CDK - Earnings call transcript Q1 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen, and welcome to the CDK First Quarter 2019 Earnings Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the conference over to your host, Ms. Investor Director, Senior Coleman, Relations. Katie

You may begin.

Katie Coleman

Bersit. us for you, and Good XXXX morning joining for webcast. you thank our call and earnings Thank first fiscal quarter

details acquisition Tautges, Brian on provide in we are our to the for welcome a that over And updates the pleasure differ ELEADXONE. Brian XXX, risks from will finally, then uncertainties on statements. of my we'll our Investor business, the section comparable with during and cause for included some also would started. Brian get comparability of the everyone risks of begin turn remarks this conference detailed our in are remind amounts to Web core CEO involve call first which opening me GAAP including ELEADXONE to that will results quarter which to CEO, release would most impact call innovation financial the today. XX-Q ASC are results accordance statements call to on noted take later purposes made the filing a who on are adopted the before forth call Joining this and and presenting have be anticipate of amounts the Krzanich. ASC modified basis XXX. will our like directly press morning's site. Throughout today's those our today's I in incoming recently the retrospective available fiscal materially Joe adjusted These amount will non-GAAP revised initiatives then today's could With forward-looking through in Form CFO. filings of in including and guidance Krzanich, and adjusted we of statements. basis. XXXX the Reconciliations it's the to remarks. actual I A our we also MacDonald's references results set contain forward-looking otherwise with Relations closed SEC, and adoption of like to MacDonald, items Joe call and you with Brian the unless few

Brian Krzanich

contributions technological us the the to top-line industry's company. rapidly a lead transformation, in significant auto execute deliver to growth. position we which by as is excited also and gives value. this and leadership for which cost market creating growth. operations phase and MacDonald the to Brian for continue evolving next partner automotive of customers to for thankful to well company's the to opportunities key solutions we industry Katie, look you, for good as my an we're of first the what commerce industry early then parallels implementation for engineer with media just and is social CDK. starting in my to technology because at day saw I'm CDK today. at career join such day many a automotive place me thrilled XXs the started it's at the what is special cloud. and see both transform I I as and lasting our positioned shareholder initiatives accelerate the computer of I'm really the have I'm morning company Today advances Thank made taking the an and the everyone. to to I transform in opportunity world time strong CDK the with between have the structure, in Intel exciting on

meet some the As of forward market to changes execute strong automotive growth the well-positioned about with excited to CDK, in opportunities biggest I I've midst to employees new and SaaS leadership. environment. will our in grow quarter customers The has the in and the a our to continue need leadership and CDK be the CEO look that to we to plans. as connect customers position continue history with investors solutions preparing our is at automotive in and with to its I on has. in provide position CDK the the technology the and partners been industry company become coming is of

Q&A, quarter earnings While over Brian I be I areas. the keep the on ask for be call that, on updated focused will And available the to for of results and that XXXX. questions MacDonald. focused the today's I'll With fiscal hand you guidance the call these

Brian MacDonald

Brian. thank joining our you Good and for call morning, everyone, Thanks today.

XX%. moment have been XX% employees. I'd increase like and serve say our we've get organizational years. of customers. to I'm to I than We've company on structure new expanded on CDK more million better more than of the has Before has profile journey team transformation thanks financial here significantly to to all the which word margins $XXX a of points has proud results over a and CDK's over culture extremely reflecting tenure EBITDA XXXX we The accomplished this my improved. to is into basis created over quarter, three and The a the the spend a at of expanded past

My to while billion for ELEADXONE. has a invest as they has addition, will and is know well-positioned to CEO the growth go the company the been worked over investors acquisition next for to to we The to job which journey their Brian. It returned have in still the good product phase serve position of I to company and In entire for privilege of recent and a continuing team under Brian's shareholders, thanks $X.X continue real CDK innovation for growth. including tirelessly leadership. the do

first quarter. me of let Now return to results the the

the results QX quarters. of initiatives growth benefits business We over the are pleased last the core discussed we've our several begins reap as our to with

year-over-year was of Solutions in grew by headwinds and Total we previously was Retail North America face by International the core company auto business driven core communicated in the advertising. Our segments. X% flat growth strength both and software composed in year-over-year diluted business revenue

the executing We following are four by priorities. in laser focused our on business on core accelerating growth organic

and improving existing in auto to for wins continuing book business; applications First, sites; new accelerating auto two, revenue the increasing rates our strong commercial four, three, optimizing driving further our site we've by international. growth experienced penetration; sites of of per retention and layered grow offering our

