TRUE - Earnings call transcript Q3 2020

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Operator

Greetings, and welcome to TrueCar's Third Quarter 2020 Earnings Conference Call. [Operator Instructions]. I will now turn the conference over to your host, Danny Vivier, Vice President of Investor Relations. Mr. Vivier, you may begin.

Danny Vivier

operator. you, Thank to welcome Quarter Earnings XXXX Hello, TrueCar's Call. Conference and Third

our are our Chief today me President Chief Mike Officer. Watson, Joining Noel Darrow, and and Executive Financial Officer;

this Form statements Securities our will by differ expressions, with could XX-Q and and review identified filings results. our use factors and becoming, of Exchange of based and reports date, caution believe, forward-looking and XX-K, reminder, a toward, to can not on as the are of section statements, report be on could such from guarantee Actual materially. make this plan, should on other or a forward-looking statements future we statements by the performance annual for differ As similar we on you our expect, except call. factors results that Form words we relied the as by disclaim as will, These and contemplated not be upon confident of We results making anticipate are and our a as the materially those The statements. Commission be forward-looking us intend, cause update any discussion risk reports obligation required call our any quarterly to to available forward-looking forward-looking of information law. on today's to

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

Mike. the turn Now call to I'll over

Mike Darrow

Thank you, and afternoon, everyone. good

have enough that third partnerships. online team campaign, build and efforts around world thank remains digital key delivered adoption at XX bring Operating network, served she Kristin of Thirdware, from overseeing few the technologies automotive the the as would on sequential building new TrueCar and but over us. million. road of and will planning, our Chief our Chief product Military, EBITDA growth joins and Officer, later the for be leading Kristin on and agencies, growth responsible Starcom, She dealer needs we've of function, Beth brand driving Slanina, our the we of implementation members, executive TrueCar years as our and including digital tools world Mindshare dealer decades their commentary meet and has the the media way responsible -- we and efficiency revenue will our I and modern here marketing oversee ground marketplace first of these quarter. global While and and highlight will $XX are service of bringing level. for ahead and will with XXX rollout retail. unrelenting Officer; our additional further arrival to experience the to consumer. We Officer. The elevate sales facing the retailing us marketplace. momentum business-to-business adjusted with modern like been will experience at She Dentsu. to position FCA. ahead working and of expansion to focus teams facing with over company unique Mach, finally, unifying a hit an and obstacles, amazing over by across deal-building I and members of has new buying team in look partners. well all-new of of two and Consumer provide payment Beth the existing making strong been the to functionality an launched the strategic for opportunity them the series leaders be solution for OEM to Fortune companies cannot of before all in the TrueCar our record-setting to quarter trade evolving running forward We leverage oversee strategy point two and increased Chief the targets. digital rapidly accelerated Both team developing the where us around her is and them And with We thrilled immediate and our Transformation communications board past automakers' hyper-focused a to which the truly transparency pushed to in family map, internal of battle unprecedented our to a the continued and franchise a emerging at leader of and this continues impact. quarters call, welcome first new supported I'm and

the year. Now quarter the for back of priorities to details of and the end our

and campaigns helped and retail broad-based in at more to enduring site significantly recovery drive media paid customers. budget. $XX.X of success country sequential of are which on the total that monthly to We period test the Traffic continued our the as the seeing ways also reaching in continues of with to gained grow, impact to we've their organic the than to visitors rebrand lower the activity our implement earlier motivated majority across in ending We're unique subscription year-over-year across rates million. new XX% growing the revenues, discounting dealerships growing digital-first of digital of ever this June, and An year, We traffic. reopening improvement steady a efficiencies our march non we our as benefit outcome doors, speaks enhancement. development in $XX.X to across million quarter, while our and up dealers continue a our centers. solution a other trade the and optimistic XX% consumer equipping payments and car third pace units network, that digital a close will over saw broader retailing unit third in full a point, late remain sequential our their as profit best-in-class control will conversion help sustained maintaining complementary flexible USAA to from them its that franchise enabling volume that the recovery toward In increase prospect appeal TrueCar-specific COVID base To consolidated strong recover product complete we product ongoing with experience. back-end and rapid buying offering launched in rates quarter online closer September,

in said dealer tools car experience. engagement before, we As online with critical is absolutely these a buying to modern facilitate helping

