TrueCar shares shot up after the company reported a smaller-than-expected loss.
Shares were up over 14 percent in premarket trading on Friday.
TrueCar posted a loss of 1 cent per share on revenue of $74.1 million, 17 percent from the year before. A consensus of analysts polled by Thomson Reuters expected a loss of 5 cents per share on revenue of $71.3 million.
“At this point, I am very confident that we now clearly understand and have our hands placed securely on the practical levers that we believe will enable us to continue to drive double-digit rates of unit and revenue growth for some time,” said Chip Perry, TrueCar’s president and CEO, in a press release on Thursday.
The California-based company’s average monthly unique visitors rose 19 percent to 7 million, up from 5.9 million in the fourth quarter of 2015. The car-buying website operator also saw its franchise dealer count rise 23 percent for the quarter, year-over-year.
TrueCar’s outlook for the current quarter also beat Street expectations. Analysts polled by Thomson Reuters expected the first quarter outlook for revenue to be $69.9 million, while TrueCar announced that it expected revenue between $71 and $73 million.
TrueCar shares 5-day performance