TrueCar, Inc. (TRUE) saw its loss narrow to $7.95 million, or $0.09 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $27.44 million, or $0.33 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.48 million, or $0.01 a share from a loss of $5.22 million or $0.06 a share, a year ago.
Revenue during the quarter grew 16.50 percent to $74.08 million from $63.59 million in the previous year period. Gross margin for the quarter expanded 97 basis points over the previous year period to 91.55 percent. Operating margin for the quarter stood at negative 9.77 percent as compared to a negative 42.75 percent for the previous year period.
Operating loss for the quarter was $7.24 million, compared with an operating loss of $27.18 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.77 million compared with $0.16 million in the prior year period. At the same time, adjusted EBITDA margin improved 753 basis points in the quarter to 7.78 percent from 0.25 percent in the last year period.
"We have come a long way in the year since I joined TrueCar, and we are excited about re-accelerating our top-line growth while also improving our margins. At this point, I am very confident that we now clearly understand and have our hands placed securely on the practical levers that we believe will enable us to continue to drive double-digit rates of unit and revenue growth for some time," said Chip Perry, TrueCar's president and chief executive officer.
For the first-quarter 2017, TrueCar, Inc. projects revenue to be in the range of $71 million to $73 million.
For financial year 2017, TrueCar, Inc. projects revenue to be in the range of $315 million to $320 million.
Working capital increases marginally
TrueCar, Inc. has recorded an increase in the working capital over the last year. It stood at $117.55 million as at Dec. 31, 2016, up 3.24 percent or $3.69 million from $113.86 million on Dec. 31, 2015. Current ratio was at 4.32 as on Dec. 31, 2016, up from 3.91 on Dec. 31, 2015.
Days sales outstanding went down to 23 days for the quarter compared with 24 days for the same period last year.
At the same time, days payable outstanding went down to 102 days for the quarter from 145 for the same period last year.
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