auto dealer in black and red logo
MenuMENU
SearchSEARCH

TrueCar Posts Record Revenue in Q2

For the first time in company history, TrueCar posted revenues exceeding $50 million. The feat was attributed to gains in the firm’s dealer count, market share and transactions.

by Staff
August 12, 2014
TrueCar Posts Record Revenue in Q2

 

2 min to read


SANTA MONICA, Calif. — TrueCar posted a record $50.5 million in revenue in the second quarter, a 62% increase from a year ago.

This was the first time the company has exceeded $50 million in quarterly revenue, noted TrueCar CEO Scott Painter. In April, the company filed for an initial public offering of its common stock.

“The primary driver of revenue growth was a 55% year-over-year increase in total units retailed through the marketing channel, as TrueCar users purchased nearly 150,000 cars from TrueCar Certified Dealers during the second quarter.” said Painter during the company’s Aug. 8 investor call.

Transaction numbers were up across the board, with transaction revenue increasing 58% year over year to $46.1 million. Revenue per franchised dealer also increased to $6,195 per dealer.

TrueCar also grew its dealer count by more than 400 dealers from the prior quarter to 7,682. Monthly views on the website also rose 72% from a year ago to an average of 4.2 million unique visitors. The firm also increased its market share from a year ago to 3.4%.

“Our exceptional growth highlights the enhanced relevance of our platform as dealers and consumers alike benefit from TrueCar’s mission to bring transparency to the car-buying process,” said Painter. “We have a lot of growth in front of us.”

Painter listed frustrations with the traditional car-buying experience as reason for the site’s growing popularity with car shoppers, noting that TrueCar is working to close the trust gap that has long existed between consumers and dealers.

“Consumers believe that dealers make as much as 20% profit on the sale of a new car when in reality they make somewhere around 2% to 3%,” Painter said. “We’re reintroducing trust and transparency into a discussion that is filled with fear and friction.”

More Auto Finance

Industryby StaffAugust 15, 2024

The Risk When the Customer Is Not in the Dealership

Take this series of steps to help protect your business from fraud by this method.

Read More →
F&Iby StaffAugust 13, 2024

Auto Loan Access Keeps Falling

July conditions tighter for consumers despite average loan rate decline.

Read More →
F&Iby StaffAugust 12, 2024

Dealers Wary of AI in Auto Finance

Poll shows growing aversion to technology’s accelerating part in process.

Read More →
Ad Loading...
Auto FinanceJuly 25, 2024

Is the Death Knell Being Sounded for Dealer Financing?

There appears to be a regulatory target on auto dealer-provided loans.

Read More →
Industryby StaffJuly 24, 2024

Ferrari Calls Cryptocurrency Foray a Success

Carmaker will add the payment options in its European dealerships this month after introducing it in the U.S. last year.

Read More →
Industryby StaffJuly 16, 2024

New-Vehicle Affordability Is Up

June conditions, including best average loan rate in a year, make buying more likely.

Read More →
Ad Loading...
Industryby StaffJuly 12, 2024

Pandemic-Era Prices Affect Trade-Ins

New buyers, especially those with EV trade-ins, are feeling the brunt of depreciation as market normalizes.

Read More →
Industryby StaffJuly 1, 2024

Auto Credit Crunch Tightens

Borrowers taking on more debt, moving many into delinquent territory.

Read More →
Auto Financeby StaffJune 19, 2024

New Cars Within Easier Reach

Affordability metrics improved in May as lending costs ebbed, finances flowed more freely.

Read More →
Ad Loading...
Auto Financeby Hannah MitchellJune 13, 2024

A Good Deal

Rising auto loan delinquencies, though bad news, could be another opportunity for agents to help dealers come down from pandemic highs.

Read More →