TrueCar (TRUE) Misses Q4 EPS by 14c

TrueCar (NASDAQ: TRUE) reported Q4 EPS of ($0.16), $0.14 worse than the analyst estimate of ($0.02). Revenue for the quarter came in at $45.9 million versus the consensus estimate of $55.56 million.

Outlook:

There remains considerable uncertainty across the automotive market due to global supply chain issues, particularly for new vehicles. While we are starting to see slight growth in new vehicle inventories across the industry, inventory levels are still well below industry norms. As a result, we continue to expect pressure on new vehicle retail volumes until improvements become more meaningful. We also anticipate some lag before vehicle pricing starts to reflect any improvements in inventories. This likely means that our close rates and reported units will trail improvements in inventory and pricing trends for the broader auto industry. Finally, while the trend in dealer counts for January also points to stabilization, this metric may still fluctuate month to month. Due to these factors, we are not providing quarterly guidance. We will continue to invest in TrueCar+ throughout 2022 as well as other strategic initiatives that, we believe, will position us for future growth and increased monetization. As a result, we expect Adjusted EBITDA to be negative during 2022.

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

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