Lake Success, N.Y. — DealerTrack Holdings Inc. reported its financial results for the quarter ended March 31, 2007.

Revenue for the quarter was $51.7 million, a 36 percent increase from $37.9 million for the first quarter of 2006. GAAP net income for the quarter was $4.8 million, a 40 percent increase from $3.4 million for the first quarter of 2006. GAAP diluted net income per share for the quarter was $0.12, a 33 percent increase from $0.09 per share for the first quarter of 2006.

Looking at non-GAAP results, EBITDA (EBITDA is a non-GAAP financial measure that represents GAAP earnings excluding interest, taxes, depreciation and amortization expenses) for the quarter was $14.6 million, a 37 percent increase from $10.7 million for the first quarter of 2006. Cash net income for the quarter was $9.5 million, a 44 percent increase from $6.6 million for the first quarter of 2006. Diluted cash net income per share for the quarter was $0.24, a 33 percent increase from $0.18 per share for the first quarter of 2006.

"Our first quarter results represent strong performance from both subscription and transaction businesses and our ability to drive revenue while controlling costs," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "Our growth momentum is fueled by ongoing traction in the expansion of our network, products and services, and the powerful value proposition of our on-demand solutions for the automotive retail industry."

There were 22,642 active dealers in the DealerTrack network as of March 31, 2007, a 4 percent increase from 21,794 a year earlier. The number of active financing sources in the DealerTrack network as of March 31, 2007 reached 344, up 61 percent from 214 a year earlier. Transactions processed in the network for the first quarter were approximately 22.7 million, a 45 percent increase from approximately 15.7 million for the first quarter of 2006. The number of revenue-generating subscriptions in the network as of March 31, 2007 was 23,267, a 42 percent increase from 16,438 at the end of the prior year's first quarter. Approximately 50 percent of active dealers in the network have one or more of DealerTrack's subscription products.

On April 27, DealerTrack announced a signed agreement for a cash tender offer to acquire Arkona at the price of $1.38 per share, for a total transaction value of approximately $58.9 million. DealerTrack's goal is to facilitate a more seamless workflow for its dealer customers, through deeper integration between DealerTrack and Arkona products. The acquisition of Arkona is expected to support DealerTrack's initiatives within the independent dealer and specialty markets. DealerTrack closed its acquisition of Curomax on February 1, 2007, which enhanced its Canadian operations and also provided technology supporting marine and power sports finance business.

O'Neil continued, "While the majority of DealerTrack's growth continues to be driven organically, strategic acquisitions enable us to address new market opportunities and support our goal of offering best-in-class technology solutions to our customers. These initiatives, plus our consistent strategies of network expansion, cross-selling and product extension, create a larger universe of growth prospects as we serve current and new customers."

DealerTrack has reaffirmed its guidance for expected 2007 results that was provided on February 28, 2007. The expected GAPP Results for 2007 include: Revenue between $219 million and $221 million. GAAP net income between $21.5 million and $22.0 million. Diluted GAAP net income per share between $0.53 and $0.54, based on an estimate of 40.6 weighted average diluted shares outstanding for 2007.

Expected Non-GAAP Results for 2007 include: EBITDA between $65.5 million and $66.4 million. Cash net income between $41.2 million and $41.7 million. Diluted cash net income per share between $1.01 and $1.03, based on an estimate of 40.6 weighted average diluted shares outstanding for 2007.