Q3 2022 TrueCar Inc Earnings Call
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 Xena Bukhari Vice President Investor Relations. Please go ahead.
Thank you operator.
Hello, and welcome to Truecar third quarter 2022 earnings conference call.
Joining me today are Mike Darrow, our President and Chief Executive Officer, and Jan tune Gregersen, Our Chief Financial Officer, and Chief operating Officer.
By now I hope, you've all had the opportunity to read our third quarter stockholder letter.
Which was released yesterday after market close and is available on our Investor Relations website at IR Dot Truecar Dot 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 peak 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 as 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 that Truecar dotcom.
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 Truecar, President and Chief Executive Officer, Mike Darrow for some opening comments Mike.
Thanks, Ana 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 Truecar plus as we prepare to expand coverage outside of Florida.
During Q3, we continued to signing curate dealers for Truecar, plus and grow the available inventory of new used and certified pre owned vehicles to nearly 10000 units, while driving materially more traffic to the truecar plus marketplace approximately 27% of our Florida based visitors were exposed to Truecar plus during the third.
Quarter and more than 7000 of them went onto the deal engagement stage.
We knew we had two fundamental questions to answer when we launched the Truecar plus pilot number one what consumers want to use it in 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 truecar plus and deal.
<unk> want to participate in it.
We will be expanding truecar plus into five additional south eastern states in the coming weeks.
Now 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 installation 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.
Truecar 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 seeing 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 autumn on delivering the automotive industry's first transact both digit market digital marketplace with Truecar plus.
We have also enhanced our core offering truecar 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 targeted incentives promote their core brands and launched their EV platforms.
Our balance sheet remains strong and we have maintained we have managed our business prudently through a supply constrained market.
Based on our current plans for 2020 three we expect to have well in excess of 125 million in cash by the time, we return to breakeven or positive adjusted EBITDA, which we expect to be no later than the fourth quarter of 2023.
I am very encouraged by our progress during Q3 and in the weeks that followed.
I want to thank the entire entire Truecar 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 zainab, what's the first question.
Okay.
Thank you. The first question is for Jan Jan Jensen can you provide a framework for thinking about our planned return to neutral or positive adjusted EBITDA by the end of 2023.
Yes, absolutely.
A little bit thanks, Ana as Mike mentioned, we're seeing signs of stabilization emerge in our core business.
Vehicle supply slowly start to rebuild the dealer network.
Our dealer counts are also starting to show stability based on our recent trends for October is 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 return to the market as of 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. So your guard distance retailing as Mike mentioned before.
These offerings are important building blocks for Truecar, plus and we expect our contributions to grow in 'twenty three.
We also asked them to start monetizing trocar Bluff in early 'twenty three.
<unk> contribution will likely start small and build as we expand inventory and market coverage on.
On the expense side, we will continue to maintain tight control on the run rate expense all investing to broaden coverage for truecar plus and other offerings that we have introduced we have expanded our engineering staff over the past year.
<unk> through the acquisition of additional motors are comfortable with the level of investments we have made across product index today.
The speed with which we have been able to bring out new offerings supports this view in our opinion.
We have a strong global funnel and we have a strong double fault plan to be efficient with our marketing.
In light of the sustained strength that we've 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 breakeven or positive no later than Q4 two in Android.
And as a follow up Jensen can you explain what this means for our cash balance.
Can you provide some details regarding that goodwill impairment taken during Q3.
Yeah, we have absolutely we have a strong balance sheet and expect to have plenty of cash in an uncertain environment. As we look ahead to breakeven or positive adjusted EBITDA by Q4 of 23. This will be achieved through ongoing expense management and prudent prudent cash usage and investment in our strategic initiatives like Truecar plus.
It is important to note that between free cash flow and adjusted EBITDA. There was an adjustment for capitalized software, which during the trailing 12 months was roughly 12 million Bucks.
So adjusted EBITDA is not a good proxy for free cash flow. The other piece to remember is we still have a board approved buyback plan, we have earn outs for digital motors and always wanted to remain some flexibility for small tuck in 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.
Noncash charge for goodwill of $59 8 million, which was due mainly to the sharp decline in our share price and market capitalization.
Secondly, measured as of September 30th since we last test goodwill for impairment, which was at the end of Q2.
As a required accounting assessment for Q3, after the broader markets and our sharp.
<unk> share price that's directed as I mentioned this is a noncash charge. So there's no impact on our adjusted EBITDA, nor our cash balance.
Thank you Tien Tsin, 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, Dana we've made strong progress with Truecar plus in Florida by the end of the third quarter. Our marketplace had nearly 10000, new used and certified pre owned units. This progress is particularly strong since we began our Florida pilot for Truecar plus just last September and is a testament to our app.
