TrueCar, Inc.

Hello and welcome to the Truecar Third Quarter 2022 Financial Results Conference Call. Please note, this 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 Third Quarter 2022 Earnings Conference Call. Joining me today are Mike Darrow, our President and Chief Executive Officer. and Jantun Ragerson, our Chief Financial Officer and Chief Operating Officer. By now, I hope you've all had the opportunity to read our third quarter stopholder letter, which was released yesterday 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 identified by the use of words such as believe, expect, plan, target, anticipate, become, seek, will, intend, confident, and similar expressions and are not and should not be relied on as guarantees 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 it's required by law. In addition, we will also discuss certain GAAP and non-GAAP financial measures. Reconciliations 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, Zainab. Good morning, everyone, and thanks for joining us. We issued our Q3 stockholder letter yesterday and highlighted some of the great progress we've made with Trucar Plus as we prepare to expand coverage outside of Florida. During Q3, we continued to sign and curate dealers for Trucar Plus and grow the available inventory of new, used, and certified pre-owned vehicles to nearly 10,000 units, while driving materially more traffic to the Trucar Plus marketplace. Approximately 27% of our Florida-based visitors were exposed to Trucar Plus during the third quarter, and more than 7,000 of them went on to the deal engagement stage. We knew we had two fundamental questions to answer when we launched the Trucar Plus pilot. Number one, would consumers want to use it? And two, would retailers want to participate in it? We believe the results indicate the answer to both of these questions is emphatically yes. Consumers want to use Trucar Plus and dealers want to participate in it. We will be expanding Trucar Plus into five additional southeastern states in the coming weeks. And I'd like to take a moment to comment on some of the macro industry dynamics we are seeing and how we think about our business in this context. At this point in the Q3 earnings cycle, you've already heard from a number of the key players across the automotive industry. Used car sales rates in certain segments are slowing, and this is exerting downward pressure on used vehicle prices. Overall, consumer demand is slowing in the face of high interest rates, significant inflation, and the fear of a recession. The combination of these factors may put pressure on the record profits retailers have been posting over the past several quarters. New car inventories are starting to build for several brands and reached approximately 1.5 million at the end of October. In our view, the supply-driven market we've been experiencing is beginning to shift to a more balanced supply-demand ratio. We believe that as inventory grows on the new side and becomes more affordable on the used side, retailers will again need to roll up their sleeves and compete for customers. Trucar is well prepared to support retailers as the automotive industry slowly shifts from a supply-constrained environment to a more balanced, demand-driven one. It's challenging to predict the exact timing of this market transition, and there will be some lags before the full impact such improvements are seen across our business. We are seeing signs of stabilization emerge in our core business as new vehicle inventories have risen across our dealer network. And while it has fluctuated over the past several quarters, our net dealer count in October was positive when compared to the end of Q3. Over the past several quarters, we've remained laser focused on delivering the automotive industry's first transactable digital marketplace with Trucar Plus. We have also enhanced our core offering, Trucar offerings with consumer facing tools and an expanded used car product portfolio with capabilities like sell your car and distance retailing that have helped us balance our mix of new and used units. In addition, at a time where affordability is a concern for consumers, and loyalty to brand is low, we offer industry-leading tools and programs to help OEM partners effectively target incentives, promote their core brands, and launch their EV platforms. Our balance sheet remains strong, and we have managed our business prudently through a supply-constrained market. Based on our current plans for 2023, we expect to have well in excess of $125 million in cash by the time we return to break even or positive adjusted EBITDA, which we expect to be no later than the fourth quarter of 2023. I'm very encouraged by our progress during Q3 and in the weeks that have followed. I want to thank the entire Trucar crew for their hard work, dedication, and commitment to our vision of bringing something new and unique to the market and doing it at a time of rapid change as we embrace what we expect will be an increasingly digital future for automotive retail. Before we open up the call for live questions, we're going to address some questions around key topics. Zeynep, what's the first question?

Thank you. The first question is for Jantun. Jantun, can you provide a framework for thinking about our planned return to neutral or positive adjusted EBITDA by the end of 2023?

