TrueCar, Inc. reported a notable increase in revenue for the third quarter and the first nine months of 2024, driven primarily by growth in dealer revenue. For the three months ended September 30, 2024, total revenues reached $46.5 million, a 13.1% increase from $41.1 million in the same period of 2023. For the nine months ended September 30, 2024, revenues totaled $129.4 million, up 10.2% from $117.4 million year-over-year. Dealer revenue specifically rose to $42.0 million in Q3 2024, compared to $36.1 million in Q3 2023, reflecting a $3.3 million increase in franchise dealer revenue and $2.3 million from the expansion of TrueCar Wholesale Solutions (TCWS).

Despite the revenue growth, TrueCar reported a net loss of $5.8 million for Q3 2024, an improvement from a net loss of $7.9 million in Q3 2023. For the nine-month period, the net loss was $25.2 million, significantly reduced from $47.9 million in the prior year. The company attributed this improvement to a decrease in operating losses, which fell from $52.9 million to $30.1 million over the same period.

The cost of revenue for Q3 2024 increased significantly to $7.7 million, up from $3.8 million in Q3 2023, primarily due to higher expenses related to acquiring wholesale vehicles and marketing for TCMS products. Total operating expenses for the quarter were $53.9 million, compared to $50.7 million in the previous year.

TrueCar's balance sheet showed total assets of $167.5 million as of September 30, 2024, down from $204.3 million at the end of 2023. Cash and cash equivalents decreased to $114.5 million from $137.0 million. The company’s total stockholders’ equity also declined to $128.0 million from $160.2 million.

Strategically, TrueCar has been focusing on enhancing its product offerings, including the rollout of TrueCar+, which aims to provide a comprehensive car-buying experience. However, the company faces challenges such as low automobile inventory levels, which have been exacerbated by supply chain disruptions and a semiconductor shortage. Additionally, the termination of the partnership with American Express, effective April 2025, poses a risk to future revenue, as this partnership contributed approximately $10 million annually.

TrueCar has also undergone significant restructuring, including a workforce reduction of about 24% in June 2023, aimed at improving productivity and profitability. This restructuring has led to executive turnover, which may impact operational stability. The company continues to navigate a competitive landscape, with ongoing efforts to optimize its dealer network and enhance marketing strategies to drive growth.