This summary is based on the first quarter fiscal 2007 earnings call conducted by Autobytel, Inc. (ABTL) on May 10, 2007.
Key Investors Issues
- EPS were 13 cents per share compared to 20 cents per share a year ago.
- Net income was $5.6 million compared to a loss of $8.5 million last year.
- Sales rose to $28.4 million from $28.3 million a year ago.
- Expenses dropped to $25.3 million from $37.4 million last year.
First Quarter Highlights
Revenue amounted to $28.4 million, which was flat compared with the prior year period, but up approximately 6% on a sequential basis.
This sequential growth resulted from a 13% increase in lead fees including approximately $1.1 million from the recognition of previously deferred revenue related to a notable element lead before arrangement with an OEM customer.
Revenue mix was 61% of leads, 17% advertising and 22% CRM and others.
This compares with 64% leads, 13% advertising and 23% CRM and other in the year ago period. Most noteworthy was the increase in the proportion of revenue from advertising resulting from the 25% increase in ad revenue year-over-year.
Revenue for 1000 page views or RPM was $40.40 compared to $43.77 in the fourth quarter last year and $27.45 in the year ago period.
Lead revenue increased on sequential basis but volumes remained below historical first quarter level. Finance lead strength along with continued increases on dealer network for the fourth consecutive quarter led to sequential increase in lead volume and revenue coming off of a traditionally slower fourth quarter.
Advertising revenue grew 25% year-over-year, as the company improved its ability to optimize available add inventory, pricing, and web page.
The company continues to implement strategy at improving lead quality by eliminating less reliable lead sources, expanding relationships with top quality providers and focusing on organically growth.
Average revenue for purchase request was $20.30 compared with $17.61 for the 2006 first quarter and $19.92 for the 2006 fourth quarter.
The company delivered approximately 699,000-purchase request compared with 880,000 to prior year first quarter and 626,000 in the 2006 fourth quarter.
Approximately 65% of purchased request were delivered to retail dealers and the remaining 35% to enterprise dealers and OEM. In the first quarter of 2006, the company delivered 57% to retail dealers.
The company continued to see growth in finance lead as it delivered approximately 199,000 finance request compared with approximately 185,000 in the year ago quarter and 179,000 in the fourth quarter of 2006.
Average revenue for finance lead was $15.30 versus $13.38 in the first quarter of 2006, and $15.68 in the fourth quarter of 2006.
The company has not seen any negative impact from the recent challenges in the sub-prime housing lending market.
The sub-prime automotive market went through a similar downturn several years ago but had stabilized in the time spent.
At the end of the quarter, the company had approximately 2,640 new car lead referral dealerships, relatively flat to the prior sequential quarter and up from 2,590 at the end of the same quarter last year.
