CDK Global Income Statement 2021-2011 | CDK

Brief overview of financial performance at CDK Global

The figures are compared over a five-year interval. The revenue attributed to CDK Global moved from $2.1 billion to $420 million between the two endpoints. Across the full period, sales moved by −80.1%; the average annual rate was −27.6%. The business finished the period with a smaller revenue base.

Gross profit changed from $245 million to $199 million (−18.7%). Direct costs outpaced revenue, limiting the benefit of changes in sales. At the margin level, the figure shifted from 11.6% to 47.3%. The margin shift points to a more favorable sales-and-cost structure.

The operating result measured by EBITDA moved from 466 million dollars to 524 million dollars, or +12.3%. The operating result outpaced sales and points to improving efficiency. At the operating-margin level, the figure shifted from 22.1% to 124.7%. The increased EBITDA share is a positive sign.

Net income changed from $82.7 million to $49.4 million (−40.3%). Profit outpaced sales and strengthened the quality of growth.

Market capitalization changed from 9.9 billion dollars to 5.5 billion dollars (−44.2%). The market became more cautious about the prospects of the business.

Financial takeaway

The financial trajectory is weak and requires a cautious interpretation. The strongest signals are higher operating efficiency and improving gross profitability. The weaker side of the profile includes declining net profitability, weak sales momentum and declining capitalization. The key question is whether sales can be converted into sustainable profit.