First, sales we're our team. acquisition I'm results proud of seeing from again new the site

New in site wins to continue this delivered increase improve year-over-year. as site double-digit team wins a auto

new we're sales, While with our priority continues which a auto customer more count, is site retention opportunity happy achieve site of area. to to area our next be consistent biggest

important this tide sites. impact application layered a a stem on Improving customer multi-pronged not customer retention entire long-term regard have growth. all from XXXX requires ongoing more of to was product approach downstream implementation to These and our net also that spans revenue quarter the which a out-of-site makes We the and decline our have effort the in XX this experience result sequentially utilization. fully our auto to service the customer losses losses site site yet

new the auto including us We still are introduction next see the customer these which customer analytics all will of progress the of over of of year. on channels hard and counts the of continued site support, fronts the drive success data help fiscal to variability of in expect at our team We and revitalization remainder work during several all use of quarters.

driven in priority, increasing revenue as saw layered well penetration. our third by increased application quarter per the commercialization site growth this to auto X% as We revenue per Moving site.

notably last through sales first most sales seen our document our that areas, inventory weakness areas relative of notably doubled. year-over-year of growth Our to offering. new same of of in haven't portfolio key has that to in note success driven efforts in some robust are suite to a office CDK want working application more there I the acquisition sales have increase application CRM of the address layered We're penetration service and North than inventory do cloud year. the rate us product sales actively layered gives American and which includes CRM certain declined ELEADXONE our front to

in become we weakness we our We the has last have cycle important not OEM to year. increasingly as from of and speed momentum. look are seeing capitalize expect our also sales ramp Web implementation highlighted strong sites seen endorsements the The on relative

lifetime primary our international. combined solid growth doubled throughput positive. loss and program business our early improving more number is in results. program contributed thanks which dealers per outlook revenue the result success we rewards value business partnering through makes over haul. We've streamlining changes a than sites in of QX Our our CDK. more to also helping The gives QX layered it's more dramatically to year-over-year rate and from see enhanced organizational to our layered commercialization internal improved and begun capacity. pricing processes which our install incentives efforts recent new simplifying advantageous further introduced have to to implementations for packaging all makes to rewards direct application and we business structure drive In contract and to customers also customer their single vendor terms. to the standardization previously the attractive more revenue We and a round growth core mix and offering digits as QX, customer discussed priorities, subscription our QX. the in as our continued commercial of be Average in with the China growth a we our the out in site our despite To believe during for remains grow this saw transparency by large long the four implementation We've with by and high bundling software dealers program their applications of grow

make investments established with better more in we to auto the development Within Lyft long-term Hailer XX of are being network coming the about innovation, made continues flex dealers. and leverage of capabilities launch and the applications also on developers the engaged integrated of our to software projects. the preparing almost working Fortellis design the companies American We're quarters, XXXX are to solution testing with In we're advancing sites. North We our and Drive on also capability customers selected to also for we're excited platform flexible and our our approximately entrepreneurs, drive progress are leveraging CDK for our Fortellis, actively software.

are technology near-term platform our expecting While, revenues pivotal from long-term aren't advancements strategy. in Fortellis to we the significant these

of the of to of to vertical. automotive the Finally, providers move I'd ELEADXONE, premier like on our exciting one in the software CRM news acquisition

far seen We've months two sales a I'm is for to positive. than ELEADXONE franchise the customer opportunities business response vehicle servicing pleased by early is and very reminder, encouraging. the specific application a the by success culture our and a culture. retention. layered selling lead the dollars bring their on software and include is needs. daily on quoting. expertise It make spend month a they The are of maintaining in dealers dealership As management, and grow dealers of growth by a I've ELEAD CRM depending setting less and far. CDK as software sales owned thousand both our are are has in key innovative for auto CRM a appointments tracking, to used with functionality notch capabilities so serving transaction other customers. cars. and biggest We've knowledgeable ELEAD employees of itself business so of needs for by What that our and great common top several Key they ELEADXONE observed more the faster and lead results group will one results talent office that enabled it is people application prides related to customer-centric and per front been customer more opportunity on Internet planning, centered dealer core

our sell and Joe to acquisition our leverage CDK dealers in business will you and through to walk vehicles. guidance in this products will own targets We service and towards the more improve on customer results ELEAD portfolio to our strategically and the expertise XXXX represents to experience a we of as this QX clear in minute. enhance call. priorities enhance we The the passion established that will retention longer progress invest updated fiscal term help metrics. contribute area our our that growth will Adding look

range of Joe, it we fiscal the which XX% for pass previously was declined I the highlighted to business XX%. Before also throughout like Advertising expected weakness I'd guidance on revenues year our advertising where within off 'XX. to touch to XX%

the to we as to clarity throughout year we'll your call levels the expected over questions. marketing year then will We heading more into take turn updates and on spend provide continue Joe now calendar XXXX. gain I'll

