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Dealertrack Technologies Reports First Quarter 2014 Financial Results

Dealertrack Technologies, Inc. (NASDAQ: TRAK) today reported financial results for the first quarter ended March 31, 2014.

GAAP Results for the First Quarter 2014

  • Revenue for the quarter was $158.8 million, as compared to $109.1 million for 2013.
  • GAAP net loss for the quarter was $(11.6) million, as compared to $(34,000) for 2013.
  • Diluted GAAP net loss per share for the quarter was $(0.25), as compared to $(0.00) for 2013.

GAAP net loss for the quarter of 2014 was negatively impacted by a $7.5 million, or $0.16 per share, non-cash charges (net of taxes) relating to changes in expected asset use as we integrate solutions and was positively impacted by a $6.8 million, or $0.14 per share, gain (net of taxes) on the sale of our investment in TrueCar, Inc.

Non-GAAP Results for the First Quarter 2014

  • Adjusted EBITDA for the quarter was $30.5 million, as compared to $24.2 million for 2013.
  • Adjusted net income for the quarter was $11.5 million, as compared to $12.0 million for 2013.
  • Diluted adjusted net income per share for the quarter was $0.23, as compared to $0.27 for 2013.

Mark F. O’Neil, chairman and chief executive officer of Dealertrack Technologies, Inc., commented, “We are pleased to report strong first quarter results, with revenue up 46 percent in total and up 18 percent on an organic basis from a year ago. In addition to a strong revenue performance, the quarter was highlighted by the completion of our transformative acquisition of Dealer.com. With our initial integration efforts successfully underway, we are off to a strong start to 2014. Continued momentum in our subscription business, combined with advertising revenue from Dealer.com, is driving an increasing mix of recurring revenue. We are also continuing to drive strong transaction revenue growth, independent of car sales. We are becoming increasingly optimistic about 2014, as reflected in our increased full year revenue guidance, and believe we are positioned for continued growth as we realize our vision of transforming automotive retailing.”

Updated Guidance for 2014

Dealertrack increased its 2014 annual revenue guidance and updated profitability guidance, as follows:

Expected GAAP Results

  • Revenue for the year is expected to be between $814.0 million and $826.0 million, an increase from prior guidance of between $800.0 million and $816.0 million.
  • GAAP net loss for the year is expected to be between $(18.0) million and $(12.0) million, a decrease from prior guidance of between $(13.0) million and $(7.0) million.
  • Diluted GAAP net loss per share for the year is expected to be between $(0.34) and $(0.23), a decrease from prior guidance of between $(0.24) and $(0.13) per share.

Expected Non-GAAP Results

Dealertrack has not changed its prior non-GAAP guidance, which is as follows:

  • Adjusted EBITDA for the year is expected to be between $180.0 million and $188.0 million.
  • Adjusted net income for the year is expected to be between $78.0 million and $84.0 million.
  • Diluted adjusted net income per share for the year is expected to be between $1.42 and $1.53.

Diluted GAAP net loss is based on an estimated diluted share count of 53 million shares and adjusted net income per share is based on an estimated diluted share count of 55 million shares guidance for the year. The guidance also continues to assume that new car sales by franchised dealers will be approximately 16.2 million units and used car sales by franchised dealers will be approximately 15.9 million units in 2014.

Conference Call

Dealertrack will host a conference call to discuss its first quarter 2014 results, as well as its 2014 guidance, on May 12, 2014, at 5:00 p.m. Eastern Time. The conference call will be webcast live on the Internet at ir.dealertrack.com. In addition, a live audio of the call will be accessible to the public by calling 877-303-6648 (domestic) or 970-315-0443 (international); no access code is necessary. Callers should dial in approximately 10 minutes before the call begins. A webcast replay will be available on the Dealertrack Technologies, Inc. website at www.dealertrack.com.

Non-GAAP Financial Measures

The non-GAAP measures of adjusted EBITDA and adjusted net income disclosures are not presented in accordance with generally accepted accounting principles (GAAP) and are not intended to be used in lieu of GAAP presentations of net income (loss). Adjusted EBITDA is a non-GAAP financial measure that represents GAAP net income (loss) excluding interest, taxes, depreciation and amortization expenses, stock-based compensation, contra-revenue and certain items, as applicable, such as: impairment charges, restructuring charges, impact of acquisition-related activity (including contingent consideration changes, compensation expense, basis difference amortization, and professional service fees), realized gains on sales of previously impaired securities, gains or losses on sales or disposals of subsidiaries and other assets, rebranding expense and certain other items that we do not believe are indicative of our ongoing operating results.

