Concur Technologies Announces First Quarter Revenue Up 52% Year-Over-Year

REDMOND, Wash., January 31, 2007 -
Concur Technologies, Inc. (NASDAQ: CNQR), the world's leading provider of on-demand Corporate Expense Management services today reported financial results for its first quarter ended December 31, 2006.

Concur reported total revenue for the first quarter of fiscal 2007 of $29.2 million, driven by subscription revenue which was up 68% from the year-ago quarter. Total revenue for the quarter was up 52% from the year-ago quarter and up 6% sequentially. Fiscal 2007 first quarter net income, which includes a provision for income taxes of $1.4 million, was $1.0 million, or $0.02 per share, and was above company expectations. This compares to net income of $0.6 million, or $0.02 per share, in the year-ago quarter, which did not require a full provision for income taxes.
"We started fiscal 2007 with an exceptional quarter, as we exceeded our revenue, gross margin, operating margin and earnings targets. Even as we invested across the business to drive better than 50% top line growth, we were able to grow operating margin by 74%," said Steve Singh, chairman and CEO of Concur Technologies. "New customer growth continued to be strong across the breadth of our services and we are pleased with the demand environment. In particular, customers continue to embrace the value proposition and end user benefits of our end-to-end travel and expense service."
Singh continued, "As we look ahead, we remain focused on aggressively growing top line revenue while maintaining our operating leverage. To support this objective, we will continue to invest in expanding our distribution and market reach while delivering new services and innovations that not only set the standard in the travel and expense market, but also raise our market-leading standard for high quality on-demand services."
Financial Highlights

• Total revenue was $29.2 million for the first quarter of fiscal 2007, up 52% compared to the year-ago quarter and up 6% sequentially.

• Concur signed contracts with new and existing customers, including Atmel Corporation, Brown Brothers Harriman & Co., Cadence Design Systems, Inc., Choice Hotels International, Dresdner Kleinwort, HarbourVest Partners LLC, Highmark, Inc., IKON Office Solutions, Inc., NDS Ltd, Overland Solutions, Inc., Replidyne, Inc. and Virtual Radiologic Corporation.
  
• Concur successfully completed its largest on-demand service deployment, with over 180,000 employees of a leading global financial institution now generating over 1.5 million transactions per year.

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 $29.5 million for the second quarter of fiscal 2007, and to be between $121 million and $125 million for fiscal 2007.

Concur Technologies, Inc. is the world's leading provider of on-demand Corporate Expense Management services. Concur's end-to-end corporate travel and expense management service seamlessly unites online travel booking with automated expense reporting, controlling spend before it occurs while streamlining travel procurement and employee reimbursement. Concur's services also automate the process of managing vendor payments and employee check requests, eliminating paper, optimizing supplier relations and providing enhanced visibility. By providing a 360° view into all employee travel and procurement expenses, Concur's robust services help companies enforce policies and monitor vendor compliance, 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.

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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.