Joe Tautges

morning Thank everyone. Good you, Brian.

for to data of of to the Brian business. I'd able excited as all we've initiatives my look and that me thank to Before for I like as our He Krzanich the of a caliber take business solid over partnership he business past use CEO created into on grow. made been a performance partnering he Brian the to The performance, am through analytics done and to the contributions been moment MacDonald has has CDK supportive with I foundation and for has discussion three finances with have improve for years to attract personally. us well a very I him. forward also get improving

Now begin seeing solid quarter, were QX the we implemented we've results many initiatives from quarters. pleased and the moving results the on to to several were last over

continues, opportunity fiscal our and year biggest say however, our improve trajectory. expectations remains Our sales momentum long-term this isn't retention for to our growth meeting

fiscal I have a We ASC results modified into for the adopted XXX everyone year. results. each XXX the retrospective remind and As get report ASC want we to basis. ASC the on I under XXX of quarter's that remainder both

standards between of lack licenses the recorded references software These our business provided ASC year-over-year data relevant included revenues of with under ASC the respect all in The period. under be primary will today previously the under year time differences and all XXX at were ratably XXX. to the prior have are over the earnings contract We onsite comparisons press are of XXX. to installation installation release ASC two because details upfront recognized

sheet service XXXX costs earnings various fulfill onetime to versus more XXX. addition including implementation the adjustment overtime obtain of under ASC $XXX timing capitalization revenues and to for lower the sales for asset balance accounts direct the recognizing the under and primary of In our and contracts in commissions ASC and these of to earnings XXX million. taxes upfront were retained resulted and a cost are of revenue obtained making contracts, to we'll The drivers opening including capitalized fulfill the liability be costs fiscal expected of directly and arrangements

software total in onto of Core Now with EBITDA resulting $XXX for million auto XXX $XXX million. revenues a was revenues of income margin million were the a the On results were quarter. ASC company $XXX XX.X%, an pre-tax $XXX basis, XX.X%. was margin million.

through income revenues basis tax America business in of Core acquisition revenue the results rate by as international. interest ramp-up XXX and currency business Pre-tax by expense. expansion losses. Improvements constant well share earnings subscription progress effective of positive result on partial by ELEAD ASC is North now included quarter and the auto expected were and continued a the our million as auto in from decline a revenue The in diluted as to site expanded increased basis. an was XX.X%. retail double-digit $XXX expanded growth both currency offset or transformation was solutions program. points offset reported in dollars in XXX from year-over-year per million million software to partially by margins were were XX.X% core year-over-year company $X.XX. driven margins business. was an total and Our XX.X%. operating revenues the the increase On and partially our year-over-year was $XXX was income flat basis both reported Growth software as on points million X% EBITDA constant Total advertising in per XXX growing and results XX% $XXX $XXX America basis basis. Margin to offset North company results grew a The

average tax share Our expansion, from driven to the count tax rate was to a EPS of benefits $X.XX. offset operating increased quarter, was the buybacks effective expense. lower which interest up were rate XX% was and by for Growth margin diluted year-over-year due by partially lower XX.X% all

hardware recorded both due revenues. ELEAD revenue, million turning credit declined XX.X%. revenues revenues. partially $XXX consulting margin North driven growing in results. due revenues up to site auto X% X% XX% and ASC was currency retail mid-single a income from plus progresses digit on pre-tax by revenues Subscription segment $XXX from groups. XXX, segment America inclusion primarily ASC of our were and America two to solutions portion groups in offset up a in declines primarily resulting the business the single to Transaction to million constant were Under bureau site to digit revenues Solutions reported high by one of and Under the equity mining declines segment Now XXX, and three basis. X% were by $XXX Retail partially offset lower revenues the million of North Other increases which was

