TrueCar Inc (TRUE) Q1 2025 Earnings Call Highlights: Revenue Growth Amidst Tariff Challenges
Q : How should we think about margins and cost structure without headcount investments? A : Jantoon Reigersman, CEO, highlighted three main cost areas: headcount, marketing, and overhead. Oliver Foley, CFO, added that revenue mix and cost flexibility will drive margins. OEM revenue has the highest margin, while other products have lower margins. The focus is on maintaining flexibility to manage cash flow effectively.
Q : Can you provide insights into the product enhancements mentioned in your letter and the impact of OEM incentive ad spending? A : Jantoon Reigersman, CEO, explained that TrueCar is utilizing generative AI for personalized email campaigns, enhancing consumer experience and engagement. Regarding OEM incentives, he noted that while uncertainty exists, OEMs might need to support vehicle sales more, potentially benefiting TrueCar as OEMs use various tools to maintain competitiveness.
The company is facing challenges in predicting changes in OEM incentive ad spending, which could impact revenue from OEMs and dealers.
TrueCar Inc ( NASDAQ:TRUE ) decided not to provide financial guidance for the second quarter due to the high level of market uncertainty and potential impacts from tariffs.
The newly implemented 25% tariffs on imported vehicles and parts create uncertainty, potentially adding $4,500 to the cost of new vehicles, which could affect sales.
The completion of backend integration with dealer management systems CDK and Tekion has been delayed, impacting the scalability of the TC+ product.
TrueCar Inc ( NASDAQ:TRUE ) reported an adjusted EBITDA of negative $3.8 million for the first quarter of 2025.
The TC+ product pilot showed promising results, with a third of the pilot dealer group's sales driven by TC+ consumers completing transactions online, indicating potential for broader rollout and scalability.
TrueCar Inc ( NASDAQ:TRUE ) achieved the lowest cost per sale since 2022 through restructured performance marketing campaigns, enhancing efficiency and driving unit sales growth.
The company expanded its affinity network by adding notable partners such as DoorDash, GasBuddy, and GovX.
TrueCar Inc ( NASDAQ:TRUE ) reported a 9.2% year-over-year increase in total revenue, reaching $44.8 million for the first quarter of 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Tariff Impact: Estimated additional cost of $4,500 per new vehicle sold in the U.S.
Story Continues
Q: Has the AAA program filled the gap left by the loss of the American Express business? A: Jantoon Reigersman, CEO, stated that while the AAA program is not yet fully compensating for the loss, it is progressing well and approaching previous levels.
Q: How are tariffs impacting TrueCar's franchise dealers, and is there consideration for stock buybacks? A: Jantoon Reigersman, CEO, mentioned that not all OEMs are equally impacted by tariffs, and TrueCar is focused on assisting OEMs with their specific challenges. Regarding stock buybacks, he confirmed that it is always considered as part of their capital allocation strategy.
Q: Can you elaborate on the impact of TC+ on dealer sales and its economic benefits to TrueCar? A: Jantoon Reigersman, CEO, explained that TC+ has increased both online purchases and overall sales volumes for dealers. Currently, monetization is treated as a regular lead, with plans to adjust once scaling begins.
Q: Why is there a pause in dealer sales headcount, and is it due to dealer uncertainty? A: Jantoon Reigersman, CEO, clarified that the pause is due to elevated uncertainty and not a reaction to specific dealer feedback. The focus is on efficiency and market adaptation.
Q: Why is there no guidance for Q2 despite the subscription nature of the business? A: Jantoon Reigersman, CEO, explained that the decision is due to high uncertainty, such as potential tariff changes, which could impact predictability. Oliver Foley, CFO, noted that about 20% of dealer revenue is pay-per-sale, adding to revenue volatility.
Q: What are the potential cost savings for dealers using TC+ and any cultural pushback? A: Oliver Foley, CFO, highlighted that TC+ allows dealers to sell 24/7, expand their geographical reach, and improve efficiency. While there may be cultural adjustments regarding sales commissions, the overall value proposition is attractive to dealers.