Adjusted net income is a non-GAAP financial measure that represents GAAP net income (loss) excluding stock-based compensation expense, the amortization of acquired identifiable intangibles, contra-revenue, and certain items, as applicable, such as: impairment charges, restructuring charges, impact of acquisition-related activity (including contingent consideration changes, compensation expense, basis difference amortization, and professional service fees), realized gains on sales of previously impaired securities, gains or losses on sales or disposals of subsidiaries and other assets, adjustments to deferred tax asset valuation allowances, non-cash interest expense, rebranding expense and certain other items that we do not believe are indicative of our ongoing operating results. These adjustments to net income (loss), which are shown before taxes, are adjusted for their tax impact at their applicable statutory rates.

Adjusted EBITDA and adjusted net income are presented because management believes that they provide additional information with respect to the performance of our fundamental business activities and are also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. Adjusted EBITDA and adjusted net income are also presented because the acquisition method of accounting can have a negative impact on our GAAP results because the depreciation and amortization expenses associated with acquired assets, in particular intangibles which tend to have a relatively short useful life, can be substantial in the first several years following an acquisition. As a result, we monitor our adjusted EBITDA and adjusted net income and other business statistics as a measure of operating performance in addition to net income and the other measures included in our consolidated financial statements. Management believes the adjusted EBITDA and adjusted net income information is useful to investors for these reasons. Adjusted EBITDA and adjusted net income are non-GAAP financial measures and should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure for adjusted EBITDA and adjusted net income is GAAP net income (loss) and has provided a reconciliation of adjusted EBITDA to GAAP net income (loss) and adjusted net income to GAAP net income (loss) in this press release.

About Dealertrack Technologies (www.dealertrack.com)

Dealertrack Technologies' intuitive and high-value web-based software solutions and services enhance efficiency and profitability for all major segments of the automotive retail industry, including dealers, lenders, OEMs, third-party retailers, aftermarket providers and other service providers. In addition to the industry's largest online credit application network, connecting more than 20,000 dealers with more than 1,400 lenders, Dealertrack Technologies delivers the industry's most comprehensive solution set for automotive retailers, including Dealer Management System (DMS), Inventory, Sales and F&I, Digital Marketing and Registration and Titling solutions. For more information visit www.dealertrack.com.

Safe Harbor for Forward-Looking and Cautionary Statements

Statements in this press release regarding Dealertrack’s expected 2014 performance based on both GAAP and non-GAAP measures, the long-term outlook for its business and all other statements in this release other than the recitation of historical facts are forward-looking statements (as defined in the Private Securities Litigation Reform Act of 1995). These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of Dealertrack to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements.

Factors that might cause such a difference include: economic trends that affect the automotive retail industry or the indirect automotive financing industry including the number of new and used cars sold; credit availability; reductions in automotive dealerships; increased competitive pressure from other industry participants, including Open Dealer Exchange, RouteOne, CUDL, Finance Express and AppOne; the impact of some vendors of software products for automotive dealers making it more difficult for Dealertrack’s customers to use Dealertrack’s solutions and services; security breaches, interruptions, failures and/or other errors involving Dealertrack’s systems or networks; the failure or inability to execute any element of Dealertrack’s business strategy, including selling additional products and services to existing and new customers; Dealertrack’s success in implementing an ERP system; the volatility of Dealertrack’s stock price; new regulations or changes to existing regulations; the integration of recent acquisitions and the expected benefits, as well as the integration and expected benefits of any future acquisitions that Dealertrack may pursue; Dealertrack’s success in expanding its customer base and product and service offerings, the impact of recent economic trends, and difficulties and increased costs associated with raising additional capital; the impairment of intangible assets, such as trademarks and goodwill; and other risks listed in Dealertrack’s reports filed with the Securities and Exchange Commission (SEC), including its most recent Annual Report on Form 10-K. These filings can be found on Dealertrack’s website at www.dealertrack.com and the SEC’s website at www.sec.gov. Forward-looking statements included herein speak only as of the date hereof and Dealertrack disclaims any obligation to revise or update such statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events or circumstances, except as required by law.