three which in by remaining down revenue loss sites to to X,XXX other expect be income continued site XX operating site sites from continuation We margins plus to XX%. growth by than growth within benefits Pre-tax X% sites by driven is million transformation growth the auto America growth the subscription the rate fiscal basis down of to and primarily of offset the expanded sites quarters auto points greater year this and similar activity were year-over-year. or one XX.X% revenue and in XXX to partially sequentially two Declines in the be plan. QX $XXX business driven groups was leverage segment. of North

headwinds the Pre-tax revenue to the Margin X% continue a in million points Moving scale by $XX X% basis revenue million income XXX represent and offset margin international, were ASC of this grew in revenue the improvements revenues from China X% on The loss We'll higher revenues impact growth was were by QX. on experience income due basis. benefits under in some was ASC increased X% second Pre-tax half international Under of in to on fiscal customer through XXXX. plan initiatives XX.X%. segment primarily year. expected recorded revenue relating recognized per the through $XX in and second a XX%. million achieved XXX, million, XX to investments will on fiscal transformation the or $XX year-over-year expanded loss in to revenue. sites onetime resulting to as of margins QX a a constant site growth from currency counts partially $XX driven decrease drag offset quarter to year-over-year. a Growth site year-over-year customer of was

advertising XX.X%. Now pre-tax Under This ASC this ASC segment was resulting basis, North of customer XXX costs. year-over-year. a XXX, across America million income margin and in in to reduced million at on was XX% compression $X on results, declined came the spend revenue, reduced income advertising margins as basis million decline points XXX revenue recorded of decline tiers. three $XX Margin an of XX.X%. by million higher was revenues driven advertising $XX in $X all was leverage advertising result a Pre-tax

Our combination year-to-date. EBITDA $XXX the to repurchases cash $XXX our X.Xx United We was States. calendar outside million the net held $XXX increase million was range at leverage million almost of free $XXX $XXX dividend balance by of returned within an million of shareholders a through to flow in and quarter of improved million to share which We and debt of earnings. the cash previously is quarter primarily XX% adjusted X.Xx driven year-over-year communicated ratio. Xx ended QX

capital We shareholders and XXXX to in million will to combination debt continue $XXX calendar dividends $X EBITDA. billion to and goal returning a execute buybacks our net adjusted through Xx share XXXX to years program return X.Xx with range to of target leverage and of a of our maintain

accounting $X.XX to guidance company like-for-like million billion. ranges. under I guiding and switching XX%. $XXX on XXXX $XXX expect EBITDA Now providing dollar the provide to of will fiscal tax order to I'll range from EPS both of growth $X.XX move to $X.XX which we're to we for total and of revised guidance standards. to billion rates to In provide $X.XX of rate XXX, XX% ASC Under revenue million

XXX, we ASC guidance acquisition our the ELEAD. billion, billion revenue increasing accounts for to $X.XX which full to total are $X.XX company year Moving to of

inclusion to this America North revising to billion. within the billion also both retail progresses core guidance guidance and ELEAD revenue software Note, are $X.XX that new $X.XX between auto of We the contemplates segment. solutions

to range communicated exit implied X% expect year line of is note $XXX full Please guidance $XXX This previously EBITDA XX%. that We're margin target revising with ELEAD guidance in We of an between $X.XX to to also million dollar achieved ELEAD to longer down revenue reflected from EPS mix. which to our the caused previous million. to XX% growth largely $X.XX due our the by be $X.XX incorporate will dilution no transaction. $X.XX to the

year customer our business retention of Cuts which we on be auto to Web as to excited rate on and XX% guidance the high-end growth challenges. momentum We're focused initiatives. which at positive continue see digital which full to the software, We also revenue growth. improvement the have of are the it of and including our Jobs tax and opportunity to advertising expect Tax accelerate portfolio year core of summary, execute addressing We do to will impact these incorporates have in XX% Act. our the accelerate throughout sites areas and need as range we brings as part our we ELEAD such and In

are to be I'll by quarter the the to turn quarter. next encouraged the and on your first progress happy and results to updating you operator forward take We over our look back we'll call questions.

Operator

Zaffino with [Operator you. the line first Ian Thank of from question comes Our Oppenheimer. the Instructions]

Your line is open.

