TRUE - Earnings call transcript Q3 2019

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Operator

Greetings and welcome to TrueCar’s Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the conference over to your host, Noel Watson. begin. may you you, Thank

Noel Watson

Thank you, XXXX TrueCar’s quarter welcome Hello conference call. and earnings to third operator.

Joining is Officer. me Chief and today Mike Darrow, President Interim Executive

on reminder, call. a we be forward-looking As will statements making this

guidance for the anticipate, by words will, In addition confident of to XXXX, forward-looking similar be use expect, statements believe, as and these such intend, identified can plan, our expressions.

future those could not relied statements. upon by guarantee of These differ forward-looking be as results Actual from not forward-looking performance and statements results. should contemplated are our materially or a

factors We caution and of to results Form Form quarterly you Securities discussion to Risk that materially. reports Factors differ the Commission on with filings review XX-K, could our section the Exchange cause XX-Q reports other a and on our Annual our the and Report for our of

as statements to forward-looking us to disclaim of The are call make any this update information forward-looking by any we based and available on except today’s required we obligation law. date, as on statements

In also discuss and GAAP addition, we measures. will non-GAAP financial certain

intended isolation measures all substitute accordance The the in be results GAAP comparable are measures of of most GAAP. are directly with in a prepared to forth Reconciliations Relations measures not financial website considered at set section non-GAAP or our true.com. as Investor the in to for non-GAAP

the Now, I’ll call turn over to Mike.

Mike Darrow

efforts. work believe reporting taking Thank on every work you, hard Noel It an to reflect and that day, the dedication. moment a by our each strong results we’re like afternoon, thank for with everyone. start and you honor continued your and well good is to of employees their I today I’d to truly

update has new our quarter, Before to you covering for a Directors of search give its of the asked on details me CEO. Board the an

executives put leadership the in while our has it continues departure the new is made under months. with the As of as the over you process Interim and candidates. evaluating the Board I former serving the pleased team that Board last The other the progress of am CEO CEO, several place the that after certain currently know, company

The team achieving reporting the company said, and rushed. are we CEO long-term Board the to believes the is that track goals. reflect important new decision new the leadership the Board be is That selection of believes that well getting right the its on must not on results that today our an that

With firm, search wrap it process it that the expects the The time continues the know before this an candidates first to assistance end outside performance my evaluate Board company’s up at to the the to the Board you external under leadership. same of evaluates wants quarter. of

the meantime, TrueCar. and in In adjusted results, with here our change pleased above I guidance the ranges. can quarter end importantly, sense revenue our by a the highlighted upper third of more performance EBITDA I’m Perhaps at very momentum

touch on few Let the just me many achievements of exciting a quarter. in the

continues customer rapid product campaign a improving pace remain of for as First, we on at brand new experience innovation ahead planned XXXX. our early laser-focused our

monthly by beginning in visitors year-over-year is truecar.com Second, stabilize traffic September. evidenced flat to as unique

car used in up with to market year-over-year we continue the volumes the in Third, grab share XX% quarter. unit

we Reach one value. business affinity than tremendous sponsored Fourth, More and XXX in of nicely market. And by new dealer these our months. the with development have delivering our pipeline are that them products and believe past advertising the key several few delivering we listings additions finally, TrueCar dealers received being adopted is product, well are

to more work these recognize product. leads improve times exciting business sustainable No page in to work more more have growth. achievements, sponsored there’s For and receiving the our are to important listings views detail times to is example, program. vehicle double-digit return average or we than dealers VDP more vehicles three our efforts five for who do adopted this on the Despite

me provide our bit more Let on progress. a detail

First, dealers and made to this car We’ve progress contact how buying when dealers. goal during against the consumers communicate we’re with and journey. consumers over options significant engage for them giving by control more testing various

far, and learned they when with sale satisfied consumers we’ve higher are give rate. a a more control, to their overall convert you more much at that So car experience

lean of our to The improve the the for We in experienced changes partners. will improvements of ensure changes set we additional plan believe customer early metrics roll XXXX and over impact will out the these foundation quality year. higher for course satisfaction next

confident the iterative that will results test, approach, of and an are produce stakeholders. launch improve We all our best for