       
 
DEALERTRACK TECHNOLOGIES, INC.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
 
Three Months Ended March 31,
2014 2013
 
Net revenue $ 158,808 $ 109,059
Cost of revenue 89,907 48,210
Research and development 24,048 17,630
Selling, general and administrative   67,486   42,468
Total operating expenses   181,441   108,308
Income (loss) from operations (22,633) 751
Interest expense, net (5,810) (3,240)
Other income, net 709 66
Gain on sale of investment 9,828
Earnings from equity method investment, net   1,625   1,219
Loss before benefit from income taxes, net (16,281) (1,204)
Benefit from income taxes, net   4,639   1,170
Net loss $ (11,642) $ (34)
 
Basic net loss per share $ (0.25) $ (0.00)
Diluted net loss per share $ (0.25) $ (0.00)
Weighted average common stock outstanding (basic) 47,351 43,173
Weighted average common stock outstanding (diluted) 47,351 43,173
 
Adjusted EBITDA (non-GAAP) (a) $ 30,514 $ 24,229
Adjusted EBITDA margin (non-GAAP) (b) 19 % 22 %
Adjusted net income (non-GAAP) (a) $ 11,487 $ 12,036
Shares used for diluted adjusted net income per share (c) 49,576 44,624
Diluted adjusted net income per share (non-GAAP) $ 0.23 $ 0.27
 
Stock-based compensation expense was classified as follows:
Cost of revenue $ 276 $ 271
Research and development 752 589
Selling, general and administrative   3,095   2,411
$ 4,123 $ 3,271

(a) See Reconciliation Data.
(b) Represents adjusted EBITDA as a percentage of net revenue.
(c) For the three months ended March 31, 2014, the diluted weighted average shares outstanding of 49,576,000 does not include 1,366,000 shares related to our senior convertible notes.

       
 
DEALERTRACK TECHNOLOGIES, INC.
Condensed Consolidated Balance Sheets
(Dollars in thousands)
(Unaudited)
 
March 31, December 31,
2014 2013
ASSETS
Cash and cash equivalents $ 144,267 $ 122,373
Marketable securities 5,147 10,589
Customer funds and customer funds receivable 35,601 25,901
Accounts receivable, net 97,529 48,349
Deferred tax assets, net 22,938 6,331
Prepaid expenses and other current assets   29,878   21,314
Total current assets 335,360 234,857
 
Property and equipment, net 77,043 31,866
Investments – cost and equity 36,652 119,318
Software and website development costs, net 70,648 62,513
Intangible assets, net 580,545 136,754
Goodwill 1,051,559 316,130
Deferred tax assets, net 56,862 40,421
Other assets – long-term   20,743   14,616
Total assets $ 2,229,412 $ 956,475
 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued expenses $ 100,226 $ 56,942
Customer funds payable 35,601 25,901
Senior convertible notes, net 172,399
Deferred revenue 14,758 9,958
Deferred tax liabilities 4,277 4,278
Notes payable   2,577   2,000
Total current liabilities 329,838 99,079
Long-term liabilities   822,463   256,172
Total liabilities   1,152,301   355,251
Total stockholders' equity   1,077,111   601,224
Total liabilities and stockholders' equity $ 2,229,412 $ 956,475
       
 
DEALERTRACK TECHNOLOGIES, INC.
Consolidated Statements of Cash Flows
(Dollars in thousands)
(Unaudited)
 
Three Months Ended March 31,
2014 2013
Operating activities:
Net loss $ (11,642 ) $ (34 )
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 31,291 13,897
Deferred tax benefit (34,603 ) (1,158 )
Stock-based compensation expense 4,123 3,271
Provision for doubtful accounts and sales credits 3,114 1,682
Earnings from equity method investment, net (1,625 ) (1,219 )
Deferred compensation 50 38
Stock-based compensation windfall tax benefit (8,685 ) (3,587 )
Gain on sale of investment (9,828 )
Realized gain on sale of securities (11 )
Amortization of debt issuance costs and debt discount 3,170 2,302
Change in contingent consideration (250 ) (500 )
Forfeited customer deposits (648 )
Amortization of deferred interest 53 279
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable (12,534 ) (6,339 )
Prepaid expenses and other current assets 4,236 (2,186 )
Other assets – long-term (4,227 ) 3,166
Accounts payable and accrued expenses (68,213 ) (13,518 )
Deferred rent (6 ) 51
Deferred revenue 1,714 (60 )
Other liabilities – long-term   11,646     (1,074 )
Net cash used in operating activities (92,864 ) (5,000 )
       
