TRUE - Earnings call transcript Q2 2024

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Operator

Good day, and welcome to the TrueCar Second Quarter 2024 Financial Results Conference Call. Please note, this event is being recorded. I would now like to turn the conference over to Jantoon Reigersman, President and Chief Executive Officer of TrueCar. Please go ahead.

Jantoon Reigersman

Thank you, operator. Hello, everyone, and welcome to the TrueCar Second Quarter 2024 Earnings Conference Call.

Oliver Chief is Officer. today me Foley, Financial our Joining close opportunity all our was I on market ir.truecar.com. have website the Investor released is to Relations our after which hope you letter, had read at available stockholder most yesterday and recent

Before forward-looking to our as statements our call, statements harbor. I on usual that we revenue need remind goals for aspirational XXXX. regarding free as margin want this well to you started, cash growth, will we safe get year read I be flow expected making including the

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

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

summary not I'm part. letter, of provide fun the broad development, in yet. read With the quarter has that, the the highlighted a assuming our shareholder everybody I'll as market given to now letter So broader --

repeat will color some I questions. on and before for as as add So well our paragraphs TC+ exciting opening more some initiatives statistics below

quarter results to the taken the reflect targets. long of are on existing review have long-term TrueCar progress our on term our second making we and our performance, we our we As towards opportunity goals for the exciting --

to found on we represents We $XX.X have during goals which in be growth established our we a achieving million super revenue which $XXX,XXX right company. In This believe steadfast but goals. while X.X% exciting organization, achieved the ambitious not overnight, details priorities right quarter-over-quarter. forming will does total and profitability attack our a are and improvement we is QX, the commitment journey, our was estimate letter. in million, can of we X.X% the We making to the time of and to approximately malware the challenges $X.X contributed CDK We pursuing million, $X.X This and shareholder strategic that quarter, operational inevitable for right Global year-over-year. EBITDA remain lost and the year-over-year revenue happen achieve of adjusted for financial our them. encounter of habits the progress

doing important only our commercialize working value business finish addresses positioning but will and, the Launching more vehicles dealers be start from of dealers for by believe preowned limited to was by business proudly becoming broad are super TrueCar+ better which core strengthening in that team. Furthermore, designed a market growth factors newly what TC+. platform, QX. TC+ of some number unique that acknowledge malware empowers needs of during and AI our July pilot, X,XXX temporarily of marketing the one date to growth In the our data On were the made the first on big the of to want used accomplishment is set and we're to purchase Global evolving and drivers, regaining certified consumers, completely a and a not course, we announced that attack. quarter impact OEMs to a sustained from gains. There consumers alike, QX, tech of limited capabilities, stack First, effectively now TrueCar to, we in for new we including, and of deal new, the important online. and period huge progress over so, we're the not share of launch our which time predictive but was a XX, version our CDK

to focused long-term laser in order our target are business revenue grow of on our XX% at execution the plus. growth We

our our unchanged we're network we partners. from long-term unmatched of offering $XXX in to long-term of revenue revenue four and four, set Two, in on our expanding And was service. blocks discussed and million Marketing TC+. our OEM meet while constrained. and One, blocks, there eventually in key goals, affinity down effective to as our to grow across the continuing incentive return by on drive by on against by to help As commitment our continue per our desired remain by supply through highly and and that them dealer growth. product average churned in dealer through must vehicle Three, wavering we the providing past, reduce do forth to dealers new The revenue not new achieve our TrueCar with franchise many programs partnerships support business execute sales building are invest our order dealers with churn OEM focus goal successfully targets them to to building doubling regaining Solutions a incremental activate grow XXXX.

recent thanks years. versus expanded different entering franchise activations. our a our growth that is we we're strong Moreover, independent QX, dealer network, and During environment new in dealer to much now market

vehicle at choppiness a is the look returning may is be demand Vehicle has when very term still positive the This model now for as dealers cost-saving a short TrueCar. To in is constrained there be time been for supply, new clear, some changing. business that patchy. Our some supply lack measures. backdrop is of by but