AutoNation, monthly the dealers more preferences, consumers configuration, or become significantly on two enabling in payments, to loan where network and engage higher point we're the partnership in-store, days will and as in by To franchise In Most select customized is their our and importantly, rates, coverage to and with vehicles with and eligible are enabling majority improvement half higher to expansion sector site. We're Through across a can as vehicles summary, on new marketplace number feedback the honored October, for of down payments the destination to a satisfaction. the is positive, transactable more accurate exists, needs. and As which demonstrate our the deals purchase which meaningful desperately consumer well lower of lease measured trade gain has with used credit score. modern from retailing insight franchises the over the from customized show pleased trade. deal-building experience quickly and million we the XXX expand at site deal adopted no who Those has way continue of very easily other on close our to payments quickly whether evidenced used a over car major so new overall the transactionable and dealer engaging or by millions term of personalized of of and and compare early the payments them adopt uptick sale trade, who groups coming trade will of automotive payments, have to build and quarters. solution, on intent online digital features our the date, been adoption our of on-boarded and bringing all consumers retail. network, our to with very tools end equity franchise meaningful and and in

third awarded we've we marketing the to for the awareness coming update key Military which over the national and emotional that storytelling Jesse Officer, ambassador. continue and new the He like unique a great only the growth awareness XXXX partnered TrueCar Next, served I'd dedicated racing military. In XXXX, drive Naval experience, brand the Iwuji NASCAR empowers audience. in of in to at and ever Driver lever brand level military help a currently Military be our and brings Award the campaign NASCAR's NASCAR through with Year the as who featured progress quarters. the in driver be build Diverse campaign, to a will perspective will first the TrueCar's engages quarter, in driver as has on and we to announced of provide third view an was which to quarter made Iwuji,

embraced a such business have pipeline, at importantly, presenting been their promotional this to and Group, new with among of across verified the offers which rewards D.C. for ways military Audi Club our metro, TrueCar-certified are consumers. exclusive the the Director taking our large in before Most grows, expand affinity are Washington, purchasing our are say $X,XXX the and about to Dealers, incentive areas program, who are Sam's representation, franchise As geographic looking participate. to leaning dealer. to offer up development making Automotive were service, still TrueCar dealer program it extended of example, military program. high-intent to goal also with to car-buying awareness TrueCar community "We've on we we OEM, seeing offer a located Doug the work of military time coming many a TrueCar accelerated members few opportunities ready about D.C. these at Military and the an for It's the of up and to market. for had team partners awareness now, have has owns Horsman military the the TrueCar experience BMW, the transact. the just military to TrueCar to reach Dogger, whom the business. operations with and have a as status to "Fortunately, enhancing visited of Since our scalable TrueCar validate the dealerships number Partners push the the reach store here rapidly community. are into their to through that willing military this notice channel. way investments our grow a and large recently we now targeted know military their large customers through material customer and who customers part is a program have leads Military stand of back, we quickly members to been have learned in program, reassuring would always launched to whole a a USAA impact buyers. number months our the When The sales." families acted end concerned to our of verified always new long decision

this eager make by to rolling can we're looking as expand folks Given and our to do to a out we're selected dealerships. from Doug, program part committed TrueCar-branded at experience as seeing are military footprint actively successful excitement We our the it like showroom be." in-store

our to history. the remain transition him wish an in here and remain as CFO a Charlie our TrueCar of I'm is rest the more and growing the the coming over toward principal with priority We're highly the over And in during the embraced interim take environment possible the proposition a few organization officer. our the all has inclusivity we very that the before handing collaborative contributions military has his of for period. not Military I'll to channel, Charlie made team company the leader That weeks, us And who progress of redefine this effective program by I you period controller, TrueCar for top permanent to support to culture seat a leadership and short by and focused but extends next agreed at a Thomas, platform CFO retailers. value been openness. interim words all over view his look take during active through of as Noel our the quarters. period best future filling a for I'll the for TrueCar call the a the at company's in Noel few rapidly such which endeavors. excited the importantly, the time finance participation CFO new the that, we've simply future, utmost with made As we audience, hand acquisition share over significant said, grateful and helped Noel numbers. as in financial the point, will our the to challenging call regarding to on finally, a Noel. confidence talented He's have me. differentiated a

