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TrueCar Posts Record Revenue in Q2

August 12, 2014

SANTA MONICA, Calif. — TrueCar posted a record $50.5 million in revenue in the second quarter, a 62% increase from a year ago.

This was the first time the company has exceeded $50 million in quarterly revenue, noted TrueCar CEO Scott Painter. In April, the company filed for an initial public offering of its common stock.

“The primary driver of revenue growth was a 55% year-over-year increase in total units retailed through the marketing channel, as TrueCar users purchased nearly 150,000 cars from TrueCar Certified Dealers during the second quarter.” said Painter during the company’s Aug. 8 investor call.

Transaction numbers were up across the board, with transaction revenue increasing 58% year over year to $46.1 million. Revenue per franchised dealer also increased to $6,195 per dealer.

TrueCar also grew its dealer count by more than 400 dealers from the prior quarter to 7,682. Monthly views on the website also rose 72% from a year ago to an average of 4.2 million unique visitors. The firm also increased its market share from a year ago to 3.4%.

“Our exceptional growth highlights the enhanced relevance of our platform as dealers and consumers alike benefit from TrueCar’s mission to bring transparency to the car-buying process,” said Painter. “We have a lot of growth in front of us.”

Painter listed frustrations with the traditional car-buying experience as reason for the site’s growing popularity with car shoppers, noting that TrueCar is working to close the trust gap that has long existed between consumers and dealers.

“Consumers believe that dealers make as much as 20% profit on the sale of a new car when in reality they make somewhere around 2% to 3%,” Painter said. “We’re reintroducing trust and transparency into a discussion that is filled with fear and friction.”

Comments

  1. 1. Brad [ August 13, 2014 @ 01:22PM ]

    If TrueCar's vision is to "Close the Trust gap" I think it would very up front for them to disclose to their users that the dealership is going to pay a $399 fee for the sale(which they could have saved if they worked directly with a dealership and kept Truecar out of the transaction) and the referral company for example USAA insurance promoted TrueCar is going to get paid as well. So really how True is Truecar

  2. 2. Drew [ August 13, 2014 @ 01:50PM ]

    Wait, TrueCar costs $399 to the dealer? I would think that I'd want to save that extra $400...

  3. 3. Drew [ August 13, 2014 @ 01:50PM ]

    Wait, TrueCar costs $399 to the dealer? I would think that I'd want to save that extra $400...

  4. 4. FULLTOY1 [ August 13, 2014 @ 03:15PM ]

    The Only Benefit as Dealer's there is NONE Period, what Dealers are doing is Paying TrueCar a $6k a Month to Lose Money selling a Car, so whats so Transparent about that?

  5. 5. FULLTOY1 [ August 13, 2014 @ 03:25PM ]

    What the biggest issue is here is TrueCar is making Money from the Dealer for a Stupid Lead, and if all the Dealer's got together and just said NO MORE, where would they be? No More TrueCar they even came to my store to say how great they are and they make dealer's money, well we aked how does the dealer make money by selling Backend Products well 99% of TrueCar Customer's ddn't buy squat, and when that Dealer says it will deliver to that customer's doorstep well obviously there is No Back End Sale......

  6. 6. JJ [ August 15, 2014 @ 06:01PM ]

    Its not that simple. A dealer has to spend some money to get your attention whether it's truecar, radio, newspaper, television ads, paying to build their own website, etc. Truecar ONLY charges if a sale is made. Considering its $300 for a new car that's $30000 that's a bargain. Dealers flood radio, newspapers, and TV with ads, spending thousands every month to bring traditional non-online/truecar customers. So even if you didn't use truecar you wouldn't "save" the $300 for yourself because truecar spending is just another small part of a dealerships marketing budget and overall overhead.

 

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