Operator: And the next question comes from Chris Pierce with Needham.
Chris Pierce: Hey, good morning. On revenues specifically, can you talk about OEM incentive revenues? Is there any seasonality there? Or is there a pipeline that you can speak to there? I just want to get a sense of how to think about that, because there’s revenue lying into 2024.
Jantoon Reigersman: Yeah, Chris, so, I don’t think there’s any seasonality per se. It’s much more — these are effectively more to more project-based, and as a result, are a little bit more lumpy in nature and so, it’s less about consistent revenues, it’s more to do with project like, different programs that we’re effectively running with the different OEMs. We have multitude of conversations at any point in time. There are different forms of programs we’re often suggesting, and depending a little bit on the priorities of the OEM, some programs are more relevant at different points in time than others. And so, it’s a little bit hard to predict very well the future components of, okay, how is that revenue line growing exactly quarter-to-quarter, and it’s always a little bit fluctuating.
But overarching, we see a huge opportunity in the OEM side in general and so, we do feel that there’s a large, like, if you look at it on a yearly basis, for example, that there’s a large opportunity for us to obviously grow that revenue line and obviously, we as part of the longer-term trajectory that we’ve outlined, we obviously feel that we should get back to historical OEM numbers and beyond as we start looking in the outer years. But the short version is, yeah, we have active dialogues. We have different programs that are very interesting to pursue for the OEMs, but it’s hard to perfectly predict that or outline that forecast.
Oliver Foley: And, Chris, I’ll just add that I think that the seasonality in the OEM business is really just tied to new vehicle sales, right? So, because it is still very much a pay-for-performance type model, meaning these are rebates, they’re based on the volume of new car purchases and so, generally speaking, in Q4, you see seasonally higher volume because that’s generally when you see a ton of new car sales. Q1, it always seems to come down slightly and so, I would say that’s really sort of the seasonality behind the OEM side of the business. It’s really just tied to new vehicle sales.
Chris Pierce: Okay, perfect. And then on expenses, talking about building out TrueCar+ and the learnings from it, is this a good run rate for tech and development expenses or does there need to be further investment there? I just want to know the right way to think about that going forward because it’s come down pretty dramatically the past couple quarters.
Oliver Foley: Yeah, so I’d say when you look at Q4, one thing to call out is that there were just over $1 million of sort of accrual reversals. So, we had sort of a one-time benefit in Q4 around certain headcount accruals that were reversed in the quarter. So, I would say the tech and dev expense in Q4 is slightly below what the run rate should be. I think something closer, maybe slightly above $7 million is sort of the run rate that I would expect, whereas we came in, I believe, at $6.4 million in Q4. So, that definitely does reflect sort of that non-recurring benefit that we had in Q4.
Operator: And the next question comes from Marvin Fong with BTIG.
Marvin Fong: Hi, good morning. Thanks for taking my questions. So, first question, apologies, I popped on a little late if this is already asked, but you just kind of speak to your expectations for the independent dealer channel? There was an uptick in the churn in the fourth quarter, and I understand that. I think the fourth quarter typically is seasonally a little bit higher, but do you expect independent dealer churn to continue throughout 2024, or how do you view that? And then on TC+, I know its super early days, but what sort of is the thought process behind your plans to roll that out? Do you plan to just keep that on the marketplace, or could it simultaneously roll out as a white-label solution for dealer websites or even OEM? Maybe you could expand a little bit more on your thinking there. Thanks.
Jantoon Reigersman: Absolutely. Hey, Marvin. So, on the independence, yeah, think of the independence, obviously, as almost — there are obviously many, many groups within that, but think about it as if you oversimplify it, you have smaller independents that obviously are going through a rough time with financing, high financing costs, and therefore, right, limited affordability for consumers and so, for them, it’s hard to acquire inventory as well as sell inventory and so, a lot of them are either going out of business, they’re being acquired and rolled up into effectively roll-ups, etcetera. So, there’s a lot of moving and shifting on the smaller independence space. We’re obviously very focused still on the larger independents, and we see good traction there, but they obviously run a very different business.
So, yes, we see a continued decline of smaller independents throughout the year, but obviously, a good traction with larger independents and good traction with franchises. So, I think that’s the answer. Any questions on that specifically before I go over on TC+?
Marvin Fong: No, that was a great answer. I got it.
Jantoon Reigersman: On TC+, yeah, I think there are two different parts to your question. One is how do you think about the rollout? Number one is I think TC+, we’re not going to have every single dealer partner on TC+ in the future. It’s really about making sure we have the right dealers on and then obviously really focused on supply demand. And so, there’s going to be a pre-qualification that’s going to happen around the dealers that can be on because obviously we want to make sure that that experience is a really good experience for both consumer and dealer, and that we’re really making sure we’re very thoughtful about consumers being able to find the right inventory and where the right inventory is available. And so, at the end of the day, it’s really about scaling that by identifying the right dealers and then making sure that they’re on and then doing it also in a very consistent manner.
