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TrueCar looks to 2019 for revenue growth on back of 4Q earnings

The quarterly results came as TrueCar acquired a 20% stake in Accu-Trade, which provides vehicle appraisal technology
car on road
TrueCar is now forecasting first-quarter revenue of $84 million to $86 million

TrueCar (NASDAQ:TRUE)  CEO Chip Perry said he’s banking on the online auto marketplace’s ability to recharge revenue growth this year as he announced fourth-quarter results.

The company saw its net loss shrink to $6.4 million, or $0.06 per share, from $8.5 million, or $0.08 per share, a year earlier. On an adjusted basis, TrueCar earned $0.03 per share on sales of $91.1 million.

The results didn't sit well with investors, who sent TrueCar shares down 19.5% to $8.24 before the opening bell on Friday.

In a statement, Perry said he was optimistic that the company’s sales will get a boost this year.

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“While we are cautious in our 2019 guidance, we remain confident in our ability to reaccelerate revenue growth, through continued innovation on our core experience, the addition of new … clients and the roll-out of new products, including trade and digital retailing,” said Perry.

The results fell short of analysts’ estimates, which called for TrueCar to earn $0.05 per share on sales of $95.67 million.

The site’s average monthly users dropped 10% during the quarter to 6.5 million, down from about 7.3 million in the year-ago quarter.

Looking ahead, TrueCar is now forecasting first-quarter revenue of $84 million to $86 million, which fell short of the Walll Street estimate. For the full year, TrueCar expects revenue to be in the range of $371 million to $378 million.

The quarterly results came as TrueCar acquired a 20% stake in Accu-Trade, which provides vehicle appraisal technology.

Based in Santa Monica, California, TrueCar is an online automotive marketplace that offers pricing for used and new cars.

Contact Ellen Kelleher at [email protected]

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