Financial Performance - Total revenues for the three months ended September 30, 2024, were $46,544,000, representing a 13.3% increase from $41,146,000 in the same period of 2023[12] - The net loss for the three months ended September 30, 2024, was $5,831,000, compared to a net loss of $7,875,000 for the same period in 2023, indicating an improvement in financial performance[12] - The company reported a loss from operations of $7,388,000 for the three months ended September 30, 2024, an improvement from a loss of $9,580,000 in the same period of 2023[12] - TrueCar reported a net loss of $25,199,000 for the nine months ended September 30, 2024, compared to a net loss of $47,864,000 for the same period in 2023, indicating a 47.4% improvement in losses year-over-year[18] - For the nine months ended September 30, 2024, the net loss was $25.2 million, down from $47.9 million in the same period of 2023[54] Cash and Assets - Cash and cash equivalents decreased to $114,509,000 as of September 30, 2024, down from $136,964,000 at December 31, 2023[10] - TrueCar's cash and cash equivalents at the end of the period were $114,509,000, a decrease from $145,474,000 at the end of September 30, 2023, representing a decline of 21.3%[18] - As of September 30, 2024, cash and cash equivalents totaled $109.532 million, down from $119.735 million as of December 31, 2023[35] - TrueCar's total stockholders' equity as of September 30, 2024, was $127,988,000, down from $160,215,000 at the end of December 31, 2023, reflecting a decrease of 20.1%[14] - The total property and equipment, net, was $16.385 million as of September 30, 2024, down from $18.880 million at the end of 2023[38] Liabilities and Obligations - Total liabilities decreased to $39,541,000 as of September 30, 2024, compared to $44,105,000 at December 31, 2023, showing a reduction in financial obligations[10] - The lease liability remaining on the balance sheet as of September 30, 2024, is $7.1 million, which will persist until the legal matter is resolved[43] - The contingent consideration liability related to the acquisition of Digital Motors was $3.873 million as of September 30, 2024, down from $5.592 million at the end of 2023[36] Expenses - Sales and marketing expenses for the three months ended September 30, 2024, were $25,049,000, up from $23,153,000 in the same period of 2023, indicating increased investment in marketing efforts[12] - The company experienced stock-based compensation expenses of $8,774,000 for the nine months ended September 30, 2024, down from $11,872,000 in the prior year, reflecting a decrease of 26.3%[18] - Stock-based compensation expense for stock option awards was $0.2 million for the nine months ended September 30, 2024, compared to $0.9 million for the same period in 2023[48] - Total depreciation and amortization expense for property and equipment was $2.8 million for the three months ended September 30, 2024, compared to $3.3 million for the same period in 2023[40] - The company recorded an impairment of right-of-use assets amounting to $6,880,000 for the nine months ended September 30, 2024[18] Share Repurchases - The company repurchased 3,875,069 shares for $12.4 million during the three months ended September 30, 2024, and 4,300,078 shares for $13.7 million during the nine months ended September 30, 2024[57] - The company has a remaining authorization of $86.3 million for future share repurchases as of September 30, 2024[57] - Following the share repurchases, the company has $80.2 million remaining for future repurchases[60] Strategic Outlook - The company plans to pursue acquisitions and investments to maximize shareholder value, as indicated in their strategic outlook[4] - The company aims to roll out new offerings, including TrueCar+, to enhance consumer value propositions and drive revenue growth[6] Market Risks - The company faces risks related to the automotive ecosystem, including low automobile inventory supply levels, which could adversely impact business operations[6] - The company’s exposure to market risk from interest rates, inflation, and currency exchange rates has not changed materially since the previous disclosure[113] Other Financial Metrics - The allowance for doubtful accounts at the end of the period was $812 thousand, compared to $1.001 million at the end of 2023, reflecting a decrease in expected credit losses[31] - The company recorded cash payments of $2 million related to contingent consideration during the nine months ended September 30, 2024[37] - The company recorded income tax expense of less than $0.1 million for the three and nine months ended September 30, 2024, reflecting state income tax expense[53] - The weighted average common shares outstanding for the three months ended September 30, 2024, was 90,323, compared to 90,176 for the same period in 2023[54] - The company recorded a contract asset of $1.0 million as of September 30, 2024, compared to $0.9 million at December 31, 2023[59] - During the nine months ended September 30, 2024, $0.9 million of contract assets were transferred to accounts receivable as vehicle sales occurred[59]

