Concur Exceeds Revenue and Earnings Expectations for Second Quarter of Fiscal 2012 Company reports 28% increase in year-over-year revenue and raises expectations for fiscal 2012 revenue, operating margin, earnings, and cash flow

REDMOND, Wash., May 2, 2012 /PRNewswire/ -- Concur (Nasdaq: CNQR), a leading provider of integrated travel and expense management services, today reported financial results for its second fiscal quarter ended March 31, 2012.

Concur reported total revenue for the second quarter of fiscal 2012 of $108.4 million, up 28% from the year-ago quarter and up 8% from the prior quarter. Fiscal 2012 second quarter non-GAAP pre-tax income was $18.5 million, or $0.33 per share.

"Our results were exceptionally strong in the second quarter of fiscal 2012. We beat our expectations across all key metrics and are raising our full-year business outlook for revenue, operating margin, earnings and cash flow," said Steve Singh, chairman and CEO of Concur. "Our core business continues to perform ahead of our expectations across all geographies and channels, with better-than-expected contributions from new growth initiatives including the SMB and unmanaged travel markets, as well as India and Japan. The higher-than-expected full-year business outlook for operating margin and earnings is primarily driven by higher-than-expected revenue performance."

Singh continued, "New customer demand was well ahead of our expectations and we expect to see a solid demand environment across all geographies for the remainder of the fiscal year. With the first half of the fiscal year now behind us, we remain on course for exiting calendar 2012 on a $500 million annual revenue run-rate. We are pleased with the progress we are making against our investment objectives as we look to double our distribution capacity and drive the innovation curve in our industry – and expect these investments to help us continue to drive strong revenue growth in the years ahead."

Financial Highlights

  • Total revenue was $108.4 million for the second quarter of fiscal 2012, up 28% compared to the year-ago quarter, and up 8% sequentially.
  • Non-GAAP pre-tax income was $18.5 million, or $0.33 per share, for the second quarter of fiscal 2012, compared to $13.6 million, or $0.25 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 18.5% for the second quarter of fiscal 2012, compared to 17.9% for the year-ago quarter.
  • GAAP cash flows from operations were ahead of our expectations at $25.1 million for the second quarter of fiscal 2012.
  • GAAP net loss was $4.8 million, or $0.09 per share, for the second quarter of fiscal 2012, compared to GAAP net loss of $2.6 million, or $0.05 per share, for the year-ago quarter.

Recent Business Highlights

  • Concur's T&E Cloud continues to deliver enhanced value to clients by enabling the entire travel and expense eco-system – including customers, suppliers, content aggregators, and developers – to access and extend the Concur® Connect platform. New developments that expand the capabilities of Concur's platform include:
    • Leading solution providers AdvantageMS, Healthcare Data Solutions, MedPro Systems, Porzio Pharmaceutical Services and R-Squared announced connections to the T&E Cloud via Concur Connect to provide access to enhanced capabilities that support compliance with the Patient Protection and Affordable Care Act, commonly known as the Sunshine Act.
    • Leading ground transportation booking content providers GroundSpan, GroundScope, and initiated access to diverse and unique content for Concur clients directly through Concur's T&E Cloud.  Concur also announced that long-time partner RideCharge, provider of Taxi Magic, plans to expand access to local ground transportation through its new ground offering Sedan Magic.
  • Nearly 2.5 million travelers are now using Concur's mobile applications to organize, share their trips, book air, rail, car travel, and hotel rooms and manage their expenses.
  • Concur Japan hosted the launch of its expense management solution developed specifically to meet the demands of the Japanese market. Among the approximately 1,000 attendees were some of the largest companies in the world – many of whom are also based in Japan and are turning to cloud computing and mobile solutions to help them control expenses.
  • Leveraging big data inherent in Concur's T&E Cloud, Concur is delivering a wide range of services including its second global report on corporate travel and entertainment (T&E) spend. Produced from a detailed analysis of more than 500 million expense line items from its corporate clients – which represents more than $50 billion in T&E spend – this industry-leading report offers unique insight into global and regional spending trends.
  • Concur's sold out Fusion – the company's premier client event – will take place May 8-11, 2012 in Orlando, Florida. Highlights will include:
    • A record 1,600 total attendees, including clients from all over the world, partners, and travel and expense management experts from Concur.
    • Over 40 partners to exhibit the enhanced value they deliver to clients through Concur's T&E Cloud.
    • Keynote from Walter Isaacson – former chairman and CEO of CNN, editor of TIME magazine, and biographer of America's most innovative minds – to share his enormous life experience with attendees.
  • TripIt, the leading mobile trip organizer from Concur, announced a number of innovations and developments, including:
    • Personalized recommendations which enable travelers to easily book a hotel, get deals on nearby activities, and organize trip plans.
    • Updates for TripIt in the Android Marketplace, which gives travelers with any Android tablet an easy way to access all their trip plans and past trips, along with interactive maps, all in one place.
    • Personalized map search which makes it easy to add nearby places to a trip itinerary on and create trip plans from a map that displays everything in one place.
    • Launched last year – and already used by over 1,000 clients of all sizes – TripIt For Business now includes enhancements that provide small business travelers, travel coordinators and colleagues with access to office travel plans in one place, along with real-time visibility into travel spend and trends.
  • Concur continues to expand its relationship with privately-held ClearTrip, India's leading online travel portal:
    • Concur's travel, expense and pre-trip authorization capabilities are now integrated into Cleartrip's content and fulfillment services.
    • Concur's clients in India – along with all Concur global clients – will have access to a broad selection of travel content from Indian hotels and low-cost carriers.
    • In April, Concur exercised a warrant to increase its strategic investment in ClearTrip.

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 third quarter of fiscal 2012 to grow approximately 25.5% year-over-year from the third quarter of fiscal 2011.
  • Concur raises expectations for fiscal 2012 revenue growth to approximately 26% year-over-year from fiscal 2011.
  • Concur now expects fiscal 2012 non-GAAP operating margin to be 18.5%, up from 18%, for the year as a whole.
  • For the third quarter of fiscal 2012, Concur expects non-GAAP pre-tax income per share to be $0.31.  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 $1.31.
  • Concur raises expectations for cash flows from operations in fiscal 2012 to be between $84 million and $88 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.