began an have that the iterative approach level believe QX, with move more through on opportunity car their greater a of this consumers algorithm and our new control. site. the we consumers experience, In We intelligently of selection to improving near-term select continue capabilities register the we gives learning consumers goal as we we journey. dealers to toward buying Second, testing we how machine after introduced dealer that guide they

shows valuable of we to our experience for machine custom-tailor to that just personalized is and example messages users. and segment a how first learning provide intend our intelligently more the marketing This leverage audience, more many our

and laying organic easily traffic the Third, This breadth we engines ensure site experience. and our the foundation quarter, for linking continue can of to across internal growth. more and both past to improved inventory our future the search focus we navigate users depth on significantly

incentive continuing which to as such and are on pages site build vehicle live more are we make-level today. shopping of content best the addition, rankings, In

strong are of already growth in the session seeing of effects, the the iceberg, QX. improvements including year-over-year we’re the these early part positive just tip double-digit organic While

our receive save reengagement. searches, and new And price Users drops for personalized and push save visit notifications finally, register their can both inventory favorite email alerts through their site and now recommendations. and vehicles we’re in making strides consumer vehicle improving who

them the site from we’re find help intelligent to retargeting all right As car price uplift activity consumers these continues this the provide incremental is right primary the The dealer. the initiatives the targeted at objective shoppers. activity funnel on campaigns email and to leveraging grow, with to value reengage to of right

amongst web to opportunity omnichannel experience TrueCar, end-to-end continues by excited an the millennials approximately rebrand will taxonomy vehicles and broaden It also crucial product is identity, corporate appeal to a experience, of brand our influencing represent in North supplement we’re improve, segments, purchasing campaign. XXXX. to XX% sold evolution to suggests Research new of millennials points in its or XX% more car the with designed As The women featuring and advertising rebrand two sales new of or America. women.

initiative and TrueCar new In US, and has group positive results the year year among will the we out that our excited this the male related focus consumers across early outperformed our rallied they by future. testing, women expected roll and and the over-index both materials I’m entire brand specifically. The female drive that next to organization among competition next logo into behind and

that like exhaustive, by most level commentary areas some but I’d represent key no to I opportunity believe the Next, on provide priorities highlight our are The the means provide in for high XXXX. will we items near-term.

optimizing build made and year on experience. we’ll by progress the consumer our foremost, First to this continue

As when a them. an control to dealers iterative I will include this and with earlier, mentioned contact approach greater how of providing over level consumers

our value vehicle proposition. We heightened consumer also pricing core our maintain improving data, on focus will

partner focus Second, the channel. we growth our will of on accelerating

this an Our of We’ve robust in our area we’ll year. business network seen development clear industry. our partners of next acceleration a differentiator invest continue and activity, is in to

the capturing Third, used car we to wallet in space. share remain committed

year. to profit confident we’re in margins grow are and As used which SAAR key seen throughout is dealers continue levels car to next into off and our success tighten, new that in them. car for looking XXXX car used their We’ve to business, help a center ability roll our tremendous momentum

remain to reaccelerating our we business. OEM growth committed Fourth, of the

expect challenges. and as business relationships to unpredictable, We to we continue market remain grow for but look solutions current this to our deepen

to will mind stated to this of and a to ALG product OEMs tactic leverage exclusively aggressively before, the a the we strategy a singular position not issue. for I’ve market As as react planning in

we our car an the shopping vision to is effort configure are what Retail long-term Solutions, entire experience enable to only showroom consumers trade-in Finally, accurate which their monthly accelerate calling our deal and introducing towards online, calculating true including we end-to-end of value to by payment. will becoming

into TrueCar. At facilitated any process, deal throughout direct be consumers smoothly the locations introduction by given off-ramp retail the point configuration will with

