TrueCar Inc. reported a second-quarter revenue increase Thursday, but net losses and declining dealership participation continue to dog the company.
The Santa Monica, Calif., vehicle listings provider ‘s net loss narrowed to about $7.28 million in the quarter ended June 30, from $11.2 million in the pandemic-stricken period a year earlier.
Revenue climbed 12 percent to $65.8 million. That represented a 1 percent rise from the first quarter, something the company attributed to constraints on retailer inventory.
Strong retail demand for both new and used vehicles was a key driver of TrueCar’s second-quarter performance, CEO Mike Darrow said on a Thursday call with investors.
But high demand coupled with low supply continued to cause problems in the quarter for TrueCar and other retailers. New-vehicle inventory decreased significantly, and Darrow said he doesn’t think it will rebound to pre-pandemic levels before the end of the year, even as manufacturers try to make strategic decisions on issues such as chip allocation.
The company’s adjusted earnings before interest, taxes, depreciation and amortization fell to $4.7 million, down from $8.8 million in the year-earlier period.
Average monthly unique visitors to the TrueCar vehicle-buying platform grew to what Darrow called a record 9.6 million in the second quarter, up 16.1 percent from 8.3 million in the year-earlier period.
The company’s franchised dealer count fell to 9,614 dealerships from 10,446 in the first quarter. Its independent dealer count fell to 3,545 from 3,702.
