Risk Factors Update Summary

• Strategic restructuring plan announced in June 2023 reduced workforce by approximately 24%.
• Transition to remote workforce led to increased costs related to unused office space leases.
• Leadership changes in September 2023, including new CFO and head of sales, may disrupt operations.
• Marketing expenses increased from $99.1 million in 2022 to $104.5 million in 2023.
• Transition to TrueCar + offering and personalized product experiences could impact business and prospects.
• Revenue declined by 1.7% in 2023, from $161.5 million to $158.7 million.
• Cash and cash equivalents held in excess of FDIC insurance limits, with $122 million held with SVB.
• Net loss decreased from $118.7 million in 2022 to $49.8 million in 2023.
• Decline in lead quality observed since 2021, with a material decline experienced, impacting business.
• Revenue declined by 30.3% in 2022, from $231.7 million to $161.5 million.
• Reduction in dealer count from 924 to 232, with potential negative effects on business operations.
• Revenue declined by 16.9% in 2021, from $231.7 million to $192.5 million.
• Management turnover in 2023, including departures of key executives, may impact business continuity.
• The company's accumulated deficit increased from $512 million to $562 million by the end of 2023.