We in growing is much dealer TrueCar this is However, every challenging sales valuable The inventory to for we incremental capitalize environment, to affinity new see and as dealers in solve sales last to on as this this flat vehicle the year the of a ability. combined industry-wide programs revenue industry-wide. We X% issue our targeted believe sequentially, are positioned OEM it Nevertheless, versus incentive new to uniquely OEM to for $X.X same and can which many quarter-over-quarter, due through or that contributed slowdown consumers by more new TrueCar among targeted rise vehicle do of quarter-over-quarter in. incentive a versus the new only. to in is XX% sales. TrueCar sales us OEMs private timing spend of and [ activation the delivery becomes more poised to have the compared sales. imperative XX.X% unique growing demand we continue therefore, quarter partner ability ] a partners. declined this XXX-plus our affinity in with they QX, in a for our drive vehicle time counter timing XX% lean network X.X% levels, million marketing drive In cycle it that across of sensitivity XX% volumes Global created that way, challenge started year-over-year and by (sic) to outage. We growth impacted a programs price XX% the superior OEM network, QX and has offers across generation to power CDK growth of

We pipeline substantially we with grown fit. retail year manufacturer's and vehicle versus activations. levels, have the uniquely last by incentive We proven be the that are positioned remains growth remain timing confident of XX% the part of given although our and a will opportunities activity the business, predominantly -- than of product a of price, incentives below fact revenue profile suggested as strong pre-pandemic per this percentage a driven particularly of trajectory amount average the in more market have

During QX, previously we this reactivation which during of attribute being our as growth expect our left next had well by daily activities the by franchise growth us cancellations, metrics of reorganization/realignment counts in revenue effectiveness the dealers to new we of offset we sales driven of of the also strong highest QX, onboarding repetition team began few Despite of achieved that to partially our dealers we over improvement saw half allow to our dealer will sales the that upgrades, commitment dealer and largely focused some that across as years. sales XXXX network. second activation grow and levels in strong our

introduced during and audiences of adoption rate products. performance Another our X bright that shoppers. in of that TrueCar's saw reach car our in-market hyper-targeted leverage help spot we suite effectively unique Recall data proprietary TCMS was the and more products win dealers QX we of to QX,

to opportunity these For X X most from further. grow the June, new the bundle well their of incorporated a quarterly of during subscription. their these upgrade to the have dealers to add-ons million over as existing from subscriptions. Moreover, we And time, products we for grown amount adoption offering. in with have a dealers of available quickly we were subsequent enhanced run significant of rate among number that subscription as existing during choosing products to And the products TCMS QX, tremendous lift certain revenue weeks, rate as our observed into enhanced a dealers

from purchase, loan of trade-in vehicles binding extensive can their that the an schedule back-end on packages choose a extension the the of the the preowned historical applied protection new new retail with through that to right consumers to compatible or the by convenience spanning group an XX. an our and and the seeking home of is XX transaction. Initially consumers the whose a delivery with flexibility used online launch a car turning -- the their being brands with obstacles from secure of with and entirely websites. aligned maintenance the entirely represents priced, selection closely from a TrueCar's of products experience of gets car where right value and overcome stock, the developed caused and used our receive from to X,XXX car dealers' for Despite all launch the couch integrated online the can QX disruption become digital on TC+. to we an trade the to buying beyond marketplace announced in future or without is that by milestone we key delayed comfort transaction. their is TC+ vision By buy a own, now dealer an automotive for certified July partnering warranties, digital new lenders, certified for vehicle search CDK car competitively systems shopping with over range first accessories, pursuit preowned new a and cyberattack, Looking new The proudly by online

available used available contiguous York, While new initially New anywhere excluding are foreseeable only States, in consumers the California the and throughout United Massachusetts currently vehicles for for vehicles be will delivery delivery future. of to

