Company: TRUE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001327318-25-000006
Chunk: 154

Company: TrueCar, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 154
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96.9%, 2.7%, and 0.4%, respectively, for 2022.

68

Costs and Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization) 

 Years Ended December 31,% Change 2024202320222024 vs. 20232023 vs. 2022 (dollars in thousands)  Cost of revenue (exclusive of depreciation and amortization)$26,388 $15,856 $16,213 66.4 %(2.2)%Cost of revenue (exclusive of depreciation and amortization) as a percentage of revenues15.0 %10.0 %10.0 %  

Year ended December 31, 2024 compared to year ended December 31, 2023. The increase in cost of revenue of $10.5 million, or 66.4%, for 2024 as compared to 2023 was primarily due to an $8.2 million increase in the cost of acquiring wholesale vehicles as we expand TCWS, a $1.3 million increase in marketing costs associated with the introduction of TCMS products, a $0.9 million increase in recurring employee-related expenses, and a $0.4 million increase for outsourced consulting and professional fees. We expect cost of revenue to increase along with the growth of TCWS and TCMS products. These increases were partially offset by a decrease of $0.5 million for data licensing fees.

Year ended December 31, 2023 compared to year ended December 31, 2022. The decrease in cost of revenue of $0.4 million, or 2.2%, for 2023 as compared to 2022 was primarily driven by a $1.1 million decrease in fees paid to Accu-Trade related to a software and data licensing agreement that was terminated as part of the sale of our equity method investment in Accu-Trade and a $0.8 million decrease in data licensing and hosting costs. The decrease was partially offset by a $1.0 million increase in employee-related expenses, including $0.2 million in charges associated with the June 2023 Restructuring Plan, and an increase in other overhead expenses of $0.4 million.

Sales and Marketing Expenses

 Years Ended December 31,% Change 2024202320222024 vs. 20232023