TrueCar boosts outlook as Q3 revenue jumps 51%

LOS ANGELES -- TrueCar Inc., the online car-shopping platform, raised its outlook for the fourth quarter and full year as it continues to add dealers and draw more customers to its network.

Revenue during the third quarter rose 51 percent from a year earlier to $56.8 million, the company said in a statement Wednesday.

TrueCar raised its guidance to project revenues in the range of $54.5 million to $55.5 million for the fourth quarter and $205.7 million to $206.7 million for the year.

The company's net loss widened to $13.6 million in the third quarter -- its first full quarter as a publicly traded company. But the losses under traditional GAAP accounting rules were mostly due to a $9.4 million non-cash expense in stock-based compensation and as a result of the appreciation of the company’s stock when it went public in May. The loss also included a $3.7 million non-cash warrant expense.

Under non-GAAP accounting, which is often used by technology companies, TrueCar reported earnings of $339,000 compared with a loss of $994,000 last year. 

TrueCar said it finished the third quarter with 8,149 franchised dealers -- representing 26 percent of U.S. new-car franchises -- in its network, up 29 percent from a year earlier.

Average monthly unique visitors to TrueCar’s Web and mobile platforms increased 44 percent from a year earlier, to 4.6 million.

“TrueCar is transforming into one of the most recognizable and relevant brands in automotive,” TrueCar CEO Scott Painter said in a statement. “That said, we are still in the early stages of building our platform to deliver the ideal new car buying experience for consumers, dealers and manufacturers.”