TrueCar(US:TRUE)2025-02-18 21:18Financial Performance - Revenue of $175.6M grew by $16.9M (or 10.6%) YoY, marking the strongest annual revenue growth since 2017[5] - Net Loss of -$31.0M improved by $18.7M (or 37.6%) YoY[5] - Adjusted EBITDA of $1.6M grew by $15.3M YoY[5] - Revenue for Q4 2024 was $46.2 million, an increase of 11.9% year-over-year (YoY) but a decrease of 0.7% from the previous quarter[61] - Net loss for Q4 2024 was ($5.8) million, compared to ($1.9) million in Q4 2023, indicating a worsening financial position[61] - Adjusted EBITDA for Q4 2024 was $0.4 million, down from $2.1 million in Q4 2023[61] - TrueCar reported revenues of $46.2 million for Q4 2024, a 12.5% increase from $41.3 million in Q4 2023[116] - The total costs and operating expenses for Q4 2024 were $53.3 million, compared to $44.9 million in Q4 2023, reflecting an increase of 18.7%[116] - The net loss for Q4 2024 was $5.8 million, compared to a net loss of $1.9 million in Q4 2023, indicating a significant increase in losses[116] Sales Performance - Total Unit Sales of 356 thousand increased by 37.3 thousand (or 11.7%) YoY, with Q4 showing a 22.0% YoY growth[5] - New Vehicle Unit Sales of 204 thousand increased by 27.5 thousand (or 15.6%) YoY, with Q4 reaching 27.8% YoY growth[5] - In Q4 2024, new vehicle retail sales reached 3.8 million units, a 7.9% increase QoQ and 9.6% YoY, surpassing pre-pandemic levels[18] - Used vehicle retail sales in Q4 2024 climbed to 4.2 million units, reflecting a 6.7% decrease QoQ but a 10.0% rise YoY[19] - Total units sold in Q4 2024 were 93,000, a 22.0% increase YoY, with new units increasing by 27.8% YoY[78] Cash Flow and Liquidity - Cash Flow from Operations of $7.7M represents a YoY improvement of $30.1M[5] - Free Cash Flow of -$0.2M represents a YoY improvement of $34.1M[5] - Cash flow from operations improved to $5.9 million, compared to ($5.8 million) in Q4 2023[62] - TrueCar's cash and cash equivalents decreased to $111.8 million as of December 31, 2024, down from $137.0 million a year earlier[119] - The company repurchased and retired 1.7 million shares for a total of $6.1 million in Q4 2024[63] Dealer and Market Insights - Franchise Dealer Count grew by 119 dealers, ending the year at 8,351 (up 1.4% YoY)[5] - Franchise dealers experienced a 24.4% YoY decline in pretax profit in 2024, the steepest decline since 2021, but optimism for 2025 profitability has increased[58] - 65% of franchise dealers expect profitability to remain the same or improve in 2025, a significant increase from 37% in mid-2024[58] Inventory and Pricing - Average new vehicle inventory in Q4 2024 was 2.95 million units, a 6.3% increase QoQ and 31.7% YoY[23] - The average new vehicle list price in Q4 2024 was $48.3 thousand, a 0.5% decline YoY but 32% higher than Q4 2020[38] - OEM incentives averaged $3.9 thousand per new vehicle sold in Q4 2024, a 54% increase YoY and 11% increase QoQ[45] - Approximately 16% of new vehicles were sold above MSRP in Q4 2024, down from 31% YoY but higher than pre-pandemic levels[37] - The average cash discount per new vehicle in 2024 was only $695, significantly lower than the averages in 2019 and 2020[50] Future Outlook - The company aims for sustainable annual revenue growth of 20%+ in a normalizing new-vehicle retail environment[8] - The target is to return to an annual revenue run rate of $300M and achieve a 10% free cash flow margin by the end of 2026[13] - TrueCar aims to achieve year-over-year revenue growth of over 20% and double-digit growth in Q1 2025[103] - The company expects to improve adjusted EBITDA and free cash flow in 2025, with aspirations for revenue and free cash flow margin growth in 2026[103] - The company plans to continue its market expansion and product development initiatives as part of its strategic focus moving forward[126]