Concur Exceeds Expectations with First $100 Million Quarter

Company reports 25% year-over-year increase in revenue and continues to see strong customer demand in its core business

Redmond, Wash., Feb, 1, 2012 -- Concur (Nasdaq: CNQR), a leading provider of integrated travel and expense management services, today reported financial results for its first fiscal quarter ended December 31, 2011.

Concur reported total revenue for the first quarter of fiscal 2012 of $100.4 million. Total revenue for the quarter was up 25% from the year-ago quarter and up 5% from the prior quarter. Fiscal 2012 first quarter non-GAAP pre-tax income was $17.9 million, or $0.32 per share.

"Driven by the investments we made in the core business over the past few fiscal years, we recorded an exceptional first quarter of fiscal 2012, with revenue growing 25% year-over-year and EPS coming in ahead of our expectations,” said Steve Singh, chairman and CEO of Concur. "We are pleased with the performance of our business across the board and – driven by the strength of the first quarter of fiscal 2012 and our outlook for the remainder of the fiscal year – we are raising our growth expectations for the fiscal year as a whole."

Singh continued, "We entered calendar 2012 on a $400 million annual revenue run-rate and expect to exit calendar 2012 on a $500 million annual revenue run-rate. The demand environment remains robust and the investments we are making in fiscal 2012 and 2013 – as we look to double our distribution capacity and drive the innovation curve in our industry – are expected to help us continue to drive strong revenue growth in the years ahead."

Financial Highlights

  • Total revenue was $100.4 million for the first quarter of fiscal 2012, up 25% compared to the year-ago quarter, and up 5% sequentially.
  • Non-GAAP pre-tax income was $17.9 million, or $0.32 per share, for the first quarter of fiscal 2012, compared to $16.2 million, or $0.30 per share, for the year-ago quarter. Please refer to "About Concur's Non-GAAP Financial Measures" below for an explanation of our non-GAAP financial measures used in this press release.
  • Non-GAAP operating margin was 20% for the first quarter of fiscal 2012, compared to 22% for the year-ago quarter.
  • GAAP cash flows from operations were ahead of expectations at $6.4 million for the first quarter of fiscal 2012.
  • GAAP net loss was $0.9 million, or $0.02 per share, for the first quarter of fiscal 2012, compared to net income of $3.7 million, or $0.07 per share, for the year-ago quarter.

Recent Business Highlights

  • The travel and expense eco-system continues to embrace the Concur® Connect platform, which enables customers, suppliers, content aggregators, and developers to access and extend Concur’s travel and expense cloud. New developments that expand the capabilities of Concur’s platform include:
    • The addition and continued growth of TripIt’s open API, which grew to 1,200 developers, and includes recent innovations from HP, Frommers, FoodieBytes, FlyMuch and Avis.
    • An investment in Room77, which offers the most advanced hotel shopping experience on the Web today, allowing travelers to simultaneously compare prices across major travel sites, shop a variety of room types, and book more than 120,000 hotels worldwide.
    • An expanded investment in RideCharge, makers of TaxiMagic which allows corporate travel managers to control ground travel costs with electronic booking, payment, and expense management for taxi, sedan, limo and shuttle services throughout the US.
    • The general availability and first client deployment of Concurforce - the first natively integrated travel and expense management solution for the Salesforce Sales Cloud.
    • The release of Concur Salesforce® Connector, designed for existing Concur and salesforce.com customers interested in simplifying expense entry and gaining visibility into customer acquisition costs,
    • The launch of Concur’s mobile travel and expense management app on salesforce.com's AppExchange Mobile, making it among the first enterprise apps to leverage AppExchange Mobile.
  • Concur was the first to deliver mobile app capabilities that enable users to book and complete in-policy air reservations directly from any Android™, BlackBerry®, iPhone® or iPad® device.
  • Concur continued to expand its presence around the globe, with recent developments including:
  • A doubling of the company’s space in San Francisco, CA, to accommodate its continued growth in Silicon Valley.
  • The opening of a new facility in Frankfurt, Germany, to support its growing operations in the Central European market.
  • A new service center in Manila, Philippines, staffed by over 100 new employees and continuing to grow, set up to serve both the burgeoning APA market as well as the needs of Concur clients globally.
  • Concur announced a February, 2012 launch event in Tokyo, Japan, where close to 1,000 attendees are registered to see the debut of Concur's T&E expense management solution designed specifically for the Japanese market.
  • Concur chairman and CEO Steve Singh was an inaugural inductee into the Business Travel Hall of Fame, joining other business travel industry luminaries including American Express vice chairman Ed Gilligan, former American Airlines CEO Bob Crandall and Hertz chairman and CEO Frank Olson.
  • Concur chairman and CEO Steve Singh was once again named as one of Business Travel News’ Business Travel’s 25 Most Influential Executives, his ninth appearance on this list.
  • Concur chairman and CEO Steve Singh was recognized by Buying Business Travel Magazine as one of “the 20 people who have had the most influence in business travel technology over the past year”, joining Steve Jobs, Larry Page and Sir Tim Berners-Lee.
  • The launch of a partnership integration with Avis, making it easy for travelers to reserve a rental car using itinerary data, which ultimately helps Avis anticipate changes in the travelers' schedule.
  • Integration through Salesforce® Chatter and Yammer – helping employees collaborate their travel schedules and keep track of when and where colleagues are traveling.
  • TripIt for Android on the Amazon Appstore, which includes compatibility with Kindle Fire.
  • TripIt, the leading mobile trip organizer from Concur, announced a number of innovations and developments, including:

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 revenue for the second quarter of fiscal 2012 to grow approximately 25% year-over-year from the second quarter of fiscal 2011.
  • Concur raises expectations for fiscal 2012 revenue growth to 25.5% year-over-year from fiscal 2011
  • For the second quarter of fiscal 2012, Concur expects non-GAAP pre-tax income per share to be $0.28.  Non-GAAP pre-tax income excludes the effects of non-cash related items such as stock-based compensation expenses, amortization of intangible assets, and the accretion of the discount on our senior convertible notes.  It also excludes the non-cash accounting implications and cash fees and expenses of acquisitions and other related strategic activity in which the Company may deploy capital. 
  • Concur raises expectations for fiscal 2012 non-GAAP pre-tax income per share to $1.27.
  • Concur continues to expect fiscal 2012 non-GAAP operating margin to be 18% for the year as a whole.
  • Concur raises expectations for cash flows from operations in fiscal 2012 to be between $81 million and $85 million, excluding one-time acquisition and other related costs. The company continues to expect capital expenditures to be between $38 million and $42 million.

All company or product names are trademarks and/or registered trademarks of their respective owners.

This press release contains forward-looking statements that are inherently uncertain. These forward-looking statements, such as the statements made by Mr. Singh, 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 difficulties in connection with recent business and asset acquisitions, including achievement of the anticipated benefits of these acquisitions or the broader integration of such businesses with Concur; adverse economic or market conditions, which may cause customers and prospects to delay or reduce purchases of our products and services, cause customers to reduce business travel and correspondingly reduce the use of our products and services, reduce the ability of customers, channel partners, vendors and suppliers to fulfill their obligations to us, increase volatility of our stock price and foreign exchange rates, and otherwise adversely affect our operations and financial performance; 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 and security of the hosting infrastructure for our subscription service offerings; risks associated with the privacy and protection of information while in our possession; 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 or difficulties associated with expansion into new geographic markets; uncertain market acceptance of recently-introduced or future products and services; and risks associated with our financing activities.

Please refer to the company's public filings made with the Securities and Exchange Commission at 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.

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