 
Consolidated Statements of Cash Flows (continued)
 
Three Months Ended March 31,
2014 2013
Investing activities:
Capital expenditures (5,108 ) (2,027 )
Capitalized software and website development costs (10,645 ) (5,296 )
Proceeds from sale of investment in TrueCar 92,518
Purchases of marketable securities (2,150 ) (18,037 )
Proceeds from sales and maturities of marketable securities 7,539 12,539
Payment for acquisition of businesses, net of acquired cash   (541,288 )    
Net cash used in investing activities (459,134 ) (12,821 )
 
Financing activities:
Principal payments on capital lease obligations and financing arrangements (29 ) (38 )
Proceeds from stock purchase plan and exercise of stock options 10,729 3,109
Proceeds from issuance of term loan B credit facility 575,000
Proceeds from note receivable 500
Payments for debt issuance costs (15,501 )
Purchases of treasury stock (4,412 ) (678 )
Stock-based compensation windfall tax benefit   8,685     3,587  
Net cash provided by financing activities 574,972 5,980
 
Net increase (decrease) in cash and cash equivalents 22,974 (11,841 )
Effect of exchange rate changes on cash and cash equivalents (1,080 ) (393 )
Cash and cash equivalents, beginning of period   122,373     143,811  
Cash and cash equivalents, end of period $ 144,267   $ 131,577  
 
 
Supplemental disclosure:
Cash paid for:
Income taxes $ 2,210 $ 702
Interest 3,424 1,646
Non-cash investing and financing activities:
Accrued capitalized hardware, software and fixed assets 6,771 2,224
Assets acquired under capital leases and financing arrangements 35 34
Non-cash consideration issued for investment in Dealer.com 471,220
       
 
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA
(Dollars in thousands)
(Unaudited)
 
Three Months Ended March 31,
2014 2013
 
GAAP net loss $ (11,642 ) $ (34 )
Interest income (100 ) (124 )
Interest expense – cash 2,740 1,062
Interest expense – non-cash 3,170 2,302
Benefit from income taxes, net (4,639 ) (1,170 )
Depreciation of property and equipment and amortization of capitalized software and website costs 10,595 6,581
Amortization of acquired identifiable intangibles   20,696     7,316  
EBITDA (non-GAAP) 20,820 15,933
Adjustments:
Stock-based compensation 4,123 3,271
Contra-revenue 1,157 1,354
Acquisition-related and other professional fees 6,974 483
Acquisition-related contingent consideration changes and compensation expense, net 929 35
Integration and other related costs 5,792 799
Gain on sale of investment (9,828 )
Amortization of equity method investment basis difference 547 706
Rebranding expense       1,648  
Adjusted EBITDA (non-GAAP) $ 30,514   $ 24,229  
 
       
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Dollars in thousands)
(Unaudited)
 
Three Months Ended March 31,
2014 2013
 
GAAP net loss $ (11,642 ) $ (34 )
Adjustments:
Interest expense – non-cash (not tax-impacted) 3,170 2,302
Amortization of acquired identifiable intangibles 20,696 7,316
Stock-based compensation 4,123 3,271
Contra-revenue 1,157 1,354
Gain on sale of investment (9,828 )
Acquisition-related and other professional fees 6,974 483
Acquisition-related contingent consideration changes and compensation expense, net 929 35
Integration and other related costs 6,481 799
Rebranding expense 1,648
Amortization of equity method investment basis difference 547 706
Amended state tax returns impact (non-taxable) 56
Tax impact of adjustments (a)   (11,120 )   (5,900 )
Adjusted net income (non-GAAP) $ 11,487   $ 12,036  

(a) The tax impact of adjustments for the three months ended March 31, 2014 are based on a U.S. statutory tax rate of 38.7% applied to taxable adjustments other than amortization of acquired identifiable intangibles, stock-based compensation expense and gain on sale of investment, which are based on a blended tax rate of 38.6%, 38.3% and 31.0%, respectively. Additionally, the tax impact of adjustments includes $1.6 million of incremental deferred taxes related to the acquisition of Dealer.com. The tax impact of adjustments for the three months ended March 31, 2013 are based on a U.S. statutory tax rate of 38.2% applied to taxable adjustments other than amortization of acquired identifiable intangibles and stock-based compensation expense, which are based on a blended tax rate of 38.1% and 37.7%, respectively.