Core Insights - TrueCar reported revenue of $46.54 million for Q3 2024, a year-over-year increase of 13.1% [1] - The EPS for the quarter was -$0.03, an improvement from -$0.05 a year ago [1] - Revenue exceeded the Zacks Consensus Estimate of $45.82 million by 1.59% [1] Financial Performance Metrics - Monetization was reported at $490, below the average estimate of $521.94 from two analysts [3] - Units sold reached 95 thousand, surpassing the average estimate of 87.66 thousand [3] - OEM incentives revenue was $4.40 million, lower than the average estimate of $5.05 million, reflecting an 11% year-over-year decline [3] - Dealer revenue was $42 million, exceeding the average estimate of $40.62 million, marking a 16.5% year-over-year increase [3] Stock Performance - TrueCar's shares have returned +17.3% over the past month, compared to the S&P 500 composite's +0.7% change [4] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [4]

TrueCar (TRUE) came out with a quarterly loss of $0.03 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.05 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this provider of localized information on new car costs would post a loss of $0.04 per share when it actually produced a loss of $0.06, delivering a surprise of -50%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.TrueCar, ...

Stockholder Letter Q3 2024 Introducing True Cor+ TrueCo Meet your new favorite way to buy a car TrueCar To Our Fellow Stockholders As we continue to navigate the turnaround of TrueCar's legacy business while simultaneously laying the foundation for what TrueCar aims to become, we acknowledge that the TrueCar story is nuanced and requires investors to evaluate and underwrite the distinct opportunities that exist for both our legacy and future businesses. Driving strong near-term growth of the legacy business ...

Live call and webcast will occur on November 7 at 9:00 a.m. ETSANTA MONICA, Calif., Nov. 6, 2024 /PRNewswire/ -- TrueCar, Inc., (NASDAQ:TRUE) today announced financial results for the third quarter ended September 30, 2024 in a stockholder letter, which is available HERE and on the TrueCar Investor Relations website at ir.truecar.com.The company will host a call to discuss its third quarter results on Thursday, November 7 at 9:00 a.m. ET/6:00 a.m. PT. A live webcast of the call will be available through Tru ...

Live call and webcast will occur on November 7 at 9:00 a.m. ETSANTA MONICA, Calif., Oct. 24, 2024 /PRNewswire/ -- TrueCar, Inc., (NASDAQ:TRUE) will report financial results for the third quarter ended September 30, 2024 on Wednesday, November 6, 2024 after market close, in a stockholder letter that will be accessible from the company's Investor Relations website at ir.truecar.com.Jantoon Reigersman, President and Chief Executive Officer, and Oliver Foley, Chief Financial Officer, will host a call on Thursda ...

Treatment.com AI to Present at The 2024 Cantech Letter Conference in Toronto, ONTreatment.com AI CEO, Dr. Essam Hamza, is to present live at 11:00 AM ET on Wednesday, October 9, 2024October 01, 2024 8:30 AM EDT | Source: Cantech LetterVancouver, British Columbia--(Newsfile Corp. - October 1, 2024) - Treatment.com AI Inc. (CSE: TRUE) (OTCQB: TREIF) (FSE: 939) ("Treatment"), a healthcare tech company focused on transforming patient care with AI-driven Clinical insights, is pleased to announce it ...

SANTA MONICA, Calif., Aug. 16, 2024 /PRNewswire/ -- TrueCar, Inc., (NASDAQ:TRUE), the easiest, most efficient and transparent online destination for buying and selling new and used vehicles, today announced that its Chief People Officer & Operations, Jill Angel, has been appointed as Chief Operating Officer, effective immediately. In this position, Ms. Angel is expected to continue to play a significant role in TrueCar's efforts to meet its long-term operational goals and oversee TrueCar's sales operations, ...

