Company: TRUE
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001327318-25-000016
Chunk: 215

Company: TrueCar, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 215
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.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 $22,082 Sales and marketing expenses as a percentage of revenues55.8 %53.8 %

Three months ended March 31, 2025 compared to three months ended March 31, 2024. Sales and marketing expenses increased $2.9 million, or 13.3%, for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. The increase primarily reflects an increase in our affinity partner marketing spend of $3.0 million, a $1.6 million increase in recurring employee-related expenses, a $0.5 million increase in spend on media advertising and promotional materials, and a $0.3 million increase in consulting and professional fees. The increase was partially offset by a $1.4 million decrease in affinity partner marketing expense due to the release of an accrued marketing fund liability no longer owed due to 

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the termination of our affinity partnership with American Express (refer to Note 5), a $1.1 million decrease in branded media spend, and a $0.3 million decrease in charges associated with a realignment of the Company’s leadership structure in the prior year. 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. Revenue share that we pay to our affinity marketing partners is tied to revenue and units and will fluctuate along with those results. 

Technology and Development Expenses Three Months Ended March 31,  20252024 (dollars in thousands)Technology and development expenses$8,119 $8,123 Technology and development expenses as a percentage of revenues18.1 %19.8 %Capitalized software costs$2,161 $2,233 

Three months ended March 31, 2025 compared to three months ended March 31, 2024. Technology and development expenses remained relatively flat for the three months ended March 31, 2025 as compared to the three months ended March 31, 2024. While net expenses remained flat, we saw a $0.5 million increase in recurring