TRUE - TrueCar rallies after announcing major restructuring CEO change

2023-06-14 16:19:58 ET

TrueCar ( NASDAQ: TRUE ) jumped in postmarket trading on Wednesday after the auto retailer announced a strategic restructuring to streamline the organization. The restructuring moves including a workforce reduction impacting approximately 102 positions, which amounts to about 24% of TrueCar's total headcount.

In the C-suite, TrueCar ( TRUE ) unveiled the appointment of Jantoon Reigersman as President and Chief Executive Officer to succeed Michael Darrow, who is departing the company and vacating his position on the Board.

TrueCar ( TRUE ) expects the restructuring to result in non-recurring cash payments of approximately $7M, primarily in Q2 and Q3 of this year. An annualized reduction in expenses exclusive of stock-based compensation of over $20M is also anticipated.

On the balance sheet, TrueCar ( TRUE ) noted it held a cash position of $146.5M as  of May 31. Although management expects that in the near term this aggregate cash balance could drop below $125M, TrueCar ( TRUE ) continues to anticipate breakeven or positive adjusted EBITDA and double-digit year-over-year revenue growth in Q4 of 2023.

Shares of TrueCar ( TRUE ) shot up 7.69% in late trading on Wednesday.

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