smiley the technical to will gradually several from to placed on available statistics, pilot and experience their can address orders been over price And cool detail has online the the addressable sales some XX pain a the of product. August launching shareholder several defined This TC+ this Conversion to is stage of July of enable expanding of the application eliminate aperture the being the and letter and open next demonstrate page placed submission documents. top-of-funnel a hours a the do that between capabilities X, face, Francisco. have XX%, service pilot we we process, necessary cover hold placed and new we picture Over including marketing, strong months, turned offer Silicon cannot deliver and have vehicles solve Valley first all next San a to brief aim of XX a any big and billboard proper friction actual the us points Within has a see, it here the to orders developed to ways vehicle on car an guys the value the we've over with service purchasing we refine Moreover, as dealer or adding solutions to credit consumer credit in like consumer put I card since might eligible and already dealers plan page, and TC+ yet consumer white in weeks. which order uploading from we identify It's market. Even additional California. teeth. you selecting of really since the of though and which deal, within carts, adoption to and the vehicle have Thursday, new XXX through accepting emerge. consumer only validate a lender yes, XX, we big period, but the is to test cool. of develop entirety each car seen last for the this efficiencies

Finally, million execution XXXX. margin we the with to that cash a to to TrueCar role goal $XXX by play better against ecosystem. continue retail and grow X the deserves in key Achieving version that articulated the building previously X-year the to remain that end automotive free we we strong back us flow revenue have of committed targets of a pushing XX% requires build blocks a to to for key set

We $X.X market to QX. outside be and repurchased we X Friday. million the balance the of broader is And outcome ultimate and sheet our at will the exciting have $XXX this shares no will and the between full of will turbulence, QX. an debt be that XXX,XXX subject risks an additional subsequently remains million million with confident time at last X.XX approximately of shares are be to and $XXX $X.X steam the July achieved. Meanwhile, cash million million While end for during not repurchased strong Despite ahead. pressing equivalents are our and path company, we control, linear for

Now our operator, from call for open questions the analysts. let's

Operator

Gupta, the [Operator line Rajat first Instructions] question The comes from of JPMorgan.

Rajat Gupta

Great.

And in of you marketplace you the Is You here? is industry industry? just follow-ups. broader more for that on quantify company-specific quarter. trends Could had it then upgrades revenue and drivers forward? have that level could And you're the I dealer of adoption going per highest if means you in Or of seeing revenue couple bit elaborate the more a the monthly terms you second what activations like little in a the mentioned more this quick it saw?

Jantoon Reigersman

Yes, I'll can revenue the start about talk and monthly -- dealer then monthly per dealer. Oliver

highlight the think So macro idea the is also in is tried generally letter I changing. is, version to script the short as we and the that both

is is a of changing pent-up up. is lot because It's but so building And it's because issue. changing a demand, real there inventory affordability

therefore, not on to ancillary products them cars, so on your enable also And only by focusing focus is whether actually it's helping or sales et sales really important. them cars, And more sell help sell shoppers really effectively dealers in-market unit unit the conquesting but you even customers, and that cetera.

where package and So I a it's that dealers our more number think really pressure. world is about the under getting in one. -- more are working And

macro team the our So are there's doing represent different after different. our team articulate our also, then and themselves two slightly slightly number component. And think TrueCar job sales to field restructuring tremendous is and value also a of I also a

to the if leadership revenue. of it's So a a you I and know those under Oliver, want don't combination factors the then doing something say go. And tremendous Lisa of two are about

Oliver Foley

launched address and them offering really add have. dealer TrueCar product past, accounts just lead-gen now sort in the given not to for get call who've new so they able we that suite, right? of sales enterprise see field the us the long been expansive challenges, ones just in And sort Solutions front of amazing large more strategic more present to we this of it, can product purely opportunity much of and offering, known Marketing have product to front to was we in a and and dealers would we even that that today's that knew team, we've but a since TrueCar the time, it's provider, the of a the version TrueCar older get the that's I

door of in about for sort really them the sort dealers, we're I combination a and their opened sales so it's that get developing I the effective much a But sort excited And get doing. team be sort front more TrueCar and the and of of think really of what to strong in want those opportunities. of Marketing have Solutions products hitting more closing stride also pipeline us to say of

