TrueCar, Inc. (TRUE) saw its loss narrow to $7.44 million, or $0.09 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $11.10 million, or $0.13 a share. On the other hand, adjusted net loss for the quarter narrowed to $0.99 million, or $0.01 a share from a loss of $2.13 million or $0.03 a share, a year ago.
Revenue during the quarter grew 3.78 percent to $75.14 million from $72.40 million in the previous year period. Gross margin for the quarter contracted 19 basis points over the previous year period to 91.59 percent. Operating margin for the quarter stood at negative 8.90 percent as compared to a negative 14.92 percent for the previous year period.
Operating loss for the quarter was $6.69 million, compared with an operating loss of $10.80 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $5.79 million compared with $2.65 million in the prior year period. At the same time, adjusted EBITDA margin improved 405 basis points in the quarter to 7.71 percent from 3.66 percent in the last year period.
"In the third quarter, we achieved record results on virtually every operating metric across the company. It's also becoming more clear that there are many opportunities to grow and expand our business significantly by enhancing the value we provide to consumers, dealers and OEMs," said Chip Perry, TrueCar's president and chief executive officer.
For fiscal year 2016, TrueCar, Inc. forecasts revenue to be in the range of $273.40 million to $275.40 million.
For the fourth-quarter 2016, TrueCar, Inc. forecasts revenue to be in the range of $70 million to $72 million.
Working capital declines
TrueCar, Inc. has witnessed a decline in the working capital over the last year. It stood at $114.09 million as at Sep. 30, 2016, down 9.58 percent or $12.09 million from $126.18 million on Sep. 30, 2015. Current ratio was at 4.42 as on Sep. 30, 2016, up from 4.02 on Sep. 30, 2015.
Days sales outstanding went down to 41 days for the quarter compared with 43 days for the same period last year.
At the same time, days payable outstanding went down to 187 days for the quarter from 274 for the same period last year.
Debt moves up
TrueCar, Inc. has witnessed an increase in total debt over the last one year. It stood at $28.77 million as on Sep. 30, 2016, up 6.49 percent or $1.75 million from $27.02 million on Sep. 30, 2015. TrueCar, Inc. has witnessed an increase in long-term debt over the last one year. It stood at $28.77 million as on Sep. 30, 2016, up 6.49 percent or $1.75 million from $27.02 million on Sep. 30, 2015. Total debt was 9.92 percent of total assets as on Sep. 30, 2016, compared with 8.57 percent on Sep. 30, 2015. Debt to equity ratio was at 0.13 as on Sep. 30, 2016, up from 0.11 as on Sep. 30, 2015.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
