TrueCar, Inc. (TRUE) saw its loss narrow to $6.80 million, or $0.08 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $11.67 million, or $0.14 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.67 million, or $0.01 a share from a loss of $5.50 million or $0.07 a share, a year ago.
Revenue during the quarter grew 22.47 percent to $75.76 million from $61.86 million in the previous year period. Gross margin for the quarter expanded 163 basis points over the previous year period to 91.56 percent. Operating margin for the quarter stood at negative 8.13 percent as compared to a negative 17.81 percent for the previous year period.
Operating loss for the quarter was $6.16 million, compared with an operating loss of $11.02 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $6.05 million compared with $1.05 million in the prior year period. At the same time, adjusted EBITDA margin improved 629 basis points in the quarter to 7.99 percent from 1.70 percent in the last year period.
"Because our core business is healthy again, we are ready to pursue a bigger and broader strategy," said Chip Perry, TrueCar's president and chief executive officer. Perry continued, "in addition to our market-leading Inventory and Pricing Solution, we are moving upstream into the Research and Discovery phase of the car buying journey, as well as downstream into the Transaction phase. Our Research and Discovery solution will start with unique content built around our core competency in pricing. Our experience will also focus on verified owner reviews. Finally, we are designing OEM showcases that will enable auto manufacturers to present their products to millions of shoppers in an ad-free experience. We believe this approach will simplify the car buying process for consumers and enable dealers and manufacturers to spend their marketing dollars more effectively."
For the second-quarter 2017, TrueCar, Inc. expects revenue to be in the range of $79 million to $81 million.
For financial year 2017, TrueCar, Inc. expects revenue to be in the range of $322 million to $327 million.
Working capital increases
TrueCar, Inc. has recorded an increase in the working capital over the last year. It stood at $123.77 million as at Mar. 31, 2017, up 11.13 percent or $12.39 million from $111.38 million on Mar. 31, 2016. Current ratio was at 3.89 as on Mar. 31, 2017, down from 4.68 on Mar. 31, 2016.
Days sales outstanding went down to 41 days for the quarter compared with 47 days for the same period last year.
At the same time, days payable outstanding went down to 208 days for the quarter from 227 for the same period last year.
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