Absolutely. Thanks, Zeynep. As Mike mentioned, we're seeing signs of stabilization emerge in our core business as new vehicle supply is slowly starting to rebuild across our dealer network. Our dealer accounts are also starting to show stability based on recent trends for October, as an example. We expect some lag before improving industry trends are fully reflected across our business, and there will be likely some choppiness in the months ahead. We expect more balanced returns to the market as 2023 progresses and expect our core business to benefit as this happens as well. Our balance sheet is strong and over the past 18 months, we have launched and expanded our product portfolio, creating opportunities for ourselves, including on the used car side, sell your car and distance retailing that Mike mentioned before. These offerings are important building blocks for Trucar Plus, and we expect our contributions to grow in 2023. We also intend to start monetizing Truecar Plus in early 2023, and its potential contribution will likely start small and build as we expand inventory and market coverage. On the expense side, we will continue to maintain tech control on run rate expense while investing to broaden coverage for Truecar Plus and other offerings that we have introduced. We have expanded our engineering staff over the past year, including through the acquisition of digital motors and are comfortable across products and techs to date. The speed with which we have been able to bring out new offerings supports this view in our opinion. We have a strong double funnel plan to be efficient with our marketing. In light of the sustained strength that we have seen in our monthly uniques, we're focusing on improving conversion across the traffic that we're already driving to our sites. With this framework in mind, we're expecting adjusted EBITDA will break even or positive no later than Q4 of 2023.

And as a follow-up, Jantun, can you explain what this means for our cash balance? Finally, can you provide some details regarding the goodwill impairment taken during Q3?

Yeah, absolutely. We have a strong balance sheet and expect plenty of cash in an uncertain environment as we look ahead to break even or positive adjusted EBITDA by Q4 of 2023. This will be achieved through ongoing expense management and prudent cash usage and investment in our strategic initiatives like Truecard Plus. It is important to note that between free cash flow and adjusted EBITDA, there is an adjustment for capitalized software, which during a trading 12 months was roughly $12 million. So adjusted EBITDA is not a good proxy for free cash flow. The other piece to remember is we still have a border proof buyback plan. We have burnouts for digital motors and always want to remain some flexibility for small tuck and M&A. Your other part of the question was regarding Goodwill impairments. I won't spend a lot of time on this, but I do want to say something very quickly. During Q3, we took a one-time non-cash charge for Goodwill of $59.8 million. which was due mainly to the sharp decline in our share price and market capitalization, effectively measured as of September 30th, since we last tested goodwill for impairment, which was at the end of Q2. This is a required accounting assessment for Q3 after the broader markets and our own share price have corrected. As I mentioned, this is a non-cash charge, so there's no impact on our adjusted EBITDA, nor our cash balance.

Thank you, Chantoon. Mike, I'll direct the next one to you. What can you tell us about progress for TrueCar Plus in Florida and plans for expansion outside of Florida?

Yeah, thanks, Zaina. We've made strong progress with TrueCar Plus in Florida. And by the end of the third quarter, our marketplace had nearly 10,000 new, used, and certified pre-owned units. This progress is particularly strong since we began our Florida pilot for Trucar Plus just last September and is a testament to our asset light model. To put this in context, we benchmarked our progress to that of other successful marketplaces in industries such as automotive, mobility, and travel. We reached our current inventory level scale for Trucar Plus in a little more than 12 months since our initial pilot, while the time to scale for other marketplaces we reviewed was four to five years on average. In our view, this is a testament to our unique offering and the desirability of what we're building. As I mentioned earlier, we've been driving more and more of our Florida based consumer traffic to Trucar Plus in the third quarter and in subsequent weeks. We have also seen strong shopper based outside the Florida market. We found that Trucar Plus site while performing, while shopping for a vehicle, show strong deal engagement levels, which is encouraging as we expand market coverage for Trucar Plus. We recently announced the launch of Trucar Plus in five additional states, Alabama, Georgia, North Carolina, South Carolina, and Tennessee, and already have dealers in these states who want to be part of Trucar Plus. We expect to continue to roll out Trucar Plus over the next year for both new and used vehicles. Our future efforts will be informed by the learnings and the product enhancements that we make following this rollout. What's the next question, Zainab?

Thank you, Mike. Here's a question for Jantun. Jantun, you mentioned signs of stabilization are emerging across our core business. What does this mean for Q4?

