Automobile listings firm TrueCar noticed a steep income drop within the second quarter and deepened its internet loss because it reported strain from a scarcity of stock and rising car costs.

Santa Monica, Calif.-based TrueCar on Tuesday reported a internet lack of $11 million within the quarter ended June 30, wider than a $7.3 million internet loss in the identical quarter a yr earlier. Income sank 36 p.c to $42.3 million, which firm leaders attributed to strain on its shut charges due to stock and pricing situations. TrueCar’s pay-per-sale transaction income made up a smaller share of its supplier income within the second quarter than a yr earlier, the corporate reported.

“A restoration within the world provide chain is probably going nonetheless a number of quarters away in our view, and uncertainty stays excessive as a consequence of geopolitical occasions and headwinds like a slowing U.S. financial system and rising rates of interest,” CEO Mike Darrow advised analysts on an earnings name Wednesday.

“We proceed to count on some volatility in our key metrics all through 2022,” Darrow stated. “On this surroundings, we’re persevering with to handle our enterprise and our assets effectively.”

TrueCar reported 12,086 dealership prospects as of the second quarter, with 7,908 of them franchised. Its franchised dealership buyer rely fell by 18 p.c yr over yr, whereas the variety of impartial dealerships on its platform rose by 18 p.c. TrueCar leaders stated that displays diverging availability of latest and used autos.

Firm executives provided new knowledge about its rising TrueCar+ digital gross sales platform, saying it was utilized by greater than 80 dealerships in Florida and included greater than 7,000 new, used and pre-owned autos by way of June. CFO Jantoon Reigersman stated the corporate goals to broaden TrueCar+ throughout the nation for used autos and into three to 5 states past Florida for brand spanking new autos by the tip of the yr.

Q2 income: $42.3 million, down 36% from a yr earlier

Q2 internet loss: $11 million, higher than a internet lack of $7.3 million from a yr earlier

Q2 adjusted EBITDA: Swung to a internet lack of $5 million from a internet acquire of $4.7 million a yr earlier

Steering: Didn’t present a quarterly monetary outlook, citing uncertainty associated to provide chain challenges, low car stock and excessive costs. Adjusted EBITDA anticipated to be detrimental in 2022.