A reconciliation of GAAP to non-GAAP measures is included in our investor presentation, which also includes the impact of reconciled items on individual income statement classifications.

       
 
DEALERTRACK TECHNOLOGIES, INC.
Reconciliation of Forward-looking GAAP Net Income to Forward-looking Non-GAAP Adjusted EBITDA
(Dollars in millions)
(Unaudited)
Year Ending December 31, 2014
Expected Range
 
GAAP net income $ (18.0 ) $ (12.0 )
Interest, net 34.0 34.0
Income taxes, net (10.0 ) (6.8 )
Amortization of basis difference from joint venture 2.2 2.2
Depreciation and amortization 43.5 42.3
Amortization of acquired identifiable intangibles 83.0   83.0  
EBITDA (non-GAAP) 134.7 142.7
Adjustments:
Stock-based compensation 18.2 18.2
Gain on sale of investment (9.8 ) (9.8 )
Non-recurring costs (a) 32.0 32.0
Contra-revenue 4.9   4.9  
Adjusted EBITDA - (non-GAAP) $ 180.0   $ 188.0  
 
 
(a) Includes certain professional fees, integration and other related costs, acquisition-related compensation expense and fair value adjustments.
 
Reconciliation of Forward-looking GAAP Net Income to Forward-looking Non-GAAP Adjusted Net Income
(Dollars in millions)
(Unaudited)
Year Ending December 31, 2014
Expected Range
 
GAAP net income $ (18.0 ) $ (12.0 )
Adjustments:
Stock-based compensation 18.2 18.2
Amortization of acquired identifiable intangibles 83.0 83.0
Amortization of basis difference from joint venture 2.2 2.2
Non-cash interest expense (not tax-impacted) 13.0 13.0
Gain on sale of investment (9.8 ) (9.8 )
Non-recurring costs (a) 32.0 32.0
Contra-revenue 4.9 4.9
Tax impact of adjustments (b) (47.5 ) (47.5 )
Adjusted net income (non-GAAP) $ 78.0   $ 84.0  
 
 
(a) Includes certain professional fees, integration and other related costs, acquisition-related compensation expense, accelerated depreciation and fair value adjustments.
(b) The tax impact of adjustments are based on a blended tax rate of 36% applied to taxable adjustments.
                   
 
DEALERTRACK TECHNOLOGIES, INC.
Summary of Business Statistics
Three months ended
(Unaudited)
 
Mar 31, Dec 31, Sep 30, Jun 30,

Mar 31,

2014 2013 2013 2013 2013
 
Transaction services revenue (in thousands) $ 77,735 $ 70,338 $ 73,514 $ 71,645 $ 61,364
Subscription services revenue (in thousands) $ 61,969 $ 49,107 $ 45,223 $ 44,623 $ 42,778
Advertising and other revenue (in thousands) $ 19,104 $ 6,666 $ 5,845 $ 5,514 $ 4,917
 
Active dealers in our U.S. network as of end of the period (a) 20,719 20,046 20,238 20,205 20,041
Active lenders in our U.S. network as of end of the period (b) 1,443 1,410 1,378 1,355 1,291
Active lender to dealer relationships as of end of the period (c) 202,984 191,135 191,548 184,273 181,578
Transactions processed (in thousands) (d) 28,560 24,471 27,172 26,176 24,106
Average transaction price (e) $ 2.76 $ 2.91 $ 2.74 $ 2.79 $ 2.60
Transaction revenue per car sold (f) $ 11.20 $ 8.63 $ 7.70 $ 7.38 $ 8.99
Subscribing dealers in U.S. and Canada as of end of the period (g) 23,624 18,464 18,255 18,076 17,832
Average monthly subscription revenue per subscribing dealership (h) $ 956 $ 815 $ 758 $ 757 $ 737
Active dealerships on advertising platform as of end of the period (i) 7,053 * * * *
Average advertising spend per dealer rooftop (j) $ 1,708 * * * *

* Historical amounts not applicable

(a) We consider a dealer to be active in our U.S. network as of a date if the dealer completed at least one revenue-generating credit application processing transaction using the U.S. Dealertrack network during the most recently ended calendar month. The number of active U.S. dealers is based on the number of dealer accounts as communicated by lenders on the U.S. Dealertrack network.