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 Truecar, plus and 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 base consumer traffic to Truecar plus in the third quarter and in subsequent weeks. We have also seen strong shopper based outside the Florida market, we found that Truecar plus site, while performing well shopping for a vehicle show strong deal engaged.
I'm at levels, which is encouraging as we expand market coverage for Truecar plus.
We recently announced the launch of Truecar 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 Truecar plus.
We expect to continue to rollout Truecar 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 questions Ana.
Thank you Mike Here's a question for Gen 10, Jensen, you mentioned signs of stabilization.
Emerging across our core business what does this mean for Q4.
Absolutely trends are emerging and indicate a market shift and a more favorable direction than what we've seen in the past 18 to 24 months. However, it will be some time before the market returns to a balanced states and.
This will be 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're expanding market coverage for Truecar philosophy five additional states.
We also expect to begin to monetize Truecar plus next year, which obviously 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.
And even given the economic backdrop.
Okay.
Thank you gentlemen.
The next question is for you how.
How do you expect the business to perform as economic growth slows or if we ended up in a recession.
Thanks, Adam 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 in 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 focus to more of a demand focus truecar will be a valuable partner to dealers since they look for solutions to increase demand for their vehicle inventory.
Oems, who 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.
For the digital future of the automotive retail with Truecar, plus we expect Truecar plus to open up increase monetization and growth opportunities for us.
Once it is fully transactional and we expand its market coverage.
Back to use Ana.
Thank you, Mike and John can now operator, let's open up the call for questions from the audience.
Thank you.
To ask a question you May press Star then one on your telephone keypad. If you were using a speaker phone. Please pick up your handset before pressing the keys.
Any time your question has been addressed and he would like to withdraw your question. Please press Star then two.
At this time, we will pause momentarily to assemble our roster.
Our first question comes from Rajat Gupta with J P. Morgan. Please go ahead.
Great. Thanks for taking the question.
I might've missed this a little earlier, but you know on the fourth quarter EBITDA positive goal.
Could you share some color on what assumptions are around you know just volumes or monetization.
Or even truecar plus two to get to that level.
The first one and then I have a couple of follow ups. Thanks.
Absolutely. So I think you're as you've seen the way we've been managing our Spanish rates.
Our expenses are fairly predictable at this point in time.
Obviously, the only caveat that we have increased somewhat on the second product side as we have also fully integrated digital motors.
So it really is an anticipation on the top and the markets will return in our favor in terms of revenue side, and obviously youll see a increasing monetization happen across the board over the course of next year.
So those are your two biggest drivers now remember it is current pure unit monetization is somewhat inflated because obviously in a subscription world and the low close rates.
Secondly, somewhat over monetizing in the near term, but in the long term debt is expected to stabilize more but then we're also expecting obviously that over the course of 2023 are closer in Salford.
Got it and the third quarter like the peak EBITDA last quarter is that right.
Or does it get worse at Bethesda et cetera.
And then again.
As the third quarter EBITDA loss number like the peak in terms of losses are going to get worse in the near term before it gets better.
Could you get back to positive EBITDA in <unk> or 'twenty three.
Yeah. It's a good question I think the answers, we'll all we'll keep our flexible lithia around this because there are opportunities for us to obviously somewhat bullish, especially as we rollout commercially.
And this is why we set the two indications or the adjusted EBITDA profitability as well as the minimum cash balance to just give us some.
Assurance as to the markets in our notes that we are a very cash accretive at the same time. We also want to make sure. We give two GARP loss ample opportunity to really roll out and we also realized that the broader macro is now slowly, but surely journey from a headwind to a wind into back which will mean that we will probably utilize some of our.
Our resources to actually push the business further and so it's hard to say at this point.
Got it and just one.
The 125 million.
And up next year Cashcall does that assume any buybacks as well.
From now until then.
Yes so.
What I mentioned earlier is indeed as it's so by the way just I just wanted to make sure. We're crystal clear, it's north of $125 million goal.
Having the cash balance of well in excess of one.
$125 million and so you have to remember that our business runs effectively adjusted EBITDA less capitalized software, we still have our buyback.
Our plan in place. So we wanted to have a room for that there is obviously room required for digital motors earn outs, there's room required for tuck in M&A et cetera. So really the aim is for you guys to anchor on our 25 million per se, but more much more to say that there are ample cash in this business and we will end.
The year well in excess of our 25.
Understood.
Thanks for the color I'll jump back in queue.
The next question comes from Marvin Fong with <unk>. Please go ahead.