Trade substantial toward We acquiring have steps already launching DealerScience. and this TrueCar by vision taken

our with online an consumers Next in will twofold: to integrate price be fully shopping auto First, guaranteed space car core and buying car their year, trade-in this of our upfront journey. trade-in focus their our provide part on to experiences as buying

drive transition. And Accomplishing toward consumers will leverage DealerScience accurate payments, transparent these consumers both the secondly, to huge transaction-ready step provide into showrooms. helping to goals digital shopping a seamlessly and be to facilitating monthly with showroom of to

year-over-year XX% from In are performance wrap up, unit USAA. channel third let the is our the strong, provide on in discussions with start, I contract by update short, a progress underscored USAA. a with Before quick the USAA of growth we pleased quarter. me To

agreement aligned a current our agreement a a on we’ll us USAA expiration timeline of confidence agreement. in which advance the have negotiating gives completion, are with new place are We new in with of and for them

will we when a development do course, new Of marketplace. to enter into announce we agreement, the

evolving launching of in with quarter shifting. QX laser-focused In I’m the the USAA guidance, of plan, consumer game made the our pleased financial closing, on in Phase against XXXX. the experience remain the third We business finalizing with and executing early and near-term progress our goals new can feel contract the X our momentum hitting in

now it over to I’ll Financial our turn Officer. that, Noel, with And Chief

Noel Watson

Mike, financial our the and the year. the you you, to our everyone. start remainder quarter like by good results outlook Thank for walking for through afternoon, and of I’d

with above the by team to first I drive am making, ability details, expectations the into for our clearly jumping to Before progress is note excited results here the quarter. our how I is wanted evidenced which

multiple we fronts initiatives. and execution are are has against improving Mike near-term As longer-term both on progressing mentioned, and

turning financial our results. detailed Now to

quarter, and X% year-over-year X% total our revenue million the $XX.X dealer of revenue was X% guidance end down $X.X franchise above dealer to range up Franchise the XX,XXX count During year-over-year. high with third million was of dealers. down

Monthly XX% X% decreased dealerships. dealer was revenue Independent as per revenue X% dealer monthly year per smaller revenue we add XX% continued to to dealers increased X,XXX independent to quarter. dealer last and the during with compared by up decreasing independent dealer franchise account

revenue, Sponsored million dealer TrueCar quarter. was $X during revenue including DealerScience, product New the from approximately Listings, Reach Trade, and

from two was $X.X by million QX XX% of This of of OEM our recurring clients. lack of down revenue from primarily decrease was larger driven ‘XX. the revenue OEM

We will in lap XXXX. this begin revenue easier QX comparison of to line in

quarter flat year-over-year. Forecast, million other revenue consulting $X.X and or was this

in Turning down to flat XXX,XXX units the or units, Units channel were were branded TrueCar total year-over-year. year-over-year. our X%

continue organic with late feel monthly X% the the unique XXXX to quarter. traffic in visitors in loss down impact We of

to return beginning the traffic However, the to the and channel along investments SEO earlier growth our easier to QX. see Mike of we in in as our call, branded impact mentioned to expect with compare, we’re positive year-over-year

optimistic also about new the of are We expect next quarter campaign the to launch in year. we first brand the potential of

extended channel, In flat year-over-year. were our units partner roughly

extended growth year-over-year. our partner of channel opportunities partners partners. handful to units we We up to as potential high a expect XX% XXXX in activated and return the were channel scale recently USAA identify to signed existing

see this to positive strong fueled car used continue in We momentum performance. again channel, by

Total channels. XX%. year-over-year, have down all Consistent product new the driving to units quarters, with across earlier experience in car branded decline up were X% car were improvements units new growth used used Meanwhile, throughout the in fueled car car while units. XXXX, channel weakness total is our the

decline an $XXX was new Monetization by a per car $XX last in products an was of by QX year, unit, decline The driven of used revenue mix unit down from dealer and from increasing in OEM in units. partially increase offset per revenue. ‘XX

expenses compared QX of $X.X unless non-GAAP product QX year. million in down basis, totaled QX or stated. million ‘XX on following Now was are Gross otherwise was in QX or XX.X% margins, $XX.X XX.X% million ‘XX where XX.X% metrics the of of to QX of and XX.X% ’XX and in and of of year. to margin expenses gross turning versus last a from $XX.X all revenue Technology profit of revenue last of in

of of million or $XX.X of QX revenue of million revenue in were year. QX to XX.X% expenses last compared in marketing and ‘XX $XX.X XX% or Sales

ticked Our sale unit up cost slightly $XXX from year. this in last blended QX to $XXX unit year per per per

improved to We’re this branded basis, from media channel pleased spend. to metric on our thanks see normalize a year-over-year efficiency

by $XX.X and X% increase rebranding $XX.X headcount cost ‘XX, in of from last sales announced with The Mike time QX costs charges associated the this one-time Our up reflects other million in year. earlier. upcoming campaign million were

