]. - Lear Corp (LEA) is rated "Overweight" with a price of $79.42 and a target price of $140, indicating a 76% upside [22]. Performance Metrics - The report indicates that the average revenue CAGR for US auto parts suppliers is projected to be 2% from 2023 to 2025 [74]. - The EBITDA margin for US auto parts suppliers is expected to be around 12% in 2025, with some companies showing higher margins [74][83]. - The report also highlights the financial returns of various suppliers, with some companies achieving significant returns on invested capital (ROIC) [54][56].

Live call and webcast will occur on May 6 at 9:00 a.m. ET SANTA MONICA, Calif., April 22, 2025 /PRNewswire/ -- TrueCar, Inc., (NASDAQ: TRUE) will report financial results for the first quarter ended March 31, 2025 on Monday, May 5, 2025 after market close, in a stockholder letter that will be accessible from the company's Investor Relations website at ir.truecar.com. About TrueCar TrueCar is a leading automotive digital marketplace that lets auto buyers and sellers connect to our nationwide network of Certi ...