Price increase accounted for 48% of the ARPR increase, while higher stock and VAS upsell accounted for 33% and 19% of the growth.
Although the company lost 140 forecourts, its high-end Buying, Marketing and Managing product is now used by 200 more forecourts (16% of total).
EBITDA came 4.5% higher than expected on the back of solid operating leverage (the company showed 6% sequential cost reduction and revenue drop-through of 127% in 1H17) on headcount reduction.
Goldman Sachs expects AUTO to continue to benefit from further inventory growth on the back of strong car sales momentum in 2012-16 and ongoing digital migration.
ARPR growth is also expected to become more skewed to VAS adoption from FY2018 as the company will begin integrating new products (parts exchange, dealer financing, new cars etc) into the product line-up, which should help to differentiate the customer base and stimulate package upgrades.
However they are warning investors and potential investors price target and rating include deterioration in the macro environment, increased competition, global internet stock de-rating, and management execution