[PART I - FINANCIAL INFORMATION](index=5&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements (unaudited)](index=5&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20%28unaudited%29) These unaudited statements detail TrueCar's financial position as of June 30, 2024, showing increased revenue, reduced net loss, and improved operating cash flow, despite a decrease in total assets and stockholders' equity [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2024, total assets and stockholders' equity decreased to **$183.0 million** and **$143.9 million** respectively, primarily due to reduced cash and operating losses, while total liabilities also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127,954 | $136,964 | | Total current assets | $153,903 | $163,082 | | Total assets | $183,014 | $204,320 | | **Liabilities & Equity** | | | | Total current liabilities | $28,861 | $28,978 | | Total liabilities | $39,130 | $44,105 | | Total stockholders' equity | $143,884 | $160,215 | [Condensed Consolidated Statements of Comprehensive Loss](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss) For Q2 and H1 2024, revenues increased to **$41.8 million** and **$82.8 million** respectively, while net loss significantly narrowed to **$13.5 million** and **$19.4 million** compared to the prior year periods Financial Performance Summary (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $41,795 | $39,293 | $82,847 | $76,273 | | Loss from operations | $(15,189) | $(22,147) | $(22,674) | $(43,314) | | Net loss | $(13,520) | $(20,424) | $(19,368) | $(39,989) | | Net loss per share | $(0.15) | $(0.23) | $(0.21) | $(0.45) | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$46,000** in H1 2024, while investing and financing activities used **$4.2 million** and **$4.9 million** respectively, resulting in a **$9.0 million** net decrease in cash Six Months Ended June 30 Cash Flow Summary (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $46 | $(22,092) | | Net cash used in investing activities | $(4,181) | $(7,098) | | Net cash used in financing activities | $(4,875) | $(3,923) | | **Net decrease in cash** | **$(9,010)** | **$(33,113)** | [Notes to Condensed Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail the company's digital automotive marketplace business, significant accounting policies, a June 2023 restructuring, a **$6.8 million** lease impairment, share repurchase program details, and revenue disaggregation by source - The company operates as a digital automotive marketplace, offering pricing transparency and connecting consumers with Certified Dealers, alongside Trade, Payments, and Sell Your Car solutions[27](index=27&type=chunk) - A Restructuring Plan initiated in June 2023 incurred **$7.2 million** in costs during 2023, with no further significant charges anticipated[49](index=49&type=chunk) - A legal dispute over a terminated Santa Monica office lease led to the full impairment of the **$6.8 million** right-of-use asset as of June 30, 2024[51](index=51&type=chunk) Revenue Disaggregation (in thousands) | Revenue Stream | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Dealer revenue | $74,602 | $71,485 | | OEM incentives revenue | $7,872 | $4,546 | | Other revenue | $373 | $242 | | **Total revenues** | **$82,847** | **$76,273** | - The share repurchase program was increased by **$54.2 million** in February 2024, extending authorization to **$100 million** until December 31, 2026, with **$98.8 million** remaining available as of June 30, 2024[68](index=68&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's H1 2024 performance, noting an **8.6%** revenue increase to **$82.8 million**, a narrowed net loss of **$19.4 million**, and positive Adjusted EBITDA of **$1.0 million**, despite challenging market conditions and the CDK Global cybersecurity incident [Overview and Market Environment](index=21&type=section&id=Overview%20and%20Market%20Environment) TrueCar, a leading automotive digital marketplace, is building an end-to-end online car buying experience, but faces headwinds from economic uncertainty, inventory shortages, rising interest rates, and the recent CDK Global cybersecurity incident - TrueCar is developing an end-to-end car buying experience to digitize more of the purchasing process[76](index=76&type=chunk) - The business is impacted by economic uncertainty, inventory shortages, rising interest rates, and the CDK Global cybersecurity incident that disrupted dealer systems[78](index=78&type=chunk) [Key Metrics](index=23&type=section&id=Key%20Metrics) H1 2024 key metrics show a **9.1%** decrease in average monthly unique visitors to **7.7 million**, but a **5.5%** increase in units sold to **167,807**, with monetization per unit rising to **$491** and a slight increase in franchise dealer count Key Operating Metrics Comparison | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Average Monthly Unique Visitors | 7,724,448 | 8,495,195 | -9.1% | | Units | 167,807 | 159,114 | +5.5% | | Monetization | $491 | $478 | +2.7% | | Franchise Dealer Count (end of period) | 8,274 | 8,152 | +1.5% | | Independent Dealer Count (end of period) | 3,200 | 3,489 | -8.3% | - The unit metric for Q2 and H1 2024 includes an estimated **1,220** vehicles purchased but unmatched due to the CDK outage[81](index=81&type=chunk)[83](index=83&type=chunk) [Results of Operations](index=28&type=section&id=Results%20of%20Operations) H1 2024 revenues increased **8.6%** to **$82.8 million**, while total operating expenses decreased to **$105.5 million** due to restructuring, resulting in a significantly reduced loss from operations of **$22.7 million** - H1 2024 revenue increased by **$6.6 million** (**8.6%**) year-over-year, driven by TCWS expansion, TCMS product introduction, and new OEM incentive programs[102](index=102&type=chunk) - Sales and marketing expenses for H1 2024 