Good morning, Thanks for taking my questions.
Two questions I'll, just start with so it'd be great to see the data the initial data on on <unk>.
Truecar plus all the 7000 customers in Florida that want to do 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 two year non truecar plus population and then I have another question.
Yes, Mark let me take a first pass at that that's a great question and I'll, let <unk> jump in and provide more color.
In our core traditional business, we track three metrics really it was unique visitors conversion to prospect and then 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 theres a number of stages in the process, where we get signals.
From consumers and we're trying to monitor all of those are in.
In a in an interesting way so the the 7000 number is the number of folks who were on even and started to build a deal either through.
Setting up their payments scheduled for a lease or alone.
They've got a value for their trade.
They may have progressed into a finance application and.
An engaged and 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 will continue to put more traffic into it will measure.
<unk> some additional metrics in the midst of the flow.
As we begin to expand that that appear to be meaningful, but it's just the.
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 are people moving to the next stage in and completing the process. So.
With that I'll turn it over to Jan to he can give you some more color yeah. Marvin it's a great question I think the answer is we see.
Very good engagement across the board, especially in a world, where we've only effectively exposed Florida traffic to ITC 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 you don't want to burned any bridges, while you're also testing the product. There is also another piece that is important to note that we'll obviously transpire over the next couple of quarters, which is historically there was a very clearly defined core flaw.
And then there's a very clearly defined tissue plus floor, and where you'll start seeing that.
Emerge and converge over the next couple of quarters, where it becomes much more as a I'm going to get to a truecar as a consumer and I'm going to find and match My car and then what happens is 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 youll see us slowly, but surely start moving away from the core versus D. C plus language and much more focus on a 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 builder deals reflects do research and 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 to surplus 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 more within Florida itself and NFL really start rolling out to additional states.
Terrific. Thanks for all that and then my my My last question just it's great to see the dealer count is already.
Starting to show signs of recovering I guess, that's the kind of you know.
Validates the point that it should improve as supply I mean, what is there any commonality. This thing with the dealers who are who are coming are they I'm, assuming they're reactivation, but.
You can clarify that up but are they are these dealers.
Kind of across the board or are they coming from nameplate, where where supply.
Is higher.
The inventory or hire any commentary about what you're feeling and I know, it's very early but any commentary about what you're seeing.
With this a little bounce back in dealer count would be great.
Yeah. Thanks Lauren.
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 and as I mentioned, new car inventories 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 the brands out there that are being able to grow their inventory the quickest.
And that number is beginning to increase so 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's. Another one so we will stay targeted our people were out in the field pass in dealerships all the time and watching inventory begin to grow.
And I think it will be targeted and make sure we.
When we see an opportunity for that build in new car to reactivate those dealers and get him back on the platform.
There's a.
There are a couple of additional points that are important to note two of them are anecdotal so.
One is we've obviously throughout the months of October already seen.
Significantly increase or 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 is a clear shift that has had been happening. The other one also anecdotally is.
Inventory is starting to ache more on Bill Boltz, which also means that therefore, the entire perception will pay 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 is a lot of working cap.
Capital locked into those laws and so them having to push through Forex is becoming a bigger issue for our dealer partners. So.
We do think we're really well positioned throughout or this now and obviously going into the future.
One thing to remember, though and I just wanted to tamper that as we were going to be very excited about.
The opportunity and the products we offer.
One thing to remember seasonality does come into play. So historically Q4 has always been somewhat of a slow dealer addition quarter.
But we're very very hopeful.
The turn in the wins that are currently happening and we're seeing really clear signs of industry recovery oriented what should be benefiting us and create a much more balanced approach to supply demand.
That's great. Thanks, Mike I appreciate the color.
The next question comes from Chris <unk> with Needham. Please go ahead.
Hey, good morning.
Just curious about Truecar plus what you are seeing or what you could share as far as new new dealers versus these dealers.
How consumers are interacting with them.
And our preference for newer 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 otherwise I'm going to forget that you're out of that and the yen.
So the affinity we have launched Truecar plus.
A very small segment of our affinity partners to date in Florida, specifically.
So we have not yet opened it up to the broader affinity partner network as you can imagine many of our new partners are more nationally focused and so it's harder to slice and dice very locally.
We will we will we will do that as we rollout. It's one of the also one of the reasons why we're very interested in rolling out because obviously the faster and as soon as we rollout the more we can utilize the affinity partner as well.
Your question on the utilization of <unk> plus so.
It's very different it's various it very much across ironically, if you think historically had identified six very distinct consumer profiles for TC plus we've actually expanded that to eight very distinct profiles as we've seen the behaviors.
