Online auto-shopping service TrueCar Inc. filed for an initial public offering on April 3.
The company, which focuses on new car transactions, intends to market its stock on the NASDAQ Global Select Market under the symbol “TRUE.” The company is looking to raise $125 million in the offering. No IPO date has been set.
The company’s website, TrueCar.com, lets visitors view the average selling price of a new car, its sticker price, TrueCar’s estimation of a “good price,” and prices other dealers in the TrueCar network are listing.
The company also said that it is currently developing new finance tools called TrueLoan and TrueLease. The S-1, which is the IPO filing document with the Securites and Exchange Commission, says the intent of the tools is to provide users with a more convenient way to finance their cars at TrueCar Certified Dealers.
TrueCar generated revenues of $134 million in 2013 and recorded a net loss of $25.1 million. Of that $134 million, 89% consisted of transaction revenues with the remaining 11% derived primarily from the sale of data and consulting services to the automotive and financial services industries.
The company said transaction revenues primarily consist of fees paid to it by the company’s network of TrueCar certified dealers under its pay-for-performance business model. It generally earns a fee only when a TrueCar user purchases a car from TrueCar dealers.