Ian Zaffino

color you an you're Thank what in out give be details to preowned surrounding new if you related idea what much. Question could the side, the see you your or transaction very just Thanks. there that? of Maybe versus sales any us Great. sales. maybe on market seeing will

Brian Krzanich

then, positive with performance very new our to And vehicle we we've that your seen perspective. last It the continued sales would was pressure the on the we as very long-term put Brian, And and in but quarter go declines that. shared and can pleased SAAR well I investments teams the to volume up you off what in On look QX. out down as Brian about call. results some well there. team are seeing sales would doing as really to QX and exit start competitive add. at a positions the of we are see then our from you from question, as I'll achieving in perspective. be think some market lower MacDonald, Maybe we this it We've continues sales I in pressure the anything weigh revenue is, a ramp again to the in transaction continue we've our the and has that on typically guidance there, as to growth say have transaction revenue we quarter towards been

Brian MacDonald

I has where would expected and at environment peaked on to business lot SAAR an looking of here. are is the on Yes. -- and that kind just given car over. the roll business. dealers efficiency clearly used SAAR focus from that end down service of dealers used from of the of car side the add A Lot rolling of focus gains

well where the part bring operations So technology the think more be especially that's them help to tools I dealers CDK to is fixed of in efficient positioned and the business. to to

Ian Zaffino

Okay. in to X then, to when give so Thanks. on side, call year know about us can it a outlook it. business, don't DM the you that? thinking I if do gave growth just on your know maybe, you return Will maybe I near-term should outlook, DM we business that X, be we X, Thanks. And be or how see

Brian Krzanich

Sure.

So again, start. I'll

I we it few look think when been quarters for quite sure. last has as the over business in at volatile

And so near-term right are we providing guidance. now, just

the year get in the think digital fiscal diversifying spending come about particularly we start to are as of Longer term a our well as the through and into end we focus trajectory. the time improve revenue the to business year. how as update We'll lot on we you it. We business of as

Ian Zaffino

you Thank very Okay. much.

Brian Krzanich

Thank you.

Operator

the from Rayna ISI. Evercore comes question Kumar of with line next Our

open. is line Your

Rayna Kumar

of question. Drive migration your for taking a little my you Drive about customers about Flex? onboarding Flex Thanks with Can morning. your your the talk Good and timeline bit progress to

Brian Krzanich

in. Sure. Brian add can I'll start you MacDonald, then and out

we Flex So, we're you on handful can to customers at we to many stages There's of the phase appreciate. the as in so and DMS. design, are and that a very are able looking the change that -- early being a usability modernize of going workflows Drive in in workflows the the have

that the encouraged have And It's a about this areas of and so we're come a have tax year-end Coming are space year-end, up where investment tax statements R&D and us teams the the of we in results tell got lot lot year. our financial one on biggest technology. the will the the together making. to filings by forms

head we beyond. will give fiscal that touches a the NADA year-end, conference as phased into and January. on update such be broader transition technology the into a next As and in And at year we'll it thereafter

are pleased making. balanced taking our to the send with get This the sure really the that's critical We're we're making we right Flex. and that progress way is team time. and So is Drive being to

Rayna Kumar

In and That's new the Great. for about for helpful. segments. very across contract sales remarks you Could results quantify strong you opening spoke quarter? backlog bookings your us the

Brian Krzanich

Yes.

bring to So we don't continue know. market retention. have we just on Rayna of deliver we disclose you retention side is key the the bookings to I the focus and around increases customer going the continue success, Flex we is, equation. to say What would We've Drive what really double-digit momentum and and number as customer on see got to sales how focus customer

Rayna Kumar

Understood.

exit you Excluding of acquisition, be target EBITDA ELEADXONE your plus the adjusted margin? on the would of impact to hit XX%

Brian Krzanich

of that sure things that business that are the forward. forward-looking guidance said hit for had So margin. number the a we providing exit Listen, XX% we in to motion de-committing. There's and we're yes. in have we're going plan foundational There a not -- nothing out

which the growth. EBITDA at cannibalization our around going As and XXs, you we're dollar of we're EBITDA lot creates it in company of go very in high now we're appreciate look there's to in, on made EBITDA forward value the grows can When focus our the around and dollar a that growth so focused in when ELEAD shareholders. on moving of ELEAD EBITDA core the bringing the mid-XXs percent, sense you on business EPS business, which growing margins focused pieces for a bringing in cost lot were

Rayna Kumar

question and quarter? me. contribution earnings revenue call ELEADXONE final for Could just the in the for out And Great. you

Brian Krzanich

Yes.

in listen we're their harmonizing of a side so of automotive to a and So that really is the part financials accelerate of employee ELEAD. benefits, reduces cannibalized not software business. revenue to at trajectory our businesses get to be revenue legacy pieces we you helping equation, the the of impacts business When disclosing our going longer the they're that going given that do look our term. to they're the of think Again of any to and expectations we profit result us an core bring it. important number are have we've our growth around coming us shared as We job that specifics our for the in and great

Rayna Kumar

Thank you.

