TrueCar (TRUE) IPO Prices at $9, Below Expected Range
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TrueCar (Nasdaq: TRUE) announced the pricing of its initial public offering of 7,775,000 shares of its common stock at a price to the public of $9 per share, below the expected $12-$14 range. The shares are expected to begin trading on the NASDAQ Global Select Market today under the symbol "TRUE."
Goldman, Sachs & Co. and J.P. Morgan Securities LLC are acting as joint book-running managers for the offering. RBC Capital Markets, LLC is also acting as a book-running manager. Cowen and Company, LLC and JMP Securities LLC are acting as co-managers.
TrueCar's mission is to transform the car-buying experience for consumers and the way that dealers attract customers and sell cars. The company has established an intelligent, data-driven online platform operating on a common technology infrastructure, powered by proprietary data and analytics.
During 2013, TrueCar generated revenues of $134.0 million and recorded a net loss of $25.1 million. Of the $134.0 million in revenues, 89% consisted of transaction revenues with the remaining 11% derived primarily from the sale of data and consulting services to the automotive and financial services industries. During the three months ended March 31, 2014, TrueCar generated revenues of $43.9 million and recorded a net loss of $9.9 million. Of the $43.9 million in revenues, 91% consisted of transaction revenues with the remaining 9% derived primarily from the sale of data and consulting services to the automotive and financial services industries. Transaction revenues primarily consist of fees paid to us by their network of TrueCar Certified Dealers under our pay-for-performance business model where they generally earn a fee only when a TrueCar user purchases a car from them.
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