CDK Global, Inc. (NASDAQ:CDK) Q4 2019 Earnings Conference Call - Final Transcript

Aug 13, 2019 • 04:00 pm ET


CDK Global, Inc. (NASDAQ:CDK) Q4 2019 Earnings Conference Call - Final Transcript


Loading Event

Loading Transcript


Good day, ladies and gentlemen, and welcome to the CDK Global Incorporated Q4 2019 Earnings Conference Call. [Operator Instructions] Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions]

I would now like to introduce your host for today's conference, Ms. Julie Schlueter. Ma'am, you may begin.

Julie Schlueter

Thank you. Good afternoon and thank you for joining us for year-end fiscal 2019 earnings call and webcast. Joining me on today's call are Brian M. Krzanich, CEO; and Joe Tautges, CFO. A few items before we get started. Throughout today's call, unless otherwise noted, all references to financial amounts are at non-GAAP adjusted basis. And for purposes of comparability, all results in year-over-year comparisons are presented in accordance with ASC 605.

Reconciliations of the adjusted amounts to the most directly comparable GAAP amounts are included in this afternoon's press release and are available in the Investor Relations section of our website. Also, unless otherwise noted discussions and financial amounts herein relate to the company's continuing operations only and do not include the digital marketing business which is held for sale and therefore has been classified as discontinued operations.

In addition, we are now reporting in two segments CDK North America and CDK International. Together, these were previously called Core Auto Software. 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 would cause actual results to differ materially from those set forth in the forward-looking statements.

And finally, we're anticipating our filing Form 10-K this week, with that it is my pleasure to turn the call over to Brian.

Brian Krzanich

Thanks, Julie, and good afternoon, everyone. Fiscal 2019 was a big year for us. When I look at the strong performance we have achieved in Q4, it reinforces that we've taken the right actions in the last six-months. It makes me optimistic about our future growth momentum. Before diving into the financial results, I'd like to thank our 9,000 employees not only for their dedication and commitment to delivering best in class software and services, but for sharing their insights and talents with me over these past nine-months. I've been very impressed by the high caliber talent of our team, and I'm excited about the opportunities that our company has to deliver additional value to both our customers and shareholders into the future. I'd like to begin with a summary of our 2019 fiscal year and financial results with some key highlights. And Joe will provide more details on both the fourth quarter and year-end results, as well as the fiscal 2020 guidance.

Full year results were very positive. We saw total company revenue growth of 8%. North America growing 11%, largely due to the addition of ELEAD business and the acceleration of subscription revenue growth. In our International Business, full-year revenue was up 2% on a constant currency basis with strong revenue