Thanks in large part to its subscription and services revenue growth, Concur Technologies Inc. , a corporate expense management ASP and ISV (independent software provider), reported its highest quarterly revenue ever.
For fiscal 2003 first quarter, which ended on Dec. 31, 2002, Concur reported net revenues of $14.6 million, up 41 percent from the first quarter of fiscal 2002.
The Redmond, Wash.-based company also reported that it has reach earnings per share (EPS) breakeven and that for the second consecutive quarter it is cash-flow positive. Its EPS breakeven position compares to a loss of $0.16 per share for the first quarter of fiscal 2002 (which ended Dec. 31, 2001).
“The company crossed a significant milestone in turning EPS breakeven and generating $1 million in cash flow from operations,” said Steve Singh, chairman and CEO for Concur.
Singh said during a conference call with analysts and the press Wednesday that this quarter’s results also mark 10 consecutive quarters in which the company has “met or exceeded guidance.”
“The ASP business is growing quickly,” Elena Donio, Concur’s vice president of sales and marketing, told ASPnews. “We went from breakeven to a 38 percent increase in two quarters.” Compared to the same quarter in 2001, ASP revenues have more than doubled — going from $2 million in the first quarter 2002 to $4.9 million in the quarter that just ended, according to company-released figures.
Donio said the company expects growth to continue in both the midmarket and large-business market. Its acquisition of Captura last August gives it a strong foothold up-market with the addition of customers such as Ford and General Motors (see Concur Technologies Acquires Captura).
Donio also said that Concur’s renewal rates for subscriptions is in the high 90 percent area.
“The ASP business is performing ahead of expectations,” Singh said. “Long-term there lots of room for upside.” Singh said that due to the scalability of hosting infrastructure, with “each customer we become more profitable as a company.”
Singh also credited Concur’s subscription services success to reseller partnerships with ADP and Microsoft Business Solutions, which have resulted in nearly 500 ASP customers of Concur Expense.
Concur is also starting to see revenue from Concur Imaging Service, which it launched last June. Employees fax receipts and invoices (along with bar-coded cover sheets) to a designated telephone number. Employees and managers can them view then in 60 seconds, according to Donio. The service has been aimed at large companies, but Concur plans to offer the imaging service to midmarket customers in the May timeframe, she said.
Pricing for the imaging service varies according to the plan the customer chooses, Donio said, but roughly customers pay about $1-$2 per report (which could contain several receipts).
Concur currently has 10 customers of its hosted imaging services, Singh said. He added that it takes two to four months to deploy and about half the customers are currently live.
Concur also announced a stock buy-back program that allows the company to repurchase up to one million shares of its currently outstanding common stock over the next two years. According to a statement released by the company’s board of directors, the stock buy-back program demonstrates Concur’s commitment to enhance long-term stockholder value.
Asked about the timing of the stock buy-back, Singh said, “We’re comfortable with the business outlook and our ability to generate cash from operations.”
Concur offered the following guidance for the second of fiscal year 2003:
- Total net revenues are expected to be between $14.3 and $14.9 million
for the second quarter of fiscal 2003, and between $61.4 and
$62.0 million for fiscal 2003. - Total cost of revenues is expected to be between $6.2 and
$6.5 million for the second quarter of fiscal 2003, and between
$24.8 and $25.3 million for fiscal 2003. - Total operating expenses are expected to be between $8.2 and
$8.8 million for the second quarter of fiscal 2003, and between
$34.6 and $35.0 million for fiscal 2003. - Earnings per share on a GAAP basis are expected to be between $(0.01)
and $0.02 for the second quarter of fiscal 2003, and between $0.05 and
$0.07 for fiscal 2003.
Concur is listed by ASPnews as a Top 20 Service Provider.
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