agent Entrepreneur logo
MenuMENU
SearchSEARCH

Acquisitions Drive 46% Revenue Increase for Dealertrack

May 16, 2014
3 min to read


LAKE SUCCESS, N.Y. — Dealertrack reported strong financial results in the opening quarter of 2014, a period in which the tech company completed its purchase of Dealer.com.


The purchase of the digital marketing solutions provider was completed on March 1. Dealertrack officials told investors that the firm is now posed to accelerate its growth in the digital retailing space, with the company’s chief executive Mark O’Neil noting that dealers “are increasingly engaging with us in dialogue regarding the purchase of our full suite of solutions instead of individual point products,” according to a transcript of the call on seekingalpha.com.

Ad Loading...


Although the quarter only included one month of Dealer.com revenue, Dealertrack reported an increase in average monthly subscription revenue — up 30% from the year-ago period to $956 per month — per dealer.


“For comparison purposes, in March of this year, the first full month that included Dealer.com's results, we averaged $1,191 per subscribing dealer for that month alone,” O’Neil said. “We added 5,160 subscribing dealers in the quarter, including dealers acquired through Dealer.com who are not already in Dealertrack's subscription dealer count to reach a total of over 23,000 subscribing dealers as of the end of the first quarter.”


The acquisition also brought added CRM capabilities, which Dealertrack plans to combine with its other CRM offerings to create a single solution. “We are very excited about the longer-term opportunity to enhance our CRM solution by providing dealers with predictive data analytics from our online and in-store solutions to enhance the vehicle sales and customer interaction process,” O’Neil said.


“In March, we had over 60 million visitors to the combined websites we manage, putting us in a unique and strong position to leverage this data to materially improve the auto shopping and purchase process,” he added. “With Dealer.com's websites, we're also seeing increased interest in our digital retailing solutions, due in part to these solutions providing an optimized link between our online and in-store solutions.”


In the opening quarter of 2014, Dealertrack recorded revenue of $158.8 million, a 46% increase from a year ago. Acquisitions dating back to the first quarter 2013, includes the Dealer.com purchase, contributed approximately $35 million to the total.

Ad Loading...


Eric D. Jacobs, Dealertrack’s CFO and executive vice president, noted that GAAP net loss was $12 million or a net loss per diluted share of a negative $0.25, due in part to the Dealer.com acquisition.


“… we are combining our existing CRM solution with Dealer.com's CRM solution. This, along with the overlap of ClickMotive and Dealer.com's website solutions, resulted in the impairment of certain assets in the first quarter, an amount of $7.5 million, net of taxes, or a loss of $0.16 per share,” Jacobs said.


For all of 2014, Dealertrack officials said they expect revenue to be between $814 million and $826 million. “… with an excellent start to 2014 and the completion of the acquisition of Dealer.com, we are excited about our achievements in the quarter and believe we are well positioned to deliver strong results through 2014,” Jacobs concluded.

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →
Ad Loading...