TrueCar, Inc. (NASDAQ: TRUE) announced today that it has entered into a short-term agreement effective February 14 to extend its partnership with USAA Federal Savings Bank (USAA FSB) to continue to power the USAA Car Buying Service through September 30, 2020. Revenue share from USAA FSB to TrueCar will remain the same as it was under the previous agreement. In addition, USAA FSB will pay a $20 million transition services fee to TrueCar.
“While this outcome was unexpected, we believe the short-term agreement will benefit us over the next several quarters as we continue to focus on our core business,” said Mike Darrow, TrueCar’s Interim President and Chief Executive Officer. “USAA has made clear to us that it has decided to stop providing a car buying service to its members later this year in an effort to simplify its business and focus on its core product offerings after a reassessment of its strategic direction, and that this decision was unrelated to the performance of our program or product offerings. Looking ahead, TrueCar is well positioned to leverage the progress we’ve made in our rebrand and our new consumer experience as we diversify our sources of traffic and expand our target customer demographic. Furthermore, we are confident that TrueCar will maintain adjusted EBITDA margins in 2020.”
Conference Call Information
TrueCar will provide further detail on financial expectations for 2020 during its regularly scheduled earnings conference call at 4:30 p.m. Eastern Time on February 20. A live webcast of the call will be accessible through the Investor Relations section of TrueCar’s website at ir.true.com.
To participate, domestic callers should dial 1-877-407-0789 and international callers should dial 1-201-689-8562. A replay of the call may be accessed the same day from 7:30 p.m. Eastern Time on Thursday, February 20, 2019 until 11:59 p.m. Eastern Time on Thursday, March 5, 2020 by dialing 1-844-512-2921 (domestic) or 1-412-317-6671 (international) and entering replay PIN 13698256.
An archived version of the call will also be available upon completion on the Investor Relations section of TrueCar’s website at ir.true.com.
SOURCE: TrueCar
