Company: TRUE
Filing Date: 2025-02-21
Form Type: 10-K/A
Source: 0001327318-25-000010
Chunk: 30

Company: TrueCar, Inc.
Filing Date: 2025-02-21
Form: 10-K/A
Chunk 30
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 that the actual number of vehicles sold by the Dealers to users of the Company’s platform is less than the number of guaranteed sales, the Company provides a credit to the Dealer. If the actual number of vehicles sold exceeds the number of guaranteed sales, the Company is not entitled to any additional fees.

Guaranteed-Introductions Subscription. Under guaranteed-introductions subscription arrangements, monthly fees are charged based on a periodically-updated formula that considers, among other things, the introductions anticipated to be provided to the Dealer. To the extent that the number of actual introductions is less than the number of guaranteed introductions, the Company provides a credit to the Dealer. If the actual number of introductions provided exceeds the number guaranteed, the Company is not entitled to any additional fees.

Auto Buying Program Add-On Features. The Company offers additional add-on products to eligible Dealers as part of the Auto Buying Program to increase traffic and retarget in-market consumers. These products include TrueCar Sponsored Listings (“Sponsored Listings”), TrueCar Reach (“Reach”) and TrueCar Marketing Solutions (“TCMS”). Sponsored Listings enables a Dealer to place qualifying vehicles at more prominent positions within the inventory search results page, and fees are charged based on a monthly subscription rate for the right to sponsor up to a set number of vehicles at any time throughout the month. Reach is a service offered to retarget in-market consumers on the Dealer’s behalf with co-branded emails, and fees are charged on a flat monthly rate regardless of the number of emails delivered. TCMS includes a suite of digital marketing solutions enabling dealers to better target in-market car shoppers, and fees are charged on a monthly subscription rate based on the product and marketing channel. Subscription fees are recognized on a monthly basis.

TrueCar Trade and Sell Your Car . TrueCar Trade provides consumers with information on the value of their vehicle, while providing Dealers with introductions to these in-market consumers so that those Dealers have the opportunity to buy vehicles from those consumers. The value of the vehicle is referred to as the True Cash Offer (“TCO”) and is backed by a guarantee from TCWS to repurchase the vehicle at the TCO if the dealer does not wish to keep it. Dealers pay a fee under a per-introduction or guaranteed-introductions model for access to the Company’s Sell Your Car product. Prior to offering Sell Your Car, the Company charged Dealers a monthly subscription fee for access to the Company’s Trade solution, which varied depending on the level of service provided. The Company phased out these subscription packages in