Concur Reports Strong Revenue, Earnings and Cash Flow for Fiscal 2012 Increasing customer demand in core business and new markets expected to drive continued strong revenue growth of 25% in fiscal 2013

REDMOND, Wash., Nov. 7, 2012 /PRNewswire/ -- Concur (Nasdaq: CNQR) today reported financial results for its fourth quarter and fiscal year ended September 30, 2012.

Concur reported total revenue for the fourth quarter of fiscal 2012 of $117.9 million, up 24% from the year-ago quarter and up 4% from the prior quarter. Fiscal 2012 fourth quarter non-GAAP pre-tax income was $23.1 million, or $0.40 per share. 

For the full 2012 fiscal year, revenue increased 26% from the prior fiscal year to $439.8 million, and non-GAAP pre-tax income increased 19% from the prior fiscal year to $78.7 million, or $1.39 per share.

"Driven by the investments we made over the past few years, we continue to meet or exceed our targets on key financial metrics such as revenue, non-GAAP operating margin, non-GAAP earnings and cash flow," said Steve Singh, Chairman and CEO of Concur. "Just as importantly, those investments are meaningfully expanding the addressable market we can serve and driving the innovation curve in our industry.  As a result, we expect revenue in fiscal 2013 to grow by 25% fueled by strong customer growth across all geographies, notably the SMB and global account market segments."

Singh continued, "Concur's vision of The Perfect Trip is built on creating a travel ecosystem that dynamically responds to the needs of business travelers, the companies that they work for and the suppliers that serve them.  Innovations such as Concur Open Booking and the Concur T&E Cloud are transforming our industry, and have been enthusiastically embraced by customers, suppliers and application developers.  We are enabling the success of partners and application providers through the Concur T&E Cloud and fostering innovation through investments in companies such as TaxiMagic, ClearTrip, Yapta, Room 77 and buuteeq."

Financial Highlights

  • Total revenue was $117.9 million for the fourth quarter of fiscal 2012, up 24% compared to the year-ago quarter, and up 4% sequentially.
  • Non-GAAP pre-tax income was $23.1 million, or $0.40 per share, for the fourth quarter of fiscal 2012, compared to $20.5 million, or $0.37 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 21% for the fourth quarter of fiscal 2012, compared to 24% for the year-ago quarter.
  • GAAP cash flow from operations of $37.0 million was ahead of our expectations for the fourth quarter of fiscal 2012.
  • GAAP net loss attributable to Concur was $8.2 million, or $0.15 net loss per share, for the fourth quarter of fiscal 2012, compared to $14.0 million, or $0.26 net loss per share, for the year-ago quarter.
  • Total revenue was $439.8 million for fiscal 2012, up 26% year-over-year.
  • Non-GAAP pretax income was $78.7 million, or $1.39 per share, for fiscal 2012, compared to $66.3 million, or $1.20 per share, for fiscal 2011.
  • Non-GAAP operating margin was 20% for fiscal 2012, compared to 21% for fiscal 2011.
  • GAAP cash flow from operations was $93.6 million for fiscal 2012, an increase of 22% compared to fiscal 2011.
  • GAAP net loss attributable to Concur was $7.0 million, or $0.13 net loss per share, for fiscal 2012, compared to $10.7 million, or $0.20 net loss per share, for fiscal 2011.

Recent Business Highlights

  • Concur is revolutionizing the corporate travel industry by continuing to drive innovation for travelers, businesses and suppliers to fuel The Perfect Trip™. Recent highlights delivered against this vision – supported by The Concur® T&E Cloud, Concur® Open Booking and Concur® Big Data – include:
    • Concur unveiled Trip Maximizer for Concurforce, the Concur travel and expense management offering designed for Salesforce that now enhances the entire process of planning, booking and conducting business travel for employees who need to visit with prospects and clients in the field.
    • Concur announced cloud-to-cloud integration with NetSuite where completed and approved T&E expense reports feed directly into the NetSuite Employee Center, making comprehensive and accurate T&E spend data available through NetSuite's Accounts Payable and General Ledger services.
    • Concur co-led a $10 million funding round for buuteeq, the leading cloud digital marketing system for hotels, which helps hotels of all sizes, anywhere in the world reach their customers, and drives ongoing benefits for Concur corporate clients who want to deliver the broadest array of corporate-approved choices to their business travelers.
  • Concur extended its leadership position in the travel and expense management market, adding a record number of new clients across its global customer base. 
    • The Company saw particular strength adding new customers and expanding deployments within its core enterprise customer segment. 
    • Concur continues to experience rapid growth in the SMB market as these businesses look to capitalize on the benefits of an integrated solution. 
    • The success of emerging markets such as Japan helped fuel the expansion of Concur's global customer base and created new opportunities for future revenue growth.
  • Concur is now actively selling its services to U.S. government agencies as the sole provider to power the U.S. General Services Administration (GSA) program for managing online bookings, travel authorizations and voucher processing for U.S. government agencies. Concur's sole provider award was recently upheld by the U.S. General Accounting Office, which allowed Concur to begin selling its services into the 93 GSA-covered agencies despite a post-award bid protest filed by another provider.
  • Concur continues to see momentum in helping higher education clients drive down the costs of travel and expense management – recently showcasing industry-leading innovation, a new partnership with Huron Consulting Group and higher education client successes at the 2012 Society for Collegiate Travel and Expense Management (SCTEM) Conference.
  • Concur announced strong adoption and continued success of its Advisor Program – which provides accounting professionals with the tools, training and support to help them add Concur solutions service to their practice. To date, the program has enabled more than 3,000 accounting professionals and SMB consultants to bring greater value to their small business customers by introducing them to Concur expense reporting solutions that help save time, minimize hassles, control spending, optimize cash flow management and prevent fraud.

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 first quarter of fiscal 2013 to grow approximately 21% year-over-year from the first quarter of fiscal 2012. For the first quarter of fiscal 2013, Concur expects non-GAAP pre-tax income per share to be $0.30.  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 expects fiscal 2013 revenue to grow approximately 25% year-over-year from fiscal 2012.
  • Concur expects fiscal 2013 non-GAAP pre-tax income per share to be at least $1.40.
  • Concur expects fiscal 2013 non-GAAP operating margin to be approximately 16% to 19%.
  • Concur expects cash flows from operations in fiscal 2013 to be at least $80 million, excluding the TripIt contingent consideration reconciliation, acquisition and other related costs. The Company expects capital expenditures in fiscal 2013 to be slightly greater than its typical range of 6% to 8% of revenue.

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 our computer networks and 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 and investment activities.