2019 Q2 Form 10-Q Financial Statement

#000132731819000018 Filed on May 10, 2019

View on sec.gov

Income Statement

Concept 2019 Q2 2019 Q1 2018 Q1
Revenue $88.08M $85.58M $81.06M
YoY Change 0.26% 5.58% 7.0%
Cost Of Revenue $5.640M $8.940M $7.450M
YoY Change -27.23% 20.0% 16.59%
Gross Profit $73.16M $76.65M $73.61M
YoY Change -8.66% 4.13% 6.11%
Gross Profit Margin 83.07% 89.56% 90.81%
Selling, General & Admin $81.62M $69.84M $61.90M
YoY Change 24.59% 12.83% 10.91%
% of Gross Profit 111.56% 91.12% 84.09%
Research & Development $15.46M $15.65M $15.59M
YoY Change -1.47% 0.38% 14.38%
% of Gross Profit 21.13% 20.42% 21.18%
Depreciation & Amortization $6.767M $6.415M $5.169M
YoY Change 19.77% 24.11% -14.97%
% of Gross Profit 9.25% 8.37% 7.02%
Operating Expenses $81.62M $69.84M $61.90M
YoY Change 24.59% 12.83% 10.91%
Operating Profit -$24.68M -$15.27M -$9.059M
YoY Change 265.96% 68.51% 47.11%
Interest Expense $0.00 $0.00 $661.0K
YoY Change -100.0% -100.0% 1.85%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income -$23.99M -$14.26M -$9.116M
YoY Change 260.39% 56.47% 36.59%
Income Tax $100.0K $100.0K -$61.00K
% Of Pretax Income
Net Earnings -$24.06M -$14.37M -$9.055M
YoY Change 263.33% 58.64% 33.26%
Net Earnings / Revenue -27.32% -16.79% -11.17%
Basic Earnings Per Share
Diluted Earnings Per Share -$222.5K -$137.1K -$90.09K
COMMON SHARES
Basic Shares Outstanding 105.3M shares 104.9M shares 100.6M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2019 Q2 2019 Q1 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $176.6M $179.9M $195.8M
YoY Change -11.03% -8.12% 71.0%
Cash & Equivalents $176.6M $179.9M $195.8M
Short-Term Investments
Other Short-Term Assets $34.00M $4.291M $4.469M
YoY Change 584.01% -3.98% -50.04%
Inventory
Prepaid Expenses $9.006M $7.084M $5.632M
Receivables $49.29M $38.37M $37.33M
Other Receivables $200.0K $200.0K $0.00
Total Short-Term Assets $268.9M $233.1M $243.3M
YoY Change 5.57% -4.19% 46.11%
LONG-TERM ASSETS
Property, Plant & Equipment $32.28M $36.05M $71.39M
YoY Change -54.5% -49.5% 4.15%
Goodwill $73.31M $73.31M $53.27M
YoY Change 37.62% 37.62% 0.0%
Intangibles $20.35M $21.90M $14.95M
YoY Change 45.58% 46.52% -20.53%
Long-Term Investments $22.90M $23.17M
YoY Change
Other Assets $4.738M $7.375M $4.353M
YoY Change -8.67% 69.42% 159.26%
Total Long-Term Assets $192.7M $200.5M $144.1M
YoY Change 34.35% 39.11% 1.27%
TOTAL ASSETS
Total Short-Term Assets $268.9M $233.1M $243.3M
Total Long-Term Assets $192.7M $200.5M $144.1M
Total Assets $461.5M $433.6M $387.4M
YoY Change 15.94% 11.92% 25.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $20.40M $20.61M $18.88M
YoY Change 10.6% 9.18% 77.79%
Accrued Expenses $49.39M $8.271M $12.90M
YoY Change 234.4% -35.87% -12.63%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $87.08M $45.83M $34.09M
YoY Change 118.22% 34.44% -20.27%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00 $29.30M
YoY Change -100.0% -100.0% 1.03%
Other Long-Term Liabilities $2.484M $5.639M $4.067M
YoY Change -40.72% 38.65% 69.11%
Total Long-Term Liabilities $2.484M $5.639M $4.067M
YoY Change -40.72% 38.65% 69.11%
TOTAL LIABILITIES
Total Short-Term Liabilities $87.08M $45.83M $34.09M
Total Long-Term Liabilities $2.484M $5.639M $4.067M
Total Liabilities $130.1M $93.73M $68.17M
YoY Change 75.64% 37.49% -11.76%
SHAREHOLDERS EQUITY
Retained Earnings -$415.6M -$377.2M -$345.2M
YoY Change 15.18% 9.27% 6.19%
Common Stock $747.0M $731.4M $673.5M
YoY Change 9.08% 8.6% 21.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $331.4M $339.9M $319.3M
YoY Change
Total Liabilities & Shareholders Equity $461.5M $433.6M $387.4M
YoY Change 15.94% 11.92% 25.45%