decreased by **$7.9 million** (**14.7%**) due to reduced employee-related costs following the 2023 restructuring[108](index=108&type=chunk) - Technology and development expenses for H1 2024 decreased by **$10.5 million** (**40.2%**), primarily due to lower employee-related costs post-restructuring[110](index=110&type=chunk) - General and administrative expenses for H1 2024 increased by **$1.4 million** (**5.7%**), largely due to a **$4.8 million** net increase in impairment charges on right-of-use assets for office leases[112](index=112&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, TrueCar maintained strong liquidity with **$128.0 million** in cash and cash equivalents, sufficient to fund operations for at least 12 months, and repurchased **425,009** shares for **$1.2 million** under its program with **$98.8 million** remaining authorization - Principal liquidity sources include cash and cash equivalents totaling **$128.0 million** as of June 30, 2024[117](index=117&type=chunk) - The board increased the share repurchase program, raising remaining authorization to **$100 million** and extending it to December 31, 2026[119](index=119&type=chunk) - Net cash provided by operating activities for H1 2024 was a minimal **$46,000**, a significant improvement from **$22.1 million** used in H1 2023[123](index=123&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=34&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that its exposure to market risk, including changes in interest rates, inflation, and currency exchange rates, has not materially changed from the disclosures in its Annual Report on Form 10-K for the year ended December 31, 2023 - No material changes in the company's exposure to market risk have occurred since the end of 2023[130](index=130&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2024, with no material changes in internal control over financial reporting during the quarter - The principal executive and financial officers concluded that disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2024[132](index=132&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter[133](index=133&type=chunk) [PART II - OTHER INFORMATION](index=36&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=36&type=section&id=Item%201.%20Legal%20Proceedings) The company refers to Note 5 of the financial statements for information on legal proceedings, with the key ongoing matter being a lawsuit and cross-complaint with the landlord of its former Santa Monica headquarters over the termination of the lease - Details on legal proceedings are referenced in Note 5, "Commitments and Contingencies," within the financial statements[135](index=135&type=chunk) [Item 1A. Risk Factors](index=36&type=section&id=Item%201A.%20Risk%20Factors) The company outlines significant business, stock ownership, and general risks, including dependency on the automotive ecosystem, success of new offerings, dealer relationships, competition, regulatory complexities, stock price volatility, and potential impacts from catastrophic events - The business is sensitive to automotive ecosystem risks, including low inventory, supply chain issues, and the recent CDK Global cybersecurity incident disrupting dealer operations[138](index=138&type=chunk) - Success heavily relies on the rollout and monetization of new offerings, especially the TrueCar+ end-to-end car-buying experience[142](index=142&type=chunk) - The June 2023 restructuring, involving a **24%** workforce reduction, may lead to unintended consequences such as employee attrition and loss of institutional knowledge[145](index=145&type=chunk) - Maintaining dealer relationships, managing subscription rates, and expanding the dealer network are critical, as a significant portion of revenue is derived from dealers[147](index=147&type=chunk) - The business is subject to a complex legal framework governing vehicle sales, advertising, and brokering, potentially leading to claims or challenges to its business model[190](index=190&type=chunk) - The company faces significant competition from internet search engines, online automotive sites like CarGurus and Cars.com, and online retailers such as Carvana and CarMax[187](index=187&type=chunk) - The stock price may remain volatile, and failure to meet publicly announced guidance could lead to a price decline[241](index=241&type=chunk)[242](index=242&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=75&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During the second quarter of 2024, TrueCar repurchased **425,009** shares of its common stock at an average price of **$2.86** per share, with approximately **$98.8 million** remaining available for future repurchases under its program expiring December 31, 2026 Share Repurchase Activity (Q2 2024) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2024 | — | N/A | | May 2024 | — | N/A | | June 2024 | 425,009 | $2.86 | | **Total** | **425,009** | **$2.86** | - As of June 30, 2024, approximately **$98.8 million** remained available under the company's share repurchase authorization[264](index=264&type=chunk) [Item 5. Other Information](index=76&type=section&id=Item%205.%20Other%20Information) The company reported that during the second quarter of 2024, no director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement - No director or officer adopted, modified, or terminated a Rule 10b5-1 trading arrangement during the three months ended June 30, 2024[266](index=266&type=chunk) [Item 6. Exhibits](index=77&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including amendments to corporate documents, a lease amendment, officer certifications required by the Sarbanes-Oxley Act, and XBRL data files - Key exhibits filed include CEO and CFO certifications (**31.1**, **31.2**, **32.1**) and Inline XBRL documents (**101 series**)[269](index=269&type=chunk)

