TrueCar (TRUE) Tops Q4 EPS by 3c, Revenues Beat; Offers 1Q Revenue Guidance Above Consensus

TrueCar (NASDAQ: TRUE) reported Q4 EPS of ($0.01), $0.03 better than the analyst estimate of ($0.04). Revenue for the quarter came in at $64 million versus the consensus estimate of $58.49 million.

The following financial results reflect continuing operations only:

• Fourth quarter total revenue of $64.0 million, down (25)% from $84.9 million in the fourth quarter of 2019.
• Fourth quarter loss from continuing operations of $(7.7) million, or $(0.07) per basic and diluted share, compared to loss from continuing operations of $(9.7) million, or $(0.09) per basic and diluted share, in the fourth quarter of 2019.
• Fourth quarter Non-GAAP net loss(1) of $(1.1) million, or $(0.01) per basic and diluted share, compared to Non-GAAP net loss of $(2.6) million, or $(0.02) per basic and diluted share, in the fourth quarter of 2019.
• Fourth quarter Adjusted EBITDA(2) of $6.1 million, representing an Adjusted EBITDA margin(3) of 9.5%, compared to Adjusted EBITDA of $1.7 million, representing an Adjusted EBITDA margin of 2.0%, in the fourth quarter of 2019.

"Thanks to the many decisive actions we took throughout 2020, we delivered a strong fourth quarter with financial performance well above expectations," said Mike Darrow, TrueCar's President and Chief Executive Officer. "More importantly, we head into 2021 with a number of tailwinds behind us, including our recently announced Navy Federal partnership and the roll-out of our Deal Builder experience, yet another significant step towards becoming the industry's leading end-to-end online car buying solution."

GUIDANCE:

TrueCar sees Q1 2021 revenue of $60-62 million, versus the consensus of $59.07 million.

For the first quarter ending March 31, 2021, we expect revenues to be in the range of $60 million to $62 million. We expect to grow revenues sequentially from there, with a bit less sequential improvement from the third to the fourth quarter as a result of typical seasonality. As it relates to Adjusted EBITDA, it is management's view that accelerating unit growth takes priority over near-term profitability in the first quarter. However, we expect a healthy Adjusted EBITDA for the remainder of the year.

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

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