Concur Exceeds Guidance With Record Second Quarter Revenue and Earnings
biz.yahoo.com
Wednesday April 30, 4:30 pm ET
Company raises fiscal 2008 guidance for revenue, earnings and cash flow
REDMOND, Wash., April 30 /PRNewswire-FirstCall/ -- Concur (Nasdaq: CNQR), the world's leading provider of on-demand Employee Spend Management services today reported financial results for its second quarter ended March 31, 2008.
Concur reported total revenue for the second quarter of fiscal 2008 of $53.7 million, driven by subscription revenue which was up 82% from the year-ago quarter. Total revenue for the quarter was up 74% from the year-ago quarter and up 9% from the prior quarter. Fiscal 2008 second quarter net income was $3.7 million, or $0.08 per share, and exceeded company expectations. This compares to net income of $1.3 million, or $0.03 per share, in the year-ago quarter.
"Revenue, earnings and cash flow for the second quarter of fiscal 2008 all exceeded our guidance," said Steve Singh, chairman and CEO of Concur. "Based on the strength of second quarter results, prior quarter new customer additions, and exceptional execution across the business, we are once again raising our revenue, earnings and cash flow guidance for fiscal 2008. Looking ahead to the third and fourth quarters of fiscal 2008, we see a strong demand environment for our services, as businesses continue to focus on reducing operating costs."
Singh continued, "We are executing on transformational events that are reshaping our market and our business. The launch of Concur® Travel & Expense was a game -- changing innovation that is driving accelerating customer demand. The acquisition and integration of Gelco -- which crossed another major milestone with the successful launch of Concur® Pay -- continues to drive scale. For the remainder of the fiscal year, as we look ahead to 2009 and 2010, we will capitalize on the strong operating leverage of the business and will aggressively increase our investments to expand distribution, drive innovation and to raise the bar for service excellence."
Financial Highlights
-- Total revenue was $53.7 million for the second quarter of fiscal 2008,
up 74% compared to the year-ago quarter and up 9% sequentially.
-- Net income was $3.7 million, or $0.08 per share, for the second quarter
of fiscal 2008, compared to $1.3 million, or $0.03 per share, for the
year-ago quarter.
-- Non-GAAP pretax income was $9.9 million, or $0.21 per share, for the
second quarter of fiscal 2008, compared to $5.1 million, or $0.12 per
share, for the year-ago quarter. Please refer to "About Concur's
Non-GAAP Financial Measures" below.
-- Non-GAAP operating margin was 19% for the second quarter of fiscal
2008, up from 17% for the year-ago quarter, and up from 17%
sequentially.
-- Cash flows from operations were $17.8 million for the second quarter of
fiscal 2008, up 65% from the year-ago quarter.
-- Concur repurchased 1.1 million shares of its outstanding common stock
under its share repurchase program.
Recent Business Highlights
-- Concur launched Concur Travel & Expense in EMEA, pioneering a new era
of One Touch Business Travel(TM) for clients throughout Europe.
-- Concur announced that it was selected as the winner of the prestigious
'Expense Management Service' award at the 14th annual Business Travel
World Awards 2008 event in London.
-- Concur launched Concur Pay, the on-demand service that enables clients
to automatically pay approved expense reports, virtually eliminating
human intervention.
-- Concur opened German, French and Belgian Offices to further expand its
European presence.
-- Concur signed a global contract with Deutsche Bank AG -- one of the
world's leading financial service providers -- to provide travel and
expense management services. Other notable clients, including Carlson
Hotels Worldwide - Asia Pacific, Casto Travel, De La Rue PLC, Family
Dollar Stores, Inc., Hilb Rogal & Hobbs Company, Intermec, Inc., Mitsui
& Co. Europe PLC and TBM Consulting Group, Inc., signed new contracts
for Concur services during the quarter, helping to push the company's
customer base over the 7,000 client plateau.
-- Concur appointed Rajeev Singh and Randall H. Talbot to its Board of
Directors.
-- Concur became the first technology company named as an NBTA Foundation
Premier Partner, and continued its deep and enduring commitment to the
corporate travel industry by announcing Steve Singh's appointment to
the NBTA Foundation Board of Trustees and appointing Suzanne Fletcher,
Former NBTA CEO and President, as director of travel management.
-- Concur announced that Choice Hotels is now delivering e-receipts
directly into Concur Travel & Expense through Concur® Connect -- a
global program connecting more than 7,000 Concur clients, representing
over $35 billion of spend, to suppliers from around the world. Choice
Hotels joins a growing list of direct connect and e-receipt vendors,
providing Concur clients with access to the industry's broadest
selection of travel content and most comprehensive reporting.
Business Outlook
The following statements are based on our current expectations and we do not undertake any duty to update them. These statements are forward-looking and inherently uncertain. Actual results may differ materially as a result of the factors identified below, the factors identified in our public filings made with the Securities and Exchange Commission, or other factors. Please also refer to "About Concur's Non-GAAP Financial Measures" below for an explanation of our non-GAAP financial measures and a reconciliation of those measures to GAAP equivalents.
-- Concur expects total revenue to be $53.0 million for the third quarter
of fiscal 2008, and to be $211.0 million for fiscal 2008.
-- Concur expects earnings per share for the third quarter of fiscal 2008
to be $0.07 assuming an estimated effective tax rate of 39% and
non-GAAP pre-tax earnings per share to be $0.20.
-- Concur expects earnings per share for fiscal 2008 to be $0.29 assuming
an estimated effective tax rate of 39% and non-GAAP pre-tax earnings
per share to be $0.79.
-- Concur expects the fiscal 2008 non-GAAP operating margin to be 18% for
the year as a whole.
-- Concur expects cash flows from operations in fiscal 2008 to be
$46.0 million, and capital expenditures of approximately $14.0 million. |
