Concur Q1 Earnings Beat Ests - Analyst Blog

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Concur Technologies ( CNQR ) reported first-quarter fiscal 2014 non-GAAP earnings (excluding one-time items) of 21 cents per share compared with the Zacks Consensus Estimate of net loss of 9 cents per share. However, earnings declined 30% year over year.

On GAAP basis, the company's pre-tax income came in at $24.2 million or 43 cents per share, which was almost flat on a year-over-year basis.

Growth in the company's core business primarily drove the non-GAAP earnings. Moreover, Concur signed more than 1,000 new customers in the first quarter. The increase was primarily attributable to the company's ongoing "Perfect Trip" innovation, which led to expansion of several new services. This apart, the company witnessed a strong momentum in its open platform initiatives as customers, travelers, developers and partners embraced TripLink™ and the Concur T&E Cloud.


Revenues

Concur reported total revenue of $160.3 million, up 31% year over year and 4% sequentially. Increase in revenues was driven by strong performance of the company's travel business, in turn attributable to the Perfect Trip Initiative. Revenues beat the Zacks Consensus Estimate of $156 million by 2.8%.

Income and Expenses

Operating loss for the quarter was $19.1 million compared with a loss of $8.3 million in the prior-year quarter. Consequently, margins also fell to 9.6% from 15.4% in the prior-year quarter. The increase in loss was primarily attributable to higher expenses.

Sales and marketing expenses were $73.1 million; up 33.2% year over year from $54.9 million, while general and administration expenses were $24.9 million versus $19.6 million in the prior-year quarter.

Balance Sheet and Cash Flow

Cash and cash equivalents were $406.2 million at quarter-end, compared with $301.7 million at the end of Sep 30, 2013. The company reported total equity of $826.6 million, compared with $818.1 million at the end of prior-year quarter.

The cash flow from operating activities increased to $12.1 from $5.0 million in the prior-year quarter.

Outlook

Along with the earnings release, management provided guidance for the second-quarter and for entire fiscal 2014.

Concur expects non-GAAP revenue for the second quarter of fiscal 2014 to grow about 30% year-over-year and expects non-GAAP pre-tax income per share to be at 14 cents a share.

For fiscal 2014, non-GAAP revenue is expected to grow approximately 26% year-over-year and non-GAAP pre-tax income per share is projected to be at least 93 cents a share. For full-year 2014, the company expects non-GAAP operating margin to be in the range of 10% to 14%. Cash flow from operations in fiscal 2014 is predicted to be at least $72 million, while capital expenditures are expected to be 8% to 9% of fiscal 2014 revenue.

Concur currently holds a Zacks Rank #2 (Buy). Some other stocks worth considering in the computer and software sector include American Software, Inc. ( AMSWA ), Open Text Corp. ( OTEX ) and Check Point Software Technologies Ltd. ( CHKP ). While American Software and Open Text hold a Zacks Rank #1 (Strong Buy), Check Point Software carries a Zacks Rank #2.



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CONCUR TECH INC (CNQR): 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: AMSWA , CHKP , CNQR , OTEX

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