Brian MacDonald

you, Thank Rayna.

Operator

line Blair. Matt question the comes Pfau And from Thank next with you. of our William

line is open. Your

Matt Pfau

Thanks for my taking guys. Hey questions.

First one bit. ELEADS hit little on a to One

And the applications, CRM, seems commented and but to you're progressing. way lot bit pleased layered product sounds with in go as it weakness I the office in if And the like the front having applications cited a that application. areas in one it of office of those comments in was then a that so front around back is would like that you're ELEADXONE also the CRM that of cover

is solution and ELEAD lead those guess trying else help something the two there? together improve that I front to there to or is So comments put office

Brian Krzanich

Yes.

For sure. That's right on.

or the to CDK look frankly look weakness you a went have at opportunity ELEAD past shared been retention When a they where for got culture have a product the CRM our They've as the of have the look to dealer and to got us. best us. strong spend this you cars. time what and the sell very that the around is their and of and about a When So us they they've at in very out was they their from marketplace. selling position. quite CRM Brian that fills best new the money at family. I make go part the market some for has for And to think perspective, clear thrilled need we it products in And we're improve retaining

us the really And to to It perspective It our really have so allows with bundling the it excited we're a portfolio. difference. really make from into customers conversation. changes a

and exceeding X.X our far. teams and about as you them off well on working excited start we're good yes, the front thus portfolio. so All And part last at look expectations sales together when the the are we're it of months to having

Matt Pfau

revenue have software revenue, the CDK's on which Got I it guess because in mostly after I'm bit ELEAD, impact. was on that then, wouldn't expected a ELEADs about a to surprised ELEAD having is it, I it. commentary I of impact the And have so thought dilutive releases mix the earnings,

detail maybe that just comment. help some So more me understand

Brian Krzanich

Yes.

we back ELEADs, which when without meant, June as of your on So, investments, was gave it guidance that the the did we in year-end, we and buy borrowing gave focused such. part

for we well -- as well CRM ELEADs look on business when benefits paying along so as the around are price bringing transitioning things as And the the at do going ELEAD, that, as employee harmonizing -- purchase the with again the cost our you and interest in to such. right

up end a they a outlined, just profitability of very than the is other and And this how which cost at of you and so ours factor nice the growing when as do ELEAD lower of well costs pace a the is I've business with as interest it. is in profit position the in you some

Matt Pfau

Got the OEM why it. you maybe on some haven't details previously endorsements the sites, And Web impact? expected on received that just had then the

Brian Krzanich

be to got Sure. and time sales lead of Listen, effort. certainly we've cycle and And we've site able a out the a switch provider takes Web excited unhook to lot and take endorsements.

progress in certainly seen we've end we've the of first and the slowing at last So tail seen a year pretty quarter. good

do And not it. be. we wanted so to to just all about wanted be we is transparent where It's

we're expected. we would've longer an it the I each endorsements think and than to work about day. continue think there we have it's still taken pleased and opportunity us Nonetheless,

MattPfau

Thanks it guys. That's it. for from Got questions. my taking me

Brian Krzanich

Matt. right. All Thanks

Operator

[Operator Wells Instructions] Nabhan from Charles with question the Fargo. of line next Our comes

open is line Your

Charles Nabhan

and that's understand provided morning that's for pre-ELEAD guidance for rates you quarter expectations a business. is there my last on Good this quarter -- long-term was for taking but specifically thanks questions. the I happened growth has some that changed And basis Hi. I know business? overall revenue growth long-term your for really your anything

Brian MacDonald

growth part it. stabilization at not look count we've all. really very we XX% this about and we've no to accelerating of out end you the ELEAD the important support And Chuck. with When returning laid transparent as helps at been of and is it An transaction spoken question, year. as of that the a revenue for about business as exit we site year Thanks case part

product transaction practices. other commercial we you'll think and our I there. we think consistency ELEADs service we us then, the well bundling with products and application second And think part positioned the we focus more and the in as is of and layered have suite about our hear penetration, to are continue commercialization on just

growth and continue between rate will a keep good you of work to be we we X% X% term we about that our longer and there have to So revenue lot and here updated. feel will

