TrueCar Shares Plunge on Missed Earnings Call
TrueCar CEO Scott Painter said his company will miss expected earnings for the second quarter, and said the company needed a “wake-up” in his call, Automotive News is reporting.
The news sent shares of TrueCar plummeting more than 35 percent. TrueCar closed Friday down 3.81 down to $6.87 per share.
Painter said a lack of marketing was to blame for the company’s struggles in the second quarter, not the recent highly publicized split with AutoNation.
Painter said the revised earnings would lower their overall revenue for the year around $20 million to $30 million this year.
In addition to fewer consumers buying fewer cars through TrueCar, the company said spending on its mobile platform and weak marketing. True car said it lost $15 million in the second quarter of this year.