TrueCar Inc (TRUE) Returns to Year-Over-Year Revenue Growth in Q3 2023
TrueCar Inc (NASDAQ:TRUE) reports a return to year-over-year revenue growth for the first time in nine quarters
Company achieves positive adjusted EBITDA a quarter earlier than originally indicated in previous guidance
TrueCar Inc (NASDAQ:TRUE) is focused on enabling transactions for both consumers and dealers, setting it apart from competition
Company reiterates expectation of returning to double-digit year-over-year revenue growth and breakeven or positive adjusted EBITDA for Q4 2023
TrueCar Inc (NASDAQ:TRUE) released its Q3 2023 earnings report on November 6, 2023, revealing a return to year-over-year revenue growth for the first time in nine quarters. The company also achieved positive adjusted EBITDA a quarter earlier than originally indicated in its previous guidance.
Company Performance and Challenges
TrueCar Inc (NASDAQ:TRUE) reported a revenue of $41.1 million, up 5.4% year over year and up 4.7% sequentially. The company's net loss for Q3 2023 was $7.9 million, inclusive of charges associated with the realignment of the companys leadership structure. This is a significant improvement from the net loss of $77.1 million in Q3 2022, which included a one-time goodwill impairment charge of $59.8 million.
The company's traffic increased to 8.1 million from 7.6 million in Q3 2022. However, the number of dealers decreased slightly to 11,503 from 11,972 in Q3 2022. The company sold 83,000 units, up from 82,000 units in Q3 2022, and monetization per unit increased to $495 from $473 in Q3 2022.
Financial Achievements
TrueCar Inc (NASDAQ:TRUE) reported a positive adjusted EBITDA of $0.8 million, a significant improvement from the negative $8.7 million in Q3 2022. The company's cash and cash equivalents stood at $145.5 million, down from $193.0 million in Q3 2022.
Future Outlook
TrueCar Inc (NASDAQ:TRUE) is focused on enabling transactions for both consumers and dealers, setting it apart from competition. The company has established three-year aspirational goals, aiming to achieve in excess of $300 million annual revenue and greater than 10% free cash flow by the end of 2026.
For the fourth quarter of 2023, the company reiterated its expectation of returning to double-digit year-over-year revenue growth and breakeven or positive adjusted EBITDA. The company believes that the macroeconomic environment is turning in its favor, and it is well-positioned to execute its strategy and reshape the car buying experience.
Explore the complete 8-K earnings release (here) from TrueCar Inc for further details.
This article first appeared on GuruFocus.
