TrueCar (TRUE) Q3 2024 earnings summary

Executive summary

• Achieved Q3 2024 revenue of $46.5 million, up 13.1% year-over-year, with net loss narrowing to $5.8 million from $7.9 million in Q3 2023.

• Adjusted EBITDA was $0.2 million for Q3 2024, down from $0.8 million YoY, impacted by non-recurring consulting expenses.

• Launched new digital marketing solutions, including TrueCar+ pilot in California, enabling fully online vehicle transactions and expanding dealer reach.

• Introduced new business lines: TrueCar Marketing Solutions (TCMS) and OEM ad sales, diversifying revenue streams.

• Dealer count decreased overall, with franchise dealers up 2.5–3% and independent dealers down 8.8–9%.

Financial highlights

• Franchise dealer revenue grew 12.7%–13% year-over-year, while independent dealer revenue declined 8.8–9%.

• OEM revenue declined 11.5% YoY due to prior incentives but increased 45% sequentially.

• TCMS contributed $1 million in dealer revenue in Q3.

• Gross margin was 83.4% (down from 90.7% YoY), reflecting growth in lower-margin TCMS and wholesale revenue.

• Total units sold increased 14.2% YoY to 95,000, with new units up 16.3% YoY.

Outlook and guidance

• Targeting $300 million in revenue and 10% free cash flow margin by end of 2026.

• Aiming to accelerate year-over-year revenue growth in Q4 and deliver positive free cash flow.

• Plans to scale TrueCar+ nationwide and expand TCMS and OEM ad sales.

• Monetization of OEM and data initiatives expected to ramp over the next year, with more impact in 2025.

• Existing liquidity and cash flow from operations are expected to fund operations for at least the next 12 months.