TrueCar reported a smaller first-quarter loss on a dip in dealer count and revenues.
The vehicle listings provider posted a net loss of $10.7 million for the quarter, compared to a loss of $14.4 million in the year-ago period. Revenue slipped 2.4 percent to $83.5 million.
Total dealer count dropped six percent to 15,549 customers in the quarter . That included 11,356 franchise dealers, a decline of 10 percent, and 4,193 independent dealers, up 9 percent. TrueCar users bought 197,002 cars and light trucks from TrueCar Certified Dealers in the quarter, down 15 percent from the year-ago period.
The company is among vendors offering dealers discounted subscription fees amid the coronavirus crisis.
On March 26, TrueCar launched "Buy from Home" badging aimed at helping dealers pivot to remote sales during the pandemic. The badging denoted dealers offering remote paperwork processing, home vehicle delivery and verified vehicle sanitization.
To date, more than 6,000 dealers have opted into the program, CEO Mike Darrow said in an earnings call Thursday. The company plans to roll out two more phases of the digital retailing efforts before the end of the year, starting with customers' ability to configure loans and leases online with participating dealers, and eventually allow customers to schedule remote vehicle delivery.
"The impact of COVID-19 on consumer behavior will accelerate the adoption of digital retailing solutions within the automotive industry, and I'm excited about what that means for TrueCar," Darrow said in a release. "We will build on the significant progress we've made on our consumer experience over the past 12 months as we look to quickly and aggressively innovate towards becoming the first online marketplace to support a fully remote car buying process."
