CDK Global Inc.'s net income jumped 24 percent to $96.1 million for the fiscal third quarter ended March 31 from a year earlier, on strong pretax earnings growth from subscription services in North America and international markets for the dealership software provider.
Revenue grew 3.6 percent to $576.6 million, the Hoffman Estates, Ill., company said Thursday.
"I'm pleased to report another quarter of margin expansion and double-digit earnings growth," CEO Brian MacDonald said in a statement. "While revenue growth isn't where I want it to be, we're taking the right actions to improve our results," he said during an earnings conference call.
Those actions include a number of new products rolled out during the 2018 NADA Show in March, he said, citing Fortellis, an automotive commerce exchange, and the company's Connected Retail 2.0, among others. "There's a real fundamental product renaissance going on here."
Adjusted pretax earnings for CDK's Retail Solutions North America segment -- known mainly for its dealership management systems in auto, heavy-truck, recreational vehicle and heavy-equipment dealerships -- rose 15 percent to $182.4 million on a 4 percent revenue increase to $326 million.
Adjusted pretax profits for CDK International jumped 32 percent to $26.3 million on a 21 percent revenue gain to $93.1 million.