Overall results were not as robust as expected for Dealertrack Technologies Inc. in the first quarter, despite record revenues and higher demand from used car dealers, according to Raj Sundaram, co-president.
“We had expected stronger growth and a higher mix of subprime volume which did not materialize,” Sundaram told Auto Finance News.
Dealertrack, a web-based solutions provider based in Lake Success, N.Y., had 59 % year-over-year revenue growth, due in part to acquisitions. That was the 21st consecutive quarterly increase, the company said in a conference call on Friday, May 8.
The company said industry used vehicle sales were higher on a year-over-year basis. Citing data from CNW Marketing, Dealertrack said units sold were at 2,743,000 in the first quarter, up 2.5 % from a year ago.
Dealertrack said its credit app growth outpaced industry sales growth, “but not as significant as we had planned based on our subprime growth assumptions,” Sundaram said.
The company also saw strong dealer demand for its Customer Relationship Management (CRM) system since introducing a newer version at the National Automobile Dealers Association convention earlier this year.
“We have a solid roadmap to further develop our CRM solution which will help drive innovation through workflow integration across our other solutions,” Sundaram told AFN.
The acquisition of Dealer.com in March 2014 allowed the company to strengthen relationships with original equipment manufacturers (OEMs), the company said.
“Volkswagen, Hyundai, Chrysler, Subaru have all expanded their relationships with Dealertrack,” said Mark O’Neil, Dealertrack chairman and CEO, in the conference call. The company expects to announce two new or largely expanded OEM relationships by the end of 2015.
More details on the Auto Finance Risk & Compliance Summit, May 18-19 in San Diego, can be found at www.afrcs.com.
