TrueCar (TRUE) Reports In-Line Q1 EPS; Guides Modestly Below the Street

TrueCar (NASDAQ: TRUE) reported Q1 EPS of ($0.07), in-line with the analyst estimate of ($0.07). Revenue for the quarter came in at $61.9 million versus the consensus estimate of $61.13 million.

“In the first quarter of 2016, we accomplished what we set out to do, with revenue hitting the high end of our $60-$62 million guidance, units also reaching the high end of our 170,000-175,000 guidance, and adjusted EBITDA exceeding our guidance of breakeven. In the second quarter, we have started to make more significant investments in our three major focus areas: dealer sales and service, our product and technology platform, and consumer and dealer research," said Mike Guthrie, TrueCar’s Chief Financial Officer.

Chip Perry, TrueCar’s President and Chief Executive Officer continued, “We rolled out our Dealer Pledge in late March and began promoting it at the National Automobile Dealers Association Convention. We have received positive feedback from the dealer community, and I believe this new approach is enabling us to build a bridge back to the dealers who left us last year, including AutoNation." Perry continued, "We still have plenty of work to do and while we are starting to see benefits from changes we’re making, I don’t expect to see improved financial momentum until later in the year. Regardless, I am excited about our early progress and about the plan we have in place to position TrueCar as the category winner in this market and to drive more attractive top-line growth and better margins in 2017 and beyond.”

GUIDANCE:

TrueCar sees Q2 2016 revenue of $64-66 million, versus the consensus of $68.42 million.

TrueCar sees FY2016 revenue of $270-275 million, versus the consensus of $277.6 million.

For earnings history and earnings-related data on TrueCar (TRUE) click here.

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