QX $XX million to totaled QX or on or QX to of $XX.X of in depreciation X.X% adjusted million and ‘XX million compared G&A, $XX.X $X.X Moving million primarily QX $X.X ‘XX ‘XX. $X.X and XX.X% revenue of amortization ‘XX. Adjusted stock-based of revenue of items or The or in XX.X% where compared XXXX of million XX.X% for was of from of include of of revenue in revenue EBITDA QX expenses EBITDA million. to excluded compensation

$X.X GAAP $X.XX income Non-GAAP to period net the for $X.XX per $X.XX or of share non-GAAP representing net year. million last time $X.X compared share million net loss this or per or share $X.X per was a last share than was of per of income $X.XX to less million, year. $X.X million compared loss earnings

Our healthy balance debt. sheet with continues and million outstanding in to remain $XXX approximately no cash

year-over-year. upwards represents to adjustment the a $XXX range turning raising our given This or year XXXX X% the results from $XXX $X.X growth full the our to on million guidance we in range. flat guidance million to midpoint financial million QX, Now a prior are negative for revenue guidance, to revised of

we year a revised EBITDA represents of the of the guide guidance a from or our to to top margin. active expense guidance range reflects a This million line This range. XXXX the For also benefit in full $X addition $XX adjusted $XX to midpoint prior of X% are discipline. adjustment revision million raising upwards the a million EBITDA, stronger adjusted

over now call will to for I back turn comments. final the Mike

Mike Darrow

Thanks, QX the going we into momentum growth our return that strongly performance XXXX. the Noel. delivery lay in believe and will have groundwork QX to of us for to We the

our look of the new more where of company’s It’s all consumer forward sharing prepared at an I new progress. and and call here to look TrueCar with be details the campaign. to I experience forward about time to next rebranding our our we’ll share exciting continuing launch you

And with that, let’s go to questions.

Operator

question-and-answer conducting question Instructions] Our you. [Operator Stephens. from with question. your proceed Thank Evans Kyle At a first we’ll be time, Please this session. with comes

Kyle Evans

were some put at then of for exactly details know I’ve Hey, Mike. And could launch us to Phase the going you some new I wonder you X looking questions well. the more be what around tell going call, ask. if date said as kind next you you where? of knew were share around to consumer we but should and got brackets course and I we follow-up

Mike Darrow

with around Yeah, the new the Phase our refreshed our Thanks Kyle. in launch of It and we launch. some and question. be coincide launching Hey, time. be put X will for will all that new brand have early same brackets date QX about consumer it we’ll at

a for be we’re the testing be a for XX will heavy product of together start the aggressively traffic that launch still so. the winner We’ll up So in stitching testing QX. we’ve we’re next an accumulation the will kind or probably into days shooting final first ramping year come the the early up of of that after on good testing with a and very all done. We’ll

Kyle Evans

a Can talk – about you little bit

Mike Darrow

really type And this of the is just on What be this X. us about I when to This these is going Phase it’s talk completed. say when would projects is, for oftentimes you it’s beginning.

in but a be through continue the will process. you’ll iterating We’re early to excited about see XXXX, changes

found XX% that different traffic to that We’ve about we’re of system. we’d through the comfort to aggressively pull able try level off with our TCDC test like and things the

a So we’re our us basis in to to think on do continue product continually that an to it evolve way. going allow will positive and ongoing we

Kyle Evans

a talk what in little seeing ground improvements? improvements referenced prospect you that of I you’re XX% testing in bit believe your Could remarks. conversion in conversion prepared you about terms

Mike Darrow

Yeah.

the the It state-of-the-art seen full helps and you the there us We can done work kind actually it’s of follows funnel. configurator for right vehicle. configurator see gamut consumer believe that testing get out on some the right we’ve now. doing the consumers. the So, of on site the we’re We’ve around the

about of that We’re the excited testing. part

first engage will That’s got look that different way. actually ways Conversion products been many offering launched we’ve is, big some the and new try been our we self-directed for what a even testing. be we’re product the and We’ve to after a piece of year. in efforts turn to we have consumers done of

product think with. is involved One the this Lock selection of we the of consumer dealers time actual and get them the talk Unlock, to in it a – we’ll I the want first engage called about more be will they where