Noel Watson

an reflects profitability. and plan the positioned all-time quarter Mike, GAAP afternoon, the good I Revenue the of alongside sequentially continuing ongoing the million, from through of $XX.X includes recovery ended results sequential as basis, financials from and a our X.X in of otherwise the I'll chapter was revenue TrueCar On XX% everyone. unless that rest and the down lead strong XX% XX% serving help well OEM for to this recovery, strategic take which volumes. knowing quarter million, team. I which up the down due minute It's broad-based XX% discounting enjoyed program. to strong feel opportunity the increase, quarter-over-quarter high of unlock I've executive CFO unit franchise revenue next impact years. the million leave the up and XX% end independent you the every organization ending of and a wind-down on its to dealer products, XXXX, in sequentially $X.X invoices operations you, revenue and million, to and the EBITDA line the at are for COVID-XX at year-over-year. came year-over-year year-over-year. TrueCar growth. USAA a and and been stated. to quarter All by driven of for Thank grateful and dealer revenues the top Mike now deliver subscription a the the privilege new of very expectations, adjusted its and past comfort of experience and contributing take $XX.X $XX.X revenue, at outperformed period up third of for Total

$X.X been moved and of USAA discontinued billion, the the related ended discussed. revenues attributable at which for periods quarter and consulting Finally, Financials have other all presented agreement. to services forecast, is ALG nearly all transition to to operations

in side our in growth. XX% quarter demand up third branded quarter driven unique marks at truecar.com the our for X.X monthly of marketplace, came TrueCar's million, the visitors growth On channel. of fourth year-over-year, consecutive by traffic This year-over-year

activity inventory us TrueCar said, the retail of take growth to from well which unit ending to came slow search the based on benefit share, signals USAA ongoing down in normalizes the levels channel our believe approximately as The quarter industry the overall traffic we Units year-over-year. with to pre-COVID over fourth year-over-year. down We That in coming early XX% traffic performance we are third wind-down quarter to the weighed levels. positions recovery continuing activity expect quarters. XXX,XXX, and of at in October, on XX% online-based and demand in

was third count our truecar.com impact and networks, has productivity this due The of primarily COVID-XX the the third car contributed particularly sales inventory environment, in quarter. which and a the volumers similar in year-over-year. the decline for ending dealer unit XX% franchise the disruption approximately Total pandemic-related pandemic. X% sequentially, The XX,XXX. on combined tight supply USAA, the impact the was independent extended after down declined earlier quarter quarter on across to chain new period year side, and weighed the third ended Excluding from affinity our by to

up the saw uptick a also to the slight in in churn lead sunset. We USAA

key rollout October, and USAA September. we However, of solution ending of be ended normalization transitioned, our with tail has line we a program inventory the believe in first the military into productivity of year. helped payments the stabilized, trade our new the to month will car with in of and in and awareness levels sales completely kind it month accounts, new where retain have growing The

risk, to the results. sunset As it fourth USAA, of churn, remains adjust there relates encouraged quarter, October in to we level the by as a moderate dealers particularly but of the are

