Company: TRUE
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001327318-25-000036
Chunk: 303

Company: TrueCar, Inc.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 303
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 expansion of TCMS products. We expect cost of revenue to increase along with the growth of TCWS and TCMS products.

Sales and Marketing Expenses Three Months Ended June 30,Six Months Ended June 30,  2025202420252024 (dollars in thousands)Sales and marketing expenses$25,105 $23,945 $50,122 $46,027 Sales and marketing expenses as a percentage of revenues53.4 %57.3 %54.6 %55.6 %

Three months ended June 30, 2025 compared to three months ended June 30, 2024. Sales and marketing expenses increased $1.2 million, or 4.8%, for the three months ended June 30, 2025 as compared to the three months ended June 30, 2024. The increase was primarily driven by a $1.5 million increase in recurring employee-related expenses, a $1.0 million increase in our affinity partner marketing spend, a $0.6 million increase in expenses associated with the dealer sales and service team reorganization, and a $0.2 million increase in employee-related travel costs. Revenue share that we pay to our affinity marketing partners is tied to revenue and units and will fluctuate along with those results. These increases were partially offset by a decrease of $2.1 million in costs related to branded media spend. We expect branded media spend to continue to fluctuate as changes in the overall market environment impact conversion rates and the efficiency of branded media spend. In addition, we expect to incur incremental branded media expenses to support further rollout of TrueCar+ and other initiatives.

Six months ended June 30, 2025 compared to six months ended June 30, 2024. Sales and marketing expenses increased $4.1 million, or 8.9%, for the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. The increase was primarily driven by a $3.0 million increase in recurring employee-related expenses, a $2.6 million increase in our affinity partner marketing spend, a $0.5 million increase in employee-related travel costs, a $0.3 million increase in other marketing costs, a $0.3 million increase in outsourced consulting and professional fees, and a $0.6 million increase in expenses associated with the dealer sales and service team reorganization. Revenue share that we pay