Absolutely. Trends are emerging that indicate a market shift in a more favorable direction. in the past 18 to 24 months. However, it will be some time before the market returns to a balanced state and the impact is fully reflected across our business. We are encouraged by what we're seeing now, and if this trend continues, we expect them to have more of an impact in 2023. As Mike mentioned, we are expanding market coverage for Tricor Plus to five additional states. We also expect to begin to monetize will be more evident as 2023 progresses. In Q3, close rates in our core business remained under some pressure due to the elevated pricing and affordability issues. Some of this will likely continue in the near term, and our business trends may be uneven given the economic backdrop.

Thank you, Jantun. Mike, the next question is for you. How do you expect a business to perform as economic growth slows or if we end up in a recession?

Thanks, Annem. We've been in an incredibly supply-constrained environment over the past year and a half to two years. The lack of supply has impacted rooftops, and high vehicle prices have put pressure on our close rates. Consumer demand is starting to soften, and months of limited supply has driven brand loyalty lower. We've started to see the supply of new vehicles improving, although there are still far from a balanced market. Just as supply is starting to rebuild, demand is starting to weaken. As this pendulum swings from supply constraints to more of a demand focus, Trucar will be a valuable partner to dealers since they look for solutions to increase demand for their vehicle inventory. OEMs, too, can benefit from our solutions to help them offer tailored incentives and promote their brand value to our in-market traffic of 7.6 million monthly uniques. We've introduced capabilities to increase our presence on the used car side and identify new ways to create value for our retail partners and customers. We're also investing for the digital future of the automotive retail with TrueCar+. We expect TrueCar Plus to open up increased monetization and growth opportunities for us once it is fully transactional and we expand its market coverage. Back to you, Zainab.

Thank you, Mike and Gentoon. Now, operator, let's open up the call for questions from the audience.

Of course. Thank you. To ask a question, you may press star then 1 on your telephone keypad. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star, then 2. At this time, we will pause momentarily to assemble our roster. Our first question comes from Rajat Gupta with JP Morgan. Please go ahead.

Great. Thanks for taking the question. I might have missed this a little earlier, but, you know, on the fourth quarter EBITDA positive goal, could you share some color on, you know, what assumptions are around, you know, just volumes or monetization or even true car plus, you know, to get to that level? That's the first one. And I have a couple of follow-ups.

Absolutely. So I think you're, As you've seen the way we've been managing our expense rates, our expenses are fairly predictable at this point in time, with obviously the only caveat that we've increased somewhat on the tech and product side as we've also fully integrated digital motors. And so really it's an anticipation on the top end that the markets will return in our favor in terms of revenue side. And obviously you'll see an increasing monetization happen across the board. over the course of next year so those are your two biggest drivers now remember that current pure unit monetization is somewhat inflated because obviously in a subscription world in a low close rate you're effectively somewhat over monetizing in the near term but in the long term that is expected to stabilize more but then we're also expecting obviously that over the course of 2023 our close rates will

And is third quarter like the peak EBITDA loss quarter? Is that fair to assume? Or does it get worse before it gets better?

Say that again?

Is the third quarter EBITDA loss number like the peak in terms of losses? Or could it get worse in the near term before it gets better? Did you get back to the positive EBITDA in 4Q23?

Yeah, it's a good question. I think the answer is we'll keep our flexibility around this because there are opportunities for us to obviously somewhat push, especially as we roll out commercially. And this is why we've set the two indications of the adjustability without profitability as well as the minimum cash balance to just give some assurances to the markets that we are very cash prudent. At the same time, we also want to make sure we give Trucar Plus ample opportunity to really roll out. And we also realize that the broader macro is now slowly but surely turning from a headwind to a wind in the back, which will mean that we'll probably utilize some of our resources to actually push the business further. And so it's hard to say at this point.

Guy, I just want to add that the $125 million

know end of next year cash goal does that assume any buyback as well uh from now until then yeah so what i what i mentioned earlier is indeed is it so by the way just i just want to make sure that we're crystal clear it's not 125 million goal it's a having the cash balance well in excess of 125 million and so yeah remember that our business runs effectively adjust dbda You have capitalized software. We still have our buyback plan in place. So we want to have room for that. There's obviously room required for digital motors, earnouts. There's room required for tuck-in M&A, et cetera. So really the aim is not for you guys to anchor on 125 million per se, but much more to say that there's ample cash in this business and we will end the year well in excess of the 125. Understood.