Line.
<unk> number two is also you need to create a nuance for Florida is obviously, a very particular consume our second Smith vis vis the rest of the country. So they're also very interesting nuances that are coming forward from that that we've seen are 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 total funnel.
Which then puts you in certain subsets of that population that are interested in certain cars or certain brands or certain.
Your use but in the beds, because if you start slicing and dicing thats very much think of it as so roughly eight consumer profiles of 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 D C plus profiles are not necessarily identical to the way we've been doing that encore, which is very promising.
Over arching do remember one of the things that we're very sensitive to and you also see us start shifting somewhat as we are less sensitive to rooftop valves and mtc plug world and much more towards type of inventory and extend the breadth of inventory effectively.
So net net yes, we're learning a lot, yes, where <unk> been expanding our consumer profile. So yes, we are actually developing the products to match more of the requirements of these different profiles and we're excited to start testing to see blas effectively into additional states. Because we we already know that there will be a lot more learnings that will come from.
All of 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 in a heavier used car opportunity so.
Macro was certainly driving.
A number of used car users through the system and we think as new car inventory builds that will begin to shift.
You had mentioned that's going to be important we're excited about the chance to expand to other states collect more data and really begin to hone in on.
Which consumer profiles that we've been tracking closely are going to be the ones that thrive with this product but.
A lot of factors affecting it during.
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 consumers.
Be more willing to buy a new car reminds us about any of these kind of online that's kind of the takeaway.
I'm, sorry, I missed it I didn't I didn't hear the question.
I just wanted to confirm so it's too early to tell what the consumer might be more willing to buy a new car online versus buy used car online.
Yes, we havent I don't think seen any data that would tell us that the new car buyer is going to be more.
Uh huh.
We're 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.
Uh huh.
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.
Our core unit volumes about balanced right now.
Between new and used its been that way for the past couple of quarters.
You know, we could expect I think something like that similar for Truecar plus.
Just based on the traffic in the <unk>.
The folks we have coming to the site.
Also remember we have one of the things that's interesting in certified preowned, which often is forgotten biggest historical business like historically the industry adults, new and used but certified preowned actually world.
While line transacting is very important because it provides the comfort for people that might be a little bit.
Where are you from a warranty perspective.
Yeah.
And so.
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 10000 inventory right now we are roughly.
Third two thirds new versus used in terms of inventory or <unk> plus.
And so there's also there are some movements there but across the board I would say.
Equal interest across all three of those categories of cars.
And then obviously depends on the type of buyers who is interested in one versus another car.
Okay. Thanks for the color.
The next question comes from David Cohen with <unk> Securities. Please go ahead.
Good morning, guys.
Vince on front of that.
Taking the question.
So I think you indicated that you kind of have to lean into brand spend in marketing brand awareness marketing to promote T. Plus so just curious if you can.
To provide some color around.
Ah, yes level Opex spend we should expect that the aim for breakeven EBITDA.
Fourth quarter 'twenty three.
And how that should progress as you extend T plus outside of Florida.
Yeah, So I'll.
I'll go back to what we said earlier, which is where we're actually I think we've been.
Very prudent on any of the marketing spend to.
To date we.
We do see some of the headwinds starting to fill ins, which means that we're probably going to.
Push some more forward over time, we want to we want to keep that flexibility as we go along however, we also mentioned that we obviously have a lot of uniques are currently visiting our site to the top of funnel and that we want to really focus on conversion.
<unk> as you start focusing per se on expansion on that side.
There is a good moment for all and good opportunity or risk in 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 world where they have aging inventory, but also most certainly the truecar plus exists in the end.
Online platform, but that provides.
But overarching I don't think there will be a lot of brand spend so, but we will keep that flexible as we see opportunities we will deploy what we're mostly focused on the conversion of the unique. So we have it would 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.
And I think Youll see us continue to capitalize on the opportunity to two <unk>.
Convert you know this.
Seven to 9 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 averaging in Q3 are being exposed to truecar plus they understand that it's either available in their market or it's coming soon.
To a market.
Near them and we will continue to drive that message and in <unk>.
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 what type of attributes.
Does the consumer want to hear about in order to gauge and 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.
Doing that work.
Great. Thank you guys.
Yes.
This concludes the question and answer session I would like to turn the call back over to <unk>, President and CEO , Mike Darrow for closing remarks.
Thank you I'd like to thank everybody for taking the time to participate on our call. Today I also want to thank the entire team of Truecar for all their hard work.
We work to deliver on our near term roadmap for Truecar, plus and expand market coverage into additional states. So it's 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.