Q: How confident are you in the timeline for CDK and Tekion integrations, and what is the current dealership sentiment? A: Jantoon Reigersman, CEO, expressed confidence in the integration timeline, noting resource allocation and architectural complexity as challenges. He reported that dealership sentiment remains positive, with no red flags despite uncertainty.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
15 hours ago
- Yahoo
Is the Nissan Rogue good on fuel? What it would cost to refuel Tennessee's most popular car
One of the most important financial factors to consider when searching for a new or used car is the cost of fuel. Thanks to modern technological innovations and a global push to reduce carbon emissions, vehicles are more efficient than ever before. The Nissan Rogue is easily one of the most popular vehicles in the state of Tennessee. So, how much should 2025 Nissan Rogue owners and potential buyers expect to spend on fuel in Tennessee? The 2025 Nissan Rogue small SUV has a 14.5-gallon gas tank. Tennessee's average state gas price (at the time of writing) is around $2.70 a gallon according to So, $2.70 a gallon multiplied by the SUV's 14.5-gallon tank gives you a cost of $39.15 to completely refuel a 2025 Rogue in the Volunteer State. Since the Nissan Rogue achieves 33 miles per gallon combined, $39.15 worth of gas (the approximate cost of a full tank) in Tennessee equates to a driving range of about 478 miles (33 miles per gallon x 14.5-gallon tank) before needing to refuel again. A 2024 advice blog post from Kelley Blue Book claims that the average driver travels close to 14,489 miles a year. Dividing the average annual miles a Rogue in Tennessee can accumulate (14,489 miles) by its driving range (478 miles) equals the average times drivers need to refuel the SUV in a year (at least 30 times). A 2025 Nissan Rogue in Tennessee has a minimum annual fuel expenditure of about $1,174.50 based on the following factors: Cost of a full tank of gas based on cost per gallon ($2.70 a gallon) multiplied by the Rogue's tank size (14.5 gallons) = $39.15 Average annual driving range (14,489 miles) divided by Nissan Rogue full tank range (478 miles) = 30 full tanks of gas a year Cost of a full tank of gas for the Nissan Rogue ($39.15) multiplied by a year's worth of fuel (30 tanks) = $1,174.50 to refuel the Nissan Rogue a year, assuming the driver travels an average of 14,489 miles a year When it comes to fuel costs, the Rogue is among the most affordable SUVs to own. Japanese automaker Nissan's small SUV is one of the most efficient small SUVs in its segment. The Toyota RAV4 is a best-selling small SUV. It gets 30 miles per gallon combined. Another popular small SUV, the 2025 Honda CR-V, also achieves 30 miles per gallon combined. Nissan's small SUV is one of the few models in its segment to use a three-cylinder engine instead of a four-cylinder engine. This powertrain setup makes the Rogue more efficient than several key rivals, allowing for more driving range despite having a similar tank size. The 2025 Nissan Rogue starts at $28,590. It comes in five trims. The Rogue uses a 2.5-liter turbocharged three-cylinder engine to produce 201 horsepower and 225 pound-feet of torque. Voice recognition Remote keyless entry Cruise control Nissan Safety Shield 360 suite of safety features The 2025 Nissan Rogue is a "comfortable, fuel-efficient compact SUV with plenty of technology" according to Kelley Blue Book. It has plenty of cargo space and standard driver-assistance features, says a vehicle review by U.S. News & World Report. Nissan's small SUV is a best-selling small SUV because it's affordable and safe. It's a Tennessee favorite and it also happens to be made in Tennessee. The Rogue's incredible fuel economy is just a small part of its overall appeal. This article originally appeared on Nashville Tennessean: How much does it cost to refuel a new Nissan Rogue in Tennessee? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20 hours ago
- Yahoo
AAA warns parents about counterfeit and unsafe car seats
WESTWOOD, Mass. (WWLP) – In the search for savings, parents are being warned not to gamble with their child's safety. AAA Northeast is urging families to steer clear of counterfeit and secondhand car seats, which have become increasingly common online and could fail to protect children in the event of a crash. While raising kids can be costly, experts stress that cutting corners on car seats may come with serious risks. Fake car seats and harnesses—often sold on popular websites at deep discounts—may look like trusted brands, but lack critical safety features and federal approval. Amherst-Pelham Regional School District receives electric school bus grant funding To help families avoid counterfeit products, AAA Northeast offered tips to identify legitimate car seats. Approved models should include a detailed instruction manual and registration card. They are required to display safety certification labels with the manufacturer's name, date of manufacture, and, in many cases, an expiration date. Labels should also state: 'This child restraint system conforms to all applicable federal motor vehicle safety standards.' Newer seats often feature QR codes linking directly to the manufacturer's website, and every approved car seat must include a three-point harness. Consumers are also advised to check for misspellings, poor grammar, or off-center text on any labeling, which can indicate a fake. Parents who are still unsure about a seat's authenticity can contact the manufacturer directly with the serial number for verification. To avoid falling victim to counterfeit sales in the first place, AAA Northeast recommends purchasing directly from manufacturers or through verified retailers. For online purchases, shoppers should ensure the car seat is sold and shipped by a first-party seller, such as Amazon or Walmart, and not from an unverified third party. Listings from third-party sellers should include a U.S.-based customer service number, ideally with an 800 area code. Consumers are also encouraged to shop in person at reputable stores when possible. AAA strongly advises against buying car seats from online marketplaces like eBay, Temu, Wish, or Alibaba, or from social media advertisements that do not clearly identify the manufacturer or authorized seller. Used car seats, even those appearing in good condition, pose another risk. AAA urges families to avoid buying from garage sales, Facebook Marketplace, or Craigslist, as there's no way to confirm whether the seat was involved in a crash or if it meets current safety standards. With child passenger safety on the line, experts say the safest seat is one that's new, verified, and meets all federal requirements. When in doubt, AAA recommends contacting the car seat's manufacturer or speaking with a certified child passenger safety technician. WWLP-22News, an NBC affiliate, began broadcasting in March 1953 to provide local news, network, syndicated, and local programming to western Massachusetts. Watch the 22News Digital Edition weekdays at 4 p.m. on Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
