DealerTrack Reports Decline in 2Q Revenue
Software provider DealerTrack Holdings Inc. reported revenue of $57.9 million for the second quarter 2009, down from $63.2 million in the year-ago period. Net income for the quarter was $2.2 million, compared to $3.1 million in the year-ago period.
Software provider DealerTrack Holdings Inc. reported revenue of $57.9 million for the second quarter 2009, down from $63.2 million in the year-ago period. Net income for the quarter was $2.2 million, compared to $3.1 million in the year-ago period.
Revenue for the first-half of the year was $113.6 million, down from $127.5 million in the year-ago period. Net loss was $3.4 million for the first sixth months of 2009, down from net income of $5.4 million in the year-ago period.
“Despite any challenges, we are pleased with our subscription revenue growth. We believe our value proposition differentiates us from the competition and that we will continue to have success in subscription sales,” he added.
The company reported subscription revenue of $29 million in the second quarter, up from $25.6 million reported in the fourth quarter 2008, and a jump from $22.8 million in the year-ago period.
Transaction revenue was $24.6 million, down slightly from $24.9 million in the fourth quarter 2008, and a sharp drop from $36.3 million reported in the year-ago period.
Despite a drop in active U.S. dealers, U.S. lender-to-dealer relationships, and transactions processed in the second quarter, the company reported an increase in active U.S. financing sources. There were 755 active U.S. financing sources in the second quarter, compared to 733 in the fourth quarter 2008.
DealerTrack reported 18,047 active U.S. dealers in the second quarter, a drop from 19,652 in the fourth quarter 2008. Additionally, there were 13,157 transactions processed in the second quarter, down from 14,296 in the fourth quarter 2008. Total active U.S. lender relationships continued to drop from June 2008 and reached 123,885, compared to 156,437 in the fourth quarter 2008.
Looking forward, company officials said they are lowering revenue expectations for the full-year 2009 to account for the impact of the Chrysler and General Motors bankruptcies and related franchise terminations. Officials said their expectations are based on the assumption that credit availability for auto financing, lender-to-dealer relationships and new- and used-car sales remain similar to levels seen in the second quarter.
"The year began with a great deal of uncertainty in the automotive retail industry,” said Mark O'Neil, chairman and chief executive officer of DealerTrack. We have seen signs of modest improvement in both car sales and credit that we hope will continue.”
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