Great. Thanks for the call, and I'll jump back into you.

The next question comes from Marvin Fong with BTIG. Please go ahead.

Good morning. Thanks for taking my questions. Two questions. I'll just start with, so the great to see the data, the initial data on TrueCar Plus. So the 7,000 customers in Florida that went to the deal engagement stage, out of the 27% of visitors who are exposed to Truecar Plus. Could you just kind of help us? How does that sort of conversion rate to the deal engagement stage kind of compare to your non-Truecar Plus population? And then I have another question.

Yeah, Marvin, let me take a first pass at that. That's a great question. And I'll let you jump in and provide more color. In our core traditional business, you know, we track three metrics, really. It was unique visitors, conversion to prospect, and then, you know, ultimately match sales. And it was a pretty simple calculation to understand how that business was flowing. What we're learning with Truecar Plus is there's a number of stages in the process where we get signals from consumers, and we're trying to monitor all of those in an interesting way. So the 7,000 number is the number of folks who were on a VIN and started to build a deal, either through setting up their payment schedule for a lease or a loan. They've got a value for their trade. They may have progressed into a finance application and engaged in insurance products. All of those things are part of this new flow, and we're tracking all of that. So what we've been really paying attention to is will consumers once they become aware of this product. And we're pushing harder and harder. You mentioned the 27%. That number was below 10% in Q2. And we've seen it grow from the 27% since the end of Q3. So we'll continue to put more traffic into it. We'll measure probably some additional metrics in the midst of the flow as we begin to expand that appear to be meaningful. But it's just The most important part right now is to understand, you know, what kind of engagement we're getting with the key features inside of TrueCar Plus and our people moving to the next stage and completing the process. So with that, I'll turn it over to Jan, too, and he can give you some more color.

Yeah, Marvin, it's a great question. I think the answer is we see a very good engagement across the board. especially in a world where we've only effectively exposed Florida traffic to TC Plus by 27%, right? And so what that means is, one is we've been testing and putting people more and more in a somewhat controlled manner through the funnel and really, because you don't want to burn any bridges while you're also testing the product. There's also another piece that is important to note that will obviously transpire over the next couple of quarters, which is historically there was a very clearly defined core flow. And then there's a very clearly defined TC plus flow. And what you'll start seeing is that merge and converge over the next couple of quarters where it becomes much more as, Hey, I'm going to get to true car as a consumer, and I'm going to find and match my car. And then what happens is I, depending on the consumer, you might become a lead to the dealer, or you might actually do the full transaction and the same for the dealerships. You'll see us slowly but surely start moving away from the core versus DC Plus language and much more focused on the more broad offering because people will engage in a different form. What we have seen, though, is people engage very differently online than you would at the dealership. as they have more time to actually do their deals, build their deals, reflect, do research, understand what type of attachment products they want to have, et cetera, et cetera. So there's a lot of really interesting statistics and data that we're getting out of this with having only exposed DC Plus to actually a very small segment of our total population. And so we're going to increase that much more dramatically. We're going to expose much more within Florida itself and then also really start rolling out in the additional states.

Terrific. Thanks for all that. And then my last question, it's great to see the dealer count has already started to show signs of recovering. I guess just to kind of, you know, validate the point that, you know, it should improve as supply. I mean, is there any commonalities you're seeing with the dealers who are coming? I'm assuming they're reactivations, but, you know, you could clarify that. But, you know, are these dealers – Kind of across the board, or are they coming from nameplates where supply is higher, day's inventory are higher? Any commentary about what you're feeling? And I know it's very early, but any commentary about what you're feeling with this little bounce back in dealer count would be great.

Yeah, thanks. The majority of the growth we saw in October was on the franchise side of the business. And I think it's an indication of what's happening with inventory. As I mentioned, new car inventory is up to almost 1.5 million from numbers below a million 12 months ago. So it's interesting because we track it by brand. The inventory growth is not consistent across the entire industry. So there are certain brands that are growing more quickly and we're certainly staying focused to make sure we're addressing, you know, the brands out there that are being able to grow their inventory the quickest. And that number is beginning to increase. So, you know, a number of the domestic brands have been able to grow their inventory quite a bit. We've seen Mazda, Subaru, some of the other brands also begin to show signs of growth. Hyundai is another one. So we'll stay targeted. You know, our people are out in the field passing dealerships all the time and and watching inventory begin to grow. And I think we'll be targeted and make sure when we see an opportunity for that build in new car to reactivate those dealers and get them back on the platform.

