TrueCar, Inc. today announced its financial results for the second quarter ended June 30, 2020.
Second Quarter 2020 Financial Highlights
- Second quarter total revenue of $62.7 million, down (28.8)% from a year ago.
- Second quarter net loss of $(11.2) million, or $(0.10) per share, compared to net loss of $(24.1) million, or $(0.23) per share, in the second quarter of 2019.
- Second quarter Non-GAAP net income(1) of $4.4 million, or $0.04 per share, compared to Non-GAAP net loss of $(2.2) million, or $(0.02) per share, in the second quarter of 2019.
- Second quarter Adjusted EBITDA(2) of $10.9 million, representing an Adjusted EBITDA margin(3) of 17.4%, compared to Adjusted EBITDA of $3.7 million, representing an Adjusted EBITDA margin of 4.1%, in the second quarter of 2019.
- $173.1 million of cash and cash equivalents on the balance sheet as of June 30, 2020.
Management Commentary
“We’ve just turned the corner on what was truly an unprecedented second quarter,” said Mike Darrow, TrueCar’s President and Chief Executive Officer. “In light of the situation around us, we are pleased by our results, highlighted by revenue and Adjusted EBITDA well above expectations. During the quarter, we successfully navigated the onset of COVID-19, executed a transformative strategic restructuring and formalized numerous cross-functional initiatives to support the USAA transition. We continue to believe unwavering focus on our core business will drive a better balance of sustainable growth and profitability that maximizes long-term shareholder value.”
(1) Non-GAAP net income (loss) is a Non-GAAP financial measure. Refer to its definition and accompanying reconciliation to GAAP net loss below.
(2) Adjusted EBITDA is a Non-GAAP financial measure. Refer to its definition and accompanying reconciliation to GAAP net loss below.
(3) Adjusted EBITDA margin is a Non-GAAP financial measure, calculated as Adjusted EBITDA divided by total revenue.
Key Operating Metrics
- Average monthly unique visitors(4) increased 14.5% to 8.3 million in the second quarter of 2020, up from 7.2 million in the second quarter of 2019.
- Units(5) were 189,068 in the second quarter of 2020, down 24.3% year-over-year.
- Monetization(6) was $290 during the second quarter of 2020, compared to $333 during the second quarter of 2019.
- Franchise dealer count(7) was 11,267 as of June 30, 2020, down from 11,356 as of March 31, 2020.
- Independent dealer count(8) was 4,131 as of June 30, 2020, down from 4,193 as of March 31, 2020.
Business Outlook
Due to the uncertainty caused by the coronavirus pandemic, we will not be providing formal guidance for the third quarter ending September 30, 2020 or the full year ending December 31, 2020 at this time.
(4) We define a monthly unique visitor as an individual who has visited our website, one of our landing pages on our affinity group marketing partner sites or our mobile application within a calendar month. We calculate average monthly unique visitors as the sum of the monthly unique visitors divided by the number of months in the period.
(5) We define units as the number of automobiles purchased from TrueCar Certified Dealers that are matched to users of TrueCar.com, our mobile applications or the car-buying sites and mobile applications we maintain for our affinity group marketing partners.
(6) We define monetization as the average transaction revenue per unit, which we calculate by dividing all of our transaction revenue (dealer revenue and OEM incentives revenue) in a given period by the number of units in that period.
(7) We define franchise dealer count as the number of franchise dealers in the network of TrueCar Certified Dealers at the end of a given period. This number is calculated by counting the number of brands of new cars sold at each individual location, or rooftop, regardless of the size of the dealership that owns the rooftop.
(8) We define independent dealer count as the number of dealers in the network of TrueCar Certified Dealers at the end of a given period that exclusively sell used vehicles and are not directly affiliated with a new car manufacturer. This number is calculated by counting each location, or rooftop, individually, regardless of the size of the dealership that owns the rooftop.
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SOURCE: TrueCar