of gross $X a quarter sequentially, our of restructuring margins, million on $XX.X points decrease net extended resulting Part restructuring. we at recovery, to where underscores the tied a the and expectations non-GAAP operating of as look from quarter the take advantage otherwise USAA, line revenue. All of revenue. million $X.X decreased model shortly, significant long the items outpaced will decreased in sequentially, expenses, and basis share. unless potential third to development dealer full partially In metrics income things by ending of sales affinity last this the and of Sales we XXXX quarter-over-quarter, basis we ending turning following of impact to business which a margins. a million sequential $XXX,XXX XXXX. quarter increase all-time shares $XX.X XXX adjusted compared transition profitability rebounded, a X.X line increased million ending partner the of for and million sales XX% items, level $X.XX top net $XXX,XXX double-digit quarter administrative to $X.X our retail the of while XX% full quarter We'll Technology this million for of had expenses an Non-GAAP $X.X net or benefit at quarter our $XXX,XXX of benefited of of quarter also or marketing XX% income retail by The increase across channels EBITDA $X.XX Cost $X.X that the markets, was million spend term, and by Now share margin at $X.XX sequentially. program to higher rev XX%. expenses which QX environment. acquisition $XX.X to expenses XX% drives the which in $X.XX share per time in given million sustainable these and million at per spend strategic loss stated. of or we an sequentially, reflects other General average non-GAAP team of against million all looked revenue. $XX.X revenues acquisition increased by or decreased of but increased million different total of $X.XX year. a In a produce increase price branded line an our total a sequentially, Both on effective very improving signaled fourth the is X. by was headcount June a high a comment quarter's expenses by for million buy are offset the executed believe the service this total producing smaller from compared share the GAAP increase a greatly quarter the share of considered, of an sales following $X sequential strategic of in revenue repurchase in sequential share in for loss the was million. quarter, per $XX.X per $XX.X to third or our third and was

continued have with quarter October, We and purchased the now ended over sheet. basis. the we've through $XXX third purchasing shares We of four balance nearly quarter the a year-to-date on on cash cash and million shares fourth equivalents in million

inflow reminder, of remains result before which XX, a close track November would a year-end. As to significant ALG on by the divestiture cash proceeds of in

Now to XXXX period fourth the USAA guidance. quarter following transition. will the turning be The of first

to an we or see economy do pandemic, closures. widespread from and the the continues of not COVID-XX expansion Our assumes guidance recover extension

to we revenue of by or million to generate XXXX, expect decline $XX quarter For year-over-year a midpoint. XX% $XX the the million at fourth

year-over-year. by product dealer to including expect revenue, XX% new total decline We approximately revenue

OEM the we consulting fourth to in revenue $X we a given of and million We the revenue. quarter, And operation. to million USAA finally, a was services and sequential and financials be concludes USAA forecast, approximately in driver large expect revenue immaterial as to expect fourth OEM discontinued transition other decline continue agreement of ALG's our $X the report quarter,

million be earlier including or spend, we midpoint. quarter to the in the XXXX a year to strategic acquisition EBITDA our to in cost workforce minus $X Given our and fixed traffic of reduction plus the of $X range this expect breakeven million completed of structure, improved series the in efficiencies adjusted at adjustments fourth

Before I'll we go to call turn back questions, Mike the now final remarks. to for

Mike Darrow

to of recap we we've our move in a I'd Noel. to call, got including quickly faced and accomplished things the we USAA's quarters. take economy, to as automotive. especially earnings to decisively. you, organization that renew before Thank would February partnership to in of to get it, been major quickly here recent ability learning Since challenges late we were moment It have an The March knew sectors easy all pandemic significant. at decision just doubt had TrueCar like disrupted the COVID-XX as not worse through our days when

a finally, all-new channel strategic we the process instability and noncore accomplished holistic us And However, growth quickly XXXX up part a be such won questions. further moving of we and more here out. the down more was never risk. short TrueCar with a we at quarter upon months, solutions divestiture at heading anticipate our of stood our with of to the consumer proud restructuring. exciting could balance the will past In around bring represent an that, We resilience the will online. organization retailing for innovative asset And valuation. wavered which the build to fortifying belief sheet fourth in buying fraught over time, military confident the experiences, let's period further not premium of go product improved digital what dealer the of the which of the a exceptional launched rightsized XXXX. We baseline world I TrueCar, team a I'm into and offering, a nine rapidly XXXX. funnel as we've as an through we've in