Financial Data and Key Metrics Changes - In Q2 2024, total revenue was $41.8 million, reflecting a year-over-year growth of 6.4% and a quarter-over-quarter growth of 1.8% [8] - Adjusted EBITDA profitability was achieved at $0.1 million, marking a $5.4 million improvement year-over-year [8] - The CDK Global malware attack is estimated to have caused approximately $750,000 in lost revenue during the quarter [9] Business Line Data and Key Metrics Changes - The launch of TrueCar+ on July 17, 2024, allows consumers to purchase over 3,000 vehicles online, marking a significant step in the company's service offerings [9][19] - Revenue from TrueCar Marketing Solutions products grew from zero to a $1 million quarterly run rate, indicating strong adoption among dealers [18] - OEM incentive revenue declined by 14% year-over-year and 37% sequentially due to timing issues related to new program activations [15] Market Data and Key Metrics Changes - New vehicle sales grew by 19.5% quarter-over-quarter, compared to an industry-wide growth of 8.9% [14] - The company is entering a market environment with increasing vehicle supply, which is expected to positively impact sales [13] Company Strategy and Development Direction - The company aims to return to $300 million in revenue by 2026, with a long-term growth target of over 20% [12][23] - Key strategies include activating new dealers, reducing dealer churn, growing average revenue per dealer, and expanding OEM partnerships [12] - The company is focused on enhancing its value proposition to dealers by providing better support and innovative solutions [12][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth profile of the business despite challenges posed by the CDK malware attack and market conditions [16][33] - The management highlighted the importance of adapting to changing dealer needs and market dynamics to drive sales efficiency [61] - There is optimism regarding the recovery of OEM incentive revenue in the second half of the year, driven by increased dealer engagement [33] Other Important Information - The company has a strong balance sheet with no debt and approximately $180 million in cash equivalents at the end of Q2 [24] - Share repurchases totaled 425,000 shares for $1.2 million during Q2, with an additional 1.26 million shares repurchased for $4.5 million in early July [24] Q&A Session Summary Question: Can you elaborate on the drivers behind the highest level of revenue activations and upgrades in Q2? - Management indicated that macro changes and improved sales team effectiveness contributed to the revenue activations, alongside the launch of new product offerings [27][30] Question: What updates can you provide on OEM incentives revenue and the impact of the CDK hack? - Management noted that the pressure on OEMs is increasing, and they are optimistic about revenue growth in the OEM segment despite the recent challenges [33] Question: How should we think about the direct channel and advertising spend in the back half of the year? - Management acknowledged that while advertising spend increased, the impact on unit growth may take time to materialize, and they remain focused on driving consumer demand [40][43] Question: Can you discuss the sequential decline in gross margins? - The decline was attributed to the expanded TrueCar wholesale solutions product offering, which has a lower margin profile compared to previous models [48] Question: What is the timeline for scaling TC+ and how has the initial launch gone? - Management reported that the initial launch has gone well, with ongoing learning and adjustments being made to improve the product before scaling [66][70]