There’s testing what to between consumers. creates results dealer our network dealers find and sit to the working things DSA and all backwards from and number that consumers the against key algorithm kind we’re scenes, our a of we’re put learning tends database good best a and that our of out between alignment on machine feeding but really the of what a beginning previous behind create attributes connection that we’re into our

things So really seeing. is we’re them queue by the many those still just are the are but there of tested, in a what on, that be of working we’re few we’re to excited

Kyle Evans

marketing And Noel, for as then you the rebranding and year? the of help percent up margin perspective dollar quarter quantify referred us looks work a is perspective absolute believe lastly, I and in think that’s of what like rev, a Thank and sales you. help on some then kind to current that about next rebranding. Could from going

Noel Watson

Kyle. question. Thanks, Appreciate the

So the some marketing our it search but marketing time, on keyword work searches some seeing we is doing associated of our QX, sequentially doing to some particularly copy, sequentially is as engine and year-over-year, keyword better side, a to of a and shovel are spend. there. from pick so around percentage landing We we’re campaigns, down job in seeing efficiencies matching and the searches spend pages efficiencies revenue up

QX. doing We also are engaged in testing be that we’ll throughout

We’ll some testing for Facebook, Programmatic consulting have Connected we and TV, QX that. in So Display funds across engagement. we’ve YouTube, allocated a be also

of all to done, be leverage our across we this optimize spend. and into those the to brand new to trying and mix have marketing as efficiency work able we marketing move overall launch overall improved channels. year that in our as our at being new looking All We’re

As process. year, XXXX in far as next the we’re planning still

spend on percentage So going of to revenue next finer year. the absolute point a I’m not total or put a

We’re the standpoint, a say, still fact provide brand our the some in of that you of next the working spend year, on a first through support that. in but full call. given from to the mix additional could shift in QX, context to on will we’re launch new that we’re I year planning half going expect up will

Kyle Evans

Great. Thank you.

Operator

question. with Our Securities. next Ron Josey Please from question JMP with comes your proceed

Andrew Boone

Boone the Andrew taking for on Ron. is This Thanks Hi. question. for

I you I and highlighted to, implies think you double-digit to about think compares talked the kind people flat in sessions the more That UV coming platform. growth, that that remarks back prepared of growth. are

Can that? talk bit drive your you kind you. revenue right little of about per and Can are us? repeat you you with visits lower Thank what And visitors franchise talk about renewals with process guys came just repeat and in secondarily, then than to a doing and now? independent dealer dealers

Mike Darrow

Yeah.

our Let business, focusing team me to our the a reengagement got consumers. speak we’ve of for piece first actively reengagement on

are registration a pre-prospect We actually ready connected have light with to that’s dealer. the be process before in actually consumers

reengaging targeted we’re through Facebook time through sites. folks those and other through spending on campaigns, And retargeting emails,

to when move we we take prospecting people hard sure site process and site back of So the they’re the don’t ready to working the to on shopping, get are who them complete but forward. spend time our making

Noel Watson

the Andrew. Hi. second question. I’ll take is This Noel,

flat It’s on where is so was revenue it flat unit QX, franchise So, in right per in QX. the flat. we’re growth an now dealer, in environment

network coverage consciously benefit new launch fully and made QX a we consumer we’ve so and current and full our to rebrand sure have decision to the experience maintaining the dealer in network. And make prioritize

modest on it We there, a an monetization for we but a to of return on unit we – in that’s grow the standpoint, independent think And to feel We’ll in to growth. short-term, side, say revenue we some opportunity adding rate are once the dealer. we do represents renewal have per like we dealers. us decline led smaller into

greater to new products per there. and such look pressure a it’s It our opportunity as as well. as you dealer at noting an to give So on revenue put share a add dealers, dealer smaller from an customers our Listings as dealer is when that standpoint, value we worth going it Sponsored wallet opportunity result, to us them and more Reach capture to offer on

Andrew Boone

Thank you.