(b) We consider a lender to be active in our U.S. network as of a date if it is accepting credit application data electronically from U.S. dealers in the U.S. Dealertrack network.

(c) Each lender to dealer relationship represents a pair between an active U.S. lender and an active U.S. dealer at the end of a given period.

(d) Represents revenue-generating transactions processed in the U.S. Dealertrack, Dealertrack Aftermarket Services, Registration and Titling Solutions, Collateral Management Solutions and Dealertrack Canada networks at the end of a given period.

(e) Represents the average revenue earned per transaction processed in the U.S. Dealertrack, Dealertrack Aftermarket Services, Registration and Titling Solutions, Collateral Management Solutions and Dealertrack Canada networks during a given period. Revenue used in the calculation adds back (excludes) transaction related contra-revenue.

(f) Represents transaction services revenue divided by our estimate of total new and used car sales for the period in the U.S. and Canada. Revenue used in calculation adds back (excludes) transaction related contra-revenue.

(g) Represents the number of dealerships in the U.S. and Canada with one or more active subscriptions at the end of a given period. Subscriptions to Dealertrack CentralDispatch have been excluded as these customers include brokers and carriers in addition to dealers.

(h) Represents subscription services revenue divided by average subscribing dealers for a given period in the U.S. and Canada. Revenue used in the calculation adds back (excludes) subscription related contra-revenue. In addition, subscribing dealers and subscription services revenue from Dealertrack CentralDispatch have been excluded from the calculation as a majority of these customers are not dealers.

(i) We consider a dealership to be active on our advertising platform as of a date if they incurred advertising spend in that month.

(j) Represents advertising services revenue divided by average active dealerships on our advertising platform for a given period.

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There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how these devices generate enough data to learn our behaviors and simplify/improve our lives. What if we could connect everything to everything? I'm not only talking about connecting things to things but also systems, cloud services, and people. Add in a little machine learning and artificial intelligence and now we have something interesting...
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We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) irreversibly encoded. In his session at Internet of @ThingsExpo, Peter Dunkley, Technical Director at Acision, will look at how this identity problem can be solved and discuss ways to use existing web identities for real-time communication.
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn real-world benefits of WebRTC and explore future possibilities, as WebRTC and IoT intersect to improve customer service.
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, an Open Source Cloud Communications company that helps the shift from legacy IN/SS7 telco networks to IP-based cloud comms. An early investor in multiple start-ups, he still finds time to code for his companies and contribute to open source projects.
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice services to the modern P2P RTC era of OTT cloud assisted services.
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehension and conference efficiency.
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example to explain some of these concepts including when to use different storage models.
SYS-CON Events announced today that Gridstore™, the leader in software-defined storage (SDS) purpose-built for Windows Servers and Hyper-V, will exhibit at SYS-CON's 15th International Cloud Expo®, which will take place on November 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA. Gridstore™ is the leader in software-defined storage purpose built for virtualization that is designed to accelerate applications in virtualized environments. Using its patented Server-Side Virtual Controller™ Technology (SVCT) to eliminate the I/O blender effect and accelerate applications Gridstore delivers vmOptimized™ Storage that self-optimizes to each application or VM across both virtual and physical environments. Leveraging a grid architecture, Gridstore delivers the first end-to-end storage QoS to ensure the most important App or VM performance is never compromised. The storage grid, that uses Gridstore’s performance optimized nodes or capacity optimized nodes, starts with as few a...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace. These technological reforms have not only changed computers and smartphones, but are also changing the data processing model for all information devices. In particular, in the area known as M2M (Machine-To-Machine), there are great expectations that information with a new type of value can be produced using a variety of devices and sensors saving/sharing data via the network and through large-scale cloud-type data processing. This consortium believes that attaching a huge number of devic...