In the latest earnings call, TrueCar's leadership painted a picture of a company on the brink of significant growth, driven by strategic initiatives and the launch of its new digital marketplace, TC+. With total revenue of $41.8 million in Q2, marking a 6.4% year-over-year increase and 1.8% quarter-over-quarter growth, the company is making strides towards its long-term goal of achieving a 20% plus revenue growth rate.
Executing on Building Blocks for Long-Term Success
TrueCar's strategic focus is centered on four key building blocks to drive growth: activating new dealers, reducing dealer churn, growing revenue per dealer, and expanding revenue from OEM partnerships. The company is actively working to regain lost dealers and strengthen its core business, while also exploring new value drivers, such as its unique data set and predictive AI capabilities, to differentiate itself in the market.
TC+: A Game-Changer for TrueCar
The launch of TC+, an entirely digital online transaction platform for buying a new, used, or certified pre-owned car, is a significant milestone for TrueCar. This innovative solution, which allows consumers to purchase a vehicle from start to finish online, is expected to position the company for a sustained period of growth and market share gains. By partnering with dealers and leveraging its unique data and AI capabilities, TrueCar aims to become the first digital marketplace for automotive retail.
Navigating Challenges and Opportunities
Despite facing challenges, including the impact of the CDK Global malware attack and the broader market turbulence, TrueCar remains optimistic about its future. With a strong balance sheet, a focus on execution, and a commitment to innovation, the company is poised to capitalize on the opportunities ahead.
Looking Ahead
TrueCar's strategic initiatives, led by the launch of TC+, demonstrate the company's commitment to innovation and growth. As the automotive retail landscape continues to evolve, TrueCar's ability to adapt and capitalize on market trends will be crucial. With a strong focus on execution and a clear vision for the future, TrueCar is well-positioned to navigate the challenges and opportunities ahead.