TrueCar (NASDAQ:TRUE) Inc shares climbed 10% to $2.72 on Thursday after the car-pricing platform announced that it is eliminating 24% of its workforce, or about 102 positions, and has named a new CEO.
TrueCar (NASDAQ:TRUE) revealed that its chief operating officer Jantoon Reigersman will replace Michael Darrow as the company’s CEO, but did not provide details on why the move was being made.
The company stated that it expects to take one-off restructuring charges of about $7 million, which will be incurred mostly in the second and third quarters.
As well, TrueCar said it “continues to anticipate breakeven or positive adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and double-digit year-over-year revenue growth in the fourth quarter of 2023.”
The company added that it had about $146.5 million in cash and equivalents as of May 31, 2023.
In the first quarter of 2023, TrueCar saw its revenue fall 15% year-over-year to $37 million, while its net loss for the period widened to $19.5 million from $12.4 million in 1Q 2022.
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