TrueCar posts smaller Q2 loss; outbreak dents revenue

TrueCar Inc. reported lower second-quarter revenue and a smaller loss on operations while also on Thursday announcing the sale of its ALG subsidiary to J.D. Power.

Revenue fell 29 percent to $62.7 million in the quarter. TrueCar posted a net loss of $11.2 million, compared with a loss of $24.1 million in the year-earlier quarter.

TrueCar said it increased its average monthly unique visitors by 15 percent to 8.3 million during the period. Units sold through its platform fell 24 percent on an annual basis to 189,068.

Its total dealer count fell 8 percent year over year to 15,398. At quarter end, it had 11,267 franchised dealers, a decline of 11 percent, and 4,131 independent dealers, an increase of 3 percent.

TrueCar discounted its subscription rates for dealers by half in April and May, and then by 25 percent in June, while implementing a leaner operating model to weather the coronavirus pandemic.

“We’ve just turned the corner on what was truly an unprecedented second quarter,” TrueCar CEO Mike Darrow said during an earnings call late Thursday.

TrueCar shares rose 4.9 percent to $4.29 in after-hours trading Thursday.