TrueCar, Inc.

Good day and welcome to the Truecar First Quarter 2022 Financial Results Conference Call. Please note that today's event is being recorded. I would now like to turn the conference over to Zainab Bokhari, Vice President, Investor Relations. Please go ahead.

Thank you, Operator. Hello and welcome to Truecar's First Quarter 2022 Earnings Conference Call. Joining me today are Mike Darrow, our President and Chief Executive Officer, and Jantun Regersman, our Chief Financial Officer and Chief Operating Officer. By now, I hope you've all had the opportunity to read our first quarter stockholder letter, which was released Monday, May 9th, after market closed, and is available on our Investor Relations website at ir.trucar.com. Before we get started, I want to remind you that we will be making forward-looking statements on this call. These forward-looking statements can be defined by the use of words such as belief, expect, plan, target, anticipate, become, seek, will, intend, confident, and similar expressions and are not and should not be relied on as a guarantee of future performance or results. Actual results could differ materially from those contemplated by our forward-looking statements. We caution you to review the risk factors section of our annual report on Form 10-K, our quarterly reports on Form 10-Q, and our other reports and filings with the Securities and Exchange Commission. For a discussion of the factors that could cause our results to differ materially, The forward-looking statements we make on this call are based on information available to us as of today's date, and we disclaim any obligation to update any forward-looking statements, except as required by law. In addition, we will also discuss certain GAAP and non-GAAP financial measures. Reconciliation of all non-GAAP measures to the most directly comparable GAAP measures are set forth in the Investor Relations section of our website at ir.trucar.com. The non-GAAP financial measures are not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. With that, I will turn the call over to Trucar's President and Chief Executive Officer, Mike Darrow, for some opening comments. Mike?

Thanks, Zeynep. Good morning, everyone, and thanks for joining us this morning. We issued our Q1 stockholder letter yesterday and highlighted some of the really impressive progress our company has made on the product front during the first quarter in a difficult macro environment. We launched a commercial version of Truecar Plus at the end of April, and now it's full speed ahead as we ramp up the inventory available in our marketplace. None of this would have been possible without the hard work of the entire Truecar crew, so I want to thank them for their dedication to bringing our plans to fruition. We're striving to bring something new and unique to the market and doing it at a time of rapid change and enormous macro headwinds. During the first quarter, dealer inventories, particularly for new cars, remained near historic lows while pricing remained elevated. A recovery in the global supply chain is likely several quarters away in our view, and recent geopolitical events in Eastern Europe have created new uncertainty for OEMs to navigate. These industry-wide headwinds continue to put pressure on our close rates, reported units, and other key metrics. We expect some volatility in our key metrics throughout 2022, but are managing our business efficiently in this environment. We're investing in our product roadmap with TrueCar Plus and core used car offerings. As we shared in our letter, we added the ability for dealers to offer VIN-based protection products and for consumers to add their trade payoff quote directly from their lender. giving consumers confidence in their deal numbers. Our certified dealers can now show consumers a transactable price in Trucar Plus, and we've added distance retailing. We've also launched a new sell your car experience that has exceeded our plan since its launch in March. With the commercial launch of Trucar Plus now behind us, our dealer teams are starting to ramp up the rollout of Trucar Plus out across Florida. We continue to target broad market coverage for new and used cars across Florida by the first half of 2022. In upcoming months, we plan to expand Trucar Plus into additional states. It's an exciting time for our company, and we plan to continue investing to ensure a successful rollout for Trucar Plus in the months ahead. Before we open up the call for live questions, we're going to address some questions around key topics. Zainab, what's the first question?