Concur Beats Q3 Earnings, Misses on Rev - Analyst Blog

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Concur Technologies ( CNQR ) 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 quarter.

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 commercial business.

Revenue

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 $139 million.

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 quarter.

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 quarter.

Outlook

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 year

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 activities.

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 revenues.

Concur currently carries a Zacks Rank #3 (Hold). Some other companies worth considering include Aspen Technology, Inc. ( AZPN ), Manhattan Associates, Inc. ( MANH ) and PROS Holdings, Inc. ( PRO ). All these stocks have a Zacks Rank #1 (Strong Buy).



ASPEN TECH INC (AZPN): Free Stock Analysis Report

CONCUR TECH INC (CNQR): Free Stock Analysis Report

MANHATTAN ASOC (MANH): Free Stock Analysis Report

PROS HOLDINGS (PRO): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Earnings , Stocks

Referenced Stocks: AZPN , CNQR , MANH , PRO

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