Rajat Gupta

then it's OEM That's Understood. be Understood. near obviously, to going one like lumpy. And helpful. the revenue, incentives maybe term, just

optimism the you half. some around weeks are second third you've in us quarter? a up that on like seen quarter the so the of for like like mentioned in I revenue You as far well third quarter. pick update the -- was coming to the boundaries is And we give can out EBITDA few it's CDK into curious us going Could hack, then any you overall? that third there or what

Jantoon Reigersman

No. Yes.

think first look, OEMs come the asking you the think incentives the increasing the I side, And on OEMs, the Obviously, OEM is help. for so them on I need in. every dealers So quarter. if to pressure the the are --

you -- And guys two know, components as this really to and there so are program.

lumpy design you So way one is are programs the those and programs. also

And so limitations might a these incentive initially realize the not in little or then will bit should stackable more cautious. certain they might the take and make actually that provide OEMs restrictions. they away They start

And we've there's well to there design of programs. is combination positive as the from seen answer the activations type cetera. your is a both already And that in engagement, we're as so activation, the short seen et obviously, yes, we've QX, there's question what and of

last overall. Yes. everything end think for the So we're we And was, positive of part limited risk QX. day, of the the and segment been CDK bullish online. has really then the think question CDK sorry, is back of on us At on that your I to don't

is again. sales like happens And accordingly reality the matching so the

always letter. of of form sales the overarching, surprised risk so and that the of -- -- fairly matching as without been to limited but deals going risk the in really the we've it's think no unexpected, have to QX, is pen outlined be and some any I really limited There's forward. QX never boundary there's like paper And about done in

So any -- is I further we not issues should no expect think there that. with

Rajat Gupta

framework third Got it. of the But kind for company financials guidance quarter? for for any the

Jantoon Reigersman

as can reluctant way you -- the I imagine, a absolutely. [indiscernible]. the look, question. you Yes, example guide -- happen. of OEM. bit is runs, all business the I'm We're of for doing mean bit of a great I the Activations excited like little mean, because to thank like we always super this will things. right We're and a about the opportunity. little lumpiness

You'll long there. see you'll start seeing term, And tremendous this. growth the in

we've to the in achieve past but flow want if aim aiming by the the would cash world, okay? need we're growth growth, year-over-year XX-plus. that consistently guidance, hair, There I'm In this terms flow knows the some of company self-sustainable, our plan, by accelerating indicated we then adjusted and then have, cash to I an starts year, of achieving be that want is it's breakeven we to And right? there, start double-digit say, miss right might we not -- I given of just free really date to free is to to the with really this revenue it's us -- the really sure X-year still focus everybody that of I okay? hit make for long-term So beyond our this end now but of EBITDA. And little I it's our the feel that obviously vis-a-vis and target obviously, measure accelerating end

of mean on in the need make a XXXX, beyond see confident can we It We're to then start obviously Double the blocks. you actually We that obviously if backwards happen. feel building accelerating. that. digit work does is the we areas and still fruit so and go focus, we And various that conditions labor more in consumer are of favor But in sentiment And improvement every have. favor turning demand come market dealer through. there's that and we for our the more our both day. of the plenty in overall room

very bullish. we're So

Operator

Riley question from Securities. Next the Khan B. line comes of of Naved

Naved Khan

Just me. a from couple of questions

performance, on that spend, to channel. And up. right, direct but you doesn't marketing, just in it the direct there's did spend on a maybe we it's unless you in terms the didn't because So might -- lag take maybe I reflected kind time see the increase of growth show advertising unit assume of channel, effect,

should So thinking how think maybe a year-on-year if it? half, maybe that should just are talk And about you follow-up. And the at back we spend the then how about or channel we have think about about go advertising should half, up least the that? back in I sequentially? direct in also How

Jantoon Reigersman

I Go ahead, Go go first. will Oliver. after.

