Autobytel posts gains in Q4 from growth in online leads
Online automotive lead provider Autobytel Inc. posted a modest increase in net profits for the fourth quarter last year due to an increase in demand from automotive dealers and manufacturers.
Net income for the quarter rose to $351,000, up from $341,000, a year ago, the company said in a statement on Thursday.
The company also reported that revenues for the fourth quarter increased about 5 percent to $16.9 million, from $16.2 million last year.
Revenues from purchase requests, Autobytel's core product offering, also rose to $14.6 million in the fourth quarter, up from $13.5 million from the year-ago period.
In a statement, the company said this positive trend is driven by its ability to self-generate high quality consumer leads, converting at about three times the rate of the estimated industry average.
CEO Jeffery H. Coats said that recent data shows automotive leads from consumers shopping on Autobytel.com have a conversion rate of approximately 23 percent. Coats said that "investments in refining and expanding the consumer experiences at the Web site are paying off with growing brand recognition."
Net profits more than tripled for 2012 to $1.4 million from $416,000 in 2011. Total revenue also increased 5 percent to $66.8 million, compared to $63.8 million a year ago.
Coats said the company, based in Irvine, Calif., continues to "benefit from the healthy automotive market, delivery of a robust consumer experience and high sales conversion rates for customers."