TrueCar(TRUE)2024-11-07 13:22Financial 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]