DealerTrack Reaches 250 Finance Sources, Reports Financial Results
LAKE SUCCESS, N.Y. (Aug. 7, 2006) — DealerTrack announced it now has 250 finance sources in its network. Executives also reported that the company's president will be leaving.
Company executives recently said that Vincent Passione, president of DealerTrack, intends to leave the company to pursue other opportunities.
"We thank Vince for all the contributions he has made during his tenure at DealerTrack and wish him the very best in his future endeavors," said Mark O'Neil, chairman and chief executive officer of DealerTrack.
By June 30, DealerTrack had 243 finance sources in its network, meaning the company added eight more by early August when financial results were discussed. The number of finance sources by the end of June this year is up 72 percent from the same period of 2005, according to executives.
"The power of the DealerTrack network continues to grow as we connect more financing sources, dealers and other providers," said O'Neil. "Providing dealers with the largest network of automotive lenders helps dealers sell more cars and enhances origination potential for the financing sources.
"We will continue to connect financing sources to the DealerTrack network to facilitate Web-based financing and e-contracting opportunities for our more than 22,000 dealer customers," he continued. "More lender choice means greater ability to choose financing that meets dealer objectives while serving customer needs."
Discussing the quarter's financial results, executives said revenue came in at $43.4 million, a 49-percent climb from $29.2 million reported for the second quarter of 2005. Meanwhile, net income for the quarter reached $4.7 million, up from $1.1 million from the same period of last year.
"We are pleased with our second-quarter results," O'Neil said. "Expanding our network by adding more participants, products and services helped drive steady growth in both transaction and subscription revenue. The network effect has become a critical driver of revenue and a key source of competitive advantage for DealerTrack."
Reporting on the six-month period, executives said revenue reached $81.3 million, up 55 percent from $52.2 million in the same time frame of 2005. Moreover, net income hit $8.1 million, which is more than double the $3.1 million reached in the same period of last year.
As for the exact number of active dealers in the company's network, executives said there were 22,031 as of June 30, up 6 percent from the same time in 2005.
Continuing on, executives said approximately 17.4 million transactions were processed through their network, up 30 percent from 13.5 million posted in the second quarter of last year. Meanwhile, the number of subscriptions in the network reached 18,064, a 59-percent upswing from 11,351 reported a year earlier. The number of dealers with at least one subscription in the network grew 37 percent over last year, reaching 9,371, executives added. More than 42 percent of dealers subscribed to at least one product in the network, company officials pointed out.
Looking to the future, O'Neil said, "Our focus on execution and innovation continues to deliver better than expected performance. As a result, we have adjusted our guidance for 2006. The current surplus of automotive inventory and the strong possibility of additional manufacturer incentives lead us to expect an active automotive retail environment for the second half of 2006.
"We believe that deep penetration of our network within the industry and growth potential of our newest products and services will enable us to achieve our performance targets and continue to deliver value to our customers," he concluded.