Company: TRUE
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001327318-25-000006
Chunk: 156

Company: TrueCar, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 7
Chunk 156
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 to incur incremental branded media expenses to support further rollout of TrueCar+ and other initiatives. Revenue share that we pay to our affinity marketing partners is tied to revenue and units and will fluctuate along with those results.

69

Technology and Development Expenses

 Years Ended December 31,% Change 2024202320222024 vs. 20232023 vs. 2022 (dollars in thousands)  Technology and development expenses$29,643 $42,247 $46,090 (29.8)%(8.3)%Technology and development expenses as a percentage of revenues16.9 %26.6 %28.5 %  Capitalized software costs$7,945 $11,767 $12,216 (32.5)%(3.7)%

Year ended December 31, 2024 compared to year ended December 31, 2023. Technology and development expenses decreased $12.6 million, or 29.8%, for 2024 as compared to 2023 primarily due to a $7.8 million decrease in recurring employee-related expenses due to decreased headcount, a $2.8 million decrease in charges associated with the June 2023 Restructuring Plan, a $0.9 million decrease in hosting and software costs, a $0.6 million decrease in facilities related charges, and a $0.3 million decrease in professional service fees.

Capitalized software costs decreased $3.8 million for 2024 as compared to 2023 primarily due to a decrease in internally developed software of $2.9 million, a decrease in third-party software costs of $0.7 million, and an increase in write-offs of $0.2 million.

We expect technology and development expenses to continue to be affected by variations in headcount in technology and product development.

Year ended December 31, 2023 compared to year ended December 31, 2022. Technology and development expenses decreased $3.8 million, or 8.3%, for 2023 as compared to 2022 primarily due to a $4.6 million decrease in recurring employee-related expenses due to decreased headcount, a $1.6 million decrease in professional service fees, a $0.6 million decrease in facilities cost, and a $0.3 million decrease in software costs. The decrease was partially offset by $2.7 million in charges associated with