Yeah, I think there are a couple of additional points that are important and two of them are anecdotal. One is we've obviously throughout the month of October already seen a significant increase of actually inbound requests from dealerships, much more than we've actually seen effectively throughout the last 18 months. So that's number one. So there's a clear shift that has been happening. The other one also anecdotally is inventory is starting to age more on the lots, which also means that therefore the entire perception of, hey, what do we actually need to do? And as used car prices will come under pressure, the aging inventory becomes an even greater issue because suddenly there's a lot of working capital locked into those laws. And so then having to push through cars is becoming a bigger issue for our dealer partners. And so we do think we're really well positioned throughout for this now and obviously going into the future. One thing to remember, though, and I just want to tamper that because we are obviously very excited about the opportunity and the product we offer. But one thing to remember, seasonality does come to play. So historically, Q4 has always been somewhat of a slow dealer edition quarter. But we're very, very hopeful of the turn in the winds that are currently happening. And we're seeing really clear signs of industry recovery. that will be benefiting us and create a much more balanced approach to supply demand.

That's great. Thanks, Mike and Santin. Appreciate the call.

The next question comes from Chris Pierce with Needham. Please go ahead.

Hey, good morning. I'm just curious about TrueCar Plus, what you're seeing or what you could share as far as new dealers versus used dealers and how consumers are interacting, if they're showing a preference for who are used, and then how are you going about testing with your extended affinity partners as well?

Absolutely. So I'll take the affinity partners first quickly, because then otherwise I'm going to forget that you added that in the end. So the affinity, we have launched Truecar Plus on a very small segment of our affinity partners to date in Florida specifically. um so we have not yet opened it up to the broader affinity partner network as you can imagine many of our affinity partners are more nationally focused and so it's harder to slice and dice very locally um we will we will we will do that as we roll out it's one of the also one of the reasons why we're very interested in rolling out because obviously the faster and the sooner we roll out the more we can utilize the affinity partner as well um Your question on the utilization of TC+. So it varies very much across. Ironically, if you think we historically had identified six very distinct consumer profiles for TC+, we've actually expanded that to eight very distinct profiles as we've seen the behaviors online. Number one. Number two is also you need to create a nuance for Florida. It's obviously a very particular consumer segment vis-a-vis the rest of the country. So there are also very interesting nuances that are coming forward from that that we see very different from other states, as an example. And then right now what happens still is some of that is still driven by certain segments of our topofunnel, which then pulls in certain subsets of the population that are interested in certain cars or certain brands or certain new or used, but it depends because if you start slicing and dicing this very much, think of it as so roughly eight consumer profiles that go very much across the different brands. Now, remember historically in our core business, we've always skewed somewhat more towards the Asian brands. But it seems that the TC plus profiles are not necessarily identical to the way we've been doing that on core, which is very promising. Overarching though, remember one of the things that we're very sensitive to, and you also see us start shifting somewhat is we're less sensitive to rooftop in a TC plus world and much more towards type of inventory and extend the breadth of inventory effectively. And so, net-net, yes, we're learning a lot. Yes, we're even expanding our consumer profiles. Yes, we're actually developing the product to match more the requirements of these different profiles. And we're excited to start testing TC Plus effectively in the additional states because we already know that there will be a lot more learnings that will come from that.

I think the other thing, Chris, that's important is During much of the testing in Florida, we were in a restricted new car supply environment and a heavier used car opportunity. So, you know, the macro was certainly driving a number of used car users through the system. And we think as new car inventory builds, that'll begin to shift. As Jantun mentioned, you know, it's going to be important. We're excited about the chance to, you know, expand to other states, collect more data, and really begin to hone in on, you know, which consumer profiles that we've been tracking closely are going to be the ones that thrive with this product. But, you know, a lot of factors affecting it during the pilot, and we'll get more learnings as we get rolled out in these other five states starting in December.