Operator

Our Please Krowl your question with question. Lee B. Riley. comes proceed with from next

Lee Krowl

kind of for if seems taking ahead my thanks is Great, or not, in questions. like scenes, the It line of behind kind of tracking trade-in expectations.

the used? your during maybe So quarter thoughts as and and it perhaps into ties both kind trade-in drivers of the on new

Mike Darrow

thanks Lee to We Yeah, getting – focused important sure on expanding our of know and that an go recently coverage Trade. the for our make were to going it’s the footprint we element consumer forward we We we Lee. as True experience be wanted question, marketplace. into out on

the on the of you X,XXX We’re dealers buying to end integrate in begin see will True the and post-prospect us our Trade product currently, approaching core trade-in program year. before

So we’re excited about that.

tells about a data of our or we the a with – to our purchase system, we who know a that that’s new lot have consumers of trade-in And a valuations. trade-in. generate vehicle have consumers of us through used prospects XX% All coming vehicle of number going

to going get an current worth it’s good to go their a our opportunity trade-ins they what into before idea dealerships. the think prospects We for create

grow buying we’re excited see we that, that as it So product the to think core product. rapidly into integrated begin and get we we’ll about

Noel Watson

the it provides into so their our they dealer lead the tool dealers us higher to integrated with software, to across the on extent to channels. of upsell full acquisition that all it just with opportunity flow Yeah. engagement for it and that, use we the the can volume on of of And an our have and once add our create we’ll software

Lee Krowl

bit incentive OEM the business next And Maybe it. get pipeline seems as the to combo just incentive OEM trend OEM spending. just kind a strategy potential it general of of and also the a of – vertical you that again little Got today sit growing in the a year? to it’s like business, then kind specific maybe and just talk and on on on changes lower

Noel Watson

the growth on pretty piece of a in in did our to of the two much business. back quite different of new bringing was of Yeah, we consecutively in revenue. ‘XX, created partners years partners some to we’ve stories delivered OEM In that come and growth XXXX. business, the around bit and in those tell generated not that ‘XX, that two Two dip the platform had

there a going talk little choppy even it’s going So to as and out OEMs. to the forward be get we

in our growth to although We of a a discussions regular on about and with expect being still the in back business forward feel OEM and being partners to are OEM business all to XXXX, we is now. a them going solution turn basis, we good lot of that developed

are will going a and planning OEMs then see those they next the through to planning; the of speak. begin middle this in year their They we QX working as they’re in closed discussions. we’re on year cycles for and So incentives want big of

we understanding new future of in for their One what are – current is looking the products at a of they better have the products, garage.

will Our a us trade-in product help bit. understand that

steal that’s the trading you another and win from to to brand. potentially the prospect in conversion product are as and competitive imagine a interested can a opportunity OEMs someone a And

So we will will opportunity flow fine-tuned our be OEM think understand that the integration of and get us to partners. help even with have - the even will more trade into

Lee Krowl

Got it. questions. taking you my Thank for

Operator

question Sachs. Please Goldman your next proceed Daniel from with with comes question. Our Powell

Daniel Powell

Great, may. if thank you. I Two questions,

looked like historically. it monetization bit we monetization. figures been this versus dealer generally wanted the kind a to OEM was than well. were It just First, has quarter, softer incentives on out of Realized and those but QX ask product back revenue side around softer the as

on us anything is that? if from mix there explain Just help there going perspective a curious that

Mike Darrow

for Thanks Daniel. Yeah. question, the

ties per to I earlier think dealer. franchise back commentary on the revenue that our

consciously protection the seeing We’re unit given overall monetization some volumes that we’re in network. so at softer of and we’re doing flat

that, about We on introduce to right dealers coverage on our the with finer and side new the And this product put back to our business. brand when point into our growth. and of campaign we now carry get us of new franchise group excited to we’re QX, a Daniel, want

as turn sticks XXXX. we’re sensitive group sure we So us want with to the that we and on this that being corner make to

Daniel Powell

Understood, thanks. like XQ. traffic And it improved the – on then the versus look

and reporting they quarter, approved trends Your you’re there the USAA like declines second looks in that market the the units TrueCar like at look it both but the share relative accelerated.

curious about helpful. would is there telling Just it. us if there Appreciate market that’s your or be if nuance exposures any anything that

Mike Darrow

Yeah. We’ve seen we on the right about good in And things to traffic conversion traffic the to across bringing channels the focus site and to that felt and upticks effectively QX. we’ve three on in doing traffic create all continued that.

