Hoffman Estates, Illinois, Tuesday’s dealer management system giant said it showed strong growth in the first quarter of fiscal 2022, despite headwinds from inventory shortages that emptied dealer lots this year. rice field.
CDK has added automotive DMS customer sites for the 11th consecutive quarter, with CEO Brian Krzanich totaling 9,107 as of September 30. This is an increase from 8,966 as of September 30, 2020 to 9,062 as of June 30, 2020.
“We are pleased with these expected results, despite a slight slowdown in the trading business due to inventory shortages in the car market,” Krzanich said in a phone call with analysts on Tuesday. “Our performance in 2022 shows that CDK has become a radically different company than it was just a few years ago. We have focused on investing to strengthen our core business. I did. “
September CDK said it planned Acquired insurance technology company Salty Dot Inc.This allows consumers to buy car insurance at the same time they buy a car. CDK executives said the purchase of Salty could allow dealers to open up new revenue markets and enhance their customers’ car-buying experience.
The company’s transaction revenue fell 2.5% in the first quarter to $ 42.8 million. CDK receives a transaction fee to connect the dealer to a company that processes credit reports and vehicle registrations. This represents nearly 10% of CDK’s total revenue. “It’s because vehicle sales have been affected by supply chain disruptions, resulting in lower vehicle registration revenues,” CFO Eric Guerin told analysts.
CDK’s business results are for continuing businesses excluding international businesses. Sold to private equity firm Francisco Partners in March..
First Quarter Revenue: $ 440 million, up 6.4% year-on-year
First Quarter Net Income Due to CDK: $ 71.7 million, up 28.7% year-on-year
Q1 adjustment EBITDA: $ 170.3 million, up 1.7% year-on-year
record: Company DMS Site Total and Revenue Per Site
guidance: Revenue, $ 1.78 billion to $ 1.82 billion. Net income attributable to CDK, $ 235 million to $ 265 million
https://njcar.org/automotive-news/dealer-headlines/cdk-global-quarterly-revenue-net-earnings-rise/ CDK Global Revenue, Quarterly Revenue Increase Despite Insufficiency