On this page of StockholderLetter.com we present the latest annual shareholder letter from TrueCar, Inc. — ticker symbol TRUE. Reading current and past TRUE letters to shareholders can bring important insights into the investment thesis.

 •  4/8/2025 Letter Continued (Full PDF)
 •  5/1/2023 TRUE Stockholder Letter
 •  4/8/2024 TRUE Stockholder Letter
 •  More "Auto Dealerships" Category Stockholder Letters
 •  TRUE Benford's Law Stock Score = 89

TRUE Shareholder/Stockholder Letter Transcript:

Annual Report
2024


d   K     &           ^                      
2024 was a year of great progress for TrueCar with nearly every measure of performance improving from the prior year and
several long-term growth initiatives being brought to market. We finished the year with the strongest annual revenue growth since
2017, up 10.6% YoY, while decreasing our net loss by $18.7M YoY to -$31.0M and delivering positive adjusted EBITDA 1 of $1.6M.
Cash Flow from Operations was $7.7M for the year, an improvement of $30.1M over 2023.
We also brought several long-term growth initiatives to market and continued to repurchase stock in 2024:

With the pilot launch of TrueCar+ (   TC+   ), we became the FIRST AND ONLY (!) digital marketplace to enable the
purchase and sale of new, used and certified pre-owned vehicles through an entirely online transaction;

The rollout of TrueCar   s 12-Month Dealer Service Program has created a new standard for dealer success teams and
further strengthens our competitive differentiation; and

We repurchased and retired a total of 6.1 million shares of TRUE common stock.
Through the intense focus we placed throughout the year on efficiently growing new unit sales and capturing a greater share o f
new car shoppers, we delivered strong new unit sales growth for our dealers, most notably achieving 27.8% YoY new unit
growth in Q4 compared to the industry   s 9.6% growth. As such, in Q4 2024, the average franchise dealer on TrueCar saw new
vehicle sales generated through our marketplace grow by 27.1% versus the same period last year, reaching the highest level
since Q3 2021. Most importantly, we delivered this growth with high efficiency in that the primary driver of this growth was a
strong improvement to lead close rate. By restructuring our performance marketing strategy to target high -intent shoppers with a
strong propensity to convert into buyers, we are driving unit growth by delivering higher quality leads to our dealer network. This
trend of strong and efficient unit growth that accelerated every quarter during 2024 highlights the growing importance of
TrueCar to franchise dealers    overall customer acquisition strategy and the extent to which we have entered 2025 with a far
stronger value proposition for franchise dealers than we have had in several years.
We are proud of what the team accomplished in 2024 and we are even more hungry to accelerate our progress in 2025. We
firmly believe that the quality of our assets and unique competitive strengths should yield strong and sustainable revenue gr owth
and to that end we remain committed to the following key building blocks:
(1) Activate New Franchise Dealers: Following the restructuring of our dealer sales team at the end of 2023, 2024 was a
year of rebuilding our sales strategies and improving our sales productivity. This initiative yielded strong YoY
improvement in the number of activated franchise dealers in 2024.
(2) Minimize Dealer Churn: Minimizing dealer churn is essential to growing our dealer network profitably and in 2024,
we took a number of critical steps to advance this objective. Recognizing the competitive space in which we operate,
our ability to retain dealers is directly tied to the differentiated value we deliver for them. We seek to further differentiate
TrueCar from alternative marketplaces by continuing to drive strong unit sales growth for our dealers while also
providing them with the highest quality of service and support. At the end of Q2, we launched our 12-Month Dealer
Service Program which provides our franchise dealers with personalized monthly consultations designed to improve
their performance on the platform. Since launching the 12-Month Dealer Service Program, we have started to see
measurable improvements in dealer churn and expanding this service program will continue to be a priority of ours in
2025.
Adjusted EBITDA is a non-GAAP financial measure. Refer to Part II, Item 7    Non-GAAP Financial Measures,    in this annual report for
its definition and a reconciliation to net loss, the most directly comparable financial measure calculated and presented in accordance
with GAAP.
1

