Dealertrack revenue jumps on acquisition
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Dealertrack Technologies Inc., a provider of on-demand software for auto dealers, Monday posted an 85 percent increase in second quarter revenue to $224.8 million as it added revenue from its $1 billion Dealer.com acquisition.
In its report after the market closed, Dealertrack increased its 2014 revenue guidance to a range of $829 million to $843 million from $814 million to $826 million.
The Lake Success company also forecast a narrowed annual net loss of $7 million to $12 million, versus prior guidance of $12 million to $18 million.
Shares of Dealertrack were up $6.22, nearly 16 percent, at $45.30 Tuesday. They had jumped 10.8 percent to $43.30 in after-hours trading, after rising 2.4 percent in Monday's regular trading session.
The company reported a second-quarter net loss of $1.4 million, or 3 cents per diluted share, compared to a gain of $3.8 million, or 9 cents per share in the 2013 period.
Excluding charges related to restructuring and acquisitions, adjusted second quarter net income was $22.4 million or 41 cents per share versus $16.7 million or 37 cents per share in the year-ago period.
"We are very successfully integrating Dealer.com and things are going ahead of plan," Mark O'Neil, chairman and chief executive, said in a conference call with stock analysts.
Dealertrack, Long Island's 11th largest company by stock market value, acquired Dealer.com, based in Burlington, Vermont, in March.
Dealertrack sells software that more than 20,000 auto dealers use to submit credit applications and for other functions. The Dealer.com unit provides dealerships with analytics and online services.
O'Neill said the company's website business for auto dealers is in its early stages but is expected to show strong growth.
"It will be a slow and steady ramp," he said.
In July, Dealertrack agreed to buy ASR Pro software of Raleigh, North Carolina, for $14 million. ASR makes software to manage vehicle service departments. ASR's results were not material to the quarterly results through June 30.
In its revised guidance, Dealertrack said adjusted net income for the year is expected to be between $81 million and $86 million. That's an increase from prior guidance of $78 million to $84 million.