CDK Global Inc.’s revenue rose in the company’s fiscal second quarter, along with its customer counts, but net earnings dipped slightly.
The suburban Chicago dealership management system giant on Thursday said that the second quarter of its 2022 fiscal year, which ended Dec. 31, benefited from growth in both its primary DMS business, as well as through new digital retailing and insurance technology products CDK purchased last year.
CDK added automotive DMS customer sites for the 12th straight quarter, reaching 9,181 as of Dec. 31. That is up from 9,107 as of Sept. 30, 2021, and from 8,997 as of Dec. 31, 2020.
“We continued to see the benefit of our focus on product innovation and on customer success, which resulted in another quarter of solid growth DMS sites and average revenue per site,” CDK Global CEO Brian Krzanich said in a statement. “This growth is coming from both our core business and contributions from recent acquisitions.”
CDK last year acquired insurance technology company Salty Dot Inc., which allows consumers to buy auto insurance at the same time they’re buying a vehicle. CDK executives said adding Salty to its product suite will allow dealerships to access a new revenue market and improve customers’ car-buying experience. A few months earlier, CDK acquired digital retailing provider Roadster.
The company’s subscription revenue rose 6.4 percent in its second quarter to $349.3 million, while transaction revenue dipped 1.8 percent to $38.4 million in light of ongoing supply chain issues, the company said on an earnings call with analysts. CDK receives transaction fees for connecting dealerships to companies that process credit reports and vehicle registrations.
