Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 306

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 2
Chunk 306
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 due to a $3.0 million increase from the expansion of TCWS (net the corresponding decrease in Sell Your Car revenue), a $1.7 million increase in franchise dealer revenue, and a $0.8 million increase due to the introduction of TCMS products, partially offset by a $1.1 million decrease in OEM incentives revenue and a $0.7 million decrease in independent dealer revenue. OEM incentives revenue decreased primarily due to a heavily marketed incentive program for one OEM during the first quarter of 2024, which did not reoccur in the first quarter of 2025. As some of our OEM arrangements target our affinity group marketing partners, we expect OEM revenue may continue to fluctuate in future quarters as we enter into new, or terminate existing agreements with these affinity group marketing partners (refer to Part II, Item 1A, “Risk Factors”). Dealer revenue, OEM incentives revenue, and Other revenue represented 91.1%, 8.5%, and 0.4%, respectively, of revenues for the three months ended March 31, 2025 as compared to 87.8%, 11.9%, and 0.3%, respectively, for the same period in 2024.

Costs and Operating Expenses

Cost of Revenue (exclusive of depreciation and amortization) Three Months Ended March 31,  20252024 (dollars in thousands)Cost of revenue (exclusive of depreciation and amortization)$8,890 $4,261 Cost of revenue (exclusive of depreciation and amortization) as a percentage of revenues19.8 %10.4 %

Three months ended March 31, 2025 compared to three months ended March 31, 2024. Cost of revenue increased $4.6 million, or 108.6%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase was driven primarily by a $3.4 million increase in costs associated with acquiring wholesale vehicles as we expand TCWS, a $0.6 million increase in marketing costs associated with the introduction of TCMS products, a $0.3 million increase in recurring employee-related expenses, and a $0.2 million increase for outsourced consulting and professional fees.

Sales and Marketing Expenses Three Months Ended March 31,  20252024 (dollars in thousands)Sales and marketing expenses$25,017 $22,