) reported third-quarter fiscal 2013 earnings of $2.8 million or
5 cents per share, beating the Zacks Consensus Estimate by a
penny. The company reported pre-tax income of $6.8 million,
compared with a pre-tax loss of $2.4 million in the year-ago
On a non-GAAP basis, the company's pre-tax income came in at
22.4 million or 39 cents per share, compared with $19.2 million
or 34 cents per share in the year-ago quarter.
Growth in the company's core business primarily drove the GAAP
earnings. Moreover, Concur signed more than 100 new Open Bookings
customers. The booking strength was primarily attributable to
better-than-expected momentum in the company's federal
government, ETS2 contract and continued strength in the
Concur reported total revenue of $138.7 million, up 23% year
over year and 9% sequentially, driven by increased transaction
volumes and addition of new services for existing customers.
Additionally, strong performances from the SMB market segment and
the Enterprise market segment contributed to top-line growth.
However, revenues marginally missed Zacks Consensus Estimate of
Income and Expenses
Non-GAAP operating income was $24.5 million, compared with
$21.4 million in the prior-year quarter. However, margins fell
130 basis points to 17.6%, compared with the prior-year
Non-GAAP sales and marketing expenses were $52.4 million, up
35% year over year from $38.7 million, while general and
administration expense was $14.9 million versus $13.4 million in
the prior-year quarter.
Balance Sheet and Cash Flow
Cash and cash equivalents were $496.9 million at the
quarter-end, compared with $302.3 million at the end of Sep 30,
2012. The company reported total equity of $804.2 million,
compared with $741.1 million as of Sep 30, 2012. Net cash from
operating activities was $28 million in the third quarter of
fiscal 2013 versus $25.1 million in the comparable prior-year
Along with the earnings release, management provided guidance
for the fourth quarter of fiscal 2013 and updated the guidance
for full-year fiscal 2013. Revenues for the fourth quarter of
fiscal 2013 are expected to grow approximately 29% year over
For the fourth quarter, Concur expects non-GAAP pre-tax income
per share to be 39 cents. The figure 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
non-cash accounting implications and cash fees as well as
expenses of acquisitions and other related strategic
Concur expects revenues for full fiscal 2013 to grow
approximately 23% year over year. Full fiscal 2013 non-GAAP
pretax income per share is expected to be at least $1.32, while
non-GAAP operating margin approximately 16%.
Cash flow from operations in fiscal 2013 is expected to be at
least $79 million, excluding the TripIt contingent consideration
settlement, excess tax benefits from share-based compensation and
acquisition and other related costs. Capital expenditures for the
year will likely nudge up and range from 6% to 8% of fiscal 2013
Concur currently carries a Zacks Rank #3 (Hold). Some other
companies worth considering include
Aspen Technology, Inc.
Manhattan Associates, Inc.
PROS Holdings, Inc.
). All these stocks have a Zacks Rank #1 (Strong Buy).
ASPEN TECH INC (AZPN): Free Stock Analysis
CONCUR TECH INC (CNQR): Free Stock Analysis
MANHATTAN ASOC (MANH): Free Stock Analysis
PROS HOLDINGS (PRO): Free Stock Analysis
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