2 days ago
- Yahoo
Nexcel Announces 2025 Summer Work Program at Lac Ducharme REE Project
Vancouver, British Columbia--(Newsfile Corp. - June 9, 2025) - Nexcel Metals Corp. (CSE: NEXX) ("Nexcel" or the "Company") is pleased to announce its Summer 2025 exploration plan for the Lac Ducharme REE Project, located in Manicouagan, Quebec. A four-person field crew will conduct a detailed exploration campaign using man-portable Shaw backpack drills to investigate subcropping zones for the presence and extent of rare earth element (REE) mineralization. This program builds on promising results from previous work and targets zones identified through a combination of a 50.2-line-km ground magnetic survey, a 2022 radiometric survey, and prospecting in 2021 and 2024. Priority targets include the Lucia and 13-TC showings, as well as the recently defined EFU Showing. The program is scheduled to begin in July 2025. 2025 Program Goals Key objectives of the Summer 2025 program include: Drill-testing Priority Showings: Focused backpack drilling at the Lucia, 13-TC, and EFU showings to delineate REE-bearing pegmatite zones and test lateral and vertical continuity of mineralization. Expanding Mineralized Footprint: Step-out drilling from 2024 discoveries around holes 23 and 24 to assess the scale of the newly identified mineralized pegmatite. Geological Mapping & Sampling: Refined geological mapping and channel sampling to improve the understanding of structural controls, mineralogy, and alteration patterns associated with REE enrichment. Scintillometer Grid Expansion: Additional scintillometer readings around anomalous zones to define new targets for future drill testing. Improving Target Definition: Integrating all collected geophysical, geochemical, and structural data to develop a 3D model of mineralized zones. The Company aims to generate sufficient geological and assay data to define drill-ready targets for a more advanced program in 2026. Project Background Nexcel completed a successful backpack drilling campaign in August 2024. Notably, thorium values ranged from 2.01 to 277 ppm, with one standout value of 793 ppm Th (hole 25). Elevated REE values were also identified in holes 23 and 24, drilled near a pegmatite west of 13-TC-5072B-constituting a new discovery. Scintillometer data were collected across 1,522 stations using a RS-120 handheld device, focusing on key showings and the 2024 discovery area, with readings taken every 10-15 metres. Samples were sent to ALS Laboratories (Montreal) and analyzed using the "ME-MS71L" Super-Trace method for REEs and refractory minerals. While no field-level QAQC was undertaken, results provide a compelling basis for continued exploration. The Lac Ducharme Property lies in the Allochthonous Belt of the Grenville Province and is underlain by Castoreum and Bardoux granites, separated by a regional-scale fault. Pegmatites enriched in light REEs were initially identified in 2013, including a grab sample returning 6.04% LREE (Gosselin et al., 2013). Follow-up work in 2015 confirmed and extended these showings. The property remains underexplored and presents significant upside potential. Hugh Rogers, CEO of Nexcel Metals, commented: "We are excited to launch our 2025 program at Lac Ducharme as we follow up on encouraging signs of REE mineralization. Our goal is to refine our understanding of the geology and advance the project toward a maiden drill program. The global demand for rare earth elements, driven by the green energy transition and electric vehicle revolution, makes this a timely and high-potential exploration effort." Lac Ducharme REE Project Payment Pursuant to the Lac Ducharme option agreement, Nexcel may acquire a 100% interest in the Lac Ducharme REE Project through cash payments, share payments, and work expenditures as set out in the Company's prospectus. Nexcel confirms that the post-listing payment of $20,000 cash and 50,000 common shares is complete. About Nexcel Metals Corp Nexcel Metals Corp. is a junior mining company engaged in the acquisition, exploration and development of mineral properties. The Issuer is currently focused on the Lac Ducharme Property located in the Province of Québec. Qualified Person Francis Newton, the designated qualified person as defined by National Instrument 43-101, has reviewed and approved the technical information contained in this press release. ON BEHALF OF THE BOARD OF DIRECTORS 'Hugh Rogers'CEO For all other inquiries:Email: hughrogersinc@ (604) 250-6162 Forward-Looking Statements All statements included in this press release that address activities, events or developments that Nexcel expects, believes or anticipates will or may occur in the future are forward-looking statements. Such statements may involve, but are not limited to, statements with respect to the exploration and development of the Company's mineral properties. These forward-looking statements involve numerous assumptions made by Nexcel based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond Nexcel's control. Readers should not place undue reliance on forward-looking statements. Except as required by law, Nexcel does not intend to revise or update these forward-looking statements after the date hereof or revise them to reflect the occurrence of future unanticipated events. Neither the Canadian Securities Exchange nor its Regulation Service Provider accepts responsibility for the adequacy or accuracy of this news release. To view the source version of this press release, please visit Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
