Dealertrack Posts Record Revenue for 2013
LAKE SUCCESS, N.Y. — Dealertrack Technologies, which reported a 24% increase in 2013 revenues vs. 2012, said this week that the 2014 National Automobile Dealers Association (NADA) Convention and Expo in New Orleans was its most successful show to date.
“The NADA is our industry’s biggest trade show with approximately 8,000 dealer attendees this year, over 1,000 of which demoed more than one Dealertrack solution,” Mark O’Neil, the company’s chief executive, said.
At the show, Dealertrack representatives unveiled the company’s DMS 2.0, which touts a new graphical user interface and efficient navigation, as well as an inventory solution called Inventory+. Another major topic at the show, O’Neil said, was the company’s acquisition of Dealer.com, which Dealertrack expects will increase its revenue growth opportunity in 2014.
In 2013, the company reported revenue of $481.5 million. For the fourth quarter, Dealertrack posted record revenue of $126.1 million. Included in that total were $4.9 million in transaction revenue, $1.9 million in subscription revenue and $300,000 in revenue from acquisitions completed after the fourth quarter 2012.
“We believe we are well positioned for an even better 2014,” O’Neil said, noting the company’s expanding lender and dealer relations, as well as its acquisition of VINtek.
“Each of these trends positively impacted our average transaction revenue per car sold,” O’Neil added. “As a result, average transaction revenue per car sold increased $8.63, up 20% from a year ago.”
Also helping to drive transaction revenue growth, O’Neil added, was the increase in the number of active lenders on its U.S. credit application network. The company ended the year with more than 1,410 sources on its network, increasing its count by 150 lenders from the year prior.
Dealertrack also grew its U.S. active dealer count by almost 1,000 outlets in 2013. It now has more than 20,000 participating dealers on the network.
“In summary, we delivered strong fourth quarter and full-year financial results and also made great strides toward our vision of transforming auto retailing with our suite of integrated technologies,” O’Neil concluded.
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