Column: CDK moves forward after ‘bad things happen to good companies'

CDK Global’s turnaround has been years in the making

CDK Global has made great strides since nearly going bankrupt in 2019, but the automotive retail software provider is not out of the woods yet, according to analysts.

The company lost more than half its value in 2018 after a series of accounting errors and a botched attempt to implement a new software system. New CEO Brian Krzanich took over in 2019 and has been working to turn the company around ever since.

Krzanich has sold off non-core assets, cut costs, and invested in new products. As a result, CDK has returned to profitability and its stock price has rebounded.

But challenges remain

Despite the progress, CDK still faces a number of challenges. The company’s legacy software is still used by many dealerships, and it is not always easy to convince them to switch to a new system.

CDK also faces competition from a number of well-funded startups. These startups are offering cloud-based software that is often more affordable and easier to use than CDK’s legacy systems.

Analysts say that CDK’s turnaround is a work in progress. The company has made significant progress, but it still has a lot of work to do to regain its former glory.

What’s next for CDK?

CDK is expected to continue to invest in its cloud-based software offerings. The company is also likely to make further acquisitions to expand its product portfolio.

Analysts say that CDK is well-positioned for growth. The company has a strong customer base and a solid financial foundation.

CDK is not out of the woods yet, but the company is making progress. The company’s turnaround is a testament to the hard work of its employees and the leadership of CEO Brian Krzanich.