Oliver Foley

Yes. Okay.

us So I to sales. would the cancellations articulated, think dealer down driving probably of is the strengthen sort dealer health we say number that our by for of we've network really incremental and as one lever drive

But money There's is the marketing some convert sales. dollars you we picture, signs immediately. bottom focused And put a the on objective, quarter, efficiency our I some you I doing TCDC we across count. towards help the we the cost days we're that And think QX. unit which we to what that XX we've media unit and partner that argue more longer likely truecar.com that in is had spend of increased say spend historically, our that's the network, that, higher unit share -- both necessarily unit big look right, seen each per capturing a certainly, term, sort accomplished the so on at But grow of would the spend if I sale. with and that saw into we absent also quarter. to sales count going are we sort partner isn't the branded CDK of pretty consumer impact And marketing we did in truecar.com didn't would lower last funnel, was the that more encouraging spend spent We network. truecar.com. achieved greater think spend of that of we both have important more of it I And channel. direct demand to on where channel, even spend. But focused and on would also

average new franchise above dealers. across grow of unit we year-over-year the so public sort sort managed sales well growth to volume And of

out platform. to that's think fairly spend do. always dealers ultimately, that's acquisition continue because as And what that as our helps But on set we'll us attracts to so consumer what to platform, aggressively we going be dealers the on to we'll do look keep possible. And efficiently I to new what

Naved Khan

just of reported. this trying understanding Okay. you like growth hack just I you right, versus kind numbers, obviously, that where top XXX sort to at effect part like expected on a the And of look of And maybe kind that. if CDK we basis achieve. kind I'm I think line of that is had of kind so XX%, of of versus the had maybe your a point kind to could of alluded But

just So incentive us of just Is what spending a that? could side like the sort unpack to else, differential on trying understand the or something be? delayed it help

Jantoon Reigersman

Yes.

I side, it's bit predict OEM line, biggest dollars. just a the are So think impact high-impact time right? delay to really and the the activations in number little these the one, is on hard often obviously,

as dollars. are these well as amounts flow-through So high high

a just else. issue than really it's more so And anything timing

Naved Khan

question. last Maybe Okay.

free the you we Is understand cash for be should for year, full as breakeven. whole, a the year said flow Just that or that? full expect how you that to year the exiting

Jantoon Reigersman

the year No, exiting QX. exiting Yes, year

Operator

comes of question line the Pierce, Next Chris Needham. from

Christopher Pierce

of decline kind of bit Can margins just the talk how to year? the rest a gross about sequential think the in gross and path margin about little for you -- the

Oliver Foley

is margins gross in decline product sequential The expanded attributed the to offering. TrueCar solutions really wholesale Yes.

our that whereby offer flow from dealers. our directly a our connect we we've sort of the higher profile that model looking selling and vehicles those partners consumers your of launched of this sort we've their we earlier dealers dealer behalf historically, had through versus year, consumers car, sell to much on vehicles acquiring are ultimately lead to So always this with where is car would model sell

in lower the So those and from saw the pulled sequentially. acquiring vehicles what expenses that QX what is with we margin gross margin associated profile is consumers down

Jantoon Reigersman

TrueCar+. think that important, multiple enabler quarters, an is I is the next side I think want thing hear over wholesale really I really of to couple should one you'll times not reiterate this which be add to and me it's the And that overlooked. probably

experience enable committed to through world is online obviously also So enabling only to experience, It's back well, TrueCar+ the into where because right? So the want fluidly you provide scalability. flow, in like that where trade on through as to about to dealer every a want to have offset not trade immediately want trade would TrueCar+ the you flow that market. a but you consumer not the to want the value be and trade, an really dealer the able out

And so the wholesale the is that drive obviously, side driver its is And of that. proving -- already major that's worth. really

So of that of part sure fully people I to a just want that's important that aware an make component that. are

Christopher Pierce

we of the is not kind should you starts Can cars or just value think about certain or into dealers inventory like go or wanting that how going certain specifics, like it decline holding the forward?