Cashflow Statement

Concept 2019 Q2 2019 Q1 2018 Q1
OPERATING ACTIVITIES
Net Income -$24.06M -$14.37M -$9.055M
YoY Change 263.33% 58.64% 33.26%
Depreciation, Depletion And Amortization $6.767M $6.415M $5.169M
YoY Change 19.77% 24.11% -14.97%
Cash From Operating Activities -$360.0K $7.581M $3.440M
YoY Change -107.02% 120.38% -31.47%
INVESTING ACTIVITIES
Capital Expenditures -$2.500M $2.905M $5.332M
YoY Change -41.72% -45.52% -2.58%
Acquisitions
YoY Change
Other Investing Activities $0.00 -$23.17M
YoY Change
Cash From Investing Activities -$2.500M -$26.08M -$5.330M
YoY Change -41.72% 389.29% -2.56%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -480.0K $2.268M -50.00K
YoY Change -126.37% -4636.0% -100.69%
NET CHANGE
Cash From Operating Activities -360.0K $7.581M 3.440M
Cash From Investing Activities -2.500M -$26.08M -5.330M
Cash From Financing Activities -480.0K $2.268M -50.00K
Net Change In Cash -3.340M -$16.23M -1.940M
YoY Change -225.56% 736.6% -128.53%
FREE CASH FLOW
Cash From Operating Activities -$360.0K $7.581M $3.440M
Capital Expenditures -$2.500M $2.905M $5.332M
Free Cash Flow $2.140M $4.676M -$1.892M
YoY Change -77.28% -347.15% 317.66%

