Wednesday, Apr. 04, 2007, 08:00 PM UPDATED 11:59 AMBy Nick Zulovich
LAKE SUCCESS, N.Y. — About 19.5 million transactions were processed in DealerTrack's network during the fourth quarter, a 52-percent climb from about 12.8 million processed during the same time frame of the prior year, according to officials. For the complete year, the company said it processed 71.5 million, up 36 percent from 52.5 million in 2005. Continuing on, revenue for the quarter came in at $45.7 million, up 37 percent from $33.4 million generated in the same quarter of 2005.
"Our 2006 results were very strong," explained Mark O'Neil, chairman and chief executive officer of DealerTrack. "We achieved significant revenue and profitability growth for the fourth quarter and year due to great execution and innovation within both our subscription and transaction businesses.
"Our accomplishments included further expansion of the DealerTrack network, the introduction of several exciting new products and enhancement of other products, and the successful completion of three acquisitions," he continued.
For 2006, the company posted revenue of $173.3 million, up 44 percent from $120.2 million in 2005. Meanwhile, net income (GAAP) for the year was $19.3 million, four times higher than the $4.5 million reported in 2005.
Officials said DealerTrack had 22,147 active dealers in its network as of Dec. 31, up 5 percent from 21,155 a year earlier. Moreover, the network had 305 active finance sources as of Dec. 31, up 52 percent from 201 in 2005.
Looking forward, the company said it expects revenue for 2007 to come in at $219 million to $221 million. Furthermore, net income (GAAP) is expected to reach $21.5 million to $22 million.
"Our fundamental growth strategy remains consistent for 2007," O'Neil said. "In support of this strategy, we have identified four business priorities for this year that will help us capitalize on important market opportunities in the year ahead.
"We plan to focus on educating dealers about the importance of managing inventory, expand our aftermarket network, launch a targeted solution for independent dealers and drive the continued adoption of e-contracting," he added.
"All of these priorities can contribute to greater efficiency in dealers' sales and finance process, thus enhancing dealership profitability while also strengthening the DealerTrack network," O'Neil concluded.