TrueCar reports Q4 EPS (7c), consensus (2c)

Reports Q4 revenue $46.2M, consensus $47.3M. The company states: “we finished the year by delivering another quarter of double-digit revenue growth and positive Adjusted EBITDA and achieved our goal of generating positive free cash flow in Q4. Moreover, the intense focus we placed during the year on efficiently growing new unit sales and capturing greater share of new car shoppers showed tremendous results in Q4 as we delivered 27.8% new unit growth in the quarter YoY, significantly higher than the industry’s 9.6% growth. As such, in Q4 2024, the average franchise dealer on TrueCar (TRUE) saw new vehicle sales generated through our marketplace grow by 27.1% versus the same period last year, reaching the highest level since Q3 2021. Most importantly, we delivered this growth with high efficiency in that the primary driver of this growth was a strong improvement to lead close rate. By restructuring our performance marketing strategy to target high-intent shoppers with a strong propensity to convert into buyers, we are driving unit growth by delivering higher quality leads to our dealer network. This trend of strong and efficient unit growth that accelerated every quarter during 2024 highlights the growing importance of TrueCar to franchise dealers’ overall customer acquisition strategy and the extent to which we are entering 2025 with a far stronger value proposition for franchise dealers than we have had in several years; a trend we believe will accelerate our revenue growth in 2025 and beyond.”