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CY2018Q1 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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CY2019Q1 us-gaap Net Cash Provided By Used In Operating Activities Continuing Operations
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CY2019Q1 us-gaap Number Of Operating Segments
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CY2019Q1 us-gaap Operating Income Loss
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CY2019Q1 us-gaap Operating Lease Liability Current
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CY2019Q1 us-gaap Operating Lease Liability Current
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CY2018Q4 us-gaap Operating Lease Liability Noncurrent
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CY2019Q1 us-gaap Operating Lease Liability Noncurrent
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CY2019Q1 us-gaap Operating Lease Liability Noncurrent
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CY2019Q1 us-gaap Operating Lease Payments
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2300000 USD
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0 USD
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
40545000 USD
CY2019Q1 us-gaap Operating Lease Right Of Use Asset
OperatingLeaseRightOfUseAsset
42010000 USD
CY2019Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
OperatingLeaseWeightedAverageDiscountRatePercent
0.056
CY2019Q1 us-gaap Operating Lease Weighted Average Remaining Lease Term1
OperatingLeaseWeightedAverageRemainingLeaseTerm1
P7Y4M24D
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due
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62596000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Current
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CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Five Years
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7621000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Four Years
OperatingLeasesFutureMinimumPaymentsDueInFourYears
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CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Three Years
OperatingLeasesFutureMinimumPaymentsDueInThreeYears
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CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due In Two Years
OperatingLeasesFutureMinimumPaymentsDueInTwoYears
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CY2018Q4 us-gaap Operating Leases Future Minimum Payments Due Thereafter
OperatingLeasesFutureMinimumPaymentsDueThereafter
22532000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable
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CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable Current
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2180000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable In Five Years
OperatingLeasesFutureMinimumPaymentsReceivableInFiveYears
0 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable In Four Years
OperatingLeasesFutureMinimumPaymentsReceivableInFourYears
0 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable In Three Years
OperatingLeasesFutureMinimumPaymentsReceivableInThreeYears
0 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable In Two Years
OperatingLeasesFutureMinimumPaymentsReceivableInTwoYears
1282000 USD
CY2018Q4 us-gaap Operating Leases Future Minimum Payments Receivable Thereafter
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0 USD
CY2018Q1 us-gaap Operating Leases Income Statement Lease Revenue
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500000 USD
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CY2019Q1 us-gaap Other Assets Current
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CY2019Q1 us-gaap Other Assets Current
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CY2018Q4 us-gaap Other Assets Noncurrent
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CY2019Q1 us-gaap Other Assets Noncurrent
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CY2019Q1 us-gaap Other Assets Noncurrent
OtherAssetsNoncurrent
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CY2018Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-9055000 USD
CY2019Q1 us-gaap Other Comprehensive Income Loss Net Of Tax Portion Attributable To Parent
OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent
-14365000 USD
CY2018Q4 us-gaap Other Liabilities Noncurrent
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9290000 USD
CY2019Q1 us-gaap Other Liabilities Noncurrent
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5655000 USD
CY2019Q1 us-gaap Other Liabilities Noncurrent
OtherLiabilitiesNoncurrent
5639000 USD
CY2018Q1 us-gaap Payments For Rent
PaymentsForRent
2500000 USD
CY2018Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
732000 USD
CY2019Q1 us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
543000 USD
CY2018Q1 us-gaap Payments To Acquire Equity Method Investments
PaymentsToAcquireEquityMethodInvestments
0 USD
CY2019Q1 us-gaap Payments To Acquire Equity Method Investments
PaymentsToAcquireEquityMethodInvestments
23174000 USD
CY2018Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
5332000 USD
CY2019Q1 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
2905000 USD
CY2018Q4 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2019Q1 us-gaap Preferred Stock Par Or Stated Value Per Share
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CY2018Q4 us-gaap Preferred Stock Shares Authorized
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CY2019Q1 us-gaap Preferred Stock Shares Authorized
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CY2018Q4 us-gaap Preferred Stock Shares Issued
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CY2019Q1 us-gaap Preferred Stock Shares Issued
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CY2018Q4 us-gaap Preferred Stock Shares Outstanding
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CY2019Q1 us-gaap Preferred Stock Shares Outstanding
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CY2018Q4 us-gaap Preferred Stock Value
PreferredStockValue
0 USD
CY2019Q1 us-gaap Preferred Stock Value
PreferredStockValue
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CY2019Q1 us-gaap Prepaid Expense Current
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CY2019Q1 us-gaap Proceeds From Stock Options Exercised
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CY2018Q4 us-gaap Property Plant And Equipment Gross
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CY2019Q1 us-gaap Property Plant And Equipment Gross
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PropertyPlantAndEquipmentNet
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CY2019Q1 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2019Q1 us-gaap Property Plant And Equipment Net
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CY2018Q4 us-gaap Retained Earnings Accumulated Deficit
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CY2019Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2019Q1 us-gaap Retained Earnings Accumulated Deficit
RetainedEarningsAccumulatedDeficit