Jantoon Reigersman

Yes.

other term. And So take more just like if near more you time one right? think the is pieces, and about one it, -- two so are will there

near desired actually the car dealer deal, so want sells -- of value. can somebody solution a you the you baked trades do into if give have real So their want the term TrueCar+, who you option car the has don't as not, the to They or have to part -- the the a gets then but grounds have It -- the is that if to their cetera. It's shouldn't it's or right? vehicles, to car, happens within the car car, keep the dealer. across the trade not country up et especially to right not take not

to from car. So the trade actual initial the the of we want selling decouple

you that, a decoupling marketplace. then effectively want create to by so And

dealers we to added to that of flow which that, an working as lot is a inventory. love have that would obviously, is access it through there Now to component were that our turns use out

the the grounding obviously is the as participate a dealer which so flow access TrueCar+. increasing, to start those then to have to also the over in get have having can win-win, as time, you volumes now want So great. dealers effectively We solve doesn't start car. inventories these ability And

won't sure -- But a sense? then the obviously, so why you side this have do support trajectory. growth dealers And make see to manner, very effectively. like is the effectively over the we we which structured is you wholesale attractive side really And because on more as a want can network in time, growth to that expand can wholesale time, if TrueCar+ the we and business. more we wholesale we enable very of overnight, that on dramatic over that Does initially also do make the then reason and

Christopher Pierce

Yes. Southeast, you was and then dealer geographically it kind Or just was have or base? the how initially started about it why kind base been -- rolled Yes. based the but correctly, talk dealer California? shifting I can you TrueCar+. one on of guys in California do it When in of now And it that's out, it's

Jantoon Reigersman

Yes.

you right, full that and claiming well of if it you the I do think online and super effectively a oil. In on it market that progressive a place, can so shopping form you transaction. harsh It have -- you transaction. take consumers to in-market to want are a us be a as snake of an are X.X, want you a the and order to, actually if online So there's you fulfillment, attractive always to online to [indiscernible] I able dealers broader creating the lead. flow. in focus about online you so the and narrow was And the think transaction the on et okay, this of willing the back where think not are sign to don't unfortunately, solutions cetera, lot work people initially, -- but to online That's to everything case. as with really happens enable what most are the never you if online, what's that really effectively be industry, where on like go was market, TrueCar+ that's

originally respectful launched from any a avoid although -- because state-specific be dealer the conflicts the really first lot This there dealers group version to et a franchise and want the order in high new a around to Florida, in was forum. actual cetera. in respectful we but we in also we in of demand really of be super who California, the fantastic want to learned there, be We laws a lead. because is have with it case initially transaction California DMAs form we're but to launched working to to So was a OEMs, kind you to other the because that effectively that, we

an as in other and can for to allows new. the solve. dealers within as for state that broadly proving is DMA worth. that also fun it rattle really problem scaling This go but or cool, the adding and We stakeholders too sure the the this make much exciting looking that system showing What's like is about out, allows can saying, obviously within then this all be so this, right is you this focus it DMAs, we used. And do well, state this we And for start and in and have start set inventory don't more is cycle the development this easier then we on product the well. obviously more are scale let's states really the more different because at confined

minus buy So at the within California; Massachusetts, the buy States can Alaska, of New you whole within you Hawaii, California, used, the York. United obviously new, moment, can