So we any significant a a we seen have on seen our unit. haven’t use influences of business, versus that percent to competitive car new shift

XXXX. move a think in we’re We shares the we’re we’re of a I think one car get I a to again the position. but that’s So car feel shift, provider, we side. bit position on And new good and you’ll in see once number the into used strong begin the as growing those – share numbers

Daniel Powell

it. Appreciate Great.

Operator

next Nick question. with Jones proceed comes Please with Citi. question from Our your

Nick Jones

and you and women focus I the [looking you millennials [ph] the then in be bit for can you’re a first, what little little talk questions. shift? Thanks rebranding on] on to Hi. launch of a on taking TrueCar is as guess bit side the going expand interesting maybe as about new

Mike Darrow

Yeah. buying too people much you brand, you’ve I this, the on me seen if as a excited us we’re And it. marketing while, been Nick, gave will the influence done been from fruition. we’ve hadn’t impact extreme the the brand on millennials women we come the much were product of time the It’s side, to but a kill our about refresh and to since and preliminary following when built we’ve if work a at process of and even

freshen to position we all in So of need are we know to that. a

And it I and is new positive. upbeat. see what The modern, is very once brand we’re you’ll it, you it’s you’ll exciting, see like think

On to in some certainly considered weren’t growth grow maybe the difficulty] before segments where the we opportunity segment. [technical

that done to as we how and on new certainly our that tie more it’s to important into be to So, experience. be work going product

good XXXX. QX having feeling an – forward We’re market impact both and about both in those the of look efforts of QX in early to of those

Nick Jones

Great, thank you. the I color. appreciate

Operator

Marvin with question. from with comes BTIG. question Our Fong Please next your proceed

Marvin Fong

my what channel, already. just – the Okay, signed help that’s But the partners causing good of you new dig the that the trends on-board just I units on see deeper into little growth growth you questions. evening. for Most you some a us on that? up, if if been are just asked once Thanks realize deceleration that just slowdown, you’ve partnered in and them taking the in but we’ll

question, a was branded see fourth compares you. that? of an we of driving I the SEO mentioned uptick the the or function just in then in growth you’ve you’ve also second And And that improvements Thank that more curious, doing quarter. been of that should traffic some is

Mike Darrow

Thank you partner brought we Marvin. supports period had we through for time the the And And a partners some group. on. a it BD of went a where limited some around of been that bit has our partner had side, resources Yeah. new before on period question, function the we

So, part recently. not some was in just partners growth lost until that of new the brought we the had and saw mix that fact you the into slowdown had we partners some

the audience, with we’ve have that in MotorX, with signed really of one very about We’re we the number the to and Kroger, a end we on-board, the set a hope active deal before of nation newest launch Credit partners also Karma and digital the excited we brought grocery year. retailer

reinvigorating excited we’re about So, network. the partner

visit partners we’ve some getting to of You’ll think see million that, always together of that, partners work again. real signs you optimization of uniques there XX a and bring in phase how brought we monthly growth but like know sites has their kind begin on, MotorX is the site. on show When new that influential to that

channel that to turn corner returning XXXX. about excited back we’re on growth we the as So

Noel Watson

the second question Noel. I’ll on this SEO. Hi, is take Marvin

So is lapping to a of the related compares. component performance

algorithm of If year a at you the impact traffic. end change remember group there was had September, on our last significant SEO that

we site. of stronger on So are in SEO best XX making and engaged And coming keep lapping in internal people of dynamic lot things site for that we’re the our the periods that things the site also but lists and like both longer efforts, splitters in progress time. upper will on content, also funnel QX, to a creating

things we’re as the that from the working with comparison. a lapping So standpoint on we’re making good product as progress well

Marvin Fong

guys and quarter. nice Great. Thanks

Mike Darrow

you. Thank

Noel Watson

Thank you.

Operator

the I’d have Mike turn for We closing call At the question-and-answer comments. this session. Darrow back the of time, to end like reached to

Mike Darrow

like these and of helping results to making I look set the Thank who Thanks, you in thanking by coming you for again. over really exciting with year possible all the working employees you, the again I’d foundation and weeks. to speaking operator. all and Thank are a close positive today TrueCar questions us hard your forward time for XXXX.

Operator

today’s This concludes conference.

this you your disconnect You your time lines we may at thank and participation. for

TrueCar (TRUE) 11 Nov 192019 Q3 Earnings call transcript