Concur Technologies Inc (CNQR) reported total revenue for the first quarter of fiscal 2010 of $67.7 million. Total revenue for the quarter was up 16% from the year-ago quarter and up 4% from the prior quarter. Fiscal 2010 first quarter net income was $6.5 million, or 12 cents per share, exceeding company expectations.
Revenue reached an all time high at $68.7 million driven by 4% quarter-over-quarter growth in subscription revenue. Based on the data from prior recession, it is expected to take at least until 2011 for travel spending to fully recover.
The company plans to expand its customer base in the markets it currently serves and expand into new markets. It will continue serving the needs of emerging businesses, and expand the breadth of services it can offer to its existing customers. Consistent with this view, it has significantly ramped up its investments against the available opportunities.
Concur entered into a long-term global strategic alliance with Amadeus, a leading global technology and distribution partner to the travel industry, to bring key technologies together for a combined travel and expense management solution and to extend both companies’ core offerings.
In support of Concur Travel & Expense service the company has also invested aggressively to build out the global connect network, which connects its 10,000 plus customers spending more than $35 billion annually, to providing content and electronic receipt from hundreds of suppliers. The company is reducing operating cost and providing more value to the business traveler.
Concur and American Express Business Travel, a leading provider of global travel management services and expertise, announced a global agreement that offers clients one comprehensive corporate travel and expense management program. This extends Concur’s successful relationship with American Express through the agreement previously announced with American Express’s Global Commercial Card business.
The company introduced Concur Mobile for BlackBerry, Windows Mobile and iPhone platform. Concur Mobile extends the power of its service by giving customers the capacity to change flight, book taxies, hotels or dining, capital expenses and approve expense from their handheld devices, while on the road. With filtration, the smart phones and the mobile applications, mobile phones because of all practical purposes are becoming purchasing and payment instruments. There is a tremendous opportunity to deliver value to customers by integrating a wide range of mobile applications into its technology platform. Over the long term, mobile platforms and applications are expected to provide for new and incremental revenue and earnings growth opportunity.
Cash Flow, Balance Sheet and Guidance
Cash flows from operations were $14.1 million for the first quarter of fiscal 2010, up 276% from the year-ago quarter.
At the end of the quarter, cash and equivalents were $259 million with zero long-term debt and stockowners’ equity of $532 million. Concur expects net income per share for the second quarter of fiscal 2010 to be $0.10, assuming an estimated effective tax rate of 36.5%.
Concur expects net income per share for fiscal 2010 to be $0.52, assuming an estimated effective tax rate of 36.5%. Concur Technologies, Inc. provides on-demand employee-spend management solutions worldwide. The company’s software solutions include Concur Travel & Expense, which integrates online travel booking with automated expense reporting, to provide corporate travel procurement and expense reporting; Concur Expense, which automates, simplifies, reduces the cost, and enhances internal controls associated with the travel and entertainment expense management process; Concur Cliqbook Travel, the online travel management solution that automates corporate travel procurement and processing; and Concur Invoice, which enables companies to streamline payment requests, facilitating flexible approval processes and automatic updating of accounts payable systems.
Major competitors are Compuware Corporation (CPWR) and Oracle Corporation (ORCL).
We currently have a Neutral recommendation on CNQR.
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