(3) Grow Revenue per Dealer: Revenue per dealer is a reflection of the value we are delivering to our Certified
Dealers. For our core franchise dealer business, the primary driver of revenue per dealer is the number of sales we
drive for them each month. As discussed above, one of the key highlights of 2024 was the strong and accelerating
growth in unit sales that we delivered for our dealers, culminating with 27.8% YoY growth in new units per
franchise dealer reaching its highest level in over three years. Meanwhile, average core rev enue per franchise
dealer in Q4 increased by just 9.5% versus the same period last year, signaling that we are entering 2025 with a
much stronger value proposition for our franchise dealer partners which we believe will help grow revenue per
dealer while also minimizing churn. In addition to growing unit sales per franchise dealer, we also intend to grow
revenue per dealer by driving adoption of the new products we recently brought to market.
(4) Expand our OEM Business: OEM incentives have been steadily growing over the past 18 months, rebounding
from their historically low levels in 2022 and the first half of 2023. Through our Affinity Network, TrueCar is
uniquely capable of powering targeted cash-rebate programs on behalf of OEMs and the resurgence of OEM
incentives contributed to 13% YoY growth in the revenue we earned from OEMs in 2024. We remain focused on
expanding OEM offers within our existing partners and sites, such as Sam   s Club, AAA, Navy Federal, and our
network of employee benefit providers, ensuring broader reach and engagement across our established and new
audiences. Further, we recently added GovX, GasBuddy, CarEdge, and Internet Brands, whose membership
audiences collectively exceed 20 million, to our network.
(5) TC+: The expansion and commercialization of the TC+ pilot launched in 2024 is a top priority for TrueCar. As we
continue to refine the consumer experience and deepen our integration with DMS providers to automate nearly
every step of the selling process for dealers, we anticipate expanding the pilot to additional dealers and territories.
In conjunction with adding dealers and inventory to the program, we intend to make the TC+ experience more
broadly available to consumers shopping on our branded and Affinity Partner sites. We expect this to begin a
period of product-led growth for TC+ whereby we demonstrate at greater scale the extent to which TC+ can propel
a dealer   s revenue and profitability growth by expanding their addressable market and driving significan t sales
efficiencies at the store-level. Given the work we are currently doing to ensure its scalability, the access we have to
thousands of dealers with nearly 2 million vehicle listings on our marketplace, and the asset-light nature of TC+, we
believe that a period of rapid scaling of TC+ can begin later this year and our objective for the first half of this year
is to ready the product for that next phase.
(6) Driving Value Through our Enhanced Data Platform: As we discussed last quarter, we made significant
investments during the second half of 2024 to enhance our data platform to enable the rapid development and
deployment of new Generative Artificial Intelligence (   AI   ) and Machine Learning (   ML   ) models that enrich the
consumer shopping experience and provide dealers with value-enhancing features and insights. In partnership with
Amazon Web Services, TrueCar has established a real-time ML platform through which we can quickly build and
deploy modular, continuous and traceable AI/ML models that leverage our rich first party data sets. In Q1 of 2025,
we launched the first of these models which classifies consumer leads based on their propensity to purchase with a
high degree of accuracy. We foresee a number of ways this predictive model can be leveraged across a range of
use cases, such as powering marketing campaign optimizations and providing dealers with enhanced consumer
insights that further improve lead conversion rates. With these enhanced capabilities, we expect to be able to retain
more shoppers on the site and effectively retarget them through tailored email engagement that will ultimately allow
us to capture a greater share of car buyers and drive high-quality leads to our dealer network.

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W                                                    K            

TRUECAR, INC.
PART I
Item 1.
Item 1A.
Item 1B.
Item 1C.
Item 2.
Item 3.
Item 4.
Business
Risk Factors
Unresolved Staff Comments
Cybersecurity
Properties
Legal Proceedings
Mine Safety Disclosures
PART II
Item 5.
Item 6.
Item 7.
Item 7A.
Item 8.
Item 9.
Item 9A.
Item 9B.
Item 9C.
PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
PART IV
Item 15.
Item 16.
6
15
54
54
54
55
55
55
56
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
Reserved
Management   s Discussion and Analysis of Financial Condition and Results of
Operations
Quantitative and Qualitative Disclosures About Market Risk
Financial Statements and Supplementary Data
Changes in and Disagreements with Accountants on Accounting and Financial
Disclosure
Controls and Procedures
Other Information
Disclosure Regarding Foreign Jurisdictions that Prevent Inspection
Directors, Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accounting Fees and Services
Exhibits and Financial Statement Schedules
Form 10-K Summary
Signatures
56
58
59
75
76
76
76
77
77
78
78
78
78
78
78
79
79
82
83

4/8/2025 Letter Continued (Full PDF)

 

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