Charles Nabhan

this we And Great. remain new know early to strategic more the guess a there's about ask a leadership, business maybe lot probably from XXXX. it's drag question, to strategic been around to expect you a specifically that's to it expecting I about around drag and I of And from business little know and status the we in anyways. a think standpoint? advertising Could change could Thank Under advertising I'm should do the the be uncertainty but how intact the a standpoint as quo going is I specifically, well? you. talk a leadership

Brian Krzanich

one Brian there. mean you being tell Yes. I I changes a just I'd I that it's the This ago. hours one any couple walked me building see me driver thing dramatically of if day Krzanich. in for literally. don't is of

know of to But portion it's on how point here that. think the working for I team early on to business. really has a me manage best been of I So have view too that the

I'll really has So doing. let talk Joe the been what about team

Brian MacDonald

on about the the in progress advertising meet future software shared we where The clearly And future address when and in with focusing business revenue which and not shown I've internal we're plan look seen quarters. its team look in our did it is and toward to Yes. we you've pivot to past not it's Thanks the thinking you in the to the at and for diversify really updated needs for business. Brian. think to happy and we've us business. forward how that updating we auto of quarters you there keep at, on be we'll around disclosures. our signs core around the got our where nonetheless listen and the us fix volatility why And business quarter continue has stream which businesses encouraging is It's

Charles Nabhan

Thank appreciate I Great. you. working forward with the you. color and look Brian, we to

Operator

And is Morgan Brian you. our with Essex Thank Stanley. question next from

Your line open. is

Brian Essex

Hi. just you fiscal on there Last color forward us think give that in new side what geography, how and guess, the performance? we going I'm bit Good for geography was of question. morning, European was anything could year and with leadership strong about wondering rest kind Joe of your quite impacted might and you this a the prospects for through that taking that on the I the little particular thank International of -- the year? performance in

Joe Tautges

Sure. had question. for on that's Good our it. morning, when last a we business. year constant-currency we a in a really Brian as in reported quarter the customer X%, continues we CDKI QX, see thanks bit a had Unfortunately look to business, drag below we'd we that like basis and loss China to put where a It on grow Listen this good very at year. to

reported a online have number year. initiatives have of heavily big We we next early there. We win out part Japan. comes in did of invested growth That a fiscal that in

more But It headwinds with out that International expect continue loss, continue now to the business things of a some a lower in constant-currency than comparisons So working noise well growth team currency impact go there, we got got see year-over-year the the rate work basis and we revenue business number this and at reported you'll be we've to the I business customer we the will. bit muted good short, continue second do business but initiatives would and growth but that a foundationally accelerate. noting our think half long the story think on worth to to in is will I we've a see so given just face in for do if you there. QX

Brian Essex

get kind you. just Thank kind of an a on to that for store accounts, the At maybe of it. are stabilize market? market And the kind the of of and one progress your follow-up. portion what bottom to just of Got there any update efforts competitively end there two

Joe Tautges

Sure.

to a store us teams sites a we for on do I are on seeing talked more in and one space So sales two it's when really work the quite place that up work to our and to retention at last us and two front a but we the for from in focused sales it. be of us retention to sales it, and front resonating there on and given the results and the in Still encouraging do of a perspective. the months, are lot sales think, more about challenge continues us I us for is highlight be couple the the best one investments to see it performance the win challenge it's look our continues one momentum we and in but to to ramping again coverage, our

Brian Essex

helpful. Thank much. you That's very super

Brian Macdonald

you. Thank right. All

Operator

turn for questions. MacDonald Thank further call I'll Brian any the And to showing remarks. you. closing back now not over I'm

Brian MacDonald

support to you and let thank my transformation conversations views follow and with CDK me over say investors the we few while enjoyed closing, journey In years, for past many made that who your CDK me story is have I leadership. everyone together. of success. the well my team part Have positioned being and for want the continued continued Brian's thank customers employees, executive CDK day. wish for great our growth I a under our a and with

Operator

does Ladies gentlemen, the conclude and this program.

may You disconnect. now

CDK Global (CDK) 7 Nov 182019 Q1 Earnings call transcript