TRUE Earnings Prediction
The chart below shows how TRUE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TRUE sees a -1.27% change in stock price 10 days leading up to the earnings, and a -4.63% change 10 days following the report. On the earnings day itself, the stock moves by -0.96%. This data can give you a slight idea of what to expect for the next quarter's release.
TRUE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
46.54M
13.12%
11.36%
Gross Margin
73.91%
-6.25%
-2.33%
Operating Margin
-15.87%
-31.83%
-56.33%
Net Margin
-12.53%
-34.54%
-61.27%
EPS
-0.06
-33.33%
-60.00%
No Data Available
TRUE Earnings Analysis
TrueCar, Inc. Corporation (TRUE.O) Earnings Conference Call
Positive
Q3 Revenue Increase: Total revenue in Q3 was $46.5 million, representing a 13.1% increase from the same period last year and an 11.4% increase from the prior quarter.
Net Loss Reduction: Q3 net loss decreased to $5.8 million from $7.9 million in Q3 2023, and we achieved adjusted EBITDA profitability of $0.2 million.
Franchise Dealer Revenue Growth: Franchise dealer revenue grew 12.7% year-over-year and 5.5% quarter-over-quarter, with TrueCar growing new car sales by 16.3% year-over-year despite a 1.3% industry decline.
OEM Revenue Surge: Q3 OEM revenue increased by 45% from the second quarter, driven by strong performance from the Stellantis incentive program, reaching a 3-year high.
Market Expansion Potential: The TC+ pilot successfully fulfilled its first used and new vehicle orders online, with approximately 30 consumers completing the process across 13 states, indicating strong market expansion potential.
Negative
OEM Revenue Decline: 1. Declining OEM Revenue: TrueCar's OEM revenue decreased by 11.5% year-over-year, indicating a significant drop in this segment despite a 45% increase from the previous quarter.
Negative Cash Flow Concerns: 2. Negative Free Cash Flow Guidance: Although the company aims for positive free cash flow in Q4, the ongoing negative free cash flow trend raises concerns about financial stability.
Wholesale Business Stagnation: 3. Stagnant Wholesale Business: The wholesale side of the business is not expected to grow significantly, limiting potential revenue streams and impacting overall growth.
Independent Dealer Churn: 4. Churn in Independent Dealers: The company is experiencing challenges in stabilizing its independent dealer count, which could hinder future growth prospects.
Affinity Partner Departure Risk: 5. Loss of Key Affinity Partner: The departure of AmEx as an affinity partner, which contributed approximately 5% of partner units, poses a risk to future unit sales and revenue growth.
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TRUE Earning Call Sentiment
TrueCar, Inc. (TRUE) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
TRUE.O
-1.57%Positive
The earnings call summary reveals mixed sentiments. While TrueCar shows strong year-over-year revenue growth and reduced losses, the Q&A session highlights uncertainties, such as lack of specific guidance, loss of AmEx as a partner, and challenges in dealer stabilization. Despite a positive shareholder return plan and strategic initiatives, the economic factors and unpredictable revenue from incentive programs pose risks. The absence of a clear market cap further complicates the prediction. Overall, the sentiment is neutral, with no strong indicators of significant stock movement in either direction.
