TrueCar (TRUE) Reports Q4 EPS of $0.05, Beats on Revenues; Offers FY18 Revenue Mid-Point Above Guidance

TrueCar (NASDAQ: TRUE) reported Q4 EPS of $0.05, versus $0.00 reported last year. Revenue for the quarter came in at $83.1 million versus the consensus estimate of $81.8 million.

• Fourth quarter total revenue up 12% from a year ago to $83.1 million; FY 2017 total revenue up 16% from FY 2016 to $323.1 million.
• Fourth quarter net loss of $(8.5) million, or $(0.08) per basic and diluted share, compared to net loss of $(8.0) million, or $(0.09) per basic and diluted share in the fourth quarter of 2016; FY 2017 net loss of $(32.8) million, or $(0.35) per basic and diluted share, compared to net loss of $(41.7) million, or $(0.49) per basic and diluted share, in FY 2016.
• Fourth quarter Non-GAAP net income(1) of $4.9 million, or $0.05 per basic and diluted share, compared to Non-GAAP net loss of $(0.5) million, or $(0.01) per basic and diluted share, in the fourth quarter of 2016; FY 2017 Non-GAAP net income of $7.2 million, or $0.08 per basic share and $0.07 per diluted share, compared to Non-GAAP net loss of $(11.1) million, or $(0.13) per basic and diluted share, in FY 2016.
• Fourth quarter Adjusted EBITDA(2) of $7.5 million, representing an Adjusted EBITDA margin(3) of 9.0%, compared to Adjusted EBITDA of $5.8 million, representing an Adjusted EBITDA margin of 7.8%, in the fourth quarter of 2016; FY 2017 Adjusted EBITDA of $28.9 million, representing an Adjusted EBITDA margin of 8.9%, compared to Adjusted EBITDA of $15.0 million, representing an Adjusted EBITDA margin of 5.4%, in FY 2016.
• Fourth quarter units(4) were 239,521, up from 218,807 in fourth quarter of 2016; FY 2017 units were 952,834, up from 806,953 units in FY 2016.
• Franchise dealer count(5) was 12,142 as of December 31, 2017, a 9% increase from 11,151 as of December 31, 2016.
• Independent dealer count(6) was 2,979 as of December 31, 2017, a 15% increase from 2,597 as of December 31, 2016.

Business Outlook

TrueCar’s guidance for the first quarter ending March 31, 2018 is as follows:

• Units are expected to be in the range of 230,000 units to 235,000 units.
• Revenues are expected to be in the range of $80 million to $82 million.
• Adjusted EBITDA is expected to be in the range of $6 million to $7 million(9).

TrueCar's guidance for the full year ending December 31, 2018 is as follows:

• Units are expected to be in the range of 1,030,000 units to 1,050,000 units.
• Revenues are expected to be in the range of $360 million to $365 million.
• Adjusted EBITDA is expected to be in the range of $36 million to $40 million(9).

GUIDANCE:

TrueCar sees FY2018 revenue of $360-365 million, versus the consensus of $362.83 million.

For earnings history and earnings-related data on TrueCar (TRUE) click here.

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