Operator

Our line Riley the B. your with Krowl from comes Securities. of question [Operator with Lee proceed Instructions] first question. Please

Lee Krowl

USAA? of guess, then third just dealer fourth the in kind question maybe metric weigh, Wanted talk of through dealer my the on kind the and quarter. you churn start of inventory guys. And to quarter taking churn Maybe impacts industry out obviously, kind could on or the prioritize I of for count. just and thanks Great, reduced weigh

of inventory trying Just of understand to USAA. the magnitude both and impacts

Mike Darrow

if Yes. I'll Noel, question, you And Lee. to. in and choose you, Thank jump start that with

You a the new limited key number dealers dealer the change who category. into in drivers issues of a to car suspended on We Certainly, inventory. of hit macro count two our QX. had went

car think to and had improve it QX. new franchise we in expected major And the heard in car that additional you I inventories some new side. the have to publicly certainly the suspensions retailers -- that caused coming the We suspension some slowed didn't, who back from of dealers reported the network and probably on

The to business the down that finished. impact. geographically it other big QX. news to on ended was to to And value to and in piece markets good where the had contain front of October USAA proposition with line materially acceptable respond winding certainly tried provide in that the That continue is We those dealers. an September

still for that certainly So we've out uncertainty good a although signal And count. seen take the dealer of a we there's stabilization as QX, in some there. October

impacted and that service was point -- of and dealer our piece, rollout when other when of products completed trade we we product sales we a third The from piece, those view, products across team. the the payment those probably it product, the prioritize that launched

our the prospecting for the consumer proposition out dealers. the we a trade less on We that there. to we team. spent that enhance make and signing tool tool website, We we the got sales QX sure to in knew wanted prioritized and it was and So little time critical payments new

stabilization that We're in seen the three based on factors of move dealer as we've forward. a hoping are QX. kind those count there there's drove So that October what in we

Lee Krowl

pretty you we're backfill the Got military putting Can level, and is a we top contributor the of a the can you've kind the to QX? place? Or a be lost in to still kind line the with of box high those kind in in Maybe near units. step-down just opportunity blocks obviously, it. initiatives just quickly term? And expect channel, building of military in channel on just in the XXXX, then units big how USAA put at

Mike Darrow

Yes.

fastest-growing been I about was think, I state It TrueCar should stood first We done we're May. of up our that able that we've get excited extremely all, channel. the with to Military in what it's into us engaged we're help agency our -- with relationship brand the been Iwuji. excited that marketplace. launched. And the Jesse deliver with channel to really about ever our military We

exposure some that added Military all in have the added representation the partners. on We We U.S. military and bases AutoSource has

that quickly. working on I'd business to all us that we're the it it aspects USAA grow remind XX to everybody get So of that to just was. years took where

us going having growth we're to really really And for key a discussions we're this growth we the military seeing. about channel, look So it's as to but minute excited build into channel. additional some We're bring take active the XXXX. lever to at in with a partners

Lee Krowl

Got my it. Thanks for taking questions.

Operator

your Our question. next Rajat question comes with proceed from the line of Gupta with Please JPMorgan.

Rajat Gupta

my thanks questions. Hi, for taking

guidance, the SG&A, versus -- that's that is help the given then buckets the like forward as you first going the a like And fourth I approximately And just that USAA, reason then level gross how expecting like that G&A should margins of us And Could kind how just the to follow-up. different post structure? on the question disaggregate play be in we within ask breakeven to the like out. the EBITDA. be is well have cost also going terms between quarter I a had s like how likely of the are Just should look levels?

Noel Watson

when did USAA about the Noel. restructuring was talked transition. our is this we the call, an really we in we this When last with and on beyond -- I'll that take it did one. the QX, Rajat, eye to

was really in from did QX a impact the downsizing full kind QX in cost and standpoint. we saw of of we structure new what so And that baseline the a

services factors expiration to somewhat We takes USAA there. the some is puts QX us. similar There'll of continue arrangement that really and with transition at impact level. one the But the expect of be will into a

a see lot stay pretty we'll So of lines the consistent.

excellent to I in a think to and receivables had -- lower sequentially. will down did sales those unit in the third kind We don't really of which given flat bad a and We strong from QX. QX. benefit carry be a forward improve from volumes, into that as see against expect of to led the expense in quarter. retail benefit pretty debt receivables slightly kind collections marketing, We third to started quarter, the

think benefit like half, look QX. the the G&A say. like more of some So would I from a in first will I QX average standpoint,

very So in, largely, similar all structure cost expense sequentially.

