TrueCar, the automotive pricing and information website, announced a wider loss and a slight decline in revenue for the second quarter ended June 30. The company reported a loss of $20.4 million, or 23 cents a share, compared to $11 million, or 12 cents a share, in the same period last year. Analysts had expected a loss of 20 cents a share.
Revenue for the quarter dropped to $39.3 million from $42.3 million, falling slightly below the expected amount of $39 million.
TrueCar attributed the decline in revenue primarily to softness in its independent dealer revenue. The company stated that elevated vehicle prices and rising interest rates have negatively impacted this segment of its business.
Moving forward, TrueCar will focus on three specific customer groups for the remainder of the year: economic buyers, convenience buyers, and electric vehicle buyers. The company made this decision considering limited resources and a need for increased focus.
“We anticipate that by tailoring our approach to these specific customer segments, we can improve conversion rates and ultimately increase the volume of transactions,” stated Chief Executive Jantoon Reigersman and Financial Chief Teresa Luong in a letter to investors.
Overall, TrueCar aims to make significant improvements following recent layoffs and a change in leadership. The company is determined to enhance its performance and achieve better results in the future.