Cdk Global Inc's Business Segments
Cdk Global Inc's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Cdk Global Inc does not report a distinct business-segment axis in its filings - its disaggregated revenue is disclosed by product and service category instead. See the Product & Service breakdown below.
Revenue by Product & Service Category - FY
- Subscription and Circulation77.6%
- Product and Service, Other13.6%
- Transaction8.9%
Revenue by Product & Service Category - FY
| Category | Revenue (Millions) | % of Total |
|---|---|---|
| Subscription and Circulation | $ 357 | 77.6% |
| Product and Service, Other | $ 62 | 13.6% |
| Transaction | $ 41 | 8.9% |
Product and service categories are a supplemental disclosure and are not required to sum to consolidated revenue or to the reportable segments above.
Description of Cdk Global Inc
CDK Global Inc offers a range of software solutions and services to automotive retailers, including dealership management systems (DMS), customer relationship management (CRM) software, and digital marketing solutions. The company's software solutions help dealerships manage inventory, finance and insurance, service, and parts operations. Additionally, CDK Global provides digital marketing services to help dealerships grow their online presence, drive more traffic to their websites, and increase leads and sales.
The company has a wide range of customers globally, including franchised automotive dealerships, independent dealerships, and manufacturers. CDK Global has sales channels in over 100 countries with a large customer base in the United States, Europe, and Asia.
Along with its software and services, CDK Global has established itself as an industry thought leader by providing insights, analysis, and research on the automotive industry's trends and opportunities. This information helps its customers make informed strategic decisions.
Like many technology companies, CDK Global has made significant investments in research and development to stay at the forefront of cutting-edge technologies. The company has considerable expertise in artificial intelligence, data analytics, and cloud computing, which are integral components of its software solutions.
In 2019, Silver Lake, a technology investor, announced that it would acquire a controlling stake in CDK Global, valuing the company at $8.8 billion. The acquisition provided CDK Global with the resources and expertise to accelerate its growth and expand its product offerings further.
Overall, CDK Global is a leading technology provider for the automotive retail industry, with an extensive range of software solutions and services, a broad customer base, and a strong presence globally.
Segments
CDK Global operates across several key segments, each tailored to address specific challenges and needs within the automotive retail industry:
1. Dealer Management Systems (DMS):
- Core Functionality: The DMS serves as the backbone of dealership operations, integrating multiple functionalities into a single platform. It streamlines processes related to sales, service, parts, and customer relationships.
- Sales Management: Features such as lead tracking, customer profiling, and sales performance analytics help dealerships enhance their sales strategies.
- Inventory Management: The system offers real-time tracking of vehicle inventory, facilitating more informed purchasing and pricing decisions.
- Finance and Accounting: Automation of financial tasks, including billing and reporting, ensures better compliance and financial health monitoring.
- Service and Repair Management: Service scheduling, technician assignments, and customer communication tools are integrated to improve service drive efficiency.
- Customer Relationship Management (CRM): Tools for managing customer interactions, follow-ups, and targeted marketing campaigns help build customer loyalty.
2. Digital Marketing Solutions:
- Search Engine Optimization (SEO): Techniques to improve dealership website visibility on search engines, attracting more organic traffic.
- Pay-Per-Click (PPC) Advertising: Targeted advertising solutions that drive immediate traffic through strategic ad placements.
- Social Media Marketing: Comprehensive strategies to engage customers on platforms like Facebook, Instagram, and Twitter, including ad campaigns and community management.
- Website Design and Development: Custom design services to create a polished online presence, including mobile-optimized sites that enhance user experience.
3. Business Intelligence and Analytics:
- Data Analysis Tools: Solutions that allow dealerships to analyze large sets of operational data to identify trends and areas for improvement.
- Customizable Dashboards: Tailored reporting interfaces that provide key performance indicators (KPIs) at a glance, helping management make informed decisions quickly.
- Comprehensive Reporting Capabilities: Tools for generating detailed reports that cover various aspects of dealership operations, from sales performance to service department efficiency.
4. Connected Car Services:
- Vehicle Telematics: Systems that gather and analyze vehicle data to offer insights into vehicle performance and customer usage patterns.
- Remote Diagnostics: Technologies that enable dealerships to perform off-site diagnostics, improving service capabilities and customer satisfaction.
- Mobile App Development: Custom applications that enhance customer engagement and provide added convenience, such as service reminders or appointment scheduling.
5. Dealer Website Solutions:
- Website Management: Comprehensive services for maintaining and updating dealership websites, ensuring information is current and accurate.
- Content Management Systems (CMS): User-friendly platforms that allow dealerships to manage content efficiently, facilitating regular updates and improvement of online presence.
- Digital Marketing Integration: Seamless integration of digital marketing tools to support and enhance website performance.
6. Cloud Infrastructure Services:
- Infrastructure Management: Solutions for overseeing technology resources, including server management and application deployment, optimizing efficiency and security.
- Data Center Hosting: Reliable hosting services that provide the necessary infrastructure for dealership applications and data storage.
- Disaster Recovery: Comprehensive strategies to ensure data protection and business continuity in the event of unforeseen disruptions.
Conclusion
CDK Global Inc. offers an extensive array of integrated technology solutions designed specifically for the automotive retail industry. By providing state-of-the-art dealer management systems, robust digital marketing solutions, in-depth analytics, and innovative connected car services, CDK Global empowers dealerships to thrive in a competitive environment. Additionally, their focus on cloud infrastructure further enhances the operational capabilities of dealerships, enabling them to harness the full potential of technology to drive growth and profitability. With a commitment to innovation and excellence, CDK Global continues to set the standard for technology solutions in the automotive retail marketplace.
