CDK Global, Inc. (NASDAQ:CDK) Q3 2018 Earnings Conference Call - Final Transcript

Apr 26, 2018 • 08:30 am ET


CDK Global, Inc. (NASDAQ:CDK) Q3 2018 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen, and welcome to the Third Quarter 2018 CDK Global Incorporated Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions] As a reminder, this conference call may be recorded.

I would now like to the turn the conference over to Katie Coleman, Senior Director, Investor Relations. You may begin.

Katherine Coleman

Thank you. Good morning, and thank you for joining us for our third quarter fiscal 2018 earnings call and webcast. Joining me on today's call are Brian MacDonald, CDK's CEO; and Joe Tautges, CFO. Brian will begin today's call by highlighting exciting new innovations we announced this quarter, followed by an overview of our results and highlights for the quarter. Joe will then take you through the details of the third quarter results and our guidance for fiscal 2018.

A few items before we get started. Throughout today's call, references to financial amounts are on an adjusted basis, unless otherwise noted. Reconciliations of the adjusted amount to the most directly comparable GAAP amounts are included in this morning's press release and are available in the Investor Relations section of our website. I would also like to remind everyone that remarks made during this conference call will contain forward-looking statements. These statements involve risks and uncertainties including the risks detailed in our filings with the SEC, which could cause actual results to differ materially from those set forth in the forward-looking statements. And, finally, we anticipate filing our Form 10-Q later today.

With that, I'll now turn the call over to Brian.

Brian MacDonald

Thanks, Katie. Good morning, everyone, and thank you for joining our call today. This was an exciting quarter for us, as we announced a number of new innovations and had several new sales successes. We delivered another quarter of improving margins and double-digit earnings growth. And while revenue growth isn't where I want it to be, we are taking the right actions to improve our results. Today, I want to highlight the new innovations we launched in Q3 that are important to our long-term revenue growth. And then, I'll spend time talking about highlights from the quarter.

First, I'm excited about the new innovations announced to the market at the recent National Automotive Dealer Association, or NADA show, our industry's largest convention. This was our 50th year attending the show and we had six major announcements. I don't know there was ever another year where we had as much to talk about as we did in 2018. We've been making investments into the business, creating innovative new products to drive growth in the coming years. I'm really proud of what our One CDK teams have delivered.

Before the show opened, we led our first-ever preview event for the news media and industry analysts. There we highlighted the recently announced Drive Flex DMS as a service as well as launched the Fortellis Automotive Commerce Exchange, a real