Okay, so it's basically, it's far too early to say if it might be easier for consumer, consumers might be more willing to buy a new car online versus buying a used car online.

That's kind of the takeaway. I'm sorry, I missed, I didn't hear the question.

Oh, I just wanted to confirm. So it's too early to tell if a consumer might be more willing to buy a new car online versus buying a used car online.

Yeah, we haven't, I don't think, seen any data that would tell us that the new car buyer is going to be more, more accepting of this type of product. We think there will be new car buyers who will get excited about it and use it once inventory returns and once pricing stabilizes a bit. But what we've been excited about is the number of used car buyers who have been willing to dive into the product and, you know, work their way through the whole process on a used vehicle. So, you know, those numbers could shift as new car inventory comes back. and we get into some additional states. And, you know, our core unit volume is about balanced right now between new and used. It's been that way for the past couple of quarters. And, you know, we could expect, I think, something like that, similar for TrueCar Plus, just based on the traffic and the type of folks we have coming to the site.

And also remember, we have one of the things that's interesting is certified pre-owned, which often is forgotten because the historical business like historically the industry talks new and used but certified pre-owned actually in the world of online transacting is very important because it provides the comfort for people that might be a little wary from a warranty perspective um and so uh and the interesting thing is yes we see engagement across all three very much depending on the persona that is buying and if you think about the 10 000 inventory right now we are roughly a third, two-thirds new versus used in terms of inventory on TC+. And so there's also some movements there. But across the board, I would say there's an equal interest across all three of those categories of cars. And then, obviously, it depends on the type of buyers who is interested in one versus another car.

Okay. Thanks for the call, Eric.

The next question comes from Naved Khan with Truist Securities. Please go ahead.

Good morning, guys. This is Vincent Seneved. Thank you for taking the question. So I think you indicated that you kind of expect to lean into brand spend and marketing or brand awareness marketing to promote DC+. So just curious if you could provide some color around I guess, level of off-back spend we should expect as you aim for breakeven even to off-back fourth quarter 23 and how that cadence should progress as you expand TC Plus outside of Florida.

Yeah, so I'll go back to what we said earlier, which is we're actually, I think we've been very prudent on any of the marketing spend. to date, we do see some of the headwinds turning into tailwinds, which means that we're probably going to push some more forward over time. We want to keep that flexibility as we go along. However, we also mentioned that we obviously have a lot of uniques currently visiting our site at the top of funnel, and that we want to really focus on conversion before you start focusing per se on expansion on that side. Um, there's a good, good moment for a good opportunity, obviously the next couple of quarters to engage with the dealer networks and remind them obviously. Of the value proposition that we have and not only remind them of the value proposition of core, which is obviously important for them in a more in a, in a, in a world where they have aging inventory, but also most certainly the true car plus exists and the, and the online platform that that provides. Um, But overarching, I don't think there will be a lot of brand spend. So, but if we will keep that flexible, as we see opportunities, we will deploy, but we're mostly focused on the conversion of the uniques that we have and we'll then underneath support the business as we see that go. And I think over the last couple of quarters, we've proven to you how we are very prudent around.

Yeah. And I think you'll see us continue to capitalize on the opportunity to, to convert you know the seven to nine million monthly uniques we have we have a pretty clean platform because we don't do any advertising on our platform so we're going to use that opportunity to make sure that the 7.6 million that came in on an average in q3 are being exposed to true car plus they understand that it's either available in their market or it's coming soon uh to a market uh near them. And we'll continue to drive that message and begin to see what sort of messages resonate with consumers. With all the noise out there about buying online and the different capabilities, we think we can get real focused on, you know, what type of attributes does a consumer want to hear about in order to gauge in a digital transaction. And a lot of that can be done on our site. And we've got marketing and product working hand in hand and

And, you know, doing that work. Great. Thank you, guys.

This concludes the question and answer session. I would like to turn the call back over to Truecar's president and CEO, Mike Darrow, for closing remarks.

Thank you. I'd like to thank everybody for taking the time to participate in our call today. I also want to thank the entire team at Truecar for all their hard work. as we work to deliver on our near-term roadmap for Trucar Plus and expand market coverage into additional states. This is an exciting time for our company, and we look forward to sharing more about our progress with all of you on our next call. Thanks, everyone.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.