The following is a summary of the TrueCar, Inc. (TRUE) Q1 2024 Earnings Call Transcript:
Financial Performance:
TrueCar reported Q1 revenue growth of 11% YOY due to growth in their core dealer business and solid OEM incentive revenue performance.
Adjusted EBITDA profitability reached $0.9 million, a significant improvement of $12.3 million YOY.
The company predicts a 13% YOY revenue increase for Q2 while maintaining an adjusted EBITDA target of breakeven.
Business Progress:
TrueCar saw a 7.3% YOY increase in new vehicle units from its franchise dealers in Q1, outdoing the industry's 4.9% growth.
TrueCar is expanding its dealer product offering with the introduction of TrueCar Market Solutions, which has been added by over 350 dealers to their existing subscriptions.
The company intends to finalize the first fully digital transaction for new car purchases in H1 of this year, with a pilot program for completely online transactions launching later this quarter.
The company has identified four pillars of growth: new dealer activation, reduction of dealer churn, average revenue per dealer growth, and OEM revenue growth, collectively targeting a return to $300 million in revenue with a 10% free cash flow margin by 2026.
They are also investing in their consumer experience tools to improve website conversion rates and adapt to the changing performance marketing landscape.
Initiatives like TrueCar Market Solutions and TrueCar+ demonstrate progress in product development.
More details: TrueCar IR
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