The company reported 11,641 dealership customers at the end of June, 8,152 of which were franchised. Its franchised dealer count rose 3.1 percent from a year ago and 2.4 percent from the first quarter.
Its independent dealer count dropped 16.5 percent year over year and 9.9 percent sequentially, which it described as smaller dealers and included some businesses that closed or consolidated.
TrueCar attributed its year over year revenue decline to continued high vehicle prices and rising interest rates. Revenue improvements from the first quarter stemmed from improvement in its automaker incentive revenue and franchised dealer revenue and a modest improvement in new-vehicle inventory, the company said.
Pay-per-sale transaction revenue accounted for about 19.1 percent of dealer revenue in the second quarter, down from 19.8 percent from the same period a year ago and 21 percent in the first quarter.
Analysts believed TrueCar’s restructuring and CEO change in replacing Mike Darrow stemmed from impatience over the company’s slow pace toward reversing anemic financial results.
TrueCar shares closed up more than 4 percent to $2.45 on Monday.
Q2 net loss: $20.4 million, up from a net loss of $11 million a year earlier
Q2 revenue: $39.3 million, down 7.1 percent from a year earlier
Q2 adjusted EBITDA: $5.3 million loss, slightly worse than a $5 million loss a year earlier
Guidance: The company anticipates adjusted earnings before interest, taxes, depreciation and amortization profitability in the fourth quarter.
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