AN AutoNation Inc

Online car-shopping site TrueCar Inc.'s third-quarter loss narrowed on higher revenue, leading the company to raise its projections for the year.

TrueCar now projects annual revenue of $260.2 million to $261.7 million, compared with its earlier view of $252 million to $258 million.

Shares, down 73% this year, rose 9.3% to $6.70 in after-hours trading.

Overall, TrueCar reported a loss of $11.1 million, or 13 cents a share, compared with $13.6 million, or 18 cents a share, a year earlier. Excluding stock-based compensation and other items, it reported an adjusted loss of 3 cents a share.

Revenue jumped 28% to $72.4 million.

Analysts had projected an adjusted loss of 5 cents a share on $66.2 million in revenue.

Unique visitors rose to 6.6 million, up 43% from the year earlier, the company said.

TrueCar makes most of its money by charging dealers for customer referrals, but the relationship with dealers has been strained. In August, when the company released second-quarter results, founder and Chief Executive Scott Painter said he planned to retire by the end of the year.

In September, President John Krafcik left to head Google's self-driving car project. Mr. Krafcik remains on the company's board.

This year, TrueCar lost one of its biggest customers, AutoNation Inc., after the two clashed over the sharing of consumer data. TrueCar also faces mounting legal bills, including a complaint it filed against Sonic Automotive Holdings Inc. and a complaint filed against TrueCar by the California New Car Dealers Association. In the latest period, litigation costs surged to $1.2 million from $864,000 a year earlier.

TrueCar, based in Santa Monica, Calif., went public last year and has yet to reach profitability. As of Sept. 30, its accumulated deficit reached $248.5 million.

Write to Maria Armental at maria.armental@wsj.com

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(END) Dow Jones Newswires

November 05, 2015 17:15 ET (22:15 GMT)

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