TrueCar, Inc. (NASDAQ:TRUE) Q3 2023 Earnings Call Transcript

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And so we think that there is a real value here to provide. As part of the planning, to answer your question, I actually think that there is a really big opportunity for a lot of the historical TrueCar revenue lines to come back to growth, right. So, whether this is just providing the current suite of products, and we provide better right focus on the EV side of things, focus on the OEM side of things, etcetera. So, interestingly enough, and this – the growth that we are looking into this aspirational model is not actually overly dependent on the TC+ side, because it’s so hard to predict. So, in many ways, there is a segment to TC+ and the piece of TC+, really, if you think about it holistically, and you go back to the 30,000-foot view, one of the metrics you will start hearing us talk about more and more over time will be revenue per dealer.

That is currently still a little bit of a murky number because obviously, you have a lot of dealers inside and there is a long deal to the dealer. So, at some point, we will become a little bit more clear on that. But revenue per dealer is a metric that I have started talking about more and more internally as well as the concept of proper, like two side a marketplace where you match supply and demand. And so the revenue per dealer will be – obviously, we are seeking to move up pretty dramatically over the next couple of years and one of the ways to move that up is not only to sell better and more services to dealers, but also over time is to obviously add new product lines in there, and one of those product lines will be TC+. Do I think that TC+ has huge opportunity, the answer is yes.

Is this predominantly based on actually the more historical TrueCar, the answer is also yes. So, it’s actually less dependent on TC+.

Marvin Fong: Got it. Okay. That’s great. And I guess a follow-up just on dealer count. So, I think the franchise dealer count declined for the first half after several quarters of positive growth, could you just speak to what might have changed this quarter to kind of cause that number to reverse to the prospect of the strike, which I think, turned out to be less bad than most people thought. Did that play any role? Just any color you could add would be terrific.

Jantoon Reigersman: Yes, it’s – yes. And absolutely, it’s a little bit of a wash and just marquee right now. So, we transited to this more service and sales organization part. And so we are working through that right now. There is a little bit of like shaking out of like also like historical dealers that are maybe a little bit less quality oriented towards consumers. There is just a little bit of give or take happening as we are now prioritizing really our dealer customers and consumers. And so net-net, as you will see this wash happen a little bit. It might take a quarter or two quarters, but it’s a little bit murky in terms of shifting up and down. It’s really about focusing on the standard distribution of the dealers.

We really want to focus on our bread and butter and it really provides the right experiences and are the right forward-leaning dealers. And so you will see that’s always a little bit fluctuate although I think that we have obviously hit the trough and this should start going up over time. There is a little bit of give and take, if you look at any given month in terms of types of dealers coming on and coming off. What I really care about, obviously, is the type of dealers coming on and the type of dealers going off. And that’s the piece we really are on like a hawk. So, I am less concerned about some of the dealers coming off as long as there are the dealers, we are not necessarily looking to seek to service in the long-term anyway.

Marvin Fong: Got it. Okay. That’s great. Thanks so much.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Reigersman for any closing remarks. Please go ahead, sir.

Jantoon Reigersman: Great. So, thank you everyone. I would like to thank everybody for taking the time to participate today. I also would like to thank the team for all their continued dedication and hard work without our people none of these results are possible, so I really appreciate it, and we ask a lot of them. So, with gratitude, thank you all and appreciate you everybody waking up early.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.

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