Segment Reporting

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Reporting

Segment Reporting

TrueCar operates as a single operating segment, which is the business of providing a digital automotive marketplace. This marketplace offers pricing transparency to consumers, empowers TrueCar Certified Dealers to attract in-market consumers, and allows automobile manufacturers to target their incentive spending more effectively.

The Company’s CODM is the President and CEO, who manages the Company’s operations based on consolidated financial information for purposes of evaluating financial performance and allocating resources. The financial information reviewed by the CODM includes revenue by service offering including dealer revenue, OEM incentive revenue, and other revenue (Note 5), in addition to key expense categories that are regularly provided for the consolidated company.

The accounting policies of the Company’s single operating segment are the same as those described in the summary of significant accounting policies. Although there are other measures of operating performance used by the CODM, the Company concluded that consolidated net income is the measure required to be disclosed as the segment measure of profit or loss. Net income is utilized to evaluate the effectiveness of TrueCar's various service offerings and to monitor budget versus actual results in order to gain more depth and understanding of the factors driving the business. The following is a reconciliation of the Company’s net loss. It includes the significant expense categories regularly provided to the CODM, computed under U.S. GAAP, reconciled to the Company’s total net loss as presented in the consolidated statements of comprehensive loss:

	Year Ended December 31,
	2024		2023		2022
Revenues	$	175,598	$	158,706	$	161,524
Less:
Headcount expense	61,344		70,699		82,829
Branded media	22,976		22,185		23,055
Partner marketing	35,049		31,102		31,660
Other marketing	5,491		4,270		4,085
Outsourced services	11,921		10,564		12,846
Data licensing, software, and hosting	21,494		23,617		24,826
Other segment expenses*	15,680		9,962		12,173
Interest income	(6,147)		(6,718)		(2,565)
Depreciation and amortization	18,035		17,699		16,520
Goodwill impairment	—		—		59,775
Restructuring charges**	1,474		8,947		—
Stock-based compensation	11,730		14,299		17,681
Other reconciling items***	7,599		1,846		(2,676)
Net loss	$	(31,048)	$	(49,766)	$	(118,685)

*Other segment expenses includes wholesale, facilities and other operating costs.

**Restructuring charges represent charges associated with the realignment of the Company’s leadership structure beginning in the third quarter of 2023 as well as charges associated with the Restructuring Plan undertaken in the second quarter of 2023 to improve efficiency and reduce expenses.

***Other reconciling items solely includes changes in fair value of contingent consideration liability, gain on sale of equity method investment, lease impairment, interest accretion for terminated lease, gains and losses on lease exit, transaction costs associated with Digital Motors, other income and income taxes, which are all disclosed elsewhere in the consolidated financial statements and accompanying footnotes.

Assets provided to the CODM are consistent with those reported on the consolidated balance sheet. All of the Company’s principal operations, decision-making functions and long-lived assets are maintained in the United States and all losses are attributable to the United States.