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CY2018Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
81061000 USD
CY2019Q1 us-gaap Revenue From Contract With Customer Excluding Assessed Tax
RevenueFromContractWithCustomerExcludingAssessedTax
85582000 USD
CY2018Q1 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
0 USD
CY2019Q1 us-gaap Revenue From Related Parties
RevenueFromRelatedParties
163000 USD
CY2018Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
48418000 USD
CY2019Q1 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
54738000 USD
CY2018Q1 us-gaap Share Based Compensation
ShareBasedCompensation
9097000 USD
CY2019Q1 us-gaap Share Based Compensation
ShareBasedCompensation
8635000 USD
CY2018Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
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CY2019Q1 us-gaap Sharebased Compensation Arrangement By Sharebased Payment Award Compensation Cost1
SharebasedCompensationArrangementBySharebasedPaymentAwardCompensationCost1
9108000 USD
CY2018Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
-166000 USD
CY2019Q1 us-gaap Stock Issued During Period Value Share Based Compensation
StockIssuedDuringPeriodValueShareBasedCompensation
2261000 USD
CY2017Q4 us-gaap Stockholders Equity
StockholdersEquity
313118000 USD
CY2018Q1 us-gaap Stockholders Equity
StockholdersEquity
319251000 USD
CY2018Q4 us-gaap Stockholders Equity
StockholdersEquity
346553000 USD
CY2019Q1 us-gaap Stockholders Equity
StockholdersEquity
339867000 USD
CY2019Q1 us-gaap Sublease Income
SubleaseIncome
500000 USD
CY2018Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
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CY2019Q1 us-gaap Weighted Average Number Of Share Outstanding Basic And Diluted
WeightedAverageNumberOfShareOutstandingBasicAndDiluted
104788000 shares
CY2019Q1 us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Nature of Business</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">TrueCar,&#160;Inc. is an Internet-based information, technology, and communication services company. Hereinafter, TrueCar,&#160;Inc. and its wholly owned subsidiaries ALG, Inc., TrueCar Dealer Solutions,&#160;Inc. and DealerScience, LLC are collectively referred to as &#8220;TrueCar&#8221; or the &#8220;Company,&#8221; ALG, Inc. is referred to as &#8220;ALG,&#8221; TrueCar Dealer Solutions, Inc. is referred to as &#8220;TCDS&#8221; and DealerScience,&#160;LLC is referred to as &#8220;DealerScience.&#8221; TrueCar was incorporated in the state of Delaware in February 2005 and began business operations in April 2005. Its principal corporate offices are located in Santa Monica, California.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">TrueCar is a digital automotive marketplace that (i) provides pricing transparency about what other people paid for their cars and enables consumers to engage with TrueCar Certified Dealers who are committed to providing a superior purchase experience; (ii) empowers Certified Dealers to attract these informed, in-market consumers in a cost-effective, accountable manner; and (iii) allows automobile manufacturers (&#8220;OEMs&#8221;) to more effectively target their incentive spending at deep-in-market consumers during their purchase process. TrueCar has established a diverse software ecosystem on a common technology infrastructure, powered by proprietary data and analytics. Consumers access TrueCar&#8217;s platform through the TrueCar.com website and TrueCar mobile applications or through the car buying websites and mobile applications that TrueCar operates for its affinity group marketing partners (&#8220;Auto Buying Programs&#8221;). An affinity group is comprised of a network of members or employees that provides discounts to its members.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ALG provides forecasts, consulting, and other services regarding determination of the residual value of an automobile at future given points in time, which are used to underwrite automotive loans and leases and by financial institutions to measure exposure and risk across loan, lease, and fleet portfolios. ALG also obtains automobile purchase data from a variety of sources and uses this data to provide consumers and dealers with highly accurate, geographically specific, real-time pricing information.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Through its subsidiary TCDS, the Company provides its TrueCar Trade product, which gives consumers information on the value of their trade-in vehicles and enables them to obtain a guaranteed trade-in price before setting foot in the dealership. This valuation is, in turn, backed by a third-party guarantee to dealers that the vehicles will be repurchased at the indicated price if the dealer does not want to keep them. In addition, through TCDS, the Company acts as an agent for DealerSync, Inc. (&#8220;DealerSync&#8221;) and in that capacity offer dealers its products and services, including a dealer website creation and management service and a software platform that assists dealers in managing, marketing and growing their business. </font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Additionally, in December 2018, the Company acquired DealerScience, which, through TCDS, provides dealers with advanced digital retailing software tools that allow them to calculate accurate monthly payments, expedite vehicle desking, which is the process of presenting and agreeing upon financial terms and financing options, and streamline the consumer&#8217;s experience.</font></div></div>
CY2019Q1 us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:8px;text-indent:36px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Assets and liabilities that are subject to judgment and use of estimates include sales allowances and allowances for doubtful accounts, contract assets, the fair value of a warrant asset and the related liability, the fair value of assets and liabilities assumed in business combinations, right-of-use assets and lease liabilities, the fair value of capitalized lease facilities, the recoverability of goodwill and long-lived assets, valuation allowances with respect to deferred tax assets, useful lives associated with property and equipment and intangible assets, lease exit liabilities, contingencies, and the valuation and assumptions underlying stock-based compensation and other equity instruments. On an ongoing basis, the Company evaluates its estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. In addition, the Company engaged valuation specialists to assist with management&#8217;s determination of the valuation of the fair value of a warrant asset and the related liability, right-of-use assets and lease liabilities, the fair value of capitalized lease facilities, the fair values of assets and liabilities assumed in business combinations, the fair value of reporting units in connection with annual goodwill impairment testing, the fair value of performance shares, and in periods prior to the Company&#8217;s initial public offering, valuation of common stock.</font></div></div>

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