TrueCar Posts Adj. Profit In Q3; Plans Follow-on Common Stock Offering

(RTTNews) - TrueCar, Inc. (TRUE) reported third-quarter net loss of $13.64 million or $0.18 per share, wider than loss of $4.61 million or $0.08 per share in the year-ago period.

Adjusted net income for the quarter was $0.34 million or breakeven per share, compared to adjusted net loss of $0.99 million or $0.02 per share in the year-ago period. On average, four analysts polled by Thomson Reuters expected the company to report breakeven per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 51 percent to $56.75 million from $37.55 million in the year-ago period. Analysts had a consensus revenue estimate of $53.64 million.

Looking ahead to the fourth quarter, TrueCar raised its outlook for revenue to a range of $54.5 million to $55.5 million. For fiscal 2014, TrueCar raised its forecast for revenue to a range of $205.7 million to $206.7million.

Analysts expect revenues of $53.69 million for the fourth quarter and revenues of $202.48 million for fiscal 2014.

TrueCar expects to offer 1 million shares of common stock in the offering as well as any shares to be sold to the underwriters pursuant to their option to purchase additional shares. Certain existing stockholders of the company are expected to offer 5.40 million shares in the offering.

TrueCar said it plans to commence a roadshow to market its common stock in advance of its proposed follow-on offering.

J.P. Morgan Securities LLC and Goldman, Sachs & Co. are acting as lead book-running managers for the offering, and Morgan Stanley & Co. LLC and RBC Capital Markets, LLC are acting as book-running managers for the offering. JMP Securities LLC and Cowen and Company, LLC are acting as co-managers.