Rajat Gupta

you sure just I going front, to clarify, make sequentially. you saying want I Are unit to mentioned down on -- to Understood. correct. just be got the it's slightly that

Noel Watson

down as units expect QX fully rolled off, we USAA be in yes. markedly to No,

so see guidance. the EBITDA sequentially why step-down adjusted that's pretty you the And significant in

Rajat Gupta

Got a And clarification. allocation you've from capital That's it. perspective, buy then started to back. just already helpful

You're get later should you like from this that, just seeing And that would as think maybe an further some about forward. you're then acquisition capital buyback opportunities. that beyond cash given going perspective mind, more priorities just how allocation to or in any to guess going where I month. That have we all. be curious in

Noel Watson

quarter. repurchased QX. back million four repurchasing And our under of a to to that our -- only in remarks that partial buy shares the in in problem. no Sure, we this activity. started We've prepared Obviously, program. shares we well continue over have represents now under shares quarter The authorization date, noted we

at plan expect these we especially the And levels. regularly activity, this to will program. we price So, continue share re-evaluate then to

cost-conscious our M&A about as product sure our a organic standpoint, But we're we making to improve that, from adoption making now speak. we're metrics beyond we've anything and made. opportunities. it the at that. might sure opportunities regularly that when We comes there, if the in we're in well going but talked front, out constantly that evaluating into see from as lot getting once behind on and about it we spend this far repurchase in also, investments we're space. it are share to before. making some network, talk just is about the right and to -- allocation enhancements an And capital do not thinking we that we relates we dealer They final overshare going be We're M&A., to able we'll strong be to thought extremely beyond we're opportunities As cash-sensitive product looking

we're organic because profitable quite that now to So still that a we on make level. buildup really determining right business any investment the the we focused that doing running beyond are important at is

Mike Darrow

based coming lot just on. into the calculator had this the We've being those. dealers at to guaranteed Noel's inventory. website, to value, finally on payment to flow X,XXX are comments, on a tools those Rajat, capitalized we the that acquisitions of exposing our trade it about launched earlier on And point out and product made and We're and over we the build excited rolled our

investments we've the They're to So leaning about excited got really us, the in some rate. at we've made pay benefits accelerated starting dealers we're those past. for really and a of products into

Rajat Gupta

and great good Thanks Got it, luck. so much that's color.

Operator

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

Marvin Fong

questions. taking Thanks for my

on revenue just guidance it OEM going question, million the First incentive $X for million. down like, to looks to, $X

there on has USAA that -- could guys several be the would in by curious COVID refill just that your is your that -- the just headwind? just we've early that impacted under Any great. tight inventory on now my And was experience how of and question then has insight we taken share seen that Is that given this curious of belt, ability thoughts the on our know to past now follow-up to the you kind the quarters out over situation? also on Just much headlines, to have compared you that how new year, buyer I expectations. the but rolled levels

Mike Darrow

All right.

The me OEM with platform service our let combination USAA start and those and channel. QX over in final Marvin, to of question. the results military quarter partners being and of you, the expanding us a are in still growing thank many the seeing of So you're

our of the benefit kind in got we USAA were QX we growing as channel. double a of XX% or military our off generated OEM revenue was So About so platform.

about do military always a it revenue. it's We're what really the can been contributor we big that to -- So as excited channel grows.

limited the market. ability would our in channel to partners of One the OEM frustrations have was that

that have in excited. TCDC, the January. we're ones have now it's of Almost truecar.com, marketing when channel our our really OEMs over, they efforts a get So haven't are telling new they we and that moved over and plan there, us control budget to all on the on

outcomes. We're new about adding excited really we're So OEM partners. those

seeing are XXXX some kind we XXXX. to we think going that can, our that QX as our as of on of rapidly in as the of that's and part big OEMs channel I think say, I good military, And signals. the sequentially forecast Like into leaning you for be a growth go in and rebuild the to look OEM. at are can and we baseline build we'll

about changes was I the product we early second think implemented that question your on.

very the calculate of that. some now of the our early loan payments, deficiency of seen is from shoppers to QX. seeing about to consumers data pull meet of launch. we're lease apart or past, lot trade their hard impact excited configured needs rebound shoppers signs heavy high the payment, in a around and down new payment starting and real the of payment because we're good for have flexibly site We're terms. a We been so and A then enabling COVID A to some signs in QX car using in most their percentage a has or our a their that

So car cash bring big we're latest XX% tells our the excited data or so of to a integration trade that. us, a guaranteed the excited of really part new consumers, trade. purchase, about certainly used about a there. offer We're

the is got seeing, that using those But to of guaranteed payments a rate lag we're with The much we've because consumers what connection. higher We're value, sort close what dealerships have deeper are early what much from dealer wait to really it's sales a really saying we excited are see for. deeper get numbers when excited dealers the richer, we're trade tools close, faster showing rates, the a close in days we to much connection we So into things. can outcomes, new much is engage that data better that really and those data too get products, when telling to the and deliver their configured with consumers about us. into from consumers we

going So grow going us we platform to for our strong create that's business think to a forward.

Operator

from the next Instructions] Citigroup. question Jones [Operator with your of line with Nick question. proceed Please Our comes

Nick Jones

I traffic questions. one on All right, for growth just and Great. guess taking thanks the conversion.

going traffic to you then, quality about leads supply which And trends of kind leads? what's and you you're on the how seeing some you're the that churn guess traffic growth, showing with does seeing? talk Are can in leads guess, I with of square what due about I kind dealer declining? we're Can of of conversion high-quality You're Are generating? talk growth. can't constraints? they conversions you great convert

Noel Watson

Thank these growth we're with excited, you, traffic we're in Nick. as the traffic Yes, mentioned, form seeing Yes. building traffic site. seeing. It out we're some you and numbers, really about excited with another that we're growth that starts the in all to really or

material We're growth sequential TCDC and seeing are channel of on seeing good We our growth conversion and growth, our affinity therefore, prospects, QX. there coming and extended channel. out

we're So that. excited about

potentially that pushed We correct up. Mike some hoped At begin to We mentioned, maybe in it close of this to will the of the And at heard caught we inventory QX least we QX before end the are from to are had quarter, bit headwinds, inventories see But itself. I've selection traditionally business. in we'd what it's QX. facing inventories or speculate actually side looks into up least the get down see. as be QX. that build you like rates expect a

that, of So, is metrics some starting which encouraged by we of out coming dealers. engagement the macro elements conversion really and volume but traffic, are affecting with then to unit with prospect of the the see, real we're some

inventory when up and back the or up to again. pick will with more think that get market we incentives able the back close in a normal market we're to and get business pre-COVID So OEMs catches back rates those

Nick Jones

All right, thank you.

Operator

be back Mike to I questions queue. to Darrow up over like And the further the in turn call closing the And to remarks. no with would for that, this seems

Mike Darrow

Thank lot for team to your line, the the around To the participation members certainly a tireless taking thank appreciate your thanks, time the everyone, you, and join world today. in us. for the on efforts. on all us you call. in There's operator, TrueCar going We

because rewriting are accomplish you to that have story, what been and it's we we've You TrueCar of the in XXXX. able

pushing keep proud control things you. our really thanks, for our our So within organization. And stay the and Thank I'm and everyone, focused forward. results on of joining. of

Operator

This concludes today's teleconference.

may for Thank wonderful You day. your a and have disconnect you your participation now lines.

TrueCar (TRUE) 8 Nov 202020 Q3 Earnings call transcript