REDMOND, Wash., May 2, 2007 - Concur Technologies, Inc. (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, 2007.
Concur reported total revenue for the second quarter of fiscal 2007 of $30.9 million, driven by subscription revenue which was up 45% from the year-ago quarter. Total revenue for the quarter was up 31% from the year-ago quarter and up 6% sequentially. Fiscal 2007 second quarter net income, which includes a provision for income taxes of $1.9 million, was $1.3 million, or $0.03 per share, and was above company expectations. This compares to net income of $0.9 million, or $0.02 per share, in the year-ago quarter, which did not require a full provision for income taxes.
"Our extraordinary fiscal 2007 second quarter results were driven by strong growth in new customers, enthusiastic client adoption of our end-to-end travel and expense management services and solid execution across the business," said Steve Singh, chairman and CEO of Concur Technologies. "Cash flows from operations are up over 300% compared to the year-ago quarter, even as we continue to invest in the business and launch innovative new services like Concur® Vendor Payment to address additional areas of Employee Spend Management."
Singh continued, "As a result of our continued strong performance and robust demand from our clients, we are raising our revenue, earnings and cash flow guidance for the year. In addition, we expect to accelerate investments across the business with a focus on increasing our distribution capacity, and delivering new services and innovations that leverage our market-leading on-demand Employee Spend Management platform."
- Total revenue was $30.9 million for the second quarter of fiscal 2007, up 31% compared to the year-ago quarter and up 6% sequentially.
- Net income was $1.3 million, or $0.03 per share, for the second quarter of fiscal 2007 and included a provision for income taxes of $1.9 million, compared to $0.9 million, or $0.02 per share, for the year-ago quarter which did not require a full provision for income taxes. The company released reserves against its deferred tax assets in the third quarter of fiscal 2006 and began recording a provision for income taxes in the fourth quarter of fiscal 2006.
- Non-GAAP pretax income was $5.1 million, or $0.12 per share, for the second quarter of fiscal 2007, compared to $2.8 million, or $0.07 per share, for the year-ago quarter. Please refer to "About Concur's Non-GAAP Financial Measures" below.
- Non-GAAP operating margin was 17% for the second quarter of fiscal 2007, up from 13% for the year-ago quarter and up from 16% sequentially.
- Cash flows from operations were $10.8 million for the second quarter of fiscal 2007, up 303% from the year-ago quarter.
- Deferred revenue was $27.8 million for the second quarter of fiscal 2007, up 15% compared to the year-ago quarter and up 5% sequentially.
- Concur repurchased 114,347 shares of its outstanding common stock under the share repurchase program authorized by Concur's Board of Directors in the first quarter of 2007.
Recent Business Highlights
- Concur announced the availability of Concur Vendor Payment. Several clients, including La Quinta, have adopted this on-demand service to help them eliminate the time and cost associated with processing vendor invoices and employee check requests. This new service - which is seamlessly interwoven into Concur's on-demand service platform - was specifically designed from the ground up to address a market opportunity that's estimated to be comparable in size to the expense management market.
- Concur signed contracts with new and existing customers, including Fortent Ltd., IMPAC Medical Systems, Inc., Input/Output, Inc., La Quinta, Land O'Lakes, MAG Capital, Maritz Travel Company, Novellus Systems Inc., SirsiDynix, The University of Colorado and USA Hockey.
- Concur's Cliqbook® Travel was selected as the online booking tool by a Fortune 20 company to help manage their travel program around the world.
- Concur launched Direct Reimbursement, to facilitate quick and efficient payments to employees, suppliers and credit card companies through Concur services.
- Concur continued to expand the industry's largest selection of supplier content by announcing the only Direct Connect to Air Canada. This latest addition to Concur's growing list of Direct Connect suppliers enables corporate customers who use Cliqbook Travel to have full access to all of Air Canada's faring, inventory and Flight Pass products.
- Concur entered into a partnership with Citigroup to offer all Citi clients around the world access to Concur's industry-leading travel and expense management solutions.
- Concur was named for the second straight year by the International Association of Outsourcing Professionals (IAOP) as one of the World's 100 Best Outsourcing Service Providers, placing 46th on the IAOP's 2007 Leaders list.
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 ("SEC"), 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 accounting principles generally accepted in the United States ("GAAP") equivalents.
- Concur expects total revenue to be $31.6 million for the third quarter of fiscal 2007, and to be between $123 million and $125 million for fiscal 2007.
- Concur expects earnings per share for the third quarter of fiscal 2007 to be $0.02 assuming an estimated effective tax rate of 60% and non-GAAP pre-tax earnings per share to be $0.11.
- Concur expects earnings per share for fiscal 2007 to be $0.11 assuming an estimated effective tax rate of 60% and non-GAAP pre-tax earnings per share to be $0.48.
- Concur expects the fiscal 2007 non-GAAP operating margin to be 16% for the year as a whole.
About Concur Technologies, Inc.
Concur Technologies, Inc. is the world's leading provider of on-demand Employee Spend Management services. Concur enables organizations to globally control costs by automating the processes they use to manage employee spending. Concur's end-to-end solutions seamlessly unite online travel booking with automated expense reporting, streamline meeting management and optimize the process of managing vendor payments, employee check requests and direct reimbursements. Organizations of all sizes trust Concur to help them control spend before it occurs while eliminating paper and optimizing supplier relations. Concur's unified approach to managing employee spend delivers a 360° view into all employee expenses, helping companies globally enforce policies and monitor vendor compliance, while delivering unprecedented control and valuable insight. Concur's suite of on-demand services reach millions of employees across thousands of organizations around the world -- streamlining business processes, reducing operating costs, improving internal controls and providing enhanced visibility and actionable expense analysis. More information about Concur is available at www.concur.com.
All company or product names are trademarks and/or registered trademarks of their respective owner.
This press release contains forward-looking statements that are inherently uncertain. These forward-looking statements, such as the statements made by Mr. Singh and the statements in the Business Outlook section, are based on Concur's current expectations and involve many risks and uncertainties that could cause actual results to differ materially from current expectations. Factors that could cause or contribute to actual results differing from current expectations include, but are not limited to: potential delays in market adoption and penetration of our subscription service offerings; potential difficulties associated with our deployment and support of our products and services; our ability to manage expected growth of our subscription service offerings; the scalability of the hosting infrastructure for our subscription service offerings; potential increases in the rate of attrition of customers of our subscription service offerings; the level of investment in information technology by our customers; the level of business travel that may reduce the use of our products and services or inhibit new sales of our products and services; potential difficulties associated with strategic relationships and with development of new products and services; risks associated with expansion into new geographic markets; the lengthy sales cycle for our products and services; and uncertain market acceptance of recently-introduced or future products and services.
Please refer to the company's public filings made with the SEC (http://www.sec.gov) for additional and more detailed information on risk factors that could cause actual results to differ materially from current expectations. Concur assumes no obligation to update the forward-looking information contained in this press release.