Operator

question from of Next is the D.A. Davidson. White, Tom

Thomas White

that's important operating hear car But touched sort and industry up of the as new I long you there. you broadly across of Jantoon, first you as like off more are you did mentioned little that should of consumer an I trim provide hangs kind bit might, in channels was industry to just before -- that. some their ramping kind a leaning development of face could of -- lots. of that on and move in that kind demand I of benefit guys, try the kind supply detail into hoping you also new demand overhead of dealers that on new how guess, guess, kind demand look to supply expenses kind I maybe

something like, building Just broadly they you cutting? And And Like into? hearing guess from you are curious, that is they I gives eventually dealers? something expense are isn't will that where confidence what cut? marketing

Jantoon Reigersman

Great question. Yes.

short the is answer So yes.

up. So obviously, building inventory is

high. And dealers so imagine, can for floor as and financing, you is expenses right,

there's so pent-up really the nervousness cars. obviously, that help of is, then them. pent-up efficiency yes, but important for dealer stays sales demand selling like And because where really And be obviously to doesn't affordability if demand, a is it lot they in need rates

you will Because day, a almost right, if down, of the forward, start so resetting to look what effectively at realizing more that And like end somewhat think, the the they're prices will nervous, probably broadly, I dealers right? similar are come bit it was little it pre-pandemic.

squeeze, right, have financing have affordability and the prices when they going floor and high margin they're issues then, down, demand costs, and to around they prices et cetera. get -- if come So right,

of now very they're to starts obviously, been that the mindful the that the under pressure. times of recent especially they've have in very P&L and altogether, able P&Ls P&L, efficient getting obviously So obviously

again, And consideration the so is think not efficient as very about understanding are earlier This set to we is lot you the this where different different walking play a to I right? field with actually allude engagement going exactly dealership with. But send I'm we I that around, I into past, this And in about to hey, leads. more the dealers also about problem dealership. be is the really saying, team is that doing what a comment there's well. is to cope is the made dealers really when This of how a tried

-- in so -- Wyoming dealer and And different the the dealer problem different York. -- a New the than versus very in set has dealer L.A.

more cetera, them but product more the And by training, can much servicing about to and to help but that not custom having insights those dealers, these dealers. programs how so well, much us only broader also really the allows a this et is providing right suite actually we

many means obviously, scrutiny. harsher good because obviously hate of -- scrutiny, then ways, that, to greater it our But because and a it for because I say customers little there a results. I have bit think are actually they're we environment our under is benefit So to we to is better perform not in actually going have dealers, yes, a

of to think -- I dealers, relatively the OEMs and of helping the if if overarching, you down pull nervousness but close so Or support over gap affordability affordability. doesn't come in were not testament future if And are yes, that stepping there's of quickly? a level

Operator

Marvin line from Next BTIG. comes question Fong, the of

Marvin Fong

here. on the about launch quarter that also, kind how within I pilot I go firm it would But for follow-up. know volumes to a of of less go? but sounds referenced, Maybe Or as the the kind And the color did transaction planned? Any live week TC+, is you orders in on great. talked been that a like it's there scale starting the of of snags? like like of multi-part than any time just this for Is year. sort the then as And only a line? hit dependent phase XX everything be fourth have you've one a Did you

Jantoon Reigersman

Awesome. Yes.

I like the goes So question always given I product folks, as planned. how you be nothing to that careful answer need -- ask if

you If ask goes planned. everything me, as

think I look, think, So on. answer no, the it's we're I is it learning --

good. think I which of a we're feedback, lot getting is really

I -- is think really is flow the flow. you good thing the fundamentally, real a that

that about through somewhat can something could products, knew you immediately know have out we the people things we might know of and most in there. product you not every we been we up the knew actually you day. know I seeing it shorten we that adjacent, internally do And have improved effectively bias go understanding, right, family real we but thought you can really like the do that not have to think We it is improve open little is, is car which language key something flow. is what's what start wanted you that also not unclear. What the doing, right, in like further dramatically the steps or and like people are look, consumers terms be and friends buying once really interesting we where have might or a and really we've is is are

right? So then like learning has nuances, of have a also to jobs. a learning wants lot. we're three yes, and you're lot And a who Somebody financing

you opportunity even simultaneously, right, to upload that paystubs, the together, cetera. only suddenly, upload right, paystub, how your need et not put or interactions we so then three or three, lenders, with like but do And to you like one had

have tremendous a amount. we're is, So up this yes, And teams been the learning really picking well. net-net really,

turn together. problems We We evening. have like immediate daily hobbles that

so be. We yes, this start think at opened would distance this scaling to the from initially we I gradually limited then exactly this, open wanted it further. to a love We I So had where right? is dealers.

As for open of last we're Thursday, California in new.

these that you'll and right? point, cohort we at talk different the some cohort, amongst right? and profiles, the So talking, again like about cohorts, EV start me behaviors You hearing also convenience cetera. the start different credit around seeing very Remember that historically, were et

have they well. the those of observing We're each go to behaviors as different So very behaviors similar very past as online.

come And really initially yes, from that so We're obviously a site to the on on so there's learning looking We're scale just new it. tremendous will focused this. California.

like dealer as And that. that rephrase so around the out worked the have a component to also make to demand as all because, need is as control, the fluid. it's consumer. Once and The obviously, more obviously And matching we this we are need that that. sure adding and I should under inventory Well, thinking more for the about as first is that, well inventory first right, also for be do in supply things thing adding automated can should start product start we can of start to is the that we key doing other tiny that then to hiccups states.

And different from proving year. though, about and just this really doing It's It's for so we're proving it. proving it proving it we really A to it's wider dealers, the doing people stakeholders. to the lot that it so proving it I'll looking lenders, of it's we're within in TC+, to don't it's what and to it really, revenue these any don't remind how segments. OEMs, it, to everybody expect only at they dealers. proving are that are charge not Remember like

people product. really the resonating clearly, is with this And exciting. well So are

other So yes, then focused, states. scale product of then initially, outside it California, focused, California

Marvin Fong

Awesome. That's questions then color. wholesale kind on And following terrific the profile. about Chris' just of up new

very period can would prices there So moved you any risk? I or sharply? vehicle confirm, have prices is holding just mean, I wholesale mean,

Jantoon Reigersman

answer. the is I answer mean, The -- minimal question. good very Yes, is short

focused at. it's And the the a then to like on market a us That's perspective. trade-in And having growth idea from is a as arbitrage initially that side we is of the for -- to place good not or This effect not so it's like us not or enable is become have -- really, to positive we're asking customers -- really enabling we inventory. wanting wanting infrastructure of that. what a wholesaler in things TC+ lot

great. So

TC+ customers, of no, inventory. then and and out inventory any So That's inventory trade-ins, a we We the that flows really take business, hold to for don't obviously don't idea then win-win the it's risk. to any is then everybody. But not all want offset want the can enough. our these obviously, it's really to we not

yes, any so would dealer our from TC+ have to side, not network so paper arbitraging assume technically holding in flow. there's really inventory time not a it of You have of paperwork to inventory. the inventory because terms just are as very we're prices. access risk helps it's And period you these transit obviously, enable because any I to way, holding short of and but you no for to But other our

one much dealing already at on fixed pretty end. much the that back pretty we have we're So price

Operator

That the I to like turn call the to for question-and-answer back closing would concludes session. over Jantoon remarks.

Jantoon Reigersman

to for for everybody herculean our like taking Great. I the all today. also the to their thank thank efforts. Awesome. on time call to want participate I would team

team have letters like in progress a of We I And culture works, exciting changes and making close lot team. have We infinity initiatives is Thank the our and the to the evolving gratitude all the beyond. we to made. many testament right as keep with off to to you. a

Operator

for presentation. today's concluded. you The Thank conference now has attending

disconnect. now may You

TrueCar